Automotive market sales have resumed their upward trend since last August. Overall September sales point to a 4.85% increase compared to September 2021. However, the market has yet to catch up to the pre-crisis level.
The automotive market continues to recover. The recovery in sales is indeed confirmed, from month to month, after a decline that lasted several weeks. Thus, according to figures put forward by the Association of Vehicle Importers in Morocco (AIVAM) for the month of September, car sales ensured a second month of growth. Following the rise of 4.22% recorded in August, the market ensured a second wave of growth last month. 13,898 vehicles were therefore sold, ensuring an increase of 4.85% compared to the same month last year.
In detail by vehicle category, it should be noted that passenger car (PC) registrations reached 11,928 units, compared to 11,323 units registered in September 2021, which represents an increase of 5.34%. For their part, light utility vehicles (LCVs) recorded the same upward trend with growth of 1.97%, to 1,970 vehicles marketed at the end of September 2022.
Companies in force
To analyze this situation of car sales at the end of the past month, Cédric Veau, Managing Director of Kia Morocco, assures that “the market is recovering mainly due to the increase in demand from companies in terms of company fleet, this activity is more and more dynamic. Businesses are on an upward trend in purchasing vehicles to fuel their fleet.
According to the same source, companies have been more active than individuals. Cédric Veau affirms in this logic that “the business category is therefore very dynamic and it is in the process of compensating for the private individual market which is not in its best shape. In fact, inflation, which weighs on the purchasing power of households, leaves no room for the purchase of a vehicle”. Another automotive market expert suggests another reason for the increase in sales observed over the past two months. According to him, this state of affairs is linked to the attitude of car rental companies who are also buying more and more vehicles. They are bailing out their fleet, which has been heavily impacted by the health crisis.
Remember, most of them had to sell a large part of their fleet to deal with their cash flow problems. “Car rental companies have their share in this increase in new vehicle sales. Having recorded a good summer season, they are resuming their investments by expanding their fleet in preparation for the next year”.
In any case, it is useful to note that despite the consecutive increases in automobile sales over the last two months, the market is still unable to absorb the losses and delays accumulated during the current year. Still according to AIVAM statistics, by accumulating the three semesters, sales are still showing a decline, in the two categories of passenger cars and light commercial vehicles. The regression persists and amounts to 8.15% year-on-year, thus posting a total of 120,905 units marketed.
Dacia at the top of the podium
That said, in the detail of annual sales, Dacia, the automotive market leader, still remains in the lead in passenger car sales with 29,435 units sold at the end of September with a market share (PDM) of 27.33%. Dacia is still followed by Renault, which sold 15,698 units, with a market share of 14.57%. Third player in the passenger car market, Hyundai sold 10,697 units and with a market share of 9.93%. Also noteworthy in this regard, the good performance of the Kia and Toyota brands which respectively ensured increases in their sales of 23.63% and 29.72%, with 3,882 and 4,548 cars sold since the beginning of this year. It should be noted that Asian brands are posting better performances given the easing of the Asian market in terms of stock availability.
For their part, and according to market operators, supplies from European manufacturers are still difficult. Regarding the LCV segment, Renault comes in pole position and has sold 3,192 units, representing a market share of 24.2%. The DFSK brand comes in second place in this segment with sales reaching 1,902 vehicles, which is equivalent to a market share of 14.42% in the segment. Ford comes in third position with 1,544 units sold to date, ensuring its side 11.7% market share.
In the premium vehicle segment, Audi increased its sales by 2.41% to 2,938 cars to reach a market share of 2.73%. The brand is followed by BMW which sold a total of 2,119 units with a market share of 1.97%. Mercedes is in third position with 1,875 units sold and a market share of 1.74%. It remains to be specified that the Porsche brand sold 243 units, up 8%. However, Jaguar sales fell 18.18% to 99 cars.
In any case, according to the forecasts of professionals in the automotive sector, we should not expect an improvement in the automotive market at the end of 2022, although there may be monthly sales increases. The market will not catch up to 2019 levels. We should thus land at the end of the year at minus 10%, ”says the CEO of Kia.
Sanae Raqui / ECO Inspirations