Tunisia August. Renault held 21% of share, leading the market down just 0.6%

Tunisian Vehicles Sales

Tunisian Vehicles Sales in August were stable (-0.6%) with 2.910 unit sold. After being outpaced by Kia for a few months, Renault is now running at an outstanding pace (+214.4%) holding over 20% of share. Behind, Hyundai and Peugeot are crumbling, while Volkswagen hit a stunning +167.5%.

Economic Environment

Tunisian economic growth was lackluster at 1.2% in the second quarter according to recent data, weighed on by a further decline in industrial output. However, agriculture rebounded, while the services sector remained a key growth driver. Sluggish momentum translated into weak labor market dynamics, with the unemployment rate remaining slightly above 15% in the period.

Turning to the third quarter, economic prospects remain uninspiring, as slow EU growth and domestic political uncertainty are likely hampering activity. On the political front, in mid-August the electoral commission announced the 26 candidates who will compete in the 15 September presidential elections. The outcome is uncertain, although the role of president is mainly limited to defense and foreign policy.

Market Trend

The market has hit the all-time record both in 2016 and in the 2017 (63.678 sales) even not considering the high quota of grey market, estimated in the range of 15%. However, the government decision to increase the duties on import, effective since January 1st 2018, obtained the result to block the market development and even to move the trend in a negative pathway with 2018 sales at 52.601 (-17.4%).

In the 2019 sales sharply increased in  January, after the previous year’s negative trend, with registrations at 2.739 (+25.3%). However, in February the market heavily declined (-11.5%) and reported a huge drop in March with sales at 2.726 (-32.7%), leading year-to-date figures at 7.253 (-18.1%).

In April, the market fell marginally down (-5.1%) with 2.915 sales, while signing a positive performance in May (+5.6%) with registrations at 3.764. In June, sales sharply decreased again, registering 2.887 units (-13.3%) and in July sales were at 2.746 (-0.8%). In August the market was flat (-0.6%) with 2.910 units sold, leading year-to-date figures at 22.475 (-8.4%).

Brand-wise, the year-to-date market leader was Reanult – after losing the crown for a few months – with 2.887 sales (+1.1%) and 12.8% of market share. The second, third and fourth place are now respectively taken by Kia, Hyundai and Peugeot. Meanwhile, Mahindra marked a spectacular performance, reaching the 8th position.

Market Outlook

After hitting a series of all-time records, the Tunisian market has temporarily declined in 2018 due to an increase in duties on imports. However, the market is expected to hold a positive trend during the 2019-2025 period of time,.

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