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Automotive activity in Algeria: update at the end of 2023

After a long lethargy of the automobile sector in Algeria following the cessation of the production process in 2018 which created a scarcity in the supply of vehicles and consequently a flamboyant increase in their prices.

The current government, in its phase of putting the economic sector and therefore also that of the automobile sector in order, has undertaken numerous measures such as that of issuing new car dealership approvals, the latter will have to acquire the famous sesame, commit to creating an automobile factory.

38 dealerships (touring, utility, industrial, machinery, motorcycles, buses and trucks), 12 of which specialize in the marketing of passenger cars.

79% of dealers who have obtained their approvals are representatives of Asian brands. But this remains temporary, according to the same manager, who specifies that of the 38 dealers concerned, 24 represent brands which have obtained the certificate of compliance from the Ministry of Commerce. This will allow the import of 180,000 vehicles before the end of 2023, while waiting for the remaining 14 dealers to complete their import procedures.

Another popular measure taken in 2023 and which we have been waiting for for a long time, is the authorization to import used vehicles less than 3 years old, but after a few months of its application, what about it? exactly ?


Importing a vehicle less than 3 years old


Has the dream come true? These vehicles less than 3 years old which had the ambition to drastically reduce vehicle prices have for the moment not achieved their ambition, such a purchase not proving to be as economical as it was claimed. The formula was not attractive due to its complexity and the soaring prices of used cars in Europe. For details on the procedure for importing a used vehicle, click on this link.



Brands present in Algeria



The activity being made up of passenger vehicles and heavy vehicles for professional use, to condense it, we will focus in the rest of the article on passenger vehicles which are the center of interest of Cockpit, even if we deal with the all types of vehicles.

The map of brands officially represented in Algeria has changed drastically.

In 2018, to continue to be able to market its products in Algeria, it was necessary to present a production project in Algeria. Some were one step ahead while others were on the verge of making it a reality.

We'll give you an update.

- Renault: first brand to open a vehicle assembly plant in Algeria in the 21st century, in 2014. It was favored by the government to give new impetus to the market. The factory assembles Renault and Dacia brand vehicles intended for the local market. You can read the History of Renault in Algeria on this link.

- The SOVAC Group represented the VW Group brands: VW, Seat, Škoda and Porsche. It has its assembly plant in Relizane and is now closed despite a major expansion project.

- CIMA Motors had succeeded in pulling the rug out from under the giant Cevital, which was until then considered the historic representative of the Hyundai brand in Algeria, since 1998. As a result of this success, CIMA Motors promises to increase sales tenfold. sales of the brand in Algeria, notably with the opening of an assembly plant which aimed to produce 200,000 vehicles/year. In reality, in 2018, CIMA Motors was far from reaching this figure. Same music for the other brand of this multi-brand group, Suzuki where the 100,000 units produced were only a mirage, but it is true that the state had put a premature brake on production activity due to suspicion of fraud of these economic entities.

- Several brands including many new entrants such as BAIC (Sariak Auto Handler), Kia (Global Group), Chery (GM Trade Groupe Mazouz), Foton (Kiv Group), JAC Motors (EminAuto) and Peugeot-Citroën (PCPA) which were in different phases of carrying out their projects and which were also blocked.

- Only the Mercedes-Benz factory (SAFAV-MB) specializing in the assembly of utility vehicles, heavy goods vehicles and 4x4s continues to operate normally, it is true that it is not affected by the market turbulence because it falls under the Department of National Defense (DND).


For other operators who have not been at this point of progress and who have been active in representation in Algeria for a long time, they have had to content themselves with developing the After-Sales Service or closing shop, we are thinking in particular of Toyota, Nissan, Ford, BMW...


Brands having received approvals to import new vehicles


For the moment, only 4 brands have the rights to market its passenger cars: Chery, DFSK. FIAT, Opel, and others are waiting (Renault, Toyota, Peugeot,...)


