Under the pressure of a shortage of supply and a decrease in demand in light of the high prices
Dubai – Al Arabiya.net
Posted on: August 08, 2023: 05:38 PM GST Last updated: August 08, 2023: 06:46 PM GST
Alaa El-Saba, head of El-Saba Automotive Company and a member of the Automotive Division of the Federation of Chambers of Commerce, said that cars manufactured in the Egyptian market in the first half of 2023 witnessed a decline of 58% on an annual basis, due to the lack of hard currency and the difficulty of opening letters of credit.
Al-Saba added, in an interview with Al-Arabiya, that this decline came despite the President’s directives to provide facilities for this sector, but there are priorities and a tendency to manufacture locally.
He pointed out that the decline in sales came due to the pressure of the lack of supply and the decrease in demand in light of the rise in prices, pointing to the occurrence of a state of inflationary stagnation because the sharp rise in prices at the present time exceeds the capabilities of customers.
Al-Saba stated that the level of segments that used to buy cars has changed, and the number of customers targeted for purchase has decreased, in conjunction with the lack of supply.
He explained that the decline in sales reached 70% in the first six months of the year, and the rates of declines may worsen during the coming period, adding: “The decline comes with the decline in quantities each period from the period preceding it … the problem is clear and significant.”
Car sales in Egypt witnessed a significant decline during the first 7 months of this year, by about 71%, as about 27,000 cars were sold, compared to about 93,000 cars for the comparative period of last year.
According to what was published by the Automotive Information Council report, the total sales of the vehicle market in Egypt, including owners, transport and buses, in the first half of 2023 reached 37,000 vehicles, compared to 122,000 vehicles in the first half of the year, a decline of 70%.
2023-08-08 14:46:20
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