✏️ BY: Dr. Hana Saada
Algiers, Algeria | June 6th, 2024 — During his recent appearance on an Algerian television program, Ali Aoun discussed the issue of car imports, stating, “A vehicle is a necessity, but not a priority.” He added, “If someone wants to buy a car, they can import it themselves.”
Addressing questions regarding the 2024 quotas, Aoun responded that the concept of quotas is a creation of “smasra” (middlemen). He clarified that aside from the years 2015, 2016, and 2017, Algeria has not implemented a quota system for the importation of new vehicles, although it has limited the import bill for new vehicles by authorized dealers. He also noted that Algeria has never prohibited its citizens from importing vehicles themselves. However, these operations are often laborious and costly due to the high price of foreign currency on the parallel market. This process is also not very beneficial for Algerian consumers who face challenges with warranty, support, and after-sales services.
After halting the importation of new vehicles in 2017, Algeria decided to resume these activities in 2023 with the publication of a new decree (22-383 on November 17, 2022) setting the conditions and modalities for the activity of new vehicle dealers, along with an accompanying set of regulations. The first approvals were issued in February 2023, with subsequent approvals announced in October 2023. This left very little time to carry out import and sales operations before the end of the year. In May, the Minister of Industry and Pharmaceutical Production announced at the El Moudjahid forum that 159,073 vehicles had been imported by that date out of the 2023 quota of 180,323. He noted that since the 2023 quota had not yet been exhausted, it was premature to discuss the 2024 quota.
Throughout his appearances, Aoun emphasized Algeria’s priority in developing its automotive industry. While the Stellantis Group inaugurated the Fiat factory in Tafraoui on December 11, 2023, models of the 500 Hybrid made in Algeria are rarely seen on the market. Additionally, other manufacturers who have shown clear intentions to establish factories in Algeria (such as JAC) or resume their industrial activities (Peugeot and Renault Trucks/Volvo Trucks) have not yet received approval from Algerian authorities.
Over 44 Approvals Issued
By granting approvals to over 44 dealers in various categories such as passenger cars, utility vehicles, heavy trucks, buses, two-wheelers, tractors, and trailers, the government signaled a normalized resumption of distribution activities. Many rushed to apply for approval, even those not traditionally involved in the industry. All applicants had to comply with the requirements of the regulations, which mandate investments in infrastructure, equipment, personnel, and networks.
The second half of the year has begun, and there is no indication of the import volumes for the various dealers, who may face difficulties in integrating their orders into the production schedules of manufacturers whose business plans are finalized early in the first half of the previous year. Some approved dealers have already started laying off staff, while others see their networks shrinking with the closure of some representations.
Cars remain a means of transport and a tool for many families, with few able to afford importing vehicles themselves. Many rely on the second-hand market or small engine vehicles.
What About Small Engine Vehicles?
The Algerian government initially implemented measures to encourage the use of small engine vehicles. The acquisition tax on new vehicles (TVN) was increased to discourage the use of diesel and petrol engines over 1800 cc. While diesel is no longer offered for passenger vehicles, small engine cars are still scarce.
Since the resumption of new vehicle imports, no dealer has offered a city car in the A or B segment, except for Fiat with its 500 Hybrid. However, it is known that the Fiat 500 is a premium city car targeting a niche market, far from the needs of average families.
The cheapest car on the market is the Geely GX3 (197 million centimes), followed by the Chery Tiggo 2 (199 million centimes), both B-segment crossovers. No Chinese or other brand offers a city car in the A or B segment, an option that would significantly reduce prices for average incomes.
Conversely, the market is filled with Chinese cars priced near one billion centimes, which does not meet the Algerian government’s goal of providing affordable vehicles for Algerian consumers.
Translated from:
https://lalgerieaujourdhui.dz/said-chanegriha-supervise-un-exercice-tactique-avec-munitions-reelles/
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