Cooling of Demand for Cars in Morocco
Although 2008 is on track for a new record for the auto industry in Morocco, the fourth quarter is turning out to be more challenging than predicted.
Demand for cars dropped below expectations, and the industry blames the month of Ramadan and the back-to-school season as the primary reasons for the lackluster performance. The industry argues that household finances were stretched thin due to these two events and very little money was left for anything else.
As the fourth quarter continued to evolve, tracking of sales showed units down nearly 6%, as we come to close to the end of the quarter. Highlighting further sensitivity to pricing, lower priced cars held the top stops in market share terms, with Kia being the most sold car in the quarter.