We headed to Italy recently to test drive Fiat’s new slick 500X, which is due to be released to consumers early next year. The compact crossover is daring, easy to drive and loaded with features and customizable options, but Egypt is a price market, which means that the Egyptian car buyer will select based on price, not category.
Because of the astronomical customs placed on imported automobiles based on engine size, car prices in Egypt can reach more than double and triple the Manufacturer’s Suggested Retail Price (MSRP). Thus, the Egyptian consumer doesn’t decide based on whether they want a sports car or an SUV, but whether they want to pay 200,000 LE or 1,000,000 LE.
After price, there are two important features that the average Egyptian car buyer looks for. Egypt is the only country where the consumer tests the horn inside the show room. People will decide against buying a car they like simply because it sounds ‘feminine’ to them. The other key feature paramount to the Egyptian consumer’s car buying experience: air conditioning, of course.
The strength of the dealer also plays a key role in automotive sales. It’s no surprise that the car brands with the largest market shares are sold by the country’s biggest dealerships.
Ultimately, whether or not a new car model comes to Egypt is also up to the dealer.
I went to Turin, Italy and Fiat’s Bolocco Proving Grounds to test drive the new 500X, the iconic brand’s first ever mini-SUV and what they consider to be their “best product ever”, according to Gianluca Italia, head of the Fiat brand for the Europe, Middle East and Africa region.
The car itself is easy to handle and very responsive, which makes it a solid choice for the sudden stops and quick swerves that often happen when driving in Cairo’s streets. And its full-option version, the Cross Plus, comes with a nine-speed torque-converter automatic transmission and all-wheel drive, ideal for those unpaved routes we often take.
True to the Fiat brand and its Italian roots, the design of the 500x – something akin to a Fiat 500 on Viagra – is classic yet bold. And its horn, we must say, sounds deliberate and masculine.
All of which is great. But whether or not it eventually comes to Egypt is up to the dealer, Nile Engineering, which must decide whether it is worth it to invest in and import a fleet of new full-option Fiats (because the Egyptian consumer loves options) to the Egyptian market.
The Fiat 500X positions itself as a “class exclusive” and aims to “conquest” consumers from higher segments by offering the same product features as premium brands at lower price points, Italia explained.
This commercial strategy might work in other markets, but in Egypt, where the scale of automotive customs skews the value of cars considerably, a 30,290 Euro full option Cross Plus with a two liter Diesel engine becomes approximately 1,299,044 LE after taxes. And at that price point, consumers in Egypt might opt for a more desert-friendly, functional alternative at a lower price or a more premium brand name at a higher one.
The Fiat 500X is the first of its kind, so the risk is relatively high for Nile Engineering. The new model is set to hit show rooms in February to March 2015 worldwide, but if it comes to Egypt, it will likely be in the second quarter after its performance in other markets is assessed.
WE SAID THIS: Don’t miss What You Can Actually Get Abroad for the Price of a Car in Egypt.