Egypt car sales rise by 22% despite coronavirus

Egypt Car sales rise by 22% despite coronavirus

 

 

 

 By Ahmed Kamel

Despite the Covid-19 pandemic, car sales rose by 22 per cent to 90,395 in the first half (H1) of 2020. The increase in sales marked growing demand for cars despite the precautionary measures carried out by the government to combat the spread of the Covid-19 pandemic.

Sales of buses surged 79.7 per cent to 12,672 units in June, up from 2,098 units in the same month last year, the Cairo-based Automotive Marketing Information Council (AMIC) said in a statement, a copy of which was made available to The Egyptian Gazette.

Car sales jumped 22 per cent to 62,171 units in the first half of 2020, up from 37,980 units in H1 2019, AMIC data showed.

According to AMIC statement, sales of trucks fell by one per cent to 15,552, down from 15,720 units, AMIC data showed.

Car sales increased despite a campaign to suspend buying new cars. A number of citizens launched a local campaign on the social media called ‘Let it Rust, which was launched after the currency float in 2016.

The automotive traders call for increasing bank credit to push up car sales. In 2015, the Central Bank of Egypt (CBE) reduced the maximum limit for loans to customers and all their related members -- subsidiaries -- to 20 per cent of the capital base down from 25 per cent for each client.

According to the new regulations, banks cannot provide loans that exceed 15 per cent of capital base. As for personal loans, the CBE set a lending cap of 35 per cent of a customer's income after deducting tax and social insurance.

AMIC expects an increase in car sales after the government contains the Covid-19 pandemic, citing growing demand for new brands.