The automotive industry can’t catch a break right now: The yearlong decline in auto sales accelerated in February as the foreign currency shortage continues to weigh on the sector. Sales were down 76% y-o-y last month, with distributors selling fewer than 6.1k vehicles compared to 25.6k in the same month in 2022, according to figures released by the Automotive Marketing Information Council (AMIC).

The breakdown: On a y-o-y basis passenger car sales were down by 78% to 4.3k units from 19.7k units in February 2022, while bus sales were down by 54% and truck sales were 75% lower. AMIC figures reflect data contributed by member distributors, who include most (but not all) industry participants.

The start of a turnaround? Passenger car sales inch up from January: Sales volumes rose on a monthly basis for the first time in a year thanks to a pickup in passenger car sales, which rose 24% from January. Bus volumes fell by 5% and truck sales volumes were 8% lower than in January.

REFRESHER- The auto industry has seen better days. Total sales volumes fell more than athird in 2022 after capital controls in place for most of the year made it almost impossible for distributors to import cars and components — and forced a number of global car manufacturers to suspend sales to Egypt.

Industry players that Enterprise spoke with in March were optimisticthat 2023 will mark a turning point for the sector as the government rolls back import restrictions while introducing policies to encourage local and international investment.

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