Algerian Vehicles Market in 2025 continues to fall. H1 figures dropped 34.4%, with all top 5 brands incurring losses in the double-digits. Jetour in 7th and Haval in 10th were the two standout that bucked the trend.
Economic Environment
In 2025, Algeria’s economy is expected to maintain a broadly positive trajectory, supported by a gradual recovery in hydrocarbon production as OPEC+ cuts ease, sustaining growth and keeping inflation moderate. Growth is forecast to build on the 3.6% expansion in 2024, though fiscal vulnerabilities remain a key concern. The budget deficit, which widened sharply to 13.9% of GDP in 2024 due to lower hydrocarbon revenues and increased spending, is projected to remain high, posing significant financing challenges. Despite a decline in inflation, from 9.3% in 2023 to 4% in 2024, fiscal pressures and volatile hydrocarbon prices may contribute to a wider current account deficit in 2025.
To stabilize the economy, a gradual but urgent fiscal adjustment is essential, alongside enhanced exchange rate flexibility to help absorb external shocks. Reforms should focus on increasing nonhydrocarbon revenues, improving public investment efficiency, and reforming subsidies to protect fiscal buffers. Strengthening the monetary framework with a clear inflation target and improving financial oversight will be critical to mitigating macro-financial risks. Structural reforms, including SOE governance, business climate improvements, and enhanced private sector participation, are needed to diversify the economy and generate jobs.
Automotive Industry Trend and Outlook
Despite last years’ positive performance, the Algerian vehicle market continues to slump, with H1 tally down 34.4% in year-on-year volume.
Brand-wise, Fiat was still the leader, despite losing 14.9%. Geely -up 3 spots- followed in 2nd (-16.8%). Opel -up 1 spot- ranked in 3rd (-54.9%), followed by the Chinese Chery -up 2 spots- (-16.5%) and DFSK -down 1 spot- (-64.3%).
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.
