Egypt’s Ghabbour Auto Expands to Algeria, Libya

VIENNA – Ghabbour Auto, the largest player in Egypt’s new-car market, is expanding its business to the North African countries of Algeria and Libya.

GB Auto is the long-term distributor of Hyundai vehicles in Egypt, adding Mazda in 2010 and Geely in 2012.

The auto maker assembles Hyundai Verna sedans and at its Prima plant, and last October began building Geely Emgrand 7 sedans from complete-knocked-down kits. It plans to add the smaller Geely SC5 sedan this spring.

GB Auto has been responsible for Hyundai distribution in Iraq since 2010 through a joint venture with a local company.

In the first three quarters of 2012, GB Auto sold 49,066 cars in Egypt and Iraq, down 4.2% from like-2011. The figure includes 32,938 CBU units and 16,126 cars assembled in Egypt.

The company now is expanding its regional presence to include direct distribution and aftersales operations in Algeria and Libya via local partnerships that will launch in the year’s second quarter. GB Auto has management control of both JVs.

“I am very pleased to announce that we have made further concrete progress in our long-standing strategy of a measured regional expansion,” GB Auto’s Chairman and CEO Raouf Ghabbour says in a statement. “Algeria and Libya are among the most promising markets in one of the world’s most promising regions.

GB Auto will sell Geely cars in both Algeria and Libya, as well as distribute Great Wall pickup trucks in Libya.

The Egyptian company is entering the Algerian market in cooperation with the Group Rahmoune, a strategic player in the Algerian economy with investments mainly in building materials, basic infrastructure and the automotive business.

GB Auto is targeting Algerian sales of 8,000 cars in the first year, with a market share of 4%-5% in the medium term.

“Algeria is a very promising market, with a wealth of future potential and long experience with Chinese passenger cars,” says Elmostafa Abdulhalim, GB Auto’s Regional chief operating officer.

In Libya, GB Auto will cooperate with El-Bostan El-Zahbya Group, a consumer goods, retail and logistics conglomerate owned by the El-Saed family.

Plans call for sales of 3,000 Geely cars in the first year, with a target of about 10% market share within three to five years. GB Auto also is aiming to sell 2,000 pickups in the first year.

“Although Libya has no experience with Chinese passenger-car brands, our early experience in Egypt, coupled with the enviable reputation Great Wall has earned in Libya during its short tenure there, leads us to expect consumer acceptance to be swift,” says Elmostafa Abdulhalim.