Egypt Car Sales Drop 6.5% in H1

The total car sales fell 6.58 percent, year-on-year, in the first seven months of the year 2019 compared to the same period last year, According to the Egyptian Automotive Market Information Council (AMIC).

According to the AMIC report, 90,042 vehicles were sold in the first seven months of this year, compared to 96,381 in the same period in 2018.

Total sales of cars fell 6.58 percent year-on-year in the first seven months of the year compared to the same period last year, according to data released by AMIC.

According to the report, 90,042 vehicles were sold in the first seven months of this year, compared to 96,381 in the same period in 2018.

Passenger car sales fell 10 percent to record 62,810 in 2019, compared with 69,901 last year.

However, the report pointed out that the sales of bus vehicles increased by 0.1 percent, where 8.577 buses were sold during the first seven months of this year, compared to 8.570 buses during the same period last year.

[caption id="attachment_76145" align="aligncenter" width="718"] IMC Graph displaying vehicle sales volume[/caption]

Moreover, truck sales rose by 4 percent year-on-year, with 18,566 truck sales during the year, compared with 17,910 truckloads last year.

Analysts consider the decline in sales of the passenger car sector is a result of the slowdown caused by the hesitation of consumers to buy on the back of a campaign called Let It Rust "Khaliha Tsadi".

The campaign calls to halt passenger car purchases to reduce demand for cars, forcing traders to lower prices. It also demands a fixed profit margin for dealers and distributors.

Meantime, car agents and distributors have reduced prices by up to 8 percent for cars ranging between 1300-1600 CC, and around 20 percent in models exceeding 2,000 CC.

Analysts predict another 4 percent decline in prices of vehicles if the dollar continues to drop reaching EGP 16.

However, President of the Egyptian Automotive Dealers Association Osama Abu El-Magd predicts the rise of car prices in the local market during the coming period, coinciding with the arrival of new car models 2020.

Abu El-Magd added that the increase in prices would be as a result of the shortage of supply in the local market of cars in conjunction with the reduction of imports as a result of campaigns on the automotive sector.

It is noteworthy that the tariffs on European cars reached zero percent this year, which also caused prices to drop in the domestic market.