Foreign currency crisis affects Kia’s Egypt operations

The erosion of foreign currency reserves and the strain on import procedures have negatively affected Kia automotives’ sales in the Egyptian market in the first two months of 2016, as the Korean car manufacturer posted a 65 percent decline in a year over year comparison.

Kia’s Cerato, Soul, Carens, Picanto, Rio, Ceed, New Sportage and Carnival models have all posted a decline in sales in the Egyptian market.

Egyptian automotive dealers sold 300 Kia Picanto models worth approximately 33 million Egyptian pounds in January and February, a 26 percent in a year over year comparison when 407 cars were sold. Despite the decline, Picanto posted the highest quantity of sales.

The sale of the Kia Soul fell by 7 percent, recording 150 cars sold in the first two months of 2016, compared to the 162 cars sold during the same period in 2015. The sale of the Kia Rio declined by 64 percent, with 37 cars sold compared to the 380 sold in 2015.

The Kia Ceed posted the fourth highest sales at the start of 2016, with 130 models sold. Dealers sold 130 Kia New Sportage models.

The sale of the Kia Carens fell by 76 percent, with 100 cars sold compared to the 413 sold in 2015.

The sale of the New Cerato declined by 99 percent with six cars sold compared to 661 sold in the same period in 2015.

There were only three 3300cc Kia Carnival models sold at the start of 2016.

Car manufactures have been unable to determine final sales prices due to the Central Bank of Egypt’s recent restrictions on dollar deposits, according to Managing Director of Egyptian International Motors Ahmed Al-Khadem.

Kia increased the price of three of its models at the beginning of April. The automatic transmission Rio model is now listed at 169,900 pounds. The Kia Soul increased by 27,000 pounds and the Kia Picanto increased by 9,000 pounds.

Source: Daily News Egypt