File photo: A general view of the traffic on a crowded road in Cairo (Photo: Reuters)
Egyptian vehicle distributor GB Auto reported a 25 per cent rise in first-half net income to 92.5 million Egyptian pounds ($15 million), according to figures released by the stock exchange on Wednesday.
Egypt's biggest listed automobile assembler controls a third of a passenger car market which has grown quickly in recent years helped by easier access to credit, a wider range of cheaper Asian vehicles and a fast-expanding population.
Despite the rise in profits, Egypt's investment bank, Beltone financial commented that It was a difficult quarter for GB Auto. This was mainly due to the weak market, a direct reflection of the country’s current economic situation. Sales growth was mainly driven by Iraq PC sales, which grew by 54.0 per cent in the second quarter in 2012.
Egyptian automobile annual sales shrunk in June 2012 with purchase figures down 21 per cent compared to the same month in 2011.