Prices of cars sold for the end of 2023




• Tiggo 2Pro

Style: Crossover

Engine: 1.5L petrol 108hp

1L Turbo petrol 102hp

Gearbox: Manual - Automatic

Number of finishes: 3

Price: 1,990,000 DA to 2,790,000 DA

Warranty: 7 years or 200,000 km


• Tiggo 4Pro

Style: Crossover

Engine: 1.5L TCI petrol 147hp

Gearbox: Manual - Automatic

Number of finishes: 3

Price : 2,990,000 DA to 3,599,000 DA

Warranty: 7 years or 200,000 km






• Tiggo 7Pro

Style: Crossover

Engine: 1.5L TCI petrol 146hp

Gearbox: Automatic

Number of finishes: 2

Price : 4,599,000 DA to 4,899,000 DA

Warranty: 7 years or 200,000 km








• Tiggo 8Pro/Max Pro

Style: Crossover

Engine: 1.6L 186hp and 2L TCI 196hp petrol

Gearbox: Automatic

Number of finishes: 2

Price: from 5,390,000 DA to /

Warranty: 7 years or 200,000 km




• Arrizo 5Pro

Style: Sedan

Engine: 1.5L petrol 115hp

Gearbox: Manual - Automatic

Number of finishes: 2

Price : 2,499,000 DA à 2,850,000 DA

Warranty: 7 years or 200,000 km


• Arrizo 8Pro

Style: Sedan

Engine: 1.6L TGDI petrol 145h

Gearbox: Automatic

Number of finishes: 2

Price : 4,849,000 DA to 5,299,000 DA

Warranty: 7 years or 200,000 km







• Glory 500

Style: Crossover

Engine: 1.5L Turbo petrol 137hp

Gearbox: Manual

Number of finishes: 1

Price: 2,850,000 DA

Warranty: 5 years





• P025

Style: Pickup

Engine: 2.3L T Diesel 166hp

Gearbox: Manual

Number of finishes: 1

Price: 3,900,000 DA

Warranty: 5 years








• 500

Style: Micro city car

Engine: 1L Hybrid 70hp

Gearbox: Manual/Automatic

Number of finishes: 3

Price: 2,380,000 DA to 2,665,000 DA

Waiting period: 4 months

Warranty: 5 years or 100,000 km


• 500X

Style: Crossover

Engine: 1.4L MultiAir petrol 140hp DCT

Gearbox: Automatic

Number of finishes: 2

Price: 3,435,000 DA to 3,705,000 DA

Waiting period: 4 months

Warranty: 5 years or 100,000 km

TIPO

Style: Sedan

Engine: 1.6L petrol eTorq 110hp

Gearbox: Automatic

Number of finishes: 4

Price: 2,995,000 DA to 3,325,000 DA

Waiting period: 4 months

Warranty: 5 years or 100,000 km

• Doblò

Style: Utility vehicle

Engine: 1.6L HDI Diesel 92hp

Gearbox: Manual

Number of finishes: 1

Price: 3,178,000 DA

Waiting period: 4 months

Warranty: 5 years or 100,000 km



• Scudo

Style: Utility

Engine: 2L HDI Diesel 145hp

Gearbox: Manual

Number of finishes: 1

Price: 3,825,000 DA

Waiting period: 4 months

Warranty: 5 years or 100,000 km

• Ducatò

Style: Utility

Engine: 2.2L HDI Diesel 140hp

Gearbox: Manual

Number of finishes: 3

Price: 4,049,000 DA to 4,519,000 DA

Waiting period: 4 months

Warranty: 5 years or 100,000 km




• GX3 Pro

Style: Crossover

Engine: 1.5L petrol 102hp

Gearbox: Manual/Automatic

Number of finishes: 4

Price: 1,970,000 DA to 2,785,000 DA

Warranty: 5 years or 150,000 km



• Coolray

Style: Crossover

Engine: 1.5L DCT Turbo petrol 170hp

Gearbox: Automatic

Number of finishes: 4

Price: 3,362,000 DA to 4,040,000 DA

Warranty: 6 years or 200,000 km




• Astra

Style: Compact

Engine: 1.2L Puretech petrol 130hp

Gearbox: Automatic

Number of finishes: 2

Price: 4,489,000 DA to 4.789.000 DA

Warranty: 5 years or 100,000 km

Starting discount: 170,000 DA (end 30/11/23)


