Overview:
In 2023, Algeria’s automotive landscape faced a significant turning point as the Minister of Industry estimated the nation’s annual car demand to be between 350,000 and 400,000 vehicles. This period marked the onset of a slow recovery from an extended automotive crisis, with the government launching car imports under the 2023 import quota system—a strategic move aimed at stabilizing the market.
However, initial efforts were hampered by notable delays that pushed a substantial number of imports into 2024. The situation was further complicated by the lack of a clearly defined import quota for 2024, despite widespread public outcry for the prompt reopening of car imports. This delay not only affected market dynamics but also contributed to an ongoing shortage of vehicles and escalating prices across the board.
Moving into 2025, Algerian consumers continue to await a decisive resolution on the reopening of car imports. In a proactive step, the Ministry of Commerce initiated a digital platform in January 2025, allowing authorized car dealers to register their desired import quotas for the year. This system generates a mandatory “Certificate of Compliance,” which is essential for obtaining the subsequent banking localization certificate. Stakeholders remain hopeful that the 2025 import quota will be announced soon, potentially alleviating the severe vehicle shortage and mitigating skyrocketing prices in Algeria’s car market.
Key brands present in the Algerian automotive market:
The current automotive market in Algeria was rapidly evolving, with a dynamic lineup of key brands securing crucial final approvals and strategic partnerships that are shaping the nation’s vehicle import and production landscape.
Following the issuance of Executive Decree No. 22-283 on November 17, 2022—which set out the import regulation framework—several major automotive brands received their initial final approvals in March 2023. Notably, Fiat, Opel, and Jac led the charge:
– Fiat El Djazair spearheaded Fiat’s market entry by officially launching sales and accepting orders in March 2023.
– Halil Commerce et Industrie represented Opel, although the brand postponed order acceptance until November 2023.
– Amin Auto managed Jac’s operations, cementing their role in the growing market.
Subsequently, the approval timeline expanded to include brands such as DFSK, Chery , and Geely in August 2023, with JMC Motors receiving final approval in November 2023. Additionally, the order process for Chery and Geely commenced in November 2023, with the first Chery vehicles delivered in January 2024.
In January 2024, both JAC and BAIC secured their approvals, while Great Wall Motors and Bestune followed in April and June 2024, respectively—with Great Wall Motors launching pre-orders by May 2024.
Strategic Production Developments:
A significant milestone was reached in December 2023 when the Fiat Algeria plant in Oran began operations. This state-of-the-art facility, representing an investment of 200 million euros and spanning 80 acres, boasts an initial production capacity of 90,000 units. The plant’s production roadmap includes:
– 40,000 units in 2024 under the Semi-Knocked Down (SKD) system.
– A ramp-up to 90,000 units by 2026 using the Completely Knocked Down (CKD) system.
Furthermore, integrated operations such as painting, welding, and molding are scheduled to become fully operational by late 2026, significantly bolstering the local manufacturing capacity.
One year after the launch of the Fiat Algeria plant, production achievements include over 18,000 vehicles—featuring popular models such as the Fiat 500 (passenger cars) and Doblo (commercial vehicles). Impressively, the plant attained a local integration rate of more than 10%, exceeding regulatory expectations ahead of schedule. Looking ahead, Stellantis aims to further expand local production, targeting 60,000 vehicles in 2025 and 90,000 in 2026, with an anticipated local integration rate exceeding 30%.
Future Outlook:
According to Ministry of Industry statistics, the investor committee overseeing vehicle import applications received 127 applications since 2023, and the Minister of Industry confirmed that 66 brands have secured final approval. It is important to note that this figure covers all types of vehicles and accessories—not solely passenger cars.
Recent developments indicate that several prominent automotive brands are eyeing potential market entry into Algeria in the near future. These updates shed light on ambitious investment plans and strategic initiatives aimed at revitalizing local manufacturing capabilities.
