According to the monthly statistics published by the Automobile Importers Association (AIA), new car sales in Lebanon stood at 512 vehicles during the month of March 2021, compared to 1 vehicle in February noting that they stood at 468 in March of last year. On a cumulative basis, new car sales fell by 75.51% y-o-y to 574 vehicles during the first quarter of 2021, down from 2,344 vehicles during that same period last year. The sharp annual drop in the sales of new cars is attributed to foreign currency liquidity squeeze in the banking sector which constrained buyers from withdrawing cash in foreign currencies to meet the new conditions set forth by vehicle dealers who require buyers to settle part of the price in fresh Dollars not to mention the rapid coronavirus outbreak and related lockdown. This annual drop can be explained by the 76.83% annual drop in the sales of Japanese cars to 165, coupled with some 79.22% contraction in the sales of Korean cars to 101 vehicles and some 74.46% decrease in the sales of European cars to 189 only to name a few. It is worth noting that the number of imported cars via the Beirut Port rose by 9.98% annually in during the first two months of 2021. European cars controlled the lion’s share of new car sales in Lebanon, amassing alone 32.93% of total unit sales up to March 2021, followed by Japanese (28.75%), Korean (17.60%), American (16.55%), and Chinese (4.18%) cars.

The Japanese “Toyota” brand recorded total unit sales of 58 cars in Q1-2021, enjoying the highest market share of 10.10%, followed closely by the German “Mercedes” (56 cars <9.76%>) and Korean “Hyundai” (52 cars <9.06%>) brands, only to name a few.