Basic HTML Version
26 • 2017 ANNUAL REPORT
Egypt Motorcycles and Three-Wheelers
Revenues by Year
(LE million)
2011
967.3
2014
1,892.5
2012
1,168.4
2016
1,156.2
2015
1,708.2
2013
1,270.7
2017
2,206.2
Motorcycle Sales Volumes
(Vehicle Units)
2014
36,801
2016
28,997
2015
50,840
2017
8,662
Egypt
Motorcycles and
Three-Wheelers
GB Auto is Egypt’s exclusive assembler and distributor of
motorcycles and three-wheelers from Bajaj, the world’s
largest manufacturer of three-wheelers, often known as
auto-rickshaws or tuk-tuks.
Since it first began importing and selling three-wheelers
inEgypt in1999, the companyhasbeen the country’smar-
ket leader for the popular vehicles, in part due to provid-
ing quality, low-cost after-sales service to this segment’s
price-conscious consumers.
In rural and low-income areas, three-wheeled vehicles are
used for personal andcommercial purposes as analterna-
tive tocommonurbanandperi-urbantransportmethods.
Three-wheelers’ relatively low up-front cost, minimal fuel
consumption, and ease of movement often provide these
areas with a neededmode of transport.
GB Auto’s commitment to total care for customers of
this key segment is evident in its nationwide network
of 25 owned retail showrooms, that include 5 3-S, 17
2-S, and 3 1-S after-sales service center, as well as a
network of 90 authorized dealers and 70 authorized
service centers across Egypt.
2017 Business Review
In FY17, revenues fromthe line of business gained 29.2%
y-o-y despite a 15.5% y-o-y drop in volumes. Margins for
the division continued to be pressured, with the gross
profit margin falling 2.1 percentage points to 12.0% in
FY17 as the company opted not to fully pass on price
Three-Wheeler Sales Volumes
(Vehicle Units)
2014
61,068
85,183
2016
2015
65,988
2017
70,507
Group Gross Profit
1.9
LE
BN
hikes to this sensitive consumer market in 2016. How-
ever, the division is continuing to pick up in volumes on
a q-o-q basis, with management expecting it will be a
swift recovery to historical levels.
Management plans to further boost two-wheeler volumes
bymanufacturing chassis and taking over complete CKD
assembly using local inputs, which should put the seg-
ment back in line for growth. The company continues to
push forward with its plans to construct new component
manufacturing hangers after having been awarded the
project’s 270,000 sqm land. Management is currently fi-
nalizing the necessary contracts and paperwork.
2017 ANNUAL REPORT
•
27