Algeria 2016. The market was killed by local authorities policy

9
Seat-Ibiza-2016

Algerian Auto Market 2016 destroyed by the local authorities limiting the import with discriminating quotas. Product shortage lifted prices on the sky creating room for grey market done by unstructured traders.

The Algerian Government has decided to transform the automotive sector from a net cash out, due to heavy import of vehicles for  near 6 billion US Dollar in the 2014, to a net cash out, creating from scrap a local industry, producing and exporting.

Nothing new, but the procedure applied in this pathway has not probably one of the less brilliant ever.

After the  start up of Renault plant in the 2014, producing the Symbol, a model for which Algerian people is not really loved, in the 2015 import of vehicles was limited to the release of licences, originally 152.000 and then reduced at 83.000 and then lifted at 98.000 in a big mess with all, really ALL, from customers, to dealers to car manufacturers unhappy.

The country has reduced at just US$ 1 million the cash out for cars, but the collapse of the entire distribution channel has hit the National GDP for an estimated 1.5 points.

Meantime, several OEMs have negotiated to open a local plant as soon as possible and Volkswagen Group should be the fastest, opening in the 2017.

Effect of the immediate shortage of products, lifted vehicles price on the sky, creating room for grey market, now flourishing for un-official car sellers, operating without rules and service, on the shoulder of the established, expensive, structured, regular dealers.

Numbers are “fluctuating” as the local authorities have decided to stop releasing sales data, probably in the hope to hide the mess created by themselves. Unofficial data collected by our Team report for a full year vehicles sales of 145.041 units, down 42.6% from the previous year, the third heavy drop since the 2014 record of over 0.4 million units.

Only one winner, Renault Group, with Dacia and Renault at 51% of market share, albeit having lost volume as well.

Tables with sales figures

In the tables below we report sales for all Brands, top 10 Manufacturers Group and top 10 Models

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