Car sales dip as delivery delays stifle market

Car dealers are forced to sit back and watch the market crumble, as the new vehicle market is being held back while the industry has trouble delivering to customers due to supply chain shocks.

According to the data published by the Statistical Service (CyStat), 2,326 saloon cars were registered in Cyprus in July, marking a decrease of 14.2% from 2,712 the previous year.

New vehicle registrations fell by 6.8% to 1,108 from 1,189 last year. In June, they had decreased by 6.5%.

Used car sales in July saw a 20% decrease, with registrations falling to 1,218 from 1,523. Conversely, June saw a 12.8% increase.

Local car dealers are worried as a trend seems to be building up, threatening to freeze demand.

In the first seven months of 2022, passenger car registrations fell by 3.3% to 16,427, compared to 16,979 in the same period last year.

Of the total passenger saloon cars, 7,240 or 44.1% were new, and 9,187 or 55.9% were used cars.

Purchases of rental cars saw an 86.2% increase to 2,878.

In 2021, car sales fell to their lowest level since 2015, registering a decline for the third year in a row.

The reduction in 2021 was 12.8% from 18.4% in 2020.

The Cyprus Association of Car Importers attributes the drop in sales to a delivery problem on the part of manufacturers, which is slowing the market, despite a vivid interest.

In comments to news site Stockwatch, Toyota Marketing & CX Manager Loucas Leonidou said delivery delays have yet to take their toll on Cypriot buyers, as interest for a new vehicle is still keen.

He admits, however, that international situations such as the Russian-Ukrainian crisis and the pandemic are causing long delays in car deliveries that could prevent buyers from placing orders.

The total vehicle registrations decreased by 6.3% to 20,685 in the first seven months to July, from 22,074 in January-July 2021.