Hyundai:
The Director-General of the Algerian Investment Promotion Agency recently met with Sheikh Salman Al-Bahwan Al-Mukhaini, CEO of Hyundai Manufacturing Algeria, to discuss the company’s proposal for establishing a new production facility in the country. Hyundai has submitted a detailed report and formal request, seeking the allocation of land to build a state-of-the-art manufacturing plant, with an estimated investment of $400 million.
This strategic move underscores Hyundai’s commitment to not only expand its market share in Algeria but also to contribute to the broader automotive sector through local production and technology transfer initiatives.
Volkswagen:
In parallel, the Algerian automotive sector is set to receive attention from the German Volkswagen Group. The President of the Subcontracting and Partnership Exchange for Western Algeria announced that a delegation from Volkswagen will visit the country in February 2025 in order to evaluate potential manufacturing sites, examine opportunities within subcontracting factories, and assess the viability of spare parts facilities across Algeria.
Cars Sales volume in Algeria :
2022: A Year of Stagnation
In 2022, Algeria’s automotive sector experienced an unprecedented stall in both vehicle imports and local production.
2023: Resumption of Imports and Market Revival
A turning point came in 2023 when the government allocated $1.9 billion to facilitate the import of 180,000 vehicles. By April 2024, 159,037 vehicles had been imported under the 2023 quota, comprised of 137,982 passenger and commercial vehicles. This recovery marked a significant rebound in market activity, driven in part by the robust entry of key brands such as Fiat.
-Fiat launched in March 2023, immediately generating buzz with 15,000 orders and **100,000 visits to its sales points within just two weeks. Fiat Algeria’s import figures surged from 2,700 vehicles in April 2023 to 10,000 vehicles in August 2023.
From March 2023 to March 2024, Fiat imported 97,000 vehicles, achieving a remarkable 90% customer satisfaction rate. The brand secured an 83.2% market share in 2023, selling 94,380 vehicles—including 28,000 Doblo utility vehicles and 25,500 Tipo passenger vehicles.
2024: Continued Sales Growth and Local Production
-Fiat’s sales in 2024 were estimated at 59,000 vehicles , with 23,000 Doblo utility vehicles sold, reducing its market share to 60% as the market diversified further. Concurrently, the Fiat plant achieved local production of over 18,000 vehicles , demonstrating a growing domestic manufacturing capability.
– Opel: From November 19, 2023, to March 2024, Opel successfully sold its entire 2023 quota of 4,000 passenger vehicles .
-Chery: With a 2023 quota of 11,000 vehicles, Chery began deliveries in January 2024. By May 2024, it had imported 10,000 vehicles and delivered 9,000 out of 9,700 allocated units.
-Geely: Geely’s 2023 quota stood at 39,100 vehicles. Deliveries were initiated in February 2024, and by May 2024, the brand had marketed 38,200 vehicles with 14,000 successfully delivered.
Customs Statistics: First Half of 2024:
The first half of 2024 saw 69,197 vehicles enter Algeria, as reported by customs data. These imports, managed by authorized agents, held a total value of $1,068.02 million—highlighting a robust recovery and the reenergized pace of the automotive market.
Used Cars import volume in Algeria :
Following the announcement allowing the import of vehicles less than 3 years old , Algerian customs recorded the purchase of 9,970 used vehicles in 2023, with a total value of $142.40 million . A significant increase was observed in the first half of 2024, with 16,592 used passenger and utility vehicles purchased, amounting to $243.88 million.
Used Cars Sales volume in Algeria:
The latest official figures available regarding the number of used car sales date back to 2021, which were published by the National Office of Statistics in multiple publications, and we summarize them as follows:
Volume of new cars imported by individuals in Algeria:
According to the latest statistics published by the **National Office of Statistics (ONS)**, the number of new vehicles imported by individuals was:
– 14,176 vehicles in 2019.
– 18,794 vehicles in 2020.
– 37,441 vehicles in 2021, reflecting a substantial increase compared to previous years.
Number of Cars and Age of Cars in Algeria:
According to the latest statistics from the National Office of Statistics, Algerians own a total of 7,731,664 vehicles, including 4,972,920 passenger vehicles, representing 64.32% of the total vehicle fleet.
