Car market expected to lose 40% of sales in H1 2017

Workers and officials of the automotive market expected sales to continue staying low in the first half of 2017. They predict sales to be as much as 40% lower than during the same period in 2016 as a result of the recession that hit the sales in the first quarter of the current year.
A senior source involved in the market told Daily News Egypt that companies are now selling the stock that has been piling up, which came after a decline in sales over the course of the past four months. He noted that pricing now is determined based on the cost of imports expected in the coming period.

The source said that most cars will see their prices hike further in the coming few months, explaining that the companies have to import 2018 models, which would mean higher costs and record-high prices, something that would increase the recession.

He explained that the companies will also be forced to lower their prices or offer discounts in the second half of 2017 to sell the stock of their 2016 and 2017 models and offset the losses by increasing the price of the 2018 models.

The source said that sales are expected to decrease in 2017 to approach 40% compared to sales of last year, especially as the USD price at customs has moved back up again.