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Egypt Motorcycles and Three-Wheelers
2017 ANNUAL REPORT
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2017 ANNUAL REPORT
Regional Footprint
GB Auto is an established regional automotive player
and a key constituent of the Egyptian non-bank fi-
nancial services industry through GB Capital. With a
growing presence in Iraq and Jordan complementing
its main operations in Egypt, GB Auto seeks to repli-
cate the successful blueprint of the Egyptian market
in others across the region. The company’s unwavering
commitment to and understanding of its homemarket,
combined with strong management and a sound strat-
egy, helped it transform from a local firm to a regional,
multinational success story.
The company announced in 2009 that it was consider-
ing growth opportunities outside of Egypt, and in 2010 it
entered a joint venture to distribute Hyundai vehicles in
Iraq, subsequently boosting operations and increasing
its brand representations. The MENA region has strong
fundamental growth drivers, such as significant GDP
growth, a strategic location, a large and fast-growing
consumer base coupled with a rapidly burgeoning mid-
dle class and a lowmotorization index. GBAuto believed
and continues to hold that the automotive market in
the region is prime for expansion prospects due to their
resilience in the face of turbulence.
Passenger cars in Iraq continued to deliver solid top-line
performance, with revenues up almost 3x y-o-y in FY17.
The division’s profitability was also greatly improved,
with gross profit hitting LE 27.6million inFY17 compared
to LE 11.4 million in FY16, maintaining margins y-o-y.
This proves the compatibility and success of the GB Auto
model inanother key regionalmarket.Withoperations ex-
panding since 2010 tonow include the distributionof Bajaj
motorcycles and threewheelers,Westlake, Diamondback,
Triangle, and Jumbo tires, and service centers and spare
parts outlets in Baghdad and Al Najaf, management is
optimistic about its long-term potential in the country as
it continues to gain political and economic stability.
The company alsohas an establishedpresence inAlgeria,
with key brand representations and sales and after-sales
operations having begun in 2013. GB Auto established
a foothold in the Algerian market — with management
control — in cooperation with the Group Rahmoune, a
strategic player in the Algerian economy with invest-
ments mainly in building materials, basic infrastruc-
ture, and the automotive business. GB Auto’s product
offerings in the country include Geely passenger cars, as
well as Lassa, Grandstone, and West Lake tires. In 2017,
the company penetrated the Algerian agro tire market
through its proprietary brand Verde, which has been
positively received.
Future Expansions
GB Auto is actively exploring further markets into which
it can expand its ever-widening footprint and build on
its established presence in Iraq and Algeria. Its aim is to
continue capitalizing on the region’s untapped potential
andpent-updemand for real value and true customer care
while replicating the success story of its homemarket.
Iraq
Passenger Cars
Tires
Egypt
Passenger Cars
Commercial Vehicles
and Construction
Equipment
Motorcycles
and Three-Wheelers
Motorcycles
and Three-Wheelers
Financing
Businesses
Tires
Others