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GB Auto is Egypt’s exclusive assembler
and distributor of motorcycles and
three-wheelers from Bajaj, the world’s
largest manufacturer of three-wheel-
ers, often known as auto-rickshaws or
tuk-tuks. GB Auto imports Completely-
Knocked-Down (CKD) units from the
Indian producer and assembles the
vehicles locally at the company’s Sixth
of October City Industrial Zone factory;
with some components also manufac-
tured locally.
Since it first began importing and selling
three-wheelers inEgypt in 1999, the com-
pany has been the country’smarket lead-
er for the popular vehicles, in part due to
providing quality, low-cost after-sales
service to this segment’s price-conscious
consumers, and later as it introduced
financing for this line viaMashroey.
In rural and low-income areas, three-
wheelers 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 move-
ment often provide these areas a pre-
ferred mode of transport.
GB Auto provides its motorcycle &
three-wheeler customers the same com-
prehensive service it offers its car buy-
ers, and the Group’s 3S business model
— showrooms, service, and spare parts
— extends to its motorcycles & three-
wheelers business aswell.
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 3 3-S, 18
2-S, and 1 1-S after-sales service center,
as well as a network of 125 authorized
dealers and 70 authorized service cen-
ters across Egypt.
2016 Business Review
In FY16, revenues from the line of busi-
ness declined 9.7% y-o-y on the back
of lower sales volumes, which came in
26.8% y-o-y below levels reported in
FY15 as the division typically targets a
lower-income segment that has been
pressured by rising in inf lation.
To combat rising inf lation and the
impact of the pound’s liberalization,
GB Auto adopted a set of cost cutting
initiatives during the year as well as
price hikes. However, considering the
company opted not to fully pass on the
sharp devaluation against the US dol-
lar to consumers, margins for the divi-
sion fell slightly throughout the year.
GB Auto has finalized technical as-
sistance agreements with Bajaj, which
will provide engineering data and
technical know-how and expertise
pertaining to the making of the Boxer
150 and Auto-Rickshaw models. The
company is on track with the con-
struction of new component manu-
facturing hangers and purchasing
machinery and equipment for new
painting and welding shops.
Egypt Motorcycles
& Three-Wheelers
11.2
%
GB Auto is Egypt’s leading assembler and distributor of
Bajaj three-wheelers and motorcycles, operating the
brand’s largest mechanical assembly line outside India.
2016 ANNUAL REPORT
28
Our Business Units