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Egypt Four Wheeler Aftermarket Service Industry Growth Rate 2022 - Upcoming Trends, Growth Strategy, Demand and Forecast Research Report to 2027: Ken Research

08-31-2022 06:32 PM CET | Advertising, Media Consulting, Marketing Research

Press release from: Ken Research Pvt .Ltd

Egypt Four Wheeler Aftermarket Service Industry Growth Rate

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.

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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

Related Reports
https://www.kenresearch.com/automotive-transportation-and-warehousing/automotive-and-automotive-components/indonesia-automotive-aftermarket-service-market-outlook-to-2026/444310-100.html

https://www.kenresearch.com/automotive-transportation-and-warehousing/automotive-and-automotive-components/malaysia-automotive-aftermarket-service-market-outlook-to-2025/427145-100.html

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