Government To Support The Accredited Car Concessionaires

Figures of the National Assembly for the accredited car concessionaires reveal on the disappearance of 94 car concessionaires from the national market, in a matter of three years, bringing the number of dealers from 114 to 20, while the licence will be withdrawn from other dealers who did not show commitment to the activity of manufacturing, from the beginning of January,1, 2017, in contrast, the mandatory of manufacturing does not necessarily mean the unit for installation and assembly, but manufacturing spare parts or work as a handling company as well, which is considered a softening of the concessionaires that are unable to inaugurate large factories during 110 days at the most.

Head of the Association of Accredited Cars Concessionaires, Soufiane Hasnaoui, told Echorouk, that the number of accredited concessionaires in the Algerian market declined to only 20 agent, as these statistics are available to the association, after the number reached earlier nearly 114 concessionaires.

“This is because of the actions that were taken by the government in the beginning of 2014, to regulate the sale and purchase of cars, and clear the market from the chaos that it noticed, at a time when the number of concessionaires is expected to decline more by the beginning of January 2017, after withdrawing the accreditation from those who do not adhere to what is required by the terms’ book that organises the activity, corresponding to the contents of the Financial Law for 2014, and which is binding the importance of manufacturing locally or the practice of industrial activity by concessionaires”.

“Government’s decision to withdraw the license and accreditation of concessionaires who are not subject to the requirement of manufacturing, will be applied by the beginning of January 2017, because the Ministry of Industry left enough time which is three years to customers who showed the intention of manufacturing, so the withdrawal of the license from those who do not abide to the law and does not apply what was brought in by the legislative text, which was “clear, tough and frank”.

Hasnaoui returned to explain the content of the legal text that was misunderstood by the Algerians saying that agents are not obliged to manufacture or assemble or install cars here in Algeria from the beginning of January 2017, but they will practice an industrial activity, that may be through manufacturing the spare parts or handling activity, and this is according to the capacity of each trader, which makes the inauguration of a factory for vehicle installation for each trader not mandatory.

“Project of Nissan factory for installation will be completed in Oran (western Algeria), and will be launched in 2017. I, as Nissan’s General Manager, I’ll encourage manufacturing activity in Algeria, even before the promulgation of the law, formally, which means that it will operate in the field of handling, and that’s enough so as not to withdraw the license from us at the beginning of January 2017.”

Car market is experiencing, since March 2015, a set of disorders, after the new conditions book that organised the car activity entered into force, which definitively eliminated the intruders of market, and ensures the process of buying and selling and manufacturing.