Egypt has issued a series of ministerial decisions to regulate the automobile market in recent months, putting forward clearer supporting requirements for the import of electric vehicles, such as requiring importers to equip service centers and spare parts centers, and putting forward bottom line requirements for vehicle safety configuration...

[Cairo News] Egyptian media recently reported that Khaled Saad, Secretary-General of the Egyptian Automobile Manufacturers Association, commented on the latest export control measures of the China government, saying that the regulations implemented by China since January this year-banning the export of "subsidized electric vehicles originally circulated in China's domestic market"-will "indirectly benefit the Egyptian market" and protect the interests of Egyptian consumers to a certain extent.

Saad's car program "Weatherness" was broadcast on Egyptian national radio station "Radio Misr"(Arabeety) stated that some models that were supposed to be sold only in China had previously "penetrated" into the Egyptian market through direct personal imports and other methods, which had multiple negative impacts: on the one hand, these vehicles formed unequal competition with locally produced vehicles in Egypt; on the other hand, it also impacted the brand agency system operating in accordance with regulatory requirements-the latter needed to invest in after-sales service outlets, maintenance capabilities and spare parts protection.

He emphasized that the risks at the consumer level are more realistic: many car owners who buy such vehicles through unofficial channels face the problem of difficulty in finding parts and no access to repair and maintenance during use, because the relevant models do not exist in Egypt. The official agency system provides warranty and technical support. Saad believes that China's ban will help reduce the continued inflow of such vehicles that are "not supported by a complete service system," thereby reducing the probability of consumers stepping into the trap.

The report also mentioned that Egypt has issued a series of ministerial decisions to regulate the automobile market in recent months, putting forward clearer supporting requirements for the import of electric vehicles, such as requiring importers to equip service centers and spare parts centers, and proposing bottom-line requirements for vehicle safety configuration (such as at least two airbags). In addition, Egyptian law also allows ordinary citizens to import vehicles individually according to procedures, but is usually limited to "a maximum of one vehicle every five years" and must undergo relatively complete compliance procedures. Saad pointed out that China's new regulations will further reduce the space for bypassing the system and introducing special vehicle sources through "personal direct procurement" methods.

[Brief Comment] The core of this news is not whether Egypt welcomes it or not, but a trend is becoming clear: the tolerance of "parallel/personal channels" in the Middle East and North Africa markets is declining, and regulators and the industry are more inclined to direct sales towards accountable official channels and authorization systems. For China brands, there may be fewer "volume but high-risk" gray orders in the short term, but in the medium and long term it will be conducive to the construction of formal exports, official authorization and local service networks.

Source: Guangdong Good Car

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