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What Are The Economic Factors That Affect The Automobile Industry

Decent Essays
One of the most profitable industries around the world is the automobile industry, It forms a big difference in countries economy, In early 1960 Egypt like any other developing country shifted from agriculture country to manufacturing country started by Al-Nasr automotive company, there are many factors that may affect increase or decrease on demand over cars , will discuss few of these factors such as political factors, economic factors, expected future prices for cars and income of consumer or buyer, let's have an over view in the automotive industry in Egypt through the trend shown below from 2014 till 2020. The automobile manufacturing sector is one of the sectors that have faced continuous growth. Egyptian Automobile Manufacturers Association (EAMA) data show total vehicle demand in the Egyptian market increased from 70,834 units in 2003 to 227,488 units in 2007; an increase of over 200% in 5 years. Cars assembly production continues to increase and has reached 101,319 vehicles in 2007; increasing by 118% from 46,422 units in 2003. With few successes and many failures over the past five decades, the car industry in Egypt developed as an assembly operation rather Than manufacturing. This essay discusses the economic factors that are affecting the demand for automobiles in Egypt. (Kara, 2015)

One of the major Factors that affect the demand for automobile in Egypt is the economic changes; many automobile industries tend to focus on identifying customer
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