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34 • 2017 ANNUAL REPORT
2017 ANNUAL REPORT • 35
GB Auto operates Egypt’s largest and fastest-growing
network of after-sales service centers for passenger
cars, motorcycles & three-wheelers, and commercial
vehicles & construction equipment. For passenger
cars, the company is the leading service provider for
Chery passenger cars in its home market. After-sales
is a vital component of the company’s Motorcycles
& Three-Wheeler division in light of the high inf la-
tionary environment prevailing in Egypt, providing
a necessary buffer for other lines of business. It is a
key differentiator for GB Auto in Egypt as motorcycle
and three-wheeler customers place importance on
the availability of spare parts and service center. The
Commercial Vehicles & Construction Equipment
business unit is also supported by a robust after-sales
framework that extends GB Auto’s total care model
to customers, offering GB Auto customers through-
out Egypt a nationwide network of owned-retail
showrooms including 14 after-sales service centers.
2017 Business Review
The After-Sales division proved especially successful
in FY17, with management expecting the division to
remain highly profitable and continue yielding ex-
cellent returns. The division provided an important
stream of high-margin revenues throughout the year
as customers continued to choose GB Auto’s network
to maintain their vehicles. Investments made to up-
grade and expand GB Auto’s network of After-Sales
workshops have continued to bear fruit during the
year, as After-Sales service centers ran at higher-
than-average capacity utilization rates to cope with
increasing demand.
GB Auto’s solid reputation for quality service has ce-
mented customers’ confidence, translating to strong
sales and higher-than-average capacity utilization rates
across service centers. GBAuto is pressing onwith plans
to expand itsworkshopnetwork, looking to open centers
in Minya, Aswan, Tanta, Marsa Matrouh and Damietta
throughout the year. Plans are also underway to con-
struct a truck and bus workshop in Abu Rawash.
Passenger Cars
Passenger Cars After-Sales division posted strong
growth figures and very healthy margins. Revenues from
After-Sales operations in Egypt reached LE 684.7 million,
reflecting a 33.0% y-o-y increase over FY16, while gross
profit rose 14.0% y-o-y to LE 217.1 million, with a gross
profitmargin of 31.7%.
Motorcycles & Three-Wheelers
The Motorcycles & Three-Wheelers After-Sales divi-
sion was muted this year, with revenues down a slight
4.4% y-o-y to LE 143.8 million while gross prof it stood
at LE 32.6million compared to LE 40.5million in FY16.
Commercial Vehicles & Construction Equipment
The After-Sales division for commercial vehicles & con-
struction equipment continued to grow, with revenues
standing at LE 199.8 million, up 24.2% y-o-y, and gross
profit LE 44.3 million, up 42.7% y-o-y during the year.
Egypt
After-Sales
Egypt After-Sales
Egypt After-Sales Revenue Progression
(LE million)
2013
384.8
2014
569.1
2016
2015
826.2
451.6
2017
1,028.2
15.1
%
of FY17 Group
Gross Profit