Lebanon Autos Report Q2 2016
BMI View: The combination of a weak economy and a turbulent political environment will lead to anotherchallenging year for the Lebanese new vehicle sales market in 2016, although consumer demand shouldremain resilient. We expect 3.9% sales growth for the sector as a whole, with passenger car sales set tooutperform commercial vehicle sales.
We expect new vehicle sales to grow 22% over 2016-2020, supported by recovering economic growth,rising incomes and favourable demographics.
We expect stronger sales growth from commercial vehicle (27.3%) than passenger car (21.8%).
Passenger car will continue to account for the majority (94%) of total new vehicles sold.
Uncertain domestic and regional security conditions continue to pose a downside risk.
Kia (-17%) and Hyundai (-39%) both saw sharp falls in their Lebanese sales, as Japanese manufacturersbenefited from a weaker yen and the launch of new model ranges.
Korean manufacturers' sales fell (Kia 17% and Hyundai 39%), while Japanese manufacturers grew verywell (Toyota 31%, Mitsubishi 71% and Suzuki 105%).
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