As Algeria (hereinafter abbreviated as “Aâ€) is located at the gateway to North Africa, for many car manufacturers, the Algerian car market has become an important “base†for them to open the African market. It is understood that at the end of 2007, Algeria had more than 2 million cars and 110,000 commercial vehicles, and the annual automobile imports reached 3 billion U.S. dollars, 90% of which were imported by foreign car dealers in Azerbaijan.
Strong demand for commercial vehicles
It is predicted that between 2009 and 2012, Algeria’s demand for commercial vehicles (new cars) will be 30,000, 34,000, 38,000 and 39,000 vehicles respectively. Among them, the demand for heavy trucks this year is about 8,000 vehicles, and it is expected that sales volume will increase by 20% year-on-year.
Prior to this, most Algerian cars were imported, but since 2004 Algeria banned the import of used trucks. This move has caused the local second-hand commercial vehicle market to become sluggish.
In 2007, Algeria accelerated its economic development. With the development of the national credit system, the volume of car imports surged.
Algeria has a very high demand for passenger cars. It is understood that the city’s traffic vehicles must
There must be 35 or more passenger cars. The existing 6 to 7 meter minibus plans to be transferred to the rural route for operation within 2 to 3 years. Algeria has no mandatory requirements for the use of vehicles, but it requires testing every six months and substandard ones will be eliminated. The estimated useful life of new cars is 15 years.
New political restrictions on imports are important for local development
Selling Chinese cars to Algeria is not an easy task. From the Albanian government
In view of several recent New Deal policies, the country will develop the local auto industry by suppressing imported cars.
Not long ago, a media in Algeria reported that there have been fierce discussions among various parties in Argentina about the newly enacted laws and regulations on the purchase of new car consumers who will levy a new vehicle tax of 5% to 15%. A finance minister stated that the government will insist on this move and that the levy of new vehicle taxes is not intended to aggravate consumers' burdens, but to promote sound economic development. A new car imports amounted to 2.8 billion U.S. dollars, accounting for 10% of the total imports of the country. The Azerbaijan government adopted a measure to collect new vehicle taxes, aiming to reduce import demand through taxation.
Algeria’s Minister of Industry and Investment Promotion Tema also previously stated that Algeria will not allow the country’s auto market to remain open forever, and that foreign companies are also welcome to invest in Afghanistan. If foreign companies can establish an automobile factory in Algeria, the government will provide them with all conveniences. .
Algeria is said to have adopted a series of measures to stimulate the development of the automotive industry. The first measure is to upgrade existing vehicles. The second measure is to speed up the construction of expressways and boost the demand for cars by building a sound highway network. According to reports, the highway project of the Algerian government's investment in the East-West Expressway will cross the northern part of Algeria, linking Morocco and Tunisia, which will also draw the demand for animal currents.
Local manufacturers are weak
Algerian commercial vehicle production capacity is very weak. Algeria National Steam
The Vehicle Industry Corporation (SNVI) is a state-owned enterprise in this country and a main manufacturer of commercial vehicles. However, the assembled trucks and buses only account for 3.59% of the Algerian commercial vehicle market.
Allegedly, before 1988, Algerian National Automobile Industry Corporation was responsible for the production and sales of all vehicles in Algeria, and sales of imported vehicles were also responsible for them. The Algerian National Automobile Industry Company had a history of producing and selling 800 buses per year. It has the capacity to produce five buses per day and six buses in China. In recent years, with the acceleration of local infrastructure, the demand for commercial vehicles has also gradually increased. The company's production capacity is already insufficient to meet demand. In response, the Algerian government introduced a series of measures to support the development of the National Automobile Industry Corporation. It is understood that the company has partnered with a French commercial vehicle manufacturer to produce medium-sized trucks locally.