Egypt. New regulations severely hit the market

Egyptian Motorcycles industry felt down 33% in the first nine months of the 2019 due to the collapse (from April) of the tuk tuk segment, hit by the introduction of a new regulations. The motorcycles segment has been moderately positive with Bajaj as market leader ahead of Honda.


Market Trend

One of the largest Motorcycles market in Africa is in Egypt. In recent years the market followed an upside down trend hit by several adjustments taken by governments aiming to limit the import and sustain the local production and eventually the export (currently at negligible level).

The market is far from the splendor of over 10 years ago and the progressive increase of prices due to the higher safety and lower CO2 emission required for new models is constraining the market with over 70% of circulating park aging more than 10 years.

Looking just at the last seven years, total volume declined from near 700.000 units sold in the 2012 to just few units over the 400.000 units done in the 2017, before a moderate 2018 recovery at 438.000 (+7%). However, the main reason of decline has been the lost of moped – usually made in China – models, while the motorcycles and tuk tuk segments has been resilient. 

Data available regard over 50 cc engines, while estimate of the small moped, dominated by hundred thousand vehicles imported from China, is  over 200.000 units (in the 2018).

In the first nine months of 2019 the total market struggled, dropping down 33%. However, the reason behind this fall is in the introduction of a new regulation for tuk tuk segment, which severely hit this segment since April, with volumes declined by 70% in Q2, hitting the market leader Bajaj, right when new competitors where growing (Piaggi and TVS). From the other side, the motorcycles segment was moderately positive.

The market leader is – by far – the Indian Bajaj Auto with 98.123 sales in the first nine months of the 2019 (including motorcycles, tricycles and rickshaw) despite sales declined by 31.1.%. The best-selling models is the Boxer 150, produced locally in partnership with the strong Egyptian distributors.

In second place there is Honda and the third is Hero, ahead of Kymco which produced locally since the 2015 and SYM.

All the top brands are represented in Egypt and the Italian Piaggio last year started to produce locally the famous tuk-tuk Ape.