Ban On Import Of Luxury Cars Will Save $50M

ar dealers praised the decision of the President of the Republic, Abdelmadjid Tebboune, to limit the import of cars to vehicles that have a 1.6-cubic-meter engine, that is, to drop luxury cars from vehicles intended to enter the national market according to the new conditions book, and they said that this step would increase the number of imported vehicles 3 times and save $ 50 million.

A member of the Car Dealers Association and General Manager of ELSECOM, Abderrahmane Achaibou, explained in a statement to Echorouk that the decision to amend the book of conditions approved by the President of the Republic in the last cabinet meeting is a positive step that indicates the government’s desire to review the errors recorded in the cancelled book of conditions, proposing the reconsideration of several points, including the abolition of the obligation to have an imported car including 4 airbags, and keeping only two airbags, which is the same standard adopted by several major countries such as Japan.

Achaibou explained that the decision to limit the import of cars to 1.6 engines allows an increase in the number of imported cars, by excluding luxury cars and focusing on the vehicles requested by the Algerian citizen with an average purchasing power, adding that preventing the import of luxury cars will save 50 million dollars.

He also considered that importing the transport truck should be limited to the vehicle model only, while the water, fuel and gas tanks are manufactured by local manufacturers, asserting that this step would save 200.000 dollars and create more than a thousand jobs.

“A 16-page file was deposited on the Minister of Industry’s table containing the proposals of accredited dealers regarding the next book of conditions, including the abolition of the mandatory ownership of exhibition spaces, and limiting the import of cars to only two brands, which is described in terms that are not beneficial to the dealer, the customer, and the public treasury as well”.

Previously, 9 dealers have obtained initial licenses to import cars, which are considered cancelled due to the application of a new book of conditions, or a modified book for the decree issued in August 2020, and the most important trademarks holding previous initial licenses are “Kia”, “Suzuki” and “Chery, Nissan, Mahindra, Chevrolet and Ford, bearing in mind that the Cabinet discussed on Tuesday, a draft law but the new conditions book is still not ready.

The Committee of Experts at the Ministry of Industry discussed a set of facilities that can be approved in the process of importing cars, including reducing the contract period between the dealers in Algeria and the manufacturer abroad for two years instead of 5 years, while no change in the content of the conditions book was officially decided up to the time, and the file remains subject to study and scrutiny.