Automotive market sales dip 6.7% during 1st half of 2019

CAIRO – 31 July 2019: Sales of the automotive market declined 6.7 percent during the first six months of 2019, recording 74,084 vehicles, compared to 79,474 vehicles in the same months of 2018, according to the monthly bulletin of the Automotive Market Information Council (AMIC).

AMIC said that sales of locally assembled cars dropped 11.6 percent during the first half of 2019, recording 35,905 cars, compared to 40,624 cars during the same period of 2018. Sales of imported cars decreased 1.7 percent to hit 38,179 vehicles down from 38,850 vehicles during the compared period, according to the bulletin.

Issued Wednesday, the bulletin noted that passenger car sales declined 11 percent to 51,311 cars, compared to 57,430 cars in the same month of 2018, while bus sales rose 4 percent on a year-on-year basis to 15,720 buses up from 6,805 buses, and truck sales climbed 3 percent to 15,720 trucks from 15, 474 trucks.

Vice Chairman of the Association of Car Dealers Ahmed Kamal attributed the decline in sales to the confusion in the market due to the weak liquidity of the largest segment of consumers resulting from higher prices.

He added that the discounts announced by the agents in their models prompted consumers to postpone purchasing decisions until prices stabilize.

He predicted that the situation of confusion experienced by the car market comes amid the fierce competition between companies to discharge the stock through the provision of high price discounts and market the 2020 models.

It is estimated that the total sales of vehicles of all types will hit 170,000 cars by the end of 2019.

Spokesperson of “let it rust’ campaign Mohamed Shata said earlier that the cars purchase boycott campaign has reduced car prices by up to 30 percent, ranging from LE 50,000 to LE 150,000, depending on the car type.

The monthly bulletin of the Automotive Market Information Council (AMIC) revealed that sales of the automotive market dropped 8.5 percent during the first five months of 2019, recording 60,207 vehicles, compared to 63,948 vehicles in the same months of 2018.