Egyptian Vehicle Market has grown 24.2% in the 2018, rebounding after the previous years fall. Sales were pushed by a lower inflation on vehicles price, while duties increase on fuel, vehicles and parts has limited the growth. Hyundai, Nissan and Renault shine on top of brands list.
Economic Environment
The economy appears to have had some growing pains in the second quarter of fiscal year 2019—which covered October to December 2018—following a small slowdown in the first quarter. The non-oil private sector was stuck in contractionary territory in November for the third consecutive month, according to survey data.
The continued downturn in the sector was led by a decline in output and new orders, although both declines were less pronounced than in October.
This fiscal year, economic growth should be robust thanks to higher government investment spending, rising natural gas production and an improving regulatory environment. However, despite reducing in recent years, fiscal imbalances continue to weigh on economic prospects.
Market Trend
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 total vehicles (cars and trucks) sales down at 134.885 units at the end of 2017, down 36.8% from the previous year and well below the record of 284.000 units touched in the 2015.
Finally during the 2018 the 2018 the huge pressure on vehicles price has been reduced and the positive economic trend created the mood for a recovery and indeed the recovery was robust.
According to data released by the local Association of Car Manufacturers, the market ended the year with 174.318 total vehicles sales, a robust +24.2%, despite fuel prices have been raised in June.
The automotive industry is crucial in the Egyptian economic environment and the government moved actively to recover lost steps and had been able to agree with Mercedes to come back and restart the local production, after three years of absence.
At brand-wise, same brands scored outstanding recovery in the year like the three on the podium (in light vehicles market). Indeed Hyundai was the best seller with 42.480 (+94%) followed by Nissan with 31.860 sales (+46.1%) and Renault with 20.340 (+117.2%).
Tables with sales figures
In the tables below we report sales for Top Brands