Average Age of Cars in Algeria:
We have observed an increase in the average age of vehicles in Algeria since 2019 due to the halt in new vehicle imports and the continued use of older cars. This trend is further exacerbated by the absence of regulations or laws prohibiting the operation of old or defective vehicles.
Algeria Automotive Market Share by Brand:
Algerian Consumer Perceptions of Automotive Brands:
A 2018 market research study exploring Algerian consumer attitudes toward automotive brands revealed distinct associations with regional automakers. German marques, such as Volkswagen,BMW and Mercedes-Benz, were strongly linked to **prestige, advanced engineering, and high-performance capabilities**, reinforcing their reputation for luxury and durability. French brands, notably Renault and Peugeotand Dacia , were praised for **refined comfort, eco-conscious innovation, and contemporary design**, aligning with Algeria’s growing demand for sustainable yet stylish urban mobility solutions. Conversely, Chinese manufacturers like Chery and BAIC were recognized for **affordability and feature-rich offerings** but faced challenges in overcoming perceptions of **compromised reliability and inferior build quality** compared to European counterparts.
Algerian Consumer Perceptions of Automotive Brands post Re-Import phase (2023–Present)
Opel: Pricing Backlash and Brand Skepticism
Opel’s entry into Algeria sparked controversy, with consumers criticizing its premium pricing strategy, perceived as disproportionate to its market positioning. Many Algerians expressed distrust in Opel’s engine technology, citing reliability concerns linked to its shared platforms with Peugeot models. This skepticism led some buyers to favor used Volkswagen vehicles over new Opels, reflecting a preference for established German engineering. Opel’s challenge lies in rebuilding trust through transparent quality assurances and competitive pricing to align with Algerian expectations.
Fiat: A Tale of Two Models
Fiat 500: A Mismatch for Middle-Class Priorities
Experts highlight that 70% of Algerian consumers belong to the middle class, yet the Fiat 500’s C-segment pricing (comparable to Ford Focus or Mercedes C-Class) alienates budget-conscious buyers. While praised for its iconic design and urban agility, its small size and premium cost limit its appeal against rivals like the Kia Picanto. Consumers view it as a niche choice for city driving, not long-distance practicality.
Fiat 500X: Balancing Affordability and Appeal
In contrast, the Fiat 500X earned praise for reliability, fuel efficiency (up to 600 km per tank), and spacious interiors, outperforming competitors like the Kia Picanto in mileage. Despite this, Fiat’s overall brand recognition in Algeria lags behind Renault and Hyundai, which dominate as preferred budget-friendly options. Analysts suggest Fiat could gain traction by emphasizing the 500X’s value proposition while addressing the 500’s pricing disconnect.
Chery Tiggo 2 Pro: Positioned as a family-oriented SUV with practical space, it appeals to Algerians prioritizing functionality. However, its conservative design struggles against sleeker rivals.
Geely GX3 Pro: Favored for its youthful, modern aesthetics (notably its rear styling), it targets younger drivers seeking style. The Geely Coolray further capitalizes on elegant design and Volvo-inspired safety features, though skepticism persists due to limited local market history. In safety comparisons with Opel and Fiat, Geely ranks lower, underscoring the advantage of European brands’ long-standing familiarity.
Strategic Takeaways for Automakers
- Opel: Address pricing transparency and engine reliability concerns to compete with trusted European rivals.
- Fiat: Leverage the 500X’s positive reception to build trust, while repositioning the 500 as a premium urban mobility option.
- Chinese Brands (Chery/Geely): Invest in localized marketing to overcome reliability biases and highlight safety innovations (e.g., Geely’s Volvo ties).
These insights underscore the nuanced priorities of Algerian car buyers, where brand heritage, technological trust, and value-for-money dynamics play pivotal roles in shaping purchasing decisions. For automakers, tailoring strategies to address these perceptions—whether through enhancing quality assurance (Chinese brands) or emphasizing eco-credentials (French brands)—could prove critical in capturing market share in Algeria’s competitive automotive landscape.
