Egypt’s automotive market showed signs of recovery in June as the total automotive sales rose 18.4% year-on-year (y-o-y) and 35.4% month-on-month (m-o-m), amounting to 16,430 units.
The surge implies a speedier recovery following the economic hit to the sector due to the novel coronavirus (COVID-19) pandemic during March and April. Passenger car sales were up 10.4% y-o-y, and 38.6% m-o-m, amounting to 11,200 units in June 2020.
This comes despite auto sales in the second quarter (Q2) of 2020 reportedly being declining 3.8% y-o-y, and 35.3% quarter-on-quarter (q-o-q), amounting to 37,400 units.
The sales recovery comes on the back of several stimuli that have been put in place to encourage a recovery in consumerism, and to reduce the economic fall-out from the pandemic.
It has seen banks offering a range of attractive financing options, and lower interest rates which were down 300bps year-to-date (YTD). There has also been a hike in retail clients’ debt burden ratio from 35% to 50% of the monthly salary, alongside increased promotions offered by auto dealers to offload old inventory before the launch of 2021 models. Improved consumer confidence has also been a contributing factor.
GB Auto, the Egypt agent for Hyundai, Mazda, Geely, and Chery, reported a total market share of 16.5% in Q2 of 2020, down from 18.6% in Q2 of 2019 but flat q-o-q. As for June 2020, GB Auto’s market share stood at 16.8%, down from the 17.2% reported in June 2019, but up versus 13.9% in May 2020.
GB Auto’s passenger car sales in Q2 of 2020 dropped 20.3% y-o-y and 33.5% q-o-q, amounting to 4,150 units. The company’s CBU volumes were down 39.9% y-o-y and 23.5% q-o-q, with CKD volumes up 19.4% y-o-y, but down 41.5% q-o-q.
As for June 2020, sales volumes increased 8% y-o-y, and 67.8% m-o-m to 1,880 units. The indicators for June imply strong signs of recovery for GB Auto’s automotive segment in Egypt.