Automotive recovery stalls: Auto sales fell back in October, dashing hopes that the sector was beginning to turn a corner after an 18-month slump caused by the FX crisis. Distributors sold less than 9k vehicles in October, down 9% from September when sales rose to their highest level in a year, according to figures released on Thursday by the Automotive Marketing Information Council (AMIC).

In details: The drop in sales was driven by a dip in passenger car and truck sales. Passenger car sales fell 12% m-o-m to 6,970 units, while truck sales saw a 23% m-o-m decline to 995 units. A 47% jump in bus sales failed to offset the declines.

Sales flat from a year ago: Sales were effectively flat y-o-y in October. Passenger car sales were 15% higher but did not offset declines in bus and truck sales, which fell 28% and 35% respectively.

The big picture: After a notable jump in September, the pullback in sales in October suggests that problems linked to securing FX still persist for auto distributors looking to refill their inventories. The prospect of a post-election float of the EGP has further increased pressure on the currency, pushing the greenback to unprecedented highs in the parallel market, making it more difficult and costly for importers to secure FX.

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

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