Algeria March. A moderate recovery in place, waiting for new rules

Algerian Vehicles Sales Renault-Megane_RS-2018

Algerian Vehicles Sales marginally recovered in the first quarter 2018, while the market suffer high price, low availability of models and deep uncertain about next political moves. The Renault Group keeps gaining share, while all importers are down.

Algerian economy gained steam in Q4 2017 helped by the rally in oil prices after the slowdown experienced in mid-2017 despite constrained oil output, aided by a recovery in the underdeveloped non-oil sector. The government plans to ramp up oil infrastructure investment this year to lift production, both through its state-owned company Sonatrach and by attracting foreign capital, as with the joint-venture with Total and Cepsa to exploit natural gas fields in the southwest starting this year, with the first plant inaugurated on 29 March.

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.

Sales volume dropped dramatically from the record of 423.000 sales in the 2013 losing over 75% of volume and landing at 102.066 in the 2017.

 Sales 2012Sales 2013Sales 2014Sales 2015Sales 2016Sales 2017Sales 2018 e
Car+LCV349.527429.769339.381263.656129.897101.241121.094
HCV1.5321.2711.1171.829824800902
Total351.059431.040340.498265.485130.721102.041121.995

 2012 Var2013 Var2014 Var2015 Var2016 Var2017 Var2018 var e
Car+LCV22,1%23,0%-21,0%-22,3%-50,7%-22,1%19,6%
HCV-46,0%-17,0%-12,1%63,7%-54,9%-2,9%12,7%
Total21,4%22,8%-21,0%-22,0%-50,8%-21,9%19,6%

The 2018 started with first quarter light vehicles sales at 27.439 (+11.8%).

At brand-wise, Renault sold 11.127 vehicles (+26.2%) followed by Dacia with 6.386 (+26.7%) and Peugeot with 2.754 sales (-30.6%).

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.

Rank 2018Rank 2017BrandSales 2018Sales MarchVariation 2018Variation MarchShare 2018Share March
11Renault11.1273.53726,2%10,3%40,6%40,7%
22Dacia6.3852.72526,7%0,0%23,3%31,4%
34Peugeot2.754556-30,6%-61,3%10,0%6,4%
43Hyundai1.808425-10,7%-46,5%6,6%4,9%
59Kia90223920,6%0,8%3,3%2,8%
65Volkswagen75315727,4%-23,8%2,7%1,8%
78Skoda63715674,0%69,6%2,3%1,8%
87Seat627150326,5%194,1%2,3%1,7%
96Toyota43496-55,5%-61,1%1,6%1,1%
1011Nissan32310823,8%38,5%1,2%1,2%

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