The Four Wheeler Aftermarket service industry in Egypt recorded a CAGR of ~xx% on the basis of revenue in between 2016 and 2021. The automobile industry in general, is currently in its growth stage in the country. While the industry began more than 60 years ago, the market is highly under-penetrated with less than 50 people per 1000 population owning a car. Consequently, the relative youth of this industry also provides growth prospects for its allied sector that is the aftermarket.
A boom in Egypt’s automotive
aftermarket industry is being fuelled by a burgeoning population, vehicle sales
growth and government moves to combat auto emissions. The combination of these
factors, against a backdrop of post-pandemic economic growth, has accelerated
the Egyptian market for car spare parts, accessories, and vehicle components.
Egypt Automotive
Aftermarket Market started way
back in 1961, when the Egyptian government founded the first automobile company
in the country called 'El Nasr Automotive Manufacturing Company'. Currently,
there are xx car-manufacturers in Egypt with more than xx car assembly
factories and xx facilities in the country providing jobs to over xx
individuals.
Egypt is also taking bold steps
to replace internal combustion engines with more environmentally friendly
alternatives. Last year the government announced an initiative to encourage
consumers to replace old vehicles for new ones operating on CNG engines with
extended credit facilities among its green program incentives.
Egypt’s automotive aftermarket is
accelerating and has been dubbed “one of Africa’s most exciting markets” as its
motoring population and vehicle sales grow. The growth has fed into the
aftermarket, with the country now being home to one of Africa’s largest vehicle
fleets with around six million vehicles on the country’s roads.
Egypt Four
Wheeler Aftermarket Service Industry SIZE, 2016-2021
Four Wheeler aftermarket services
industry in Egypt generated a revenue of USD xx million in FY’21 growing at a
CAGR of xx% during FY’16 and FY’21. A boom in Egypt’s automotive aftermarket
industry is being fuelled by a burgeoning population, vehicle sales growth and
government moves to combat auto emissions. The combination of these factors,
against a backdrop of post-pandemic economic growth, has accelerated the
Egyptian market for car spare parts, accessories, and vehicle components.
The number of vehicles serviced
in Egypt surged in 2021 with a Y-o-Y of xx% from 2020. Egypt’s four wheeler
aftermarket service industry grew at a CAGR of xx% during 2016 and 2021 on the
basis of number of vehicles serviced in the given time period. This growth is
mainly driven by population spike, vehicles sales, strong economy and foreign
investment.
Egypt Four Wheeler Aftermarket Service Industry Segmentation, 2016-2021
Egypt Four Wheeler Aftermarket
can be segmented on the basis of the type of Workshop, type of vehicle, age of
car, region, car brand, booking mode, and service split.
By Type of
Workshop: Multi-brand
workshops dominated the aftermarket service industry in 2021 with a share of
xx% as compared to OEMs which could only contribute xx% of the market.
Consumers preferred multi-brand workshops for servicing and maintenance
requirements of their vehicles due to its ease of access and general
availability coupled with lower priced services they offer.
By
Region: Greater
Cairo (Cairo + Giza) region of Egypt dominated the automotive aftermarket with
a share of xx% in 2021 on the basis of revenue generated. Egypt’s
importer/distributor landscape is a mix of small and large companies, most of
which are based in Cairo.
By Booking
Mode: Due to the
large presence of organized Multibrand players in Egypt, offline booking mode
was the preferred choice of consumers as they conducted workshops only through
offline booking as of 2021.
By Car
Brand: Revenue
generated from aftermarket services of vehicle models of Chevrolet and Hyundai,
cumulatively accounted for the highest share of xx% in 2021.
By Service
Split: Revenue
generated from mechanical and electrical vehicle services stood at USD xx
million, accounting for the highest share of xx% in 2021.
Spare Parts
Landscape in EGYPT
Egypt’s spare parts aftermarket
industry generated a revenue of USD ~XX million in FY’21, expanding at a CAGR
of XX% in between FY’16 and FY’21. Spike in population, vehicles sales,
strong economy and foreign investment has accelerated the Egyptian market for
car spare parts, accessories, and vehicle components. Egypt’s automobile spare
parts market has witnessed a lull in demand during the current period, despite
dealers making many discounts on products available. Egypt is considered to be
the hub for automotive spare parts and services. Major spare parts suppliers in
Egypt include Sachs, Hengst, DONGIL, Valeo, Mobis, Mando, VARTA, among others.
