Back to the complete issue
Wednesday, 4 May 2016

Automotive sales fall 31.2% y-o-y in 1Q2016

Automotive sales fell 31.2% y-o-y in 1Q2016 to 49,600 vehicles, down from around 72,200 units in the same period last year, according to data from the Automotive Marketing Information Council (AMIC), an industry association. Passenger car sales dropped 31.7% during the quarter, with Al Mal reporting total sales revenue of EGP 6.3 bn. Bus sales declined 23.1% in 1Q2016, while sales of trucks plummeted 34.1%. Fully imported (CBU) vehicles took the brunt of shrinking sales, dropping 33.2%, while locally assembled vehicle sales declined 23.1%. Sales will fall 50% y-o-y by the end of 2016 on the back of the FX crunch, Elsaba Automotive chief Alaa Elsaba tells Al Borsa, calling on the government to swiftly adopt the automotive directive. The so-called auto directive — passed by Cabinet and believed now to be at the presidency for review — would provide domestic assemblers with tax incentives and other incentives to go further up the value chain into manufacturing, creating jobs and sustaining an industry that claims it is threatened by unfair competition from Turkish, Moroccan and European Union imports. (See Transport + Automotive, below, for more on the automotive directive, which HSBC says will benefit the industry, including listed player GB Auto.)

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.