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Tuesday, 29 November 2022

Egypt car sales down again in October

Auto sales down yet again: Monthly auto sales fell in October as the industry faces continued import difficulties. Less than 6.1k passenger vehicles were sold last month, down 69% from the same month last year, according to figures released by the Automotive Information Council (AMIC), an industry group.

Passenger vehicle sales hit a 4.5 year low for a second consecutive month — excluding April 2020, when sales slumped amid the outbreak of the pandemic. We’ve tracked AMIC sales data going back to the start of 2018.

Buses and trucks were no exception: Around 1.4k buses were sold during the month, down 43% from October last year. Truck sales were down 63% to 1.5k units. Total vehicle sales dropped 65% y-o-y to 9k in October. AMIC figures reflect data contributed by member distributors, who include most (but not all) industry participants.

It’s been an annus horribilis for the auto industry — but there may be light at the end of the tunnel: The central bank is in the process of rolling back import restrictions it introduced in February to preserve foreign currency. The new rules made it almost impossible for distributors to bring fully built up vehicles, assembly kits, and spare parts into the country and forced a number of global car manufacturers to suspend sales to Egypt. The restrictions could be fully lifted by the end of the year — but it will likely take longer to solve an FX shortage that is reportedly slowing the release of goods at ports — and to repair the severed links in our auto supply chain.

In other words: Don’t expect showrooms to be significantly restocked until closer to mid-year 2023 by the time local assemblers place and receive kit orders and importers of fully built-up units are able to place, pay for and receive goods.

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