Algerian Vehicles Sales kept falling in the second quarter due to the reduction of import licence at only 50.000 units. Despite the Volkswagen Group rush t set up the new plant, actually the market id reserved to Renault Group.

Algerian economy in Q1 was driven by the ongoing recovery in the hydrocarbon sector once again supported growth in the quarter on the back of higher oil prices. That said, the non-hydrocarbon sector is likely to have contributed only meagerly to growth as pro-business reforms seen as necessary to lift the non-oil private sector and lower the stubbornly-high unemployment rate have progressed sluggishly.

Different is the mood inside the automotive industry, the second largest in Africa untill a couple of years ago and then killed by the government project to boost the national production and block the huge cash-out for vehicles import. Nothing wrong in these scopes while the way to achieve these targets has been really naif.
Reducing the licence to import, the government has just reduced heavily the authorization to import vehicles released to OEMs and market dropped down rapidly in the 2016, when at the end just 98.000 licenses were released.

In the last February, it was announced that for this year licences should be just over 50.000 units and this was confirmed a a recent note of the Minister of Transportations, giving a clear advantage at the local producer, Renault-Dacia.

Volkswagen Group has rapidly built a new plan that is near to start the production of several models, like VW Golf, VW Caddy, Seat Ibiza and Skoda Octavia.
Meantime, the market started the year with a sharp -50% in the first quarter before to fall again in April, May and June respectively by 37.9%, 26.8% and 24.9%.
First half sales have been 51.827, down 40.8%

At brand-wise, Renault sold 20.529 vehicles (+15.5%) followed by Dacia with 11.277 (-12.3%) and Peugeot with 7.149 sales (-53.6%).

Original Source : Focus2move.com
 

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