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Monday, 6 July 2020

Egypt’s passenger car sales to shrink by over 8% this year -BMI Research

Passenger car sales are forecast to shrink by over 8% this year after having been expected to grow by 9.2% prior to the coronavirus, Fitch Solutions’ BMI research said in a report (paywall) on the market in Egypt picked up by the local press. The downward revision came as the industry faces headwinds and “worsening local and global economic outlook due to the spread of covid-19.” The situation will continue to deter personal car purchase decisions, says the research house.

Commercial vehicle sales will also shrink in the short run, but Egypt’s thriving construction industry is likely to create a demand pull for the segment — which includes trucks, trailers, and heavy equipment transport vehicles — in the medium term.

Bus sales, meanwhile, are expected to drop by as much 20% after having been forecast to increase by 2.1%.

Background: Egypt’s automotive companies saw business grind to a near-complete standstill when the government introduced lockdown measures towards the end of March. PC sales dropped for the two following months as the sector is yet to stage a recovery, data from the Automotive Information Council (AMIC) measuring volume in April and May showed.

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