Algeria's ban on the import of auto parts, which had been suspended for many years, has finally been lifted. 15,000 practitioners have completed the registration procedures for parts import and are preparing to place orders crazily...

Algeria's automobile market is experiencing a violent rebound from "frozen" to "boiling."

For those of us who export used cars and trade to Africa, the recent news from North Africa is really too lively: the ban on the import of auto parts, which has been suspended for many years, has finally been lifted, and the originally silent market has been instantly activated. According to the latest data quoted by Algeria's mainstream media "Al Fadjr", 15,000 practitioners in the country have completed the registration procedures for parts and components imports and are placing orders crazily through the official platform (ALGEX).

15,000 hungry "goods outlets" to be fed, what does this mean? It means that as long as you have goods in hand, channels are not a problem at all.

Parts first: a late "replenishment wave"

At the just-concluded 16th "Equip Auto" Auto Show in Algiers, this anxiety turned into real business opportunities. "Al Fadjr" found on the scene that although vehicle imports are a hot spot, those who are really busy are those exhibitors who make batteries, tires, plastic parts and maintenance equipment.

This is a typical "market restart syndrome"-although cars have not yet arrived in large numbers, the demand for repairs can no longer be suppressed. Previously, the Algeria market experienced a long-term "spare parts shortage" due to the ban. Now the ban has been lifted. Whether it is to welcome the upcoming new cars or to maintain the operation of old vehicles,"replenishing inventory" is the first priority at the moment.

It is worth mentioning that 70% of the exhibitors at this exhibition are foreigners, and China and Turkish companies occupy the C position. Even six companies from Kaluga, Russia, came with inspection teams. Obviously, polar bears do not want to miss the dividends of North Africa.

Expert warning: New cars are expensive, but used cars are more promising?

Although everyone was shouting "market recovery", local economists poured cold water in a timely manner.

Economic expert Mohammed Hamidoush was blunt in an interview: "The Algeria market now has a gap of 1.5 million vehicles." He even predicted that the price of a new imported car that meets the standards would never be lower than 3.5 million dinars (approximately 180,000 - 190,000 yuan, depending on exchange rate fluctuations).

Why is it so expensive? There has been no import for three years, the exchange rate has changed, tariffs have changed, and international car prices have also increased. Hamidushi believes that the huge gap between supply and demand will lead to high prices for new cars.

[Veteran Comments]

This is actually a great benefit for us in exporting used cars. When the price of new cars is pushed up to the water level of 3.5 million dinars, those quasi-new cars within three years, or used cars of China brands with high cost performance, as long as the price can be reduced, will be a "reduction in dimensions" in this market. The head of the local consumer protection organization has already made it clear that the import of "A-class cars" should be encouraged and "match the purchasing power of the people." This is too clear-cheap and easy to use cars are the king's way.

Not only selling cars, but also selling services

If you think you're just selling cars, it's too shallow. Algeria's recovery this time carries a strong meaning of "industrial upgrading."

Construction has begun on Fiat's factory in Oran, and photos of the exhibition hall have been posted on social media; the local government has even signed an agreement to build an "automotive academy" to train people in car repair, sheet metal and painting.

Even the insurance company is high. Local insurance tycoon Hassan Halifati predicts that the auto insurance market will rebound by 15% as new cars enter the market. But he also complained about a phenomenon: local people only buy the most basic compulsory traffic insurance, not all insurance, resulting in the insurance company losing their underwear (7.6 dinars for every dinar premium charged).

[Veteran Comments]

This detail is very important! Insurance companies cannot afford it, and they will definitely force policies in the future,either forcibly increasing the insurance amount or strictly controlling the import of accident vehicles. This reminds us: used cars exported to Algeria must be in tough condition. Don't think about throwing cars that are about to be scrapped. The current regulatory logic there is "both cheap and compliant."

New rules of the game: If you want quotas, invest first

The most interesting point is that experts suggest that Algeria learn from Tunisia-"Want to import more cars? First invest some money locally." Do some parts manufacturing and local supporting facilities, and the state will give you multiple import quotas.

This is actually a common problem in many emerging markets: lack of foreign exchange and lack of industry, so they not only want your car, but also want your factory.

To summarize:

This wave of market in Algeria is real. 15,000 accessory manufacturers are ready, and there is a gap of 1.5 million vehicles. For our China counterparts, the opportunities lie in:

1. Accessories are the big part: Brothers who are engaged in vehicle export, don't forget to bring after-sales parts. There is a serious shortage of goods there.

2. The price should be fragrant: New cars are too expensive, which is the window period for cost-effective used cars (especially those within 3 years).

3. Keep your eyes on the long term: It may become increasingly difficult to just do trade. If you can get some KD cooperation or simple localized services along the way, your voice over there will definitely be a different one.

Don't just watch Fiat and the Russians lively. If China car companies don't rush forward, North Africa's market share will really be lost.

Source:https://alfadjr.dz/article/64690

Source: Guangdong Good Car

[Disclaimer] The content of this website (including pictures and texts) originates from the Internet, and the copyright belongs to the original author. Respect the rights and interests of originality, and select content is only used for information sharing. If copyright disputes are involved, please contact us to handle the deletion in a timely manner.