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Motorcycles and
Three-Wheelers
GB Auto is Egypt’s exclusive assembler and distributor of
motorcycles and three-wheelers from Bajaj, the world’s
largest manufacturer of three-wheelers, often known as au-
to-rickshaws. GB Auto imports SKD units from the Indian
producer, and assembles and finishes the vehicles locally at
the company’s Sixth of October City Industrial Zone factory.
Since it first began importing and selling three-wheelers in
Egypt in 1999, the company has been the country’s market
leader for the popular vehicles, in part due to its efforts at
providing quality, low-cost after-sales service to this seg-
ment’s price-conscious consumers, and later as the com-
pany introduced financing for this line via Mashroey.
In rural and low-income areas, three-wheeler vehicles are
used for personal and commercial purposes as an alterna-
tive to common urban and peri-urban transport methods.
Three-wheelers’ relatively low up-front cost, minimal fuel
consumption, and ease of movement often provide these
areas a preferred transportation option.
GB Auto provides its motorcycle and three-wheeler cus-
tomers the same comprehensive service that it offers its car
buyers, and the group’s 3S business model — showrooms,
service and spare parts — extends to its motorcycles and
three-wheelers business as well.
As noted above, After-Sales is an important component of
this business unit and a key differentiator for GB Auto in the
market, given that consumers are attracted to motorcycles
and three-wheelers, which places strong emphasis on the
availability of spare parts and service centers.
To capitalize on this ‘built-in’ demand, the authorized ser-
vice center network is continuously expanding to reach out
to customers, thereby encouraging them to return to the GB
Auto network for maintenance, spare parts, and repairs.
GB Auto’s commitment to total care for customers of this key
segment is evident in its nationwide network of 22 owned
retail showrooms, that include three 3-S, 18 2-S, and one 1-S
after-sales service center, as well as an extensive network of
125 authorized dealers, as well as 70 authorized service cen-
ters across Egypt.
GB Auto has also launched sales of these popular vehicles in
Iraq and is optimistic about their long-term potential in the
market. Thevehicles are imported fromIndia as SKDunits that
areassembled in Iraqanddistributed through local dealers that
GB Auto selects based on geography and sales performance.
GB Auto also operates a small service center and spare parts
outlet in Baghdad, and has recently added another in the area
of Al Najaf with an adjunct two- and three-wheeler showroom.
2015 Business Review
The Motorcycles and Three-Wheelers division reported
strong results for FY15, posting a 40.3% y-o-y increase in
sales volumes and 49.6% in revenues. Gross profit also rose
by 40.9% to LE 330 million.
The division’s After-Sales revenue and gross profit also wit-
nessed significant growth, rising by 51.5% and 47.0% y-o-y
respectively as a result of strengthening operations in both
the Egyptian and Iraqi markets.
Management believes the division still has ample room
to grow and expand further. GB Auto’s current facilities
in Egypt are considered to be the first motorized assembly
line of production for Bajaj three-wheelers outside of India.
The company has finalized technical agreements with the
producer to expand current operations and install new
painting and welding shops with considerable components
and process localization, with Bajaj providing engineering
data and technical know-how. Proceeds from the recently
finalized capital increase through a rights issue will in part
be used to finance this expansion, and the company is in the
process of acquiring machinery for the new assembly line.
Management has also launched sales of these vehicles in
Iraq, with unit sales so far showing promising results. Since
the launch of operations, GB Auto has sold a total 850 units,
in addition to the operation of one small service center and
spare parts outlet in Baghdad and another in the area of Al
Najaf that also includes a Bajaj showroom.
22 | GB Auto |
2015
Our Business Units and Brands