Head of Automotive Chamber Warns of Showroom Closures Amid Inventory Shortages

Dealers Face Severe Inventory Shortages

Omar Balbaa, Head of the Automotive Chamber at the Federation of Chambers of Commerce, has addressed the growing challenges facing small independent car dealers due to the ongoing shortage of high-demand automotive brands in the market.

Balbaa explained that numerous car dealers across the country are indeed suffering from a significant drop in supply. He warned that if the current situation persists, it could force some of them to scale down their operations or completely cease their activities.

He noted that the automotive trade fundamentally relies on the availability of steady inventory to maintain a healthy sales cycle. However, the market is currently witnessing a noticeable depletion of stock among a number of dealers, representing a critical challenge to the continuity of their businesses.

He added that independent dealers, rather than official agents or distributors, are facing increasing difficulty in securing vehicles in the necessary quantities. He cautioned that a continued decline in supply could negatively impact their ability to meet monthly financial obligations, potentially leading to the complete closure of some showrooms.

Market Stability and the Decline of Overpricing

On the other hand, Alaa Al-Sabaa, a member of the Automotive Chamber, confirmed that the automotive market is currently experiencing a state of relative stability compared to previous periods characterized by massive price hikes. He pointed out that the rate of price increases for cars over the recent months has become much less severe.

Al-Sabaa highlighted that the overprice phenomenon, which dominated the market in recent years, has significantly receded. This improvement is largely attributed to better vehicle availability from official agents and distributors, contrasting sharply with the acute supply deficits the market previously endured.

Looking ahead, he emphasized that the automotive market requires a stabilization period that could extend for a full year before a new wave of price reductions can emerge, particularly given that operational and import costs remain at their current high levels.