Expert: Algerian car can not be made before 3 years

Cars price in Algeria increased by 100 percent in the last two years while ambiguity surrounds assembly and manufacturing plant projects.

Government reshuffle raised concerns among investors. In few months, former industry minister Abdesselam Bouchouareb was replaced by Mahdjoub Bedda who was succeeded, in his turn, by Youcef Yousfi. Cars assembly will be the first issue to be tackled by the new minister will who will start his work on Saturday.

Economy expert Kamal Si Mohamed told Echorouk cars assembly in Algeria should be revised to overcome missing points which were noted in the first projects.

He stressed the importance of benefiting from foreign experience, technology transfer, jobs creation and breaking prices in the national market.

“Worldwide, car plants can not launch more that a modal in three years. So, how can investors launch a big number of modals each month?” he said.

He called on Yousfi to keep watch on producers to ensure the respect of assembly criteria through new stricter specifications. He believes that this is the only solution to make cars assembly sector in Algeria capable of injecting hard currency and added” value to national economy.

 “No cars maker in Algeria can have gains if it does not manufacture 200,000 cars per year. Except that, it will be no more than importing equipment and assembly. This will not serve national economy,” he added.

According to the expert, the dream of an Algerian car can not come true at present. It requires advanced industry, knowledge, technology and skilled technical staff. “This does not exist in Algeria. There is also a need for a foreign investor to develop this industry locally. This would take years to happen contrarily to assembly which encourages importing and quick gains. In this field, investment lasts only few months.”

Speaking about the industry negative point, Si Mohamed criticized high importing and low jobs creation.

“Car plants is a pivotal project. It creates 7 indirect jobs but we do not find this in Algeria,” he said.

He added that figures given by car plants in Algeria are not the same in reality. “Many plants want to promote false information. They talk about the production of 60,000 and 70,000 cars we do not find in the market.”