Algerian Vehicles Market in 2025 keeps falling. Full year figures dropped 52.6%, with all top 5 brands incurring major losses. Fiat remained the absolute leader with 71.5% of the market, widening the gap with Chery in 2nd which fell 73.1%.
Economic Environment
In 2025, Algeria’s economy is expected to record solid growth of around 3.8%, exceeding earlier projections, as strong non-hydrocarbon activity offsets weakness in the energy sector. Economic expansion has been driven by robust household consumption, a dynamic services sector, and resilient agricultural output, alongside a sharp acceleration in investment, which rose from 9.8% in 2024 to 13.2% year on year in the first half of 2025. Despite a contraction of about 2% in hydrocarbon GDP, diversification efforts have helped sustain overall growth momentum.
Inflation has fallen markedly, easing to 1.7% year on year over the first nine months of 2025 from much higher levels in previous years, largely due to declining food prices, thereby supporting purchasing power and domestic demand. In response to improving inflation dynamics, the central bank has eased monetary policy, lowering both the policy rate and reserve requirements, which should further support economic activity and reinforce the positive growth outlook.
Automotive Industry Trend and Outlook
Despite last years’ positive performance, the Algerian vehicle market continues to slump in 2025. Sales figures posted a year-long decreasing trend which sharpened in Q3 and Q4. Overall, year-on-year loss amouted to 52.6%.
Brand-wise, Fiat was still the leader, despite losing 5.6%. Chery -up 1 spot- followed in 2nd (-73.1%). Opel -up 3 spots- ranked in 3rd (-34.7%), followed by Geely -down 2 spots- (-91.4%) and DFSK -down 1 spot- (-79%).
EV Market Trend and Outlook
The Algerian EV sector is still struggling heavily, despite the government intention to implement policies to encourage the adoption of EVs.
The chinese Dongfeng was the only brand to report EV sales in the country, with almost the entirety of the market.
Medium-Term Market Trend
The Algerian vehicle market experienced a turbulent decade between 2014 and 2024, marked predominantly by steep declines. Starting at 138,252 units in 2014, the market endured three consecutive years of contraction, dropping to 103,678 units by 2017 (-19.9%). A brief recovery followed in 2018, with sales up 28.1%, and the market peaked at 158,829 units in 2019. However, the COVID-19 pandemic caused a sharp 82.3% collapse in 2020. After a modest rebound in 2021 (+17.3%), the market fell again in 2022 (-22.9%), reaching an all-time low of just 25,404 units.
In 2023, however, the sector staged a dramatic comeback, growing 345.3% to 113,122 units, driven by the government’s decision to ease import restrictions and reissue vehicle import licenses for the first time in years. This policy shift re-opened the market to foreign carmakers, especially Chinese brands, fueling rapid sales growth. The positive trend continued in 2024, with the market expanding a further 58.5% to 179,332 units, reflecting renewed consumer confidence and better supply availability.
