CAIRO, Feb 13 (Reuters) - Egypt's proposed ban on the import
of motorbikes and three-wheelers, or 'tuk-tuks', would have an
"adverse impact" on GB Auto, the country's largest car
assembler, the company said on Thursday.
Two- and three-wheelers contributed around 13 percent of GB
Auto's revenues in the first nine months of 2013, according to
company data. GB Auto is the Egyptian distributor for tuk-tuks
and motorbikes from Indian maker Bajaj.
Egypt's cabinet gave authority to the finance ministry on
Wednesday to temporarily ban the import of 'tuk-tuks', fully
assembled motorbikes and their components.
"The statement issued yesterday, while clearly of concern,
is not a final decision, but rather cabinet having authorised
the minister of finance to impose a ban if he should determine
it is in the national interest," GB Auto's chairman Raouf
Ghabbour said in a statement.
"Any move to ban the import of motorcycles and
three-wheelers would not only have an adverse impact on GB Auto
but, more importantly, a sharply negative impact on the Egyptian
economy," he added.
The cabinet said it entrusted the finance ministry with
banning the import of fully assembled motorbikes and tuk-tuks
for a year and the import of parts for local assembly of the
vehicles for three months to "study" the matter.
It was not immediately clear when the decision would be
The stock exchange said earlier it had suspended trading in
GB Auto's shares on Thursday pending "a statement from the
company", without giving further details.
The shares closed at 39.95 Egyptian pounds ($5.74) on
($1=6.9612 Egyptian pounds)
(Reporting By Shadia Nasralla; Editing by Greg Mahlich)