Spare Parts Aftermarket can be
segmented on the basis of Expenditure Category: Spare Parts and Consumables and
Services. Xx% of the market is captured by Spare Parts and Consumables whereas
Services captures xx% of the aftermarket in Egypt.
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Competitive
Landscape in Egypt Four wheeler Aftermarket Service Industry, FY’21
The competition structure in
Egypt four wheeler aftermarket service industry is fragmented in nature with no
single player accounting for majority of the market share. There is High
Competitive Rivalry as there are a lot of players in the market currently.
Players in this space have a wide presence nationwide, along with competitive
pricing and a wide portfolio of spare part and service employees. Rights for
OEM servicing are available with brands who have exclusive distributorship in
the country.
The competition in aftermarket
industry is segregated between OEMs, and Multi Brand workshops. Both of these
workshops compete on the basis of services offered, Model of operations,
quality of service, sourcing of spare parts, and booking mode. With car-makers
offering warranties of upto 5 years on new vehicles, people are using
OEM-outlets as well actively for having their cars serviced. Switches to
organized multi-brand/unorganized multi-brand centers happen mostly when the
warranty period of the car has run out. Players like Ghabbour Auto Group,
Al-Mansour Automotive, Ezz-Elarab Automotive Group, etc are providing car care
services in Egypt. Also there are more players coming in the market, especially
the Chinese like Car Viseta, MAYDAY Assistance Services, 7 Cylinders, etc.
Future
outlook of Industry
The market size on the basis of
revenue is expected to grow at a CAGR of XX% increasing from USD XX million in
FY’21 to USD XX million in FY’27. Number of Four-Wheeler Parcs in Egypt is
expected to expand at a CAGR of ~XX% in between 2021 and 2027E. Passenger
vehicle sales is estimated to surge rapidly, attributed to growing purchasing
power of the consumers in Egypt. Also, there are lots of opportunities for
e-vehicles in Egypt, considering high urban density, and Egypt's potential for
local production.
The Egyptian aftermarket is ripe
for growth and to offer up great opportunities for parts producers,
distributors, and service providers. But the increasing competition from local
producers may mean overseas suppliers will need to invest in their own on-the-ground
structures or seek out ways to add value locally to increase market shares.
Four Wheeler aftermarket service
industry in Egypt is estimated to generate a revenue of USD xx in 2027. Four
Wheeler Aftermarket Service Industry in Egypt is estimated to expand at a CAGR
of xx% in between 2021 and 2027E owing to increased population, vehicle sales
growth, and government initiatives to reduce carbon emissions. E-commerce is
fast emerging as a significant aftermarket force through highly visible
platforms such as Odiggo, Egyparts and Amazon Egypt.
Key Topics
Covered in the Report
- Egypt Four Wheeler Aftermarket Service Industry Growth Rate
- Ecosystem of Major Entities in Egypt Four
Wheeler Aftermarket Service Industry
- Comparison of Egypt Automotive Industry with
other Countries
- Market Size on the basis of Revenue and Number
of Vehicles Serviced, FY’16-FY’21
- Vehicle Parc in Egypt, FY’16-FY’21
- Egypt Four Wheeler Aftermarket Service
Industry Segmentation, FY’21
- Comparison of Top Offline Workshops for Car
Servicing in Egypt
- Analysis of Multi-Brand and OEM Workshops in
Egypt
- Spare Parts Landscape in Egypt
- Operating Model of Spare parts in Egypt
- Market Size of Spare Parts Aftermarket in
Egypt
- Ecosystem of Major Entities in Spare Parts and
Consumables Industry in Egypt
- Future Outlook of the Four Wheeler Aftermarket
Services Industry in Egypt
- Future Market Size on the basis of Revenue and
Number of Vehicles Serviced, 2021-2027E
- Future Market Size of Spare Parts Aftermarket
in Egypt
- Analyst Recommendation
- Industry Speaks
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