The Association of Car Importers in Lebanon (denoted as AIA) stated in its recent automotive report that “The continuous Downfall of New Cars Registered in Lebanon since 2018 to reach in January 2022 a dramatic drop of 88%. This will lead to the closing down of a number of companies and is causing the licensing of a large number of their employees and workers”.
For the period ending February 2022, the number of sold cars recorded a total of 459 compared to 69 cars by February 2021 due to Covid lock down last year. However, for this year we may witness a further increase of car sales in the near future as people preempt the governmental decision to calculate customs fees at the Sayrafa rate once the budget is approved by the parliament.
In details, during the month of February 2022, the sale of passenger cars were distributed as follows: Japanese cars recorded a share of 43.35%, European cars accounted for 29.62%, and Korean Cars followed with a share equal to 10.89% of the total.
We don’t except that this sector will heal anytime soon due to changes in priorities for most of Lebanese people amid the devaluation of the national currency and the severe financial crisis. Lebanese people are now in a survival mode as they are suffering to secure their necessities like medications and food. However, a reform and recovery program with the IMF can help gradually the economy to turn around, including the car sector.
Growth of Registered Passengers Cars by February 2022