Car companies halt their sales following the flotation of the Egyptian pound.
Egypt’s automotive companies are no longer selling cars, according to Daily News Egypt.
This comes as Egypt’s foreign currency shortage ended in the flotation of the pound, a decision that was made on Thursday.
Some automotive companies are said to be waiting for the financial instability to pass and the exchange rates to settle, while others are planning on revising their prices.
Chairperson of El-Saba Automotive Group and authorised Nissan distributor Alaa El-Saba told Daily News Egypt that the flotation of the Egyptian pound will raise the cost of importing cars, as importers will now have to pay customs at the fluctuating exchange rate, rather than the fixed rate of 8.88 EGP, which was set by the government before the flotation. El Saba estimates that the prices of non-European-made cars will increase by 20 percent, while European-made cars’ prices will see a 15 percent increase.
Car prices have increased dramatically in the past months since the onset of the dollar crisis; the price hikes – which are believes to be fuelled by the foreign currency shortage as well as the lack of supply – extended to brands like Volkswagen, the Korean Hyundai and Kia, the American Chevrolet and Jeep, and the Japanese Mitsubishi and Toyota.