Back to the complete issue
Sunday, 2 October 2022

Car sales fell once again in August

Auto sales were down by more than half in August compared with the same month a year before as the market continues to struggle with barriers to import. Passenger car sales dropped nearly 53% y-o-y last month to just 8.7k vehicles, according to figures provided by the Automotive Information Council (AMIC).

Buses and trucks were no exception: Around 1k buses were sold in August — down more than 47% y-o-y. Truck sales saw a near 14% y-o-y drop to around 3.7k units. Total vehicle sales dropped 45% y-o-y to 13.4k units.

ICYMI- It’s been tough terrain for the auto sector. Passenger vehicle sales also halved y-o-y in July, extending months of steep declines. The market has been hit by rules requiring importers to get letters of credit (L/Cs) that limited imports to a handful of essential goods, leaving new cars and car parts stranded at ports and pushing a number of global car manufacturers to suspend sales here.

The sector is hoping its luck will soon turn: The blockbuster economic conference we’re expecting at some point this month could include steps to resolve import challenges, President Abdel Fattah El Sisi said last week. Meanwhile, the government’s automotive committee held its first meeting last week, suggesting we could soon get more details on the automotive strategy that aims to increase local assembly and reduce the sector’s reliance on imported parts and cars.

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; and Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt.