Egyptian auto industry brought down by US attacks
The Egyptian auto industry is expected to see a $140 million drop in investments this year. Investments into the auto sector were slashed by 10 percent in the third quarter of 2001, having totaled six billion Egyptian pounds ($1.4 billion) in first six months of the year, Al-Hayat reported.
Egypt’s auto industry was heavily impacted by the September 11 attacks on the United States and is expected to experience further hardships during America’s campaign against Afghanistan. However, the sector was already facing a crisis in August with the flux of the currency exchange rate.
It is anticipated that car sales will drop at least 12 percent during the second half of the year. The Egyptian Automobile Manufacturers Association estimated this year’s total car sales at no more than 55,000 units, 40,000 of which are locally manufactured and 15,000 imported. Car sales totaled 61,000 units in 2000 and 70,000 units in 1999.
Market specialists do not anticipate the construction of any new auto factories while the existing ones are expected to scale back production. — (Mena Report)
© 2001 Mena Report (www.menareport.com)