Automotive sector in Egypt has a huge growth opportunity, claims GM Egypt & North Africa

Interview with Tarek Atta, Managing Director of GM Egypt & North Africa

Let’s start with your personal opinion on the current business environment in Egypt. 

Egypt is a big country with 90 million people. There are huge opportunities and challenges. The competition in this market is very stiff. We need to exactly understand the customer profile and customer needs, which allow you to be in a position to serve well. With good research and good marketing activities, you will be able to position yourself correctly.

How has been the business environment impacted by the recent political turmoil?

The business, in general, for the last three years has been good. From our perspective, we believe Egypt is on the right track. We have invested in the product and in the people. So, our business in the last three years has been good. We are building on the good economy that we expect to see in Egypt in the future.

How would you evaluate the automotive (retail) sector in particular?

The automotive sector in Egypt is an industry with 230, 000 units annually and this is considered to be a very low number given the size of Egyptian population. So, we think there is a huge growth opportunity in the market. The way we are trying to position ourselves is to continue investing and building our employee capabilities, investing in the facility and on building on our supply and distribution network. We believe the future is right and bright for Egypt.

Please introduce General Motors Egypt & North Africa to us. What brands do you represent in the market?

General Motors Egypt was established in 1983. We started production in 1985. We started our business with commercial sectors. In 1992, we added the passenger car. Today, we are the market leader. Our market share is around 24% and we have built and sold more than half a million vehicles since the inception of the company. Our portfolio is very rich in terms of passenger cars and commercial vehicles and we sell Chevrolet and Opel cars in Egypt.

How do you compete with other automotive brands in the market? What are your main strengths or your competitive advantages?

In Egypt, we focus on four pillars. Number one is a strong portfolio. And as I said, it is a combination of commercial and passenger cars. So, we are covering the whole market. Two is our people. We strongly believe in our people and in investing in our employees. All the 1,500 employees in GM, Egypt and in North Africa are very well trained. The factory has the flexibility to modify production to meet the market needs. Our supply network is very strong, because we depend a lot on local content. Our distribution network has more than 94 sales and service outlets.

When it comes to regions apart from Egypt, where do you see yourself? 

In terms of industry, Egypt is the third largest market in Africa, the second is Algeria and the first market is South Africa. Moreover, with a population of 90 million, a quarter million vehicles is a very low volume. Therefore, we see a great potential for growth in Egypt.

What is your strategy for GM, Egypt for this year and maybe next year?

This year and next year, we intend to continue investing in the main four pillars that I mentioned. We are introducing new products. In the last three years, we introduced six new products in the market and we will continue to do this. We will continue to invest in our people by providing training.  Enhancing employee knowledge and development is very important for our business. We will also work on our supplier base and distribution network. Thus, we will continue investing in those four pillars and we will strive to capture all opportunities that we see available in the market in Egypt.

Are you also running any corporate social responsibility programs?

We are distributing more than 10,000 football balls to the people across the country with the Chevrolet brand logo. It is just to help the community.  And of course we are also involved in various other CSR activities that are directed towards charity. 

When it comes to business in Egypt, what challenges do you face as the general manager of the company?

If we take the previous years into consideration, we definitely faced challenges related to political stability with reference to what happened in the last three years.

Do you find any challenges related to human resources, in finding work force etc.?

The challenges are true in terms of high skills. We focus on hiring graduates and we then work with them and help develop them. And that’s why the work force in the factory is very good in terms of the average age.

What is your personal vision for Egypt as a country?

Egypt is on the right track. I am certain that we are on the right track to enjoy a better life for everybody in Egypt.

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