21 / 88
• Geely Emgrand, meanwhile, also
saw sales increase y-o-y in FY14,
capturing a 7.8% share of the mar-
ket, up from 7.3% the previous year.
• Mazda continues to report increas-
es in unit sales, revenues and con-
tributions to the LOB’s gross profit.
• The Passenger Cars After-Sales divi-
sion improved in FY14 in terms of
revenue, gross profit and customer
satisfaction, as expected given GB
Auto’s sustained investment in soft
skills, technical knowledge and
retention. The division is expected
to further increase its contribution
in 2015 and 2016 as the company
looks to make full use of new After-
Sales facilities on the Ring Road and
Suez Road in particular. Moreover,
a sharp increase in Units in Op-
eration (UIO) from both 2014 sales
and anticipated sales in 2015 will
bolster performance of After-Sales.
Iraq
• On a full-year basis, gross profits for
Iraqi operations dropped 10.1% y-
o-y, while the division’s After-Sales
operations report a y-o-y growth
rate of 24.2%.
• GB Auto continues to operate in
Iraq despite adverse conditions,
and is exploring contingency
plans that should see operations
remain steady in 2015, the secu-
rity situation permitting. Opera-
tions in central and southern Iraq
have been relatively less affected
by challenges in the second half
of 2014 and into 2015 than were
operations in the north, GB Auto’s
traditional base of strength in
Iraq. As with all other companies
operating in the Iraqi market, GB
Auto has reasonably low visibility
at present on the expected pace of
operations in 2015.
Algeria
• After successfully learning the intri-
cacies of and settling into this unique
market, management continues to
target a modest increase in sales in
the near term and a gradual ramp
up in the medium term. New models
are filtering into themarket following
the liquidation of an overstock of less
popular models, and they have thus
far been well-received by consumers.
Libya
•
Conditions in Libya are increasingly
volatile and management is simply
maintaining its foothold in the coun-
try so that GB Auto will be in position
to capitalize on a recovery when the
political and security situation stabi-
lizes. In themeantime, it is noteworthy
that the company does not have any
personnel in Libya. All inventory pres-
ently in Libya remains fully insured.
Revenues by Year
(LE million)
2010 2011 2012 2013
2014
Segmentation of the Egyptian
Passenger Car Market*
(Units sold and % Market Share as of
Year-End 2014)
Hyundai
Nissan
Chevrolet
Kia
Geely
Emgrand
GB Auto Sales Volume Across
All Brands and Markets
(Vehicle Units)
5,383.0
5,741.9
6,072.3
6,536.9
8,909.9
2010 2011 2012 2013 2014
25,320 24,737
16,410 16,265
44,935
51,924
50,103
44,562
34,869
17,749
21,598
28,764
44,645
39,135
22,439
CBU CKD
21.6
%
12.2
%
11.9
%
7.9
%
7.8
%
* Source: Automotive Marketing Information Council (AMIC). Please note that AMIC figures are based on individual companies willingly contributing /
reporting their sales and that GB Auto cannot check the full accuracy of these or guarantee that all companies operating in Egypt report to AMIC.
Ghabbour Auto | 2014 ANNUAL REPORT
19