Overview of Lebanon’s Automobile Market in 2021

Lebanon's automobile sales in 2021 reached 11,000 units, up 2.0% from the previous year, avoiding a four-year decline. Although sales slightly increased in 2021, demand was significantly lower compared to the 2014-2017 period when annual sales were around 50,000 units on average. Toyota, the leading automaker in Lebanon, increased sales 68.4% to 4,286 units, raising its market share from 23.2% of the previous year to 38.3%. Second-placed Nissan saw a 21.1% drop in sales to 1,515 units. Lexus, ranked third in 2021, went up 2.5-fold to 1,068 units.

Lebanon: Recent Developments

Market Trends

・Lebanon’s vehicle sales in 2021 were 11,000 units, up 2.0% from the previous year.

Political Trends

・In September 2021, Prime Minister Najib Mikati succeeded in forming a cabinet, ending the political vacuum that lasted for more than a year. - The previous Prime Minister Hassan Diab resigned along with the entire cabinet in August 2020, taking responsibility for the explosion at the Port of Beirut. After that, the prime minister candidate failed to form a government twice. - A general election was held in May 2022, and a new Cabinet was formed. ・In April 2022, a working-level agreement was reached with the IMF to implement an Extended Fund Facility worth 3 billion USD over a period of 46 months. - However, the IMF is demanding bank reforms and the formulation of a medium-term financial plan as final conditions for the loan. ・In November 2021, the Saudi business community called for a halt to commercial ties with Lebanon. - The decision came after a Lebanese minister criticized Saudi Arabia's intervention in the Yemeni civil war.

Economic Trends

・The GDP growth rate in 2021 was minus 10.5% year-on-year. The growth forecast for 2022 is minus 6.5% (World Bank, as of Apr. 2022). - If the forecast comes true, it will be the third consecutive year of negative growth from 2020.

---