• Mokka

Style: Crossover

Engine: 1.2L Puretech petrol 130hp

Gearbox: Automatic

Number of finishes: 2

Price: 3,944,000 DA to 4.265.000 DA

Waiting time: order on 11/19/23

Warranty: 5 years or 100,000 km

Starting discount: 95,000 DA (end 30/11/23)


Opel Grandland

Style: Crossover

Engine: 1.6L Puretech petrol 165hp

Gearbox: Automatic

Number of finishes: 1

Price: 4,849,000 DA

Warranty: 5 years or 100,000 km

Starting discount: 160,000 DA (end 30/11/23)


Automobile Factories in Algeria


In addition to existing factories, starting with the historic SNVI factory (Ex: Berliet, then SONACOME) manufacturing trucks and buses, that of Mercedes-Benz (SAFAV-MB) under the Ministry of National Defense manufacturing utility vehicles and 4x4, then recently built factories (like that of Renault) which are awaiting a green light for a resumption of activities and those which no longer belong to an economic entity due to their former owners were stripped of their assets (VW, KIA, Hyundai), new factories will emerge like that of the Italian brand Fiat, a subsidiary of the Stellantis group, which has already launched imports of its vehicles into Algeria, has also launched the project for a factory in Oran (work progress rate of 95%) where production will start before the end of the current year. This new factory will also see the production of the brand's brand new model: the FIAT 600.

On the other hand, the Chinese brand Chery will also launch the construction of its factory in Bordj Bou Arreridj which will produce 100,000 vehicles/year.


A look back at changes in the automotive landscape in Algeria


Since independence, the automotive landscape has been in constant change, particularly because of the effects of market variations and the resulting laws.

Thus after independence and until the end of the 1970s, French brands dominated the market, particularly with state imports, the 1980s, many of which were referred to as the Sonacome years by the name of the company which managed the importation and distribution. marketing of all vehicles, we then see the emergence of the VW Passat from Brazil, the FIAT (Ritmo, Mirafiori), the unbeatable Honda (CIVIC, Accord and Quintet) and Mazda (626 and 929) to name just a few.


Then passed the dark decade of the 90s and with it the automotive vacuum. We had to wait until 1998 to finally see an automobile brand settle in Algeria, first with Hyundai, which soon saw its compatriot Daewoo investing in the market with formidable success, particularly with products that met the needs of Algerians. What will follow in the years 2005-2015 is what we now call the golden age of the automobile in Algeria where we see the emergence of an ecosystem with a host of brands, some will flourish like Toyota, KIA , Mercedes, Nissan, Renault. etc. and others will be resounding failures like Hummer, Tata, Lada... we will even see the shadow of Rolls-Royce looming. Faced with this, the Algerian government aims to create a real automotive hub in Algeria and is taking drastic measures including stopping the importation of finished products deemed too expensive for the state coffers and forcing importers to move on to the phase of production with a significant integration rate to be able to have authorization to continue their activities in Algeria. A lot of state aid was offered to them, which led some people to take advantage of it more than allowed. The project was therefore stillborn and the state indicted the majority of the main actors and we will talk about a political-financial mafia and a tire inflation factory. The market is then closed and since 2018 nothing has happened like what is happening in Cuba.



2023 is the year of the revival of the automobile sector in a new Algeria, a sign that the future automobile will no longer be the same.

So what will the future be like?



What awaits us in 2024


If the future still remains dark even if our future risks resembling our past because current decisions are reminiscent of those of other times, we dare to sketch a strong Chinese presence, but this is not an Algerian specificity, since the Chinese plans to conquer the world. Algeria is also making the move towards progress and ecology, so it will be interesting to see how the transition to electric is managed.

Another compass to follow is that of national and international politics, a real course variator, on this point our crystal ball remains mute. On the other hand, what we can see is an improvement in the current situation in terms of supply and service. Well I admit that on this last point I did not bet big because it is almost unimaginable to imagine worse than the current situation.



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