The car market has been running low on gas: Auto sales in March recorded a 43% m-o-m drop to 4.2k vehicles, according to figures from the Automotive Marketing Information Council (AMIC) seen by Enterprise. The figure is the lowest we’ve seen since we started keeping track of auto sales in the country in January 2019.

February went a little differently: Sales saw a 20% m-o-m rebound in February from a 10-month low recorded in January with distributors selling some 7.4k vehicles.

The breakdown: The dip was driven by a 53% m-o-m decrease in passenger car sales, with just 2.8k units sold throughout the month. Truck sales were also down 10% m-o-m to 920 units, while bus sales remained essentially flat at 522 units.

On a yearly basis: Auto sales fell down 37% y-o-y in March, driven by a 41% y-o-y decrease in passenger car sales. Bus and truck sales were also both down in comparison to where they were a year ago, falling just over 18% and 32%, respectively.

Why the massive dip in demand? The decline in sales comes in direct relation to the central bank’s decision to float the EGP in March, Egyptian Association of Automobile Manufacturers head Khaled Saad told Enterprise. As a result of the EGP float, car distributors have started slashing their prices, which seems to have pushed customers to hold off from buying a car with the possibility of further price reductions down the line seen as a possibility.

What’s next? Despite the increase of cars in the market from the easing of FX shortages, buyers have remained hesitant to make any purchases in hopes that prices will cool even further, Saad said.

The caveat: AMIC figures reflect data contributed by member distributors, who include most(but not all) industry participants.

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