Egypt’s Decision To Ban Tuk-Tuk Components Can Have Major Implications On India’s 3-wheeler Makers


Egyptian authorities banned the import of three-wheeled Tuk-tuk components (auto-rickshaw), announcing a plan to replace these vehicles with minivans, which they described as achieving security and safety for citizens. This decision can have major implications on India’s three-wheeler-makers including Bajaj Auto. Egypt accounts for about 5 per cent of three-wheelers exported by Indian OEMs.

Egyptian Minister of Trade and Industry Nevin Gamea issued a ministerial resolution banning the import of basic components of “Tuk-tuk” vehicles. The decision became effective on Wednesday, November 10, 2021.

In 2014, Egypt banned the imports of Tuk-tuks but kept importing the components to manufacture them locally. Egyptian newspaper Akhbar Al-Youm reported that Tuk-tuks were firstly imported from India in 2005.

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In August 2021,  Gamea said that the Tuk-tuks are indispensable means of transportation in Egypt where about 3 million families depend on them as a source of livelihood. In media remarks to “On My Responsibility” talk show on Sada El Balad T.V. Channel, Gamea added that it is quite difficult to prevent Tuk-tuks in Egypt, noting that this means of transportation spreads in rural areas, number of cities and neighborhoods, reported Egypt Today

According to Anish Rankawat, Equity Research Analyst (Autos) at Centrum Broking Limited, “Unlike the 2014 ban by Egypt, which was on both two- and three-wheelers, the present ban is merely on three-wheelers which form a small part of the business for these OEMs. Although right now it is speculation, given that the ban is due to safety concerns where the government wants to encourage the adoption of minivans, etc., OEMs can export alternatives rather than three-wheelers.”

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