The Association of Car Importers in Lebanon (denoted as AIA) recently stated in its automotive report that “A dramatic drop of 28.1% in new cars registered in Lebanon during the first 11 months of 2021 in comparison with the same period of 2020 and by nearly 80.7% in comparison with the same period of 2019. This will lead to the closing down of a number of companies and to the licensing of a large number of their employees and workers”.
More generally, the market has been facing increasing challenges in the last two years mainly resulting from a severe reduction in purchasing power of customers as well as ceasing loans from the Lebanese banks. As a result, passenger cars dropped by 28.13% yearly to 4,098 by November 2021.
In details, during the month of November 2021, Passengers cars were distributed as follows: Japanese cars took the highest shares of 36.54%, European cars accounted for 25.29% of the total cars, and Korean Cars came third, measuring 20.23% of the total.
As we can see the cars sector in Lebanon is still suffering due to the continuous devaluation of the national currency against the dollar followed by the severe drop in purchasing power and income of individuals.
For the month of November alone, number of sold cars recorded a total of 650 compared to 249 cars in November 2020.
Growth of Registered Passengers Cars by November 2021