The new representative of the Škoda brand in Algeria, GMS (German Motors Service), former representative of Mercedes-Benz and Great Wall, which has obtained its final approval (granted by the Ministry of Industry and Pharmaceutical Production for the marketing of new passenger cars) for some time, has already been allocated, according to our information and for quite some time, a quota of 1,000 vehicles for the year 2023.
A quota, which for GMS managers, is considered too low to be profitable (given the marketing costs) and to market these vehicles at reasonable prices for buyers. A situation that pushes GMS managers to make a status quo on the situation by waiting for a larger quota that would allow it to market its vehicles according to international standards and above all to satisfy demand by selling to everyone and not to categories of buyers with more power of persuasion.
As a reminder, the other representatives who received their quotas for the year 2023 have all been used.
In addition, the Minister of Industry and Pharmaceutical Production, Ali Aoun, has just announced the establishment of new criteria to regulate the import of new vehicles intended for authorized dealers. These measures were decided in consultation with the Ministry of Commerce and approved by the High Council for the Regulation of Imports. These criteria are mainly linked to market demand, the preservation of foreign exchange reserves, the demands of operators and their commitment to acquire and distribute the quota allocated for the year 2023. While everyone is waiting for the 2024 quotas, Ali Aoun recalled that the management of the automotive sector is not limited to the issue of quotas granted to dealers. He stressed that his department works mainly on the development of the national automotive industry, ensuring a high integration rate, while recognizing the need to supply the local market with imported vehicles while waiting for the development of the car manufacturing activity.
Ali Aoun
As a reminder, and on the instructions of the President of the Republic and after the approval of the High Council for the Regulation of Imports, there was talk of 24 first dealers approved for the activity of concession of new vehicles, including 7 for tourist and light utility vehicles, obtained a total amount of import of new vehicles, according to the forecast program filed by each dealer for the year 2023, estimated at 2.6 billion dollars for the import of 227,232 vehicles. Concerning the year 2024, the Minister indicated that 66 approvals were issued for the marketing of new vehicles, a significant increase compared to the previous year. These approvals covered a variety of brands and types of vehicles, thus allowing a diversification of the automobile offer in Algeria.
But what we can see at present is that the results are far from the objectives set.
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