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Our
Strategy
GB Auto is a uniquely diversified and established
automotive player in key Middle Eastern and North
African markets. The company’s assembly, manufac-
turing, sales and distribution, and after-sales service
operations span multiple market segments, includ-
ing Passenger Cars, motorcycles and three-wheelers,
commercial vehicles, construction equipment, tires,
lubricants, pre-owned vehicles, and retail, in addition
to complementary corporate, consumer, and microfi-
nance activities.
These activities occupy:
• 4 assembly and manufacturing plants in Egypt
• Growing sales network of independent dealers and
owned-retail outlets in Egypt and Iraq
• 13 passenger car, 6 commercial vehicle after-sales ser-
vice outlets in Egypt, and 6 in Iraq
• 80 microfinance branches
• Consumer finance through a network of independent
dealer showrooms, plus 25 company-owned show-
rooms
GB Auto’s most recent strategic direction focuses on
vertical expansion in our most profitable segments to
allow us to capture the full value chain from these LOBs.
This means the company is becoming a more serious
manufacturer of a number of key products, supported
by the benefits and low-cost advantages we enjoy in our
main market, such as the different free-trade agreements
Egypt has signed with neighbouring countries, the
strength of our technology partners, the breadth of our
logistical outreach, and strong relationships within the
government.
On the geographical expansion front, while Egypt re-
mains our base and strength, GB Auto has an established
footprint in Iraq and Algeria and plans to expand further
into Sub-Saharan Africa, as a start. GB Auto ventured
into Libya in 2013, adopting a wait-and-see approach at
first, but soon deciding to exit the turbulent North Afri-
can market in 2015.
The company’s activities form a three-axis strategy: ex-
panding newventures, growing our product portfolio, and
targeting high-growthmarkets for expansion.
Growth and Vertical-Expansion of our
Product Portfolio
With the recent launch of GB Auto’s new financing busi-
ness, Tasaheel, the announcement of its tripartite agree-
ment with Chery International and AF Automotive to
exclusively distribute Chery vehicles in Egypt, and the
commencement of motorcycle and three-wheeler sales in
the Iraqi market, GB Auto is following through on plans
to further expand its product reach and grow its portfolio
across itsmarkets of operation. The company also intends
to begin manufacturing tires in its domestic market,
which would be sold regionally and locally. GB Auto
remains the clear partner of choice for any OEM (original
equipment manufacturer), and we expect our positive
reputation to help us further develop our relationships
with current partners and enter into new arrangements
with other leading global brands.
Expanding New Ventures
GB Auto is replicating the proven strategies it used in
Egypt and Iraq as it settles in and ramps up its busi-
ness in Algeria, where sales and operations have been
increasing gradually. We are actively working to extend
our leading vertically integrated sales, finance, and
after-sales support functions, as well as our unmatched
distribution network and product offering, to this core
MENAmarket.
Targeting High-Growth Markets
Going forward, GB Auto will continue to expand its foot-
print into newhigh-growthmarkets, supported by strong,
sustainable growth in Egypt, Iraq, and Algeria. One of our
consistent strengths as a company is our ability to iden-
tify and capitalize on potential for growth. As we look to
further cement our regional footprint, we plan to focus on
the opportunity-rich region of Sub-Saharan Africa.
12 | GB Auto |
2015
Our Strategy