These Are The New Conditions For The Manufacturing And Sale Of Algerian Vehicles

The Algerian Government has, of late, released a new book of specifications for determining the conditions and modalities of the activity of the Algeria-based factories for the assembling of cars, stressing the need for manufacturers to comply with market requirements in terms of raising the rate of production and integration by roofing prices and ensuring the production of gas-powered vehicles, not to mention the regular provision of spare parts and reliable distribution networks as part of an overall production of vehicles free of hidden or visible defects and strictly in line with security and safety standards.

In order to put an end to the chaos of prices and random increases, the new book of specifications included in an executive decree published in the latest issue of the “Official Gazette”, enjoining the vehicle-assembling plants to ensure the roofing of prices and not to raise them except in the case of higher production costs and undue restructuring costs.

The Government further committed itself to producing natural gas-powered vehicles to meet the growing market demand for this type of vehicles so as to curtail gasoline, and diesel consumption and curb environmental pollution. 

The Government also promised manufacturers producing electric or hybrid cars attractive tax exemptions.

The book of specifications compels manufacturers to provide original spare parts and to supply them regularly for 10 years unless they cease to operate. 

With regard to the nature of the car-assembling plants, the relevant book of specifications pointed to ensuring the availability of the full equipment related to assembling, manufacturing, training and experimentation, in addition to providing the continuous training of workers, with due respect to the required integration rate.

The decree “Determining the conditions and modalities of the practice of vehicle production and assembling” shall be made conditional upon delivery of the final approval by the Minister in charge of the industry not later than one month from the date of filing the application, in addition to the delivery of the provisional license to the applicant.

The new book of specifications further sets out the burdens and conditions for the manufacture and assembling of cars in Algeria, with a mandatory integration rate of at least 15 percent after the third year of activity, starting from the date of publication of the book of conditions, and 40 to 60 percent for inclusion within a maximum of five years. 

The Government also requires that the new investment project be made in close partnership with leading international brands in the field of automobiles.