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 May 2022 a dramatic drop of 81%. 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”.
However, the number of sold vehicles registered a 60.59% increase yearly to stand at 2,465 sold cars by May 2022. On a monthly basis, 763 cars sold in the month of May compared to only 487 cars sold same period last year.
In more details, during the month of May 2022, Passengers cars were distributed as follows: Japanese cars took the highest share of 40.89%, European cars accounted for 23.72%, and Korean Cars came third grasping 20.31% of the total.
Overall, the cars sector in Lebanon is still under pressure due to the continuous devaluation of the national currency and the purchasing power of households. However, slight improvement was recorded by the first five months of 2022 amid higher demand for new vehicles from the hospitality and car rental sectors driven by positive outlook for tourism this summer. But, this cautious optimism towards the sector remains subject to sky-high inflation and the outcome of the political situation in Lebanon.
Growth of Registered Passengers Cars by May 2022
Source: AIA, BLOMINVEST Bank