Egyptian Auto Sales 2016 hurt by deep vehicles price increase and customer demand fall consequent to the daring fiscal reform program in place. Chevrolet dropped heavy and now Hyundai is near to close the gap.
Egyptian economy continues to suffer from the immediate effects of the liberalization of the pound and the arduous fiscal reform program the government has embarked on. A still bleak, albeit gradually improving PMI reading in January exposes the hardships businesses in Egypt are dealing with, including soaring costs of raw materials and subdued demand on the back of skyrocketing inflation.
This, however, has not deterred the Egyptian government from pushing ahead with its reform-oriented agenda. Egypt’s compliance with many of the toughest reforms included in the IMF’s three-year plan has prompted a hasty return of many foreign investors to the country.
Following two years (2014 and 2015) of high sales volume, in the 2016 the domestic vehicles market dropped down, hit by the impressive increase in key on hand price fo all vehicles. The demand was frozen and the market fell down.
Indeed, according to the data released AMIC total sales had been 201.621, down a sharp 25.7%, mainly as effect of car passenger’s segment decline.
In the World’s ranking, Egypt fell in 41st place, down 6 spots from the previous year.
Chevrolet has lost a sharp 28.7%, still keeping the leadership while with a narrow gap over the second, Hyundai (-6.7%) approaching to surpass. In third the other strong challengers, Nissan, down only 4.8%.
The increase of VAT rate on all goods (including vehicles) with higher rate for over 2.0 HPs, will further hurt the market in the 2017.
Tables with sales figures
In the tables below we report sales for Top Brands