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Passenger
Cars
GB Auto is the largest player in the
Egyptian passenger car market in terms
of sales revenue, market share and pro-
duction capacity. The company holds
the exclusive license to assemble and
distribute Hyundai and Geely Emgrand
passenger cars, and import and distrib-
ute Hyundai, Geely Emgrand and Mazda
passenger cars, as well as spare parts for
all three brands.
GB Auto also has an established re-
gional footprint, with a strong presence
in the Iraqi market and a growing pres-
ence in Algeria. In Iraq, the company
is a leading player in the passenger car
market, where it is the sole distributor
of Hyundai passenger cars and spare
parts. In Algeria, GB sells Geely Em-
grand branded passenger cars via a local
venture, while the company maintains a
presence in Libya, where it has adopted
a wait-and-see approach.
Through Hyundai, Geely Emgrand
and Mazda, GB Auto is able to market a
variety of products with a diverse range
of sizes and prices.
Over the years, the company has solidi-
fied its market leadership with a dedica-
tion to value, unparalleled service and
best-in-class products. GB Auto created
its “one-stop-shop” approach to retail auto
buying by vertically integrating sales, con-
sumer finance (through Drive, GB Auto’s
consumer finance venture) and after-sales
support. Its commitment to total customer
care allows the company to offer Egypt’s
car-buyingmarket a powerful value propo-
sition — GB Auto has long positioned
Hyundai cars as the best value for money
in the Egyptian market and has more re-
cently done the same with Geely Emgrand
andMazda at their unique price points.
With Egypt’s largest sales and after-
sales network, GB Auto has transformed
the nation’s new car experience. The
company’s 3S business model promises
showrooms, services and spare parts.
GB Auto’s 9 large service centers and
more than 650 service bays, 25 owned
showrooms and numerous partnerships
with independent automotive retailers,
and a spare parts distribution channel
that stretches across the country deliver
comprehensive service to Egypt’s car
market. The company is working to-
wards implementing the same successful
model across its footprint, building Iraq’s
leading after-sales service franchise
based on the Egyptian model, with 4 ser-
vice centers now open in the country in
Baghdad, Irbil, Suleimaniyya and Basra.
The company has plans to introduce a
similar network to the Algerian market
going forward.
GB Auto has invested significantly
in the expansion of its assembly ca-
pacity. At the Prima plant, the com-
pany assembles Hyundai and Geely
Emgrand passenger cars and Mitsubi-
shi Canter cabins from imported CKD
kits and locally sourced components.
The plant — which covers almost
58,000 square meters — was estab-
lished in 1994 and, by February 2015,
had produced more than 300,000
passenger cars. In September 2012,
GB Auto completed a major invest-
ment, growing production to include
its new Geely Emgrand models while
modernizing certain aspects of the
assembly process. Today, Prima is
a truly state-of-the-art facility with
fully-automated conveyer systems,
robots for the painting, and more.
2014 Business Review
Egypt
• According to the Egyptian Automo-
tive Marketing Information Council
(AMIC), the Egyptian passenger
car market saw overall sales rise a
sharp 55.5% to 207,973 units in FY14
from 133,760 units in FY13. The
pronounced surge in sales comes
as the market continued showing
signs of a sustainable recovery, with
a steady improvement in the con-
sumer environment on the back of
political and economic stability.
•
Meanwhile, AMIC’s full year 2014 Pas-
senger Car Value Report notes that
total sales value in the Egyptian pas-
senger carmarket reached LE 30.2 bil-
lion in FY14. Fully 68.6% of those sales
are in the LE 70,000 to 150,000 range,
where the bulk of GB Auto sales fall.
• This was reflected in GB Auto’s re-
sults, where the company saw total
unit sales surge 52.8% in FY14, on par
with the market average despite the
rising cost competitiveness of Japa-
nese and European imports owing to
devaluation of the Japanese yen and
the euro against the US dollar (and
relative stability of the Korean won).
• Across all brands, GB Auto held a
total FY14 market share of 29.8%
(including Hyundai, Geely Emgrand
and Mazda), on par with FY13.
• Hyundai captured a market share
of 21.6% as total sales of both CKD
and CBU units rose substantially in
2014. Sales were slightly weighted
towards CKD units, which account-
ed for 55.3% of unit sales in FY14,
while sales of CBU units increased
nearly two-fold in FY14.
Ghabbour Auto | 2014 ANNUAL REPORT
18