Chinese cars gain popularity in Egypt, driving market growth

CAIRO - Cruising through the bustling streets of Cairo in his sleek red Chinese-made sedan, Omar Mohamed exemplifies a growing trend in Egypt's automotive market -- the surging popularity of Chinese cars.

"I didn't hesitate to buy a Chinese car a few months ago because of its good features for a reasonable price," he told Xinhua, noting that the cost of a brand-new Chinese car is often comparable to that of a used European model.

At first, the young man saw owning a Chinese car as a risk, given their reputation for frequent breakdowns. "However, this perception has shifted over the past five years, as Chinese cars have improved significantly and unexpectedly," Mohamed said.

According to the Automotive Market Information Council (AMIC), Egyptian consumers have increasingly embraced Chinese cars, not just for their affordability but also due to their improved safety features and quality, making them a preferred choice in the local market.

This shift has reshaped the country's automotive landscape, contributing to a decline in both new and used car prices.

"Chinese cars have played a major role in bringing down car prices, especially in the budget-friendly sedan and hatchback segments," said Ahmed Nasser, a sales manager at a leading Egyptian car dealership.

"The surge of the US dollar against the Egyptian pound, in addition to the shortage of imported vehicles and the high rates of inflation had pushed the prices too high," he said. "However, the spread of Chinese cars in the Egyptian market has brought relief to Egyptian consumers who have endured years of inflated vehicle costs."

He explained that dealers, faced with the affordability and feature-rich offerings of Chinese models, are compelled to reduce their profit margins and eliminate overpricing to remain competitive.

Nasser predicted that Chinese cars would "sweep" the Egyptian market in the next few years, especially those manufactured or assembled locally.

"After-sales service and maintenance for Chinese cars are excellent, especially since most Chinese brands in Egypt have authorized dealers who have been operating in the Egyptian market for decades," he said.

According to the AMIC, Chinese car sales surged by 33.6 percent between January and November 2024, with brands like Chery, MG and BYD securing prominent positions among the top 10 best-selling car brands in Egypt.

In January 2025 alone, Chinese cars topped passenger car sales, with 3,301 vehicles sold, a significant increase from the 1,721 units sold in January 2024, as reported by the AMIC.

Osama Aboul-Magd, head of the Egyptian Automotive Dealers Association, attributed this market transformation to substantial investments and the localization of automotive production.

He highlighted the significant financial commitments made by Chinese automakers, including $100 million for Geely's production and $135 million for MG's manufacturing.

"The assembly of Chinese cars in Egypt has significantly contributed to the decline in prices," Aboul-Magd pointed out, adding that cars priced under 1 million Egyptian pounds ($19,773) have seen a 10-15 percent price reduction.

"Many international companies, particularly Chinese ones, have opened production and assembly lines in Egypt, such as Geely, Exeed, Chery, and MG."

He expected up to eight car manufacturing and assembly facilities will open in Egypt during 2025.

"Egypt's strategic push to localize automotive production aims to create a regional hub and further stabilize prices, with 2025 being a key year for this localization. This strategic vision promises to further reshape Egypt's automotive sector with the help of giant Chinese automakers," he told Xinhua.