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Flash Reports

Algeria September. Seat Ibiza is the new star in a market up 26%

Algerian Vehicles Sales Seat-Ibiza-2018

Algerian Vehicles Sales started the recovery thanks to the new models locally produced and year to date September 2018 reported a +26.9%. Volkswagen Group is taking the scene with Seat as second best selling brand and even Volkswagen and Skoda is fast growth.

Economic Environment

Algerian economy decelerated in Q2 from the already weak print logged in Q1, due to a sharp fall in hydrocarbon output and a slowdown in the industrial sector. However, state oil company Sonatrach’s USD 56 billion investment plan for the 2018–2022 period appears poised to support growth in H2 2018 and beyond. In addition to a series of investment projects unveiled in recent months, Sonatrach recently announced a joint-venture with Total to build a petrochemical plant and a gas field expansion

Market Trend

Algerian vehicles market is literally in a chaos, after the sharp reduction of volume (-75% in four years) due to the government decision to reduce sharply the number of licences to import. This decision was criticised by the new Prime Minister, Mr.Abdelmajid Tabboun, appointment in May 2017, which noted as the cost of locally assembled vehicles was widely higher than imported. Indeed, in the country there is not the technological base and knowledge to efficiently produce new cars and Manufacturers are just assembling, with the CKD production system, vehicles and parts build somewhere else, with higher cost of production than usual.

In addition, the range of local made models are very limited and the distributors/dealers have low competition, increasing their margin offering higher price to the final customers. However, no effective actions had been taken by the new prime minister so far.

Many car makers have accepted the “invitation” to produce locally, but they need time to appropriately set up operation. Following the Renault-Dacia plant, in July 2017 Volkswagen Group started operations to produce several models, like VW Golf, VW Caddy, Seat Ibiza and Skoda Octavia. Hyundai Group is also producing locally and Suzuki is building a new plant. Peugeot will produce since 2019, via a joint venture.

Light Vehicles sales volume had dropped dramatically in recent years from the record established in the 2013 with 423.000 units. Losing over 75% of volume in four years, the market dropped to only 102.066 in the 2017.

In the 2018 the market has finally started the recovery, fueled by the new models locally produced. Indeed, light vehicles sales have been 32.618 (+32.9%) in the Q1 and 27.658 in the Q2 (+6.6%) ending the first half at 63.152 (+25.1%). In the third quarter sales were 29.057 (+40.1%) with Year to Date figures at 90.364 (+26.9%).

Market September Sales Sales Q3 Sales 2018 YTD Variation September Variation Q3 Variation 2018
Car+LCV 9.509 29.057 90.364 11,1% 40,1% 26,9%

At brand-wise, Renault sold 34.085 vehicles (+21.7%) followed by Seat  with 16.181 (+2800%) and Daciawith 14.976 (+0.2%).

Research, Consulting, Data & Forecast

F2M covers intensively this market with several products developed to help any investigation required. Market Researches in PDF are immediately available for download with study on the market since 2005 and with forecast up to the 2025. Auto Data in EXCEL are immediately downloadable with annual sales volume, split by month, for all brands and all models distributed in the market. This year data are released year to date, but you will receive a monthly update until the year-end. All these and more within Algeria Corner Store.

 

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