Egyptian Vehicle Market, after having reported an outstanding trend in the first two months of the year, has decelerated due to Coronavirus outbreak. Indeed, in March auto sales fell 5.4% at 11.588, ending the first quarter with 59.056 units sold (+28.3%).
It was just yesterday
Following two years (2014 and 2015) of high sales volume, in 2016 and 2017, the Egyptian vehicles industry has been buffeted by a devalued currency, spiraling new-vehicle price increases, higher interest rates, and three hikes in fuel prices as the government rolls back fuel subsidies to control budgetary expenditures. In addition, VAT increased in 2017 and duties for over 2 liters vehicles further increased. The result was an unprecedented fall of demand with 2017 light vehicles sales down at 137.821, losing 36% from the previous year.
In 2018 the huge pressure on vehicles price has been reduced and the positive economic trend, enabling the market to recover with 193.000 light vehicles sales. However, in 2019 the market has been hit again by the price increase, ending the year at 178.699, down 12.9%.
In the first two months of 2020, according to data released by the local Association of Car Manufacturers, the market started with an extraordinary trend, with Year to Date February sales at 35.831 (+61.9%).
A new Era has arrived
Said this, a new era started in March for the entire World, due to the Coronavirus outbreak.
As a response to the virus spread, the Egyptian Government imposed the closure for all restaurants and public places throughout the country from seven in the evening until six in the morning, starting from March 19 to March 31, except for places that sell food, pharmacies and home delivery services. Moreover, flights were suspended for the same period of time.
As a result, the market interrupted the fast-pace recovery, registering 11.588 units in March (-5.4%), ending the first quarter at 59.056 (+28.3%).