Mitsubishi Motors Corporation has a new exclusive distributor in Egypt. Nesmahar Sayed attended the signing ceremony Diamond Motors, a joint Egyptian stock company, is now Mitsubishi Motors' new distributor in Egypt. Diamond Motors -- which comprises Al-Mulla Group, Al-Kharafi Group and Smart Car -- replaces the Sales Firm Massriya company which had been Mitsubishi's distributor since 1983. Mitsubishi Motors Corporation, Japan's sixth largest automaker, did not renew its contract with Massriya when it expired in July 2010. The signing comes following months after Massriya said Mitsubishi's termination of the contract lacked reasonable grounds. When Mitsubishi Motors Corporation began looking for another distributor in Egypt, several companies applied. "Diamond's offer was the best and the most reliable," said Ryuichi Hasuo, corporate general manager-Europe and Middle East/Africa of Mitsubishi Motors Corporation Hasuo. Hasuo told Al-Ahram Weekly that the Egyptian market was growing and becoming more demanding. "We expect that the Egyptian automotive market will absorb 250,000 units by the end of 2010." "We have decided to inject up to $100 million in investments over the next three years," Ibrahim Saleh, board member of Diamond Motors, said in an address during the signing. "Of the money, $65 million will be allocated for the first year." Saleh told Al-Ahram weekly he did not rule out the establishment of a factory in the future depending on how the market develops. According to Hasuo, a sales target of more than 8,000 units is planned for the first year, to be increased to 20,000 units in the near future. Diamond Motors comprises around 80 per cent of Kuwaiti investments. One partner, Al-Kharafi Group, is a Kuwaiti company with global investments of over $6 billion. Al-Mulla Group is the other Kuwaiti partner in Diamonds Motors. With more than 30 years of business relations with Mitsubishi Motors Corporation, Al-Mulla Group is the distributor in the Kuwaiti and Iraqi markets. Smart Car, the Egyptian partner which contributes 20 per cent of the capital, has 20 years experience in the automotive customer service in Egypt, according to Hasuo. Kuwait is the second biggest Arab investor in Egypt after Saudi Arabia, says Rashid Hammad, the Kuwaiti ambassador to Egypt, reaching up to $2 billion.
