Egyptian Motorcycles Market collapsed in 2023, with price increased even on weekly basis and sales fell below any expectable level, with full year sales at only 42K, down an out of scale 72.5%.
The economy has slowed markedly since early 2022. Initially driven by sharp global food price increases in 2022, inflation has surged and become broad-based, boosted also by successive devaluations of the Egyptian pound. Core inflation stood at 38.1% in October 2023. Household consumption held up thanks to energy price controls and food subsidies as well as a series of fiscal packages.
In contrast, private investment has contracted over the past year, as businesses have suffered from tighter financial conditions, currency shortages and increased uncertainty.
While domestic demand has slowed, exports have surged, driven by tourism and Suez Canal receipts, and imports were restrained further due to temporarily strengthened restrictions in 2022. Overall, GDP growth is expected to remain largely unchanged at 3.9% in fiscal year 2023.
Differently from the most of African market, the motorcycles sector is not the primary mobility vehicles in Egypt. In facts, cars, lorries and public transportation have more relevance due to the high urbanization reached by the country (over 43%) and by the geographical characteristic, with most of industrial and economic activities along the coastal and river areas.
Following a 5 years consecutive growth, in the 2022 the domestic 2-Wheeler market in Egypt collapsed, hit by unprecedented inflation and low economic growth.
In 2022 and 2023, both auto and motorcycles industry sharply declined hit by a huge inflation (actually at 36%) with the price of new vehicles becoming unacceptable for all the middle classing.
The motorcycles market initially reported a 48.8% lost in 2022, falling at few thousand units over the quarter of million, but the environment become further more negative in 2023, with price increased even on weekly basis and sales fell below any expectable level, with full year sales at only 42K, down an out of scale 72.5%.
All manufacturers collapsed with the three leaders, Bajaj Auto, Honda and Haojue losing between 65-80 percent.
Egyptian economic growth will be slower than previously expected as its pound weakens, inflation cuts into purchasing power and fallout from the Gaza crisis eats into the country’s main sources of foreign currency.
Revenue from the Suez Canal fell 40% in early January after sea attacks by Yemen’s Houthis diverted away shipping. The crucial tourism sector is in losing near 50% from 2 years ago.
In such environment, motorcycles market 2024 perspectives are still negative, while a moderate recovery is expected, even considering that the market was over 400 thousand units only two years ago.
Source link : https://www.motorcyclesdata.com/2024/04/12/egypt-motorcycles/
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Publish date : 2024-04-12 07:00:00
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