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Regional
GB Auto distributes CBU units of Hyundai passenger cars
in Iraq and Geely passenger cars in Algeria, and offers af-
ter-sales services in both markets. The company recently
launched a successful venture for Bajaj motorcycles &
three-wheelers in Iraq, where it also operates two after-
sales service centers. GB Auto’s regional operations also
extend to the Tires division, with the company distribut-
ing Westlake, Diamond Back, and Jumbo tires in Iraq;
Avon, Diamond Back, Triangle, Waterfall, and Jumbo in
Jordan; and Goodyear, Lassa, and Grandstone in Algeria.
Despite the challenging environment throughout 2016,
the company continued to take measured steps in dealing
with these geopolitical and economic difficulties.
2016 Business Review
Passenger Cars
Iraq
Challenges in the Iraqi market continued to impact mar-
ket demand for passenger cars, dropping significantly
compared to previous years, causing revenue to drop
27.0% y-o-y to LE 897.8 million. The After-Sales division,
however, delivered promising results, with revenues up
66.7% y-o-y to LE 107.1 million during the year versus LE
64.3 million in FY15. GB Auto reduced losses by almost
40% during the year by hedging against all downside
scenarios. Management, however, remains watchful of
the political, economic, and security developments on the
ground and is considering contingency scenarios should
losses from this market continue into the near future.
Algeria
Algerian operations were impacted by low volumes, with rev-
7.9
%
GB Auto continues to keep
a watchful eye on growth
opportunities in its regional
markets of Iraq, Algeria, and
Jordan, where it offers PC and
motorcycle & three-wheeler
distribution, after-sales, and tire
services.
2016 ANNUAL REPORT
38
Our Business Units