Auto sales record their best month so far in 2023: Auto sales remained low in May compared with a year ago but rose steeply from the month before. Distributors sold some 7.3k vehicles during the month, according to figures released yesterday by the Automotive Marketing Information Council (AMIC). That’s still less than half the number sold in May 2022, but up 43% from the 5.1k recorded in April, marking the best month for auto sales since December 2022.

We don’t think this means the market is in recovery: April figures were likely depressed by Ramadan, when consumers spent far less time in showrooms — and as banks earmarked even less FX for auto imports as they prioritized the import of staples for the holy month.

YTD sales paint a dismal picture: Some 21.9k passenger cars were sold in the first five months of 2023 — down 73% on the 80.3k cars sold from January-May 2022.

The breakdown: In comparison with May 2022, passenger car sales fell 52% to 5.7k units, bus sales were down 61% to 694 units, while truck sales saw a 74% drop as the automotive industry continues to suffer from the country’s foreign currency shortage. Compared with the month before, however, passenger cars recorded a 48% increase, buses a 58% jump, and trucks a 12% increase.AMIC figures reflect data contributed by member distributors, who include most (but not all) industry participants.

It’s been tough going for the sector: Total auto sales volumes fell more than a third 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.

Tags: