Automobile Sector: “Ten Dealers Proposed industrial-related Investment Projects”

Ten dealers have so far came up with investment projects related to the automobile industry, said Sunday in Algiers the Minister of Industry and Mines, Abdessalam Bouchouareb.

“About ten car dealers have proposed investment projects. We told them that they have until 31 December 2016 to submit their industrial projects’ files. They still have time to do it if they really want to get involved in this thriving business” said the Minister on the sidelines of the session on the adoption of a bill on the promotion of investment by the Council of the Nation or upper house of Parliament.

Mr. Bouchouareb also insisted that the future of the car dealer activity stressing that “it is not only to buy and sell vehicles but to integrate the mechanical construction in general in our country.”

As a reminder, Article 52 of the 2014 Finance Law stipulates that car dealers are required within a maximum period of three years from the date of publication of the 2014 Finance Law, to set up an industrial and / or semi –industrial activity in Algeria itself or any other activity that link up with the automotive sector.

However, those car dealers who don’t engage in the relevant investment on time will have their approvals withdrawn, he hammered.

During his recent working visit of inspection to western Tiaret province, Prime Minister Abdelmalek Sellal for his part reminded the domestic and foreign dealers active in Algeria of the imperious need to strictly comply with the relevant provisions of the 2016 Finance Law.

The Minister of Industry and Mines wrote on June 29 to all auto dealers reminding them of the obligation to comply with the provisions of Article 52 of the 2014 Finance Law before the expiry of three years.

Last Wednesday, he said the deadline set at early 2017 and granted to automobile dealers to create an industrial activity in Algeria would not be extended.

To another question about the stalled Peugeot Algeria project, Mr. Bouchouareb, said that the role of the Government is to “reconcile the opinions of the three partners” involved in this project, noting that “the most complicated stage is over.”

Regarding the Volkswagen project, the Minister stated that the latter is still underway without further elaborating.

In this line, it should be noted that the country’s car imports bill decreased to USD 141.16 million in January 2016 against USD 377.88 million in January 2015, i.e. a decrease of 62.64%, according to National Customs Services.

The quantity imported was almost divided by three in one year with 9309 cars imported in January against 27,497 units in the same month of the previous year, i.e. a drop of 66.15% in number, the same source added.

As for car dealers who hold the largest share of the national market, their imports’ decline fluctuated between 29% and 97% in value, and between about 1% and 98% in terms of quantity.

The largest declines in value and quantity have been e recorded in dealers selling Asian and German brands.

Despite the freezing of bank debits for imports subject to licensing, the Chairman of the Algerian Automobile Dealers Association (AC2A) Sefiane Hasnaoui said that “the opening of bank documents was made prior to the release on 5 January 2016 of the notice of the Association of banks and financial institutions (Abef) on the freezing of debits of imports subject to licensing.”