Morocco/Automotive: Sales down by almost 20% at the end of 2020

Sales of new cars stood at 133,308 units for the year 2020, down 19.7% compared to the previous year, announced on Thursday, the president of the Association of Importers of Motor Vehicles in Morocco (AIVAM), Adil Bennani.

With 133,308 units sold in 2020, the market is experiencing an โ€œexceptionalโ€ regression compared to 2019, Bennani said at a digital press conference dedicated to the presentation of the Sector Review in 2020, noting that the passenger car segment (VP) fell by 21.1% while the vehicle segment Light Duty (LGV) decreased by 7.9%.

The significant decline in sales is mainly due to the pandemic situation associated with the novel Coronavirus, he said, noting that sales collapsed from March as a result of widespread containment.

According to the President of AIVAM, the decontainment of 11 June allowed a resumption of sales of VPs that reached the 2nd half of 2019 levels over the same period. However, this recovery did not make it possible to catch up in the volumes of the months of containment.

For LGV sales, they followed the same trend as PV sales, but a faster recovery in June, Bennani said, noting that December saw a sharp jump in LGV sales to 29.9% compared to the same month in 2019.

Regarding the other components of the market, the Taxis component recorded a significant level of registrations that evolved from 233% compared to 2019 to 7,130 units, boosted in particular by the return of the subsidy for the renewal of large and small taxis stopped since 2019. For the total registrations, Mr Bennani reported a significant and confirmed decline in the market, a 30% decline to 171,180 units, adding that imports of used vehicles (OV) were โ€œdrasticallyโ€ down 60% compared to last year. โ€œThe OV also accuse the blow with -30% of the changes,โ€ he said.

Regarding the evolution of sales by brand, Mr Bennani indicated that despite the largest 34% decrease in the Top 10 of VP brands, Renault (14,235 units sold and 12.2% share) managed to maintain its leading position just after Dacia, which remains the top sales in Morocco with 31.2% market share and 36,548 units sold.

The sharp decline in sales is widespread, except for Opel, which is in a stimulus phase in the Moroccan market and continues to grow (+47%) in a sharply declining market, said Bennani said that the weight of the Top 10 represents more than 82% of VP sales.

On the side of the LGV market, it is less impacted than that of VP, however, showing a significant decrease in its volume (-7.9%). The DFSK brand that was introduced to the market in 2019 rises to the top place in LGV sales with a record growth of 66.5%, he noted, noting that overall market shares remain in the LGV segment.

In terms of market share and sales growth by city for VPs, Mr. Bennani noted that almost all cities are behind. A stronger decline in sales was recorded in Marrakech with 31.7%, a lower than the Agadir average (-14.6%) and almost resilience in sales in Tangier (-2.1%).

Regarding the sales of โ€œPremiumโ€ cars, he revealed that they account for 9% of total VP sales, being as impacted as general sales with a drop of 21% (10,481 units).

The Mercedes-Benz, BMW and Audi Trio maintains its 2019 position and represents more than 56% of premium sales, he noted, pointing out that Porsche stands out with sales growth of 35.3% driven by a Hybrid Plug-In offering.

The three places on the podium remain dominated by Mercedes, BMW and Audi with market shares of 20.6%, 19.3% and 16.4% respectively. These three German manufacturers sold 2.163, 2,022 and 1,718 units respectively in 2020.

For the outlook for 2021, Mr Bennani anticipates a return to growth in a fragile economic context and an increase of 10%, or 145,000 to 150,000 units.