GB Auto Corporate Growth and Expansion Strategy
AUTO
Passenger Car Market Growth Drivers
PC
Key Growth Drivers
Significant GDP
Growth
Egypt is a Natural
Export Hub
Large, Fast-Growing
Consumer Base
Comments
Experts predict that GDP will grow 5.5% in FY 2010/11, and return
to the 7% range the following year.
Egypt's strategic location, one or two-days' travel to major
European, Middle Eastern and African hubs, makes the country a
natural export hub. Low costs of raw materials, labor and utilities
provide Egypt's exporters with a natural price advantage.
Egypt has the largest population in the Middle East, and one of the
youngest, as well, with nearly half of all Egyptians being under the
age of 25.
Consumer
confidence is
rising, spurring
expectations of
strong growth
throughout the
economy in the
coming years
Rapidly Forming
Middle Class
Low Motorization
Index
Availability of
Consumer Finance
The latest statistics show that GDP per capita is approaching the
USD 3,000 range, accelerating demand for cars, with multipliers of
up to 2.5x the rate of GDP growth being sustained for several
years.
Recent statistics show that the average global motorization index is
100 cars per 1,000 persons, while Egypt boasts a mere 30 cars per
capita. GB Auto's management foresees the local index tripling in
the coming years, given population and economic growth trends.
Auto loans and microfinance are becoming more prevalent in the
Egyptian market, with both lenders and borrowers in this
traditionally cash-based culture growing more comfortable with the
practice.
Egypt's
automotive
market appears
to have fully
recovered from
the recent crisis,
with demand
projected to
return to 2008
levels this year
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