Egypt Four-Wheeler Automotive Aftermarket Service Industry Outlook to 2027: Driven by Burgeoning Population, Vehicle Sales Growth and Government Moves to Combat Auto Emissions

The report titled “Egypt Automotive Aftermarket Service Industry Outlook to 2027: Driven by burgeoning population, vehicle sales growth and government moves to combat auto emissions” provides a comprehensive analysis on the status of aftermarket service industry in Egypt. The report covers various aspects including automotive aftermarket service industry market size on the basis of revenue and number of vehicles serviced, ecosystem of major entities in aftermarket service industry in Egypt, trends & developments, issues & challenges faced by the industry, government regulations, SWOT Analysis, Porter 5 forces analysis, pain points in OEM and multi brand aftersales workshops, opportunities in OEM and multi brand aftermarket industry, market size of spare parts aftermarket industry in Egypt, ecosystem by different type of spare parts & consumables market, competition in OEM Workshops, and other aspects. Further, the report focuses on the Egypt Four Wheeler Aftermarket Service Industry Segmentation by Type of Workshop (Organized Multi-Brands and OEMs); by Type of Vehicle Serviced (Sedans, SUVs, Hatchbacks, MPVs and Crossover); by Age of Car (0-2 Years, 2-4 Years, 4-6 Years, 6-8 Years, Above 8 Years); by Region (Greater Cairo, Alexandria, Mansour, Delta and Suez Canal, and Others); by Booking Mode (Online, and offline); By Car Brand (Chevrolet, Toyota, Hyundai, Nissan, Kia, and Others); and by Service Split (Mechanical and Electrical, General, Body Care, Body Repair).

Egypt Four-Wheeler Aftermarket Service Industry report concludes with projections for the future of the industry including forecasted revenue and number of vehicles serviced by 2027, and analysts’ take on the future highlighting the major opportunities.

Egypt Four Wheeler Aftermarket Service Industry Overview:

The Four Wheeler Aftermarket service industry in Egypt recorded a CAGR of ~14.5% 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 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.

Drivers and Impediments to growth:

Egypt boasts of one of the largest vehicle fleets in Africa, with around 6 million vehicles on road of which 5.0 million are passenger cars which are primarily petrol-powered.

Egypt already has a steady base of cars using CNG (Compressed Natural Gas), and this number is very likely to increase going forward. Egypt happens to be the largest recipient of FDI (Foreign Direct Investment) in Africa for several years, driven by continuous economic and fiscal reforms. A growing trend has been observed in the Egyptian aftermarket in the e-commerce channel, with platforms such as Odiggo, Tawfiqia and Egyparts gaining visibility among the public. The Egyptian aftermarket is ripe for growth and to offer up great opportunities for parts producers, distributors, and service providers, local producers, suppliers, etc.

Egypt Spare Parts Aftermarket Industry

Egypt’s spare parts aftermarket industry has been expanding at a CAGR of ~24% 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.

Competitive Landscape in Egypt Four Wheeler Aftermarket Service Industry

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.

Egypt Four Wheeler Aftermarket Service Industry Future Outlook and Projections

The market size on the basis of revenue is expected to grow at a CAGR of ~19%. Number of Four-Wheeler Parcs in Egypt is expected to expand at a CAGR of ~5% 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.

Key Segments Covered in Egypt Four Wheeler Aftermarket Service Industry

Egypt Four Wheeler Aftermarket size by

• Revenue generated
• Number of Vehicles Serviced

Market Segmentation By Type of Workshop

• Organized Multi-Brands
• OEMs

Market Segmentation By Type of Vehicle Serviced

• Sedan
• SUV
• Hatchback
• MPVs
• Crossover

Market Segmentation By Age of Car

0-2 Years
2-4 Years
4-6 Years
6-8 Years

• Above 8 Years

Market Segmentation By Region

• Greater Cairo
• Alexandria
• Mansour, Delta and Suez Canal
• Others

Market Segmentation By Booking Mode

• Online
• Offline

Market Segmentation By Car Brand

• Chevrolet
• Toyota
• Hyundai
• Nissan
• Kia
• Others

Market Segmentation By Service Split

• Mechanical and Electrical
• General
• Body Care
• Body Repair
• Egypt Spare Parts Aftermarket Segmentation

By Expenditure Category

• Services
• Spare Parts & Consumables

Key Target Audience

• Automotive Companies
• OEM Vehicle Service Companies
• Multi Brand Vehicle Service Companies
• Automotive Spare Parts Companies

Time Period Captured in the Report:

• Historical Period: FY’2016-FY’2021
• Forecast Period: FY’2021-FY’2027

Automotive Aftermarket Service Companies in Egypt:

OEMs

• Ghabbour Auto Group
• Al-Mansour Automotive
• Abou Ghaly Motors
• Ezz-Elarab Automotive Group
• Kasrawy Group
• El-Nasr Automotive
• Star National Automotive
• El-Tarek Automotive
• National Motors

Organized Multi-Brand Players

• Car Viseta
• SIXT
• FMS Egypt
• MAYDAY Assistance Services
• 7 Cylinders
• Auto Zone
• Auto Spot Service Centre
• Car Clinic
• Spare-Part Importers
• SMG Engineering Automotive Company
• Ezzat Kamel Co.
• Tiba Auto Spare Parts
• El-Watania Auto Parts
• Ramtrade
• El-Magd
• Nossir Auto Parts
• A-Part

Key Topics Covered in the Report

• Egypt Four-Wheeler Aftermarket Service Industry Overview
• 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
• Trends and Developments in Egypt Four-Wheeler Automotive Aftermarket Services Industry
• Issues & Challenges in Egypt Four-Wheeler Automotive Aftermarket Services Industry
• SWOT Analysis for Egypt Four-Wheeler Automotive Aftermarket Services Industry
• Porter's 5 Forces Analysis for Egypt Four-Wheeler Automotive Aftermarket Services Industry
• Government Role & Regulations for Egypt Four-Wheeler Automotive Aftermarket Services Industry
• Pre-Requisites & Entry Barriers for Egypt Four-Wheeler Automotive Aftermarket Services Industry
• 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 Segmentation By Type of Workshop (Organized Multi-Brands and OEMs) and By Car Brand (Chevrolet, Toyota, Hyundai, Nissan, Kia, and Others) , 2021-2027E
• Future Segmentation By Age of Car (0-2 Years, 2-4 Years, 4-6 Years, 6-8 Years, Above 8 Years) and By Service Split (Mechanical and Electrical, General, Body Care, Body Repair), 2021-2027E
• Future Segmentation By Region (Greater Cairo, Alexandria, Mansour, Delta and Suez Canal, and Others) and By Booking Mode (Online and Offline), 2021-2027E
• Future Market Size of Spare Parts Aftermarket in Egypt
• Analyst Recommendation
• Industry Speaks