Inflation Affects The Price of Cars, Spare Parts In Algerian Market
Contrary to what was promoted about the collapse of car prices at the level of used vehicle markets, they continue to rise, despite the recent urgent decisions to accelerate the pace of import and opening the door through Article 35 of the complementary finance law 2021 to import cars less than 3 years, as the new cars’ price (numbered in 2020), raches 2 million DZD.
A study prepared by certified car dealers, based on used car sellers and “brokers”, confirms that the prices of vehicles have witnessed a sharp flame, reaching 200% for some types, since 2014, the percentage has doubled since 2019, and the increase continues in recent months, as the price of a Hyundai Accent reaches 2.600.000 DZD numbered in 2020, compared to the year 2014 equivalent to 1.100.000 DZD, and the price of Ibiza (2020) rose to 3.200.000 DZD after it was comparable to 1.300.000 DZD in 2014, and the price of Seat Leon (2020) rose from 1.500.000 DZD to 5 million DZD. The price of KIA Picanto (2020), which price did not exceed 1.100.000 DZD, rose to 2.200.000 DZD, and the price of the Hyundai I10 rose from 890.000 to 2.200.000 DZD, and the Volkswagen Tiguan price, which was sold at 3 million DZD, is now close to one billion DZD.
The price of the Volkswagen Polo car (2020) also increased from 1.700.000 DZD since 5 years ago to 3.900.000 DZD, while the first car installed in Algeria, the “Symbol” at the Oued Tlilat factory (western Algeria) in 2015, increased from 1 million to 2 million DZD, while the price of the Clio 4 increased from 1.100.000 to between 2.800.000 and 3.200.000 DZD, and the price of the Golf 7, which was about 2.800.000 DZD, is trading between 4 and 5 million DZD, and Skoda (2020), which was up to 2.800.000 DZD, is being sold today at 5.200.000 DZD.
Dealers and car agents confirm that the low price of cars in the Algerian market imposes first a decrease in the price of hard currency at the level of the parallel market, which is still very high despite the limited travel and the failure to import cars less than 3 years old until now, due to the absence of applied texts. Yesterday, the price of the euro at the level of Algiers “squares” market for hard currency reached 21.300 DZD per 100 euros, adding that the next stage will witness a greater rise in the price of hard currency, which leads to a higher increase in vehicle prices, and the decrease in the price of vehicles imposes flooding the market with new cars, which is difficult to implement, especially since the Ministry of Industry will adopt the quota system, meaning that the proportion of demand will continue to rise compared to the proportion of supply.
The prices of vehicle spare parts have also witnessed an unprecedented rise, and the prices of car wheels that were sold at an average of 3000 DZD a few years ago have doubled today to 7000 DZD, and the car engine filter increased from 500 to 2000 DZD, and the headlights of the Ibiza car, for example, rose from 80.000 DZD to 170.000 DZD, and the left and right car mirror increased to 5000 DZD after it was equivalent to 2000 DZD.