Automotive Sector
Contribution to the Local Economy
The new-car segment in Lebanon is one of the main driving forces of the Lebanese economy, whether in terms of creating thousands of jobs, both directly and indirectly, sponsoring and financing social, cultural, and humanitarian initiatives, or contributing to the state’s coffers through corporate taxes, custom and registration fees, and the collection of VAT on new cars sold:
Creation of Well-Paid Jobs
The new-car retail sector directly employs around 3,000 Lebanese, from all backgrounds and regions, with estimations putting the number of indirect jobs related to the sector in the tens of thousands.
365 Lebanese were recruited by AIA members in 2009 to fill positions in sales, administration, marketing and communication, IT, finance, engineering, management, and auto repair and mechanics, all of which demand a high degree of specialization and training.
The median salary of AIA members’ employees is $ 1040, 3 times the minimum wage in effect in Lebanon.
All sector employees benefit from exceptional working environments, whether in terms of safe and secure working conditions, health benefits, insurance, and social security, working hours and vacation days, or the prospect of long-term fulfilling careers.
Increased Government Revenues
The new-car retail sector constitutes a major source of revenue for the state, generating hundreds of millions of dollars every year through VAT, custom and registration fees.
The sale of brand new cars in Lebanon generated $ 86,218,460 in VAT for the Government in 2009.
Custom fees from the import of brand new cars amounted to $ 157,394,031 in 2009.
Total Registration fees on brand new cars amounted to $ 57,536,953 in 2009.
Reinvigoration of the Economic Cycle
The new-car retail sector contributes greatly to the country’s growing economic cycle, with insurance companies selling more policies, banks offering more car loans, and even car wash services increasing their volume of business.
Sponsoring and Financing of Social, Cultural, and Humanitarian Causes and Initiatives
New-car retailers are heavily invested in corporate social responsibility, sponsoring and financing various social, cultural, and humanitarian causes and initiatives throughout all regions of Lebanon.
AIA members' contributions in this area totaled more than $ 2,000,000 in 2009, despite the unfavorable market conditions stemming from the financial crisis.
