The Egyptian Automotive Market Faces a 69.8% Sales Decrease in the First Half of 2023

The latest report published by the Egyptian Automotive Market Information Council (AMIC) showed that total sales in the first six months of the current year 2023 decreased by 69.8 percent.

Sales in Various Sectors

According to AMIC, sales in the car market in its various sectors (driving “owners” – buses – freight transport) stopped at the level of 36,845 units against 122,318 units for the same period in 2022.

Reasons for the Decrease

The difference in sales between the first half of last year and the current year 2022 was 85,473 vehicles due to successive problems in the market, primarily supply shortages and rising prices.

Passenger Car Sector

The passenger car sector continued its series of crashes as 26,869 units were registered in the first six months of this year, up from 92,621 units year-on-year, resulting in the loss of about 65,752 vehicles.

Commercial Vehicle Sector

The commercial vehicle (truck) sector shrank 71% after its sales stalled at 5,994 units compared to 20,645 units in the same period last year.

Passenger Transport Sector

As for the passenger transport sector “buses”, it was the least affected by the economic conditions in which the market is located, as sales in the first half of the year amounted to 3,982 units against 9.5 thousand units year-on-year.

Future Outlook

Experts expect sales to continue to decline in the second half of 2023, based on the persistence of the causes of the crisis lasting a year or more, including a sharp reduction in supply and rising prices.

Potential Solutions

A report from the US-based F2M agency Focus to Move, which specializes in automotive market research, says sales in the Egyptian car market stalled at 186,819 units by the end of 2022, down 32.6%. The agency’s report indicated that the solution to the dilemma of the Egyptian automotive sector lies in overcoming the crisis of unrest in the global supply chain caused by the lack of raw materials, especially for the production of microchips, as well as stability the exchange rate of the dollar against the pound and its availability for import returns.

Source

Source: Masravi