Algeria: “No Brand-New Cars After November 8th 2016”

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New car prices have skyrocketed in recent weeks in Algeria… Why is the reason behind that?

“This is due to two main reasons, namely the record decline in the value of the Algerian currency the Dinar against the US dollar and the Euro, as this decline which is estimated at 20 percent, prompted a steep hike of vehicle prices by the same percentage, and we also expect a new rise in the coming months, up to 30 percent”.

“Therefore, it should be noted that the woeful situation experienced currently by the car dealerships based in Algeria, led many of them to raise prices in order to avoid massive layoffs of staff or even bankruptcy of their businesses, and on the whole we do not expect prices to slump during the next phase, as the constraining situation of today threatens a new price hike”.

When will the 2017 quota of imported vehicles be issued?

“Up to now, we have no information on the matter, and the only thing I can tell you about this file is that we will meet with officials of the Ministry of Trade next Thursday to address this very issue. Furthermore, the quota of imported vehicles for the year 2016 will be implemented formally after the entry of all vehicles on 8 November. 

We must apprise you by the same token that the market situation we are witnessing today in Algeria is marked by a severe dearth of new vehicles”.

What do you think of the decision contained in the Finance Law of 2017, regarding the drawing on the profit margin of the marketing deals for new cars outside the accredited dealerships?

“Up to now, we cannot comment on this decision, as it hasn’t come into force for now, but what we can say is that the market is now unstable due to the lack of supply and high demand, and this requires some adequate regulation from the relevant authorities”.

What is new about the feasibility of the projected factory “Nissan Algeria”?

“Well, the negotiations about “Nissan Algeria” factory are going in the right direction, we have met with officials from the Ministry of Industry and Mines several times, and we’re hopeful to put the finishing touches to this standing file during a fresh meeting next September, and the headquarters of this factory will be located in the province of Oran (western Algeria). This new car-assembly plant is slated to be officially inaugurated by the end of the year 2017”.