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Automotive market lost 46.5% of its sales during Q1 of 2017 - Daily News Egypt

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Automotive market lost 46.5% of its sales during Q1 of 2017

Domestic product sales declined 45.8%, while import sales declined 47%


In spite of the discounts offered by companies during February and March, the decline in car sales fell by 46.5% in the first quarter of 2017 compared to the same period of 2016. The market saw sales of 26,500 units compared to 49,600 units, according to the Automotive Marketing Information Council (AMIC).

The AMIC report showed that the demand on passenger cars during the first quarter of this year decreased by 41%, recording sales of 19,700 cars compared to 33,400 during the same period of 2016.

Bus sales fell by 54.8% to 2,955 compared with 6,539 units in the same period in 2016. Truck sales declined by 60%, as 3,888 trucks were sold compared to 9,735 trucks in 2016.

The report mentioned that the demand on locally assembled vehicles declined by 45.8% in the first quarter of this year, while sales of the imported units declined by 47%, recording sales of 13,400 units compared to 25,400 units the previous year.

The domestic car sales declined by 37.7% to record sales of 8,061 vehicles compared to 11,600 vehicles in 2016. Sales of imported passenger cars dropped by 43.1% to 11,643 vehicles compared to 20,446 vehicles in 2016.

The domestic bus sales declined by 55.1% to 1,679 units compared to 3,738 units, while sales of imported buses decreased by 54.4% to record 1,200 buses compared to 2,800 buses in 2016.

Sales of imported trucks locally assembled dropped by 55.1% to record sales of 3,400 trucks compared to 7,500 trucks in the same period in 2016, while sales of the imported trucks dropped by 77.6% to 479 trucks sold during the period from January to the end of March, compared to 2,138 trucks in 2016.

The report said that sales of the market in March declined by 40%, recording 10,600 units compared to 17,700 in March 2016.

Sales of passenger cars declined in March by 35%, selling 8,000 units compared to 12,200 units, and sales of buses in March recorded 1,100 units compared to 2,100 units—a decline of 49.4%—while trucks recorded a decline of 54.8%, as 1,500 trucks were sold compared to 3,300 trucks in 2016.

Chairperson of El-Sabaa Automotive Group, Alaa El-Sabaa, expected sales of the automotive market to decline to between 50,000 and 55,000 vehicles by the end of the first half of this year, in light of the crazy price hikes in essential goods.

He added that many agents and manufacturers of cars expressed their deep resentment of the continuation of work within the automotive sector during the coming period, in light of the collapse of the market sales, especially with the lack of clarity of vision. He explained that a number of companies decided to transfer all of their profits permanently and avoid re-injecting them in the local market.

He called for reconsidering the decisions of the banking sector in order to increase the ability of financing the purchase of cars. He stressed that the largest proportion of sales is carried out by payment in instalments—not cash.

He explained that the automotive companies reduced their margin of profits by 3-5% during the current period, in an attempt to stop the decline in sales.

The commercial brand Nissan topped the Egyptian market in March with 22%, selling 2,302 cars, compared to 2,563 cars in February 2016.

Chevrolet occupied the second position with sales of 1,915, acquiring 18% of the total sales in February 2017.

Hyundai came in the third position, with sales of 1,685 cars, acquiring 16% of total sales.

Renault sold 793 cars and occupied the fourth position with 7%, followed by Toyota in fifth position, with sales of 691 units, acquiring 7% of the total sales. Kia occupied the sixth place with 515 cars, to acquire 5% of the total sales of cars in February.

Chery ranked the seventh through selling 466 units in February, acquiring 4% of the total sales of the Egyptian market during the same period.

Mitsubishi sold 329 units and occupied the eighth position, acquiring 3% of the total sales, while Opel sold 310 units to occupy the ninth position. Suzuki sold 229 units and occupied the tenth position with only 2% of the total sales in February.

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https://dailynewsegypt.com/2017/05/09/automotive-market-lost-46-5-sales-q1-2017/
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