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GB Auto is a primary player in key
markets in the Middle East and North
African automotive industry and a
leadingnon-bankfinancial institution
in Egypt. With a diverse product port-
folio in several regional markets, the
company continues to drive value for
shareholders through carefully calcu-
lated strategies that have allowed it to
stay well ahead of competition.
Nowhere were these strategies more
evident than in 2016, a year that de-
manded f lexibility from the automo-
tive industry to remain af loat. The
year saw GB Auto leverage a strategy
of balancing inventory management
and product pricing that allowed it
to weather the hampered passenger
car and motorcycle & three-wheeler
demand toward the end of the year.
While the company anticipates both
these lines of business (LOB) will make
a steady recovery going forward as
customers and businesses alike adjust
to the new realities of the market and
the Egyptian pound finds its footing, GB
Auto’s strategy for 2017 is to enhance its
other lines of business while simultane-
ously continuing to growand expand in
its currentmarkets and segments.
Pulling Our Weight Behind
other LOBs
With demand for passenger cars and
motorcycles & three-wheelers ham-
pered by rising inflation, GB Auto is
leveraging its diverse lines of busi-
nesses to act as a cushion going for-
ward while these other LOBs return
to profitability.
Throughout 2016, customers contin-
ued to seek out car maintenance with
GB Auto, translating to strong sales of
all products offered by the company’s
After-Sales division, a trend we ex-
pect to continue into 2017 as custom-
ers look to extend the lives of their
vehicles. After-sales service centers
were running at higher-than-average
capacity utilization rates to cope with
this increasing demand.
Going forward, GBAuto intends to con-
tinue expanding its branch network
and upgrading its service centers to
cater to an even larger demographic.
Some companies under the Financing
Businesses Division are also expected
to come into increased focus as retail
customers’ purchasing power is ham-
pered by inf lation. Nonetheless, the
division is set to continue offering
new, innovative products that cater to
the unique demands of its client base.
Expanding Our Product
Portfolio
GB Auto plans to continue the strategy
leveraged in recent history of embark-
ing on both growth and vertical ex-
pansion of its lines of business.
In the Motorcycle & Three-Wheeler
division, GB Auto has already finalized
technical assistance agreements with
Bajaj, who will provide engineering
data and technical know-how and
expertise pertaining to the making
of the Boxer 150 and Auto-Rickshaw
models. The company plans to press
on with the construction of new com-
ponent manufacturing hangers, and
purchasing machines and equipment
for new painting and welding shops.
Our
Strategy
Effective Inventory
Management
Expanding Our
Product Portfolio
Pulling OurWeight
Behind Other LOBs
2016 ANNUAL REPORT
16
Our Strategy