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Motorcycles
& Three-
Wheelers
GB Auto is Egypt’s exclusive assembler
and distributor of motorcycles and
three-wheelers from Bajaj, the largest
global manufacturer of three-wheelers,
often known as auto-rickshaws or tuk-
tuks. GB Auto imports Semi-Knocked-
Down (SKD) units from the Indian pro-
ducer and assembles and finishes the
vehicles locally at the company’s Sixth
of October City Industrial Zone factory.
Since it first began importing and sell-
ing three-wheelers in Egypt in 1999, the
company has been the country’s market
leader for the popular vehicles, in part
due to its efforts at providing quality,
low-cost after-sales service to this seg-
ment’s price-conscious consumers, and
later as the company introduced financ-
ing for this line via Mashroey.
In rural and low income areas, three-
wheel vehicles are used for personal
and commercial purposes as an alterna-
tive to common urban and peri-urban
transport methods. Three-wheelers’
relatively low up-front cost, minimal fuel
consumption and ease of movement
often provide these areas a preferred
transportation option.
GB Auto provides its motorcycle and
three-wheeler customers the same
comprehensive service that it offers its
car buyers, and the group’s 3S business
model — showrooms, service and spare
parts — extends to its motorcycles and
three-wheelers business as well.
Indeed, as noted above, After-Sales is
an important component of this busi-
ness unit and a key differentiator for
GB Auto in the market, given that the
consumers attracted to motorcycles and
three-wheelers place strong emphasis
on the availability of spare parts and
service centers.
To capitalize on this ‘built-in’ demand,
the authorized service center network is
continuously expanding to reach out to
customers, thereby encouraging them to
return to the GB Auto network for main-
tenance, spare parts and repairs.
GB Auto’s commitment to total care
for customers of this key segment is
evident in its nationwide network of 21
owned-retail showrooms including 1
after-sales service center, 21 GB Auto-
owned spare parts outlets and a network
of 120 authorized dealers, as well as 60
authorized service centers across Egypt.
2014 Business Review
• The Motorcycles & Three-Wheel-
ers line of business reported a
year-on-year increase in sales
volumes, revenues and gross prof-
its in FY14. This positive growth
comes despite the three-month
ban on the import of components
for motorcycles and three-wheel-
ers, which expired in May and the
effects of which carried over well
into the third quarter.
• Management expects to see
volume growth and margins at
normal levels looking ahead, and
the coming period promises to be
quite strong on the back of per-
sistent market demand, with any
consumer reticence in the wake
of the brief 2014 ban having faded
entirely by the fourth quarter.
• GB Auto’s current facilities in Egypt
are considered to be the first mo-
torized assembly line of production
for Bajaj Three-Wheelers outside
of India. The company is finalizing
studies to install new painting and
welding shops with considerable
components and process localiza-
tion. The capital increase through
rights issue proceeds will be used to
finance this expansion.
Ghabbour Auto | 2014 ANNUAL REPORT
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