Algeria re-allows car imports
In 2016, the Algerian government decided to severely limit imports of vehicles from abroad in order to encourage the manufacture of cars in Algeria and gradually benefit from technology transfer. Three years after this decision, the Algerian government is moving backwards, by again allowing imports of vehicles from abroad.So what happened during these three years?
1. The Algerian market has collapsed. It has increased from 265,000 units in 2015 to 97,000 in 2016 and 94,000 in 2017. In 2018, it rose to 127,000 units, but this is half as much as in 2015 and three times less than in 2012.
2. The target of producing 250,000 vehicles in Algeria in 2018 was not achieved at all, as the production volume did not exceed 70,597 units last year.
3. Of the 70,597 vehicles assembled in Algeria in 2018 (60,606 in 2017), 68,196 are Renault vehicles (nearly 97% of the total). The other brands that have decided to set up in the country seem to be experiencing difficulties in starting their business.
4. This quasi-monopoly has raised the price of new locally assembled cars, and above all this price is higher than that of cars in the same category that were previously imported.
5. Technology transfer has not occurred, as Algerian factories import CKD cars whose integration rate remains insignificant.
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