Diesel vehicles, car prices: what does the specification say?

After long months of suspense, on Thursday November 17, the government finally published the long-awaited Specifications relating to car dealership and car manufacturer activities. This document should allow, from 2023, the resumption of import and assembly of vehicles in Algeria.

| READ ALSO: Assembly and import of vehicles, the specifications revealed

But after reading the terms of these new specifications, several questions arose as some of these points were not clear to ordinary Algerians. This is the reason why the president of ApoceMustapha Zebdi, took the floor to clarify the main shadow areas of the document.

Diesel cars, vehicle warranty and prices…

The first question, the one that comes up most often on the web, is the measure affecting the ban on the importation of diesel engine vehicles.

In this regard, Mr. Zebdi clarified that the ban concerns only new tourist cars. The new specifications therefore do not prohibit the import and (local) construction of commercial vehicles diesel. Moreover, the prohibition of diesel for tourist cars also applies to future builders which will establish themselves on national soil. As to second-hand cars (those less than 3 years old), the president of Apoce explained that it will be necessary to wait for the publication of the Finance law 2023 to find out if diesel will be banned or allowed.

| READ ALSO: Importing cars, 3 points to remember from the specifications

Among the positive points contained in this new specification, Mr. Zebdi cited two main ones. The first is that relating to vehicle warranty which goes from 2 years, in the old version of the document, to 100,000 km (or 5 years) in the news. The second concerns the obligation imposed on dealers to make available to the customer a recovery vehicle when her car breaks down and she has to stay in the service department more than 48 hours.

As it concerns car pricesthe president of Apoce underlined that the role of the specifications consists in fixing the conditions of purchase and sale of the vehicles, but that it does not intervene in the fixing of their prices. Nevertheless, Mr. Zebdi indicated that, while car prices will drop by around 30% in the coming months, they will not return to the thresholds of 2019 because of the depreciation of the dinar.

Beginning of importation, Fiat Algeria and cars less than 5 years old…

In the second part of his speech, the president of Apoce clarified a certain number of points concerning the future of the automobile market in Algeria.

Mustapha Zebdi thus explained that if things continue to go in the right direction, that if the dealers comply with the conditions of the new specifications, the first new imported cars should enter the market before the end of the first quarter of the year 2023i.e. in less than 5 months.

| READ ALSO: Importing new cars, what are the terms of sale?

As for the factory, Stellantis-Fiat of TafraouiMr. Zebdi, informed that, in accordance with the declarations of the wali of Oran, the first vehicles of the Italian manufacturer produced in Algeria should be available around November 2023.

Finally, on the question of whether the import of used vehicles would be limited to cars less than 3 years old or whether the measure would be extended to vehicles less than 5 years oldthe president of Apoce indicated that the file was on the table of the parliament and that the subject was not decided yet.

| READ ALSO: Importing cars, APOCE proposes to go to less than 5 years

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