According to the monthly statistics published by the Automobile Importers Association (AIA), new car sales in Lebanon stood at 487 vehicles during the month of May 2021, compared to 356 vehicles in April noting that they stood at 651 in May of last year. On a cumulative basis, new car sales fell by 54.95% y-o-y to 1,434 vehicles during the first five months of 2021, down from 3,183 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 sharp annual drop can be explained by the 61.63% drop in the sales of Japanese cars to 391, coupled with some 38.92% contraction in the sales of Korean cars to 361 vehicles and some 56.89% decrease in the sales of European cars to 435 only to name a few. It is worth noting that the number of imported cars via the Beirut Port rose by 43.47% annually during the first four months of 2021. European cars controlled the lion’s share of new car sales in Lebanon, amassing alone 30.33% of total unit sales up to May 2021, followed by Japanese (27.27%), Korean (25.17%), American (11.85%), and Chinese (5.37%) cars.

The Korean “Kia” brand recorded total unit sales of 259 cars YTD May 2021, enjoying the highest market share of 18.06%, followed by the Japanese “Toyota” (129 cars <9.00%>) and Japanese “Suzuki” (126 cars <8.79%>) brands, only to name a few.