The dollar crisis in Egypt pushes car sales to the lowest level in 5 years

Recent data revealed that car sales in the Egyptian market decreased by 69% on an annual basis during the month of April, in conjunction with the continued negative impact of the dollar shortage on imports.

According to data issued by the Egyptian Automotive Market Information Council (AMIC), distributors sold less than 5,100 vehicles during April, compared to about 16.6 thousand vehicles during the same month last year. The sales rate during the month of April is the lowest since at least the beginning of 2018.

Passenger car sales decreased by 70% on an annual basis to about 3,800 cars only, bus sales decreased by 59%, and truck sales decreased by 69%. April sales also declined by 23% compared to last March, as passenger car sales decreased by 17%, bus sales decreased by 31%, and truck sales decreased by 39%.

Since the emergence of the dollar scarcity crisis in the Egyptian market during the first quarter of last year, the car market in Egypt is facing a violent crisis, as importers find it very difficult to provide the dollar needed to complete import operations.

And against the background of the importers’ inability to obtain hard currency, many problems arose between the car-sectors, agents and suppliers, and a large number of customers resorted to the Consumer Protection Agency with lawsuits because they demanded additional amounts despite the completion of the reservation process and payment of the full price of the car.

The crisis also caused record increases in the prices of used cars, in the absence of an abundance of new cars to cover the required numbers.

During the past year, total car sales fell by more than a third due to import restrictions that made it impossible for distributors to import finished cars, car assembly supplies and spare parts, and forced a number of international car manufacturers to stop their sales to Egypt.

At the same time, data issued by the Egyptian Association for Compulsory Vehicle Insurance revealed that the number of electric vehicles that were insured and licensed from July 1, 2021 to April 30, 2023 amounted to about 2,337 various vehicles.

The “Volkswagen” brand ranked first in passenger cars, and the “AD4” brand ranked first with 182 cars, the “YD4X” brand with 145 cars, then the “Golf” brand with 128 cars, and the “AD4” brand. Cross” with 126 cars.

The “BMW i-3” brand came with 50 cars, and the “Xi” brand with 6 cars. For the first time, the “X3” brand appeared with 4 cars, and the “Jaguar-I-PACE” brand with 6 cars.

This was followed by the “Jaguar F-PACE” brand with 4 cars, the “Ford Mustang” brand with 4 cars, the “Kia Soul” brand with 19 cars, the “Toyota Corolla” with 13 cars, and finally the “Tesla” brand with 124 cars.

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