Free Submission Public Relations &
Deutsch English


New Market Research Report: Algeria Autos Report Q1 2014

Print article Print article
2013-12-13 12:37:47 - New Transportation research report from Business Monitor International is now available from Fast Market Research

Over the past quarter, there were further key developments in Algeria's journey to becoming a car producing nation. At the end of September 2013, French carmaker Renault announced that construction work had commenced at the new Oued Tielat factory in Oran province, with hopes that the first Algerian-built car should be produced in November 2014. According to a Renault press release, the company has also started the hiring process for new workers, with the new plant set to lead to the direct creation of over 350 jobs. Successful candidates will be trained by Renault and local training centres. Renault believes that this training will be key to the success of the new plant, with the French carmaker also looking to

develop a network of local sub-contractors as well.

BMI believes that vehicle production in Algeria will be transformed by this new Renault car plant. From initial output of 25,000 vehicles per annum, this will steadily rise to 75,000 vehicles a year. The first model to be manufactured in Algeria will be the New Symbol small family car. According to Renault, the local content used in these cars will be gradually increased over time, in line with the indigenous industry's ongoing development. A proportion of domestic production will then be exported.

Full Report Details at

In October 2013, the Algeria Press Service reported that partnership agreements had now been signed between the Ministry of Defence, Aabar Investments and Daimler/Mercedes-Benz, setting out some 25 'framework and performance contracts relating to the construction of three major industrial projects in Rouiba (Algiers), Ain Bouchekif (Tiaret) and Oued Hamimine (Constantine)'. These will produce commercial vehicles and engines.

Following the signing of these agreements, the company is now expecting to begin the recruitment and training of local staff to work in these three new factories. Earlier, in June 2013, the chairman of the National Company of Industrial Vehicles, Hamoud Tazrouti, stated that the first 'made in Algeria' Mercedes-Benz commercial vehicles should be coming out of the factories at Rouiba and Tiaret during the first quarter of 2014.

This strong investment in Algeria from both Renault and Mercedes-Benz reflects the optimistic stance BMI has long held towards the local market's prospects.

H113 sales figures for the Algerian new car sales market continue to support BMI's long-held optimism towards the country. A total of 247,091 cars were sold over H113, representing an increase of 14.65% year-on-year. This puts the country well on track to hit BMI's forecast of 498,318 units for the full-year. The only potential threat to our upbeat view is the fact that private consumption may fall slightly