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Regional
Footprint
GB Auto is an established regional player, with a growing
presence in Iraq and Algeria complementing its main opera-
tions in Egypt. The company’s deep commitment to and un-
derstanding of its home market, combined with strong man-
agement and a sound strategy, helped it springboard from a
local company to a regional, multinational success story.
The company first announced in 2009 that it was exploring
opportunities for growth outside of Egypt, and in 2010, it
entered a joint venture to distribute Hyundai vehicles in
Iraq, subsequently boosting operations and increasing its
brand representations. In 2015, operations in Iraq account-
ed for 1.7% of the company’s total revenues — proving the
compatibility and success of the GB Auto model in another
key regional market and prompting management to launch
sales of the popular Bajaj three-wheeler vehicles in Iraq af-
ter years of proven success in Egypt. Sales so far have been
promising, with over 850 units sold by the end of 2015, and
management is optimistic about their long-term potential,
conditions on the ground allowing.
The company also has an established presence in Algeria,
with key brand representations and sales, and after-sales
operations having begun in 2013. GBAuto has established
a foothold in the Algerian market — with management
control — in cooperation with the Group Rahmoune, a
strategic player in the Algerian economy, with invest-
ments mainly in building materials, basic infrastructure,
and the automotive business. The company’s product
offerings in the country now include Geely Passenger
Cars, as well as Lassa, Grandstone, and Goodyear tires.
Although constant regulatory changes in Algeria make
it difficult to plan ahead, management is still pursuing
additional opportunities for long-term growth in this po-
tentially lucrative market.
GB Auto entered Libya in 2013, at first adopting a “wait-
and-see” approach toward the country, while keeping an
eye on the long-term potential of the market. However,
the persistently volatile political situation in the country
compelled GB Auto to begin exiting the market to avoid
sustaining any severe losses. Management is currently in
the process of liquidating inventory, and, at the moment,
only insured assets remain in Libya.
Future Expansions
GB Auto is actively exploring further market expansion,
building on its established presence in Iraq and Algeria and
capitalizing on the region’s untapped potential and pent-up
demand for real value and true customer care. Management
looks forward to announcing further developments on this
front going forward, with Sub-Saharan Africa being its cur-
rent focal point for growth.
Algeria
Passenger Cars
Tires
Egypt
Passenger Cars
Commercial Vehicles and
Construction Equipment
Motorcycles
and Three-Wheelers
Financing Businesses
Tires
Others
14 | GB Auto |
2015
Regional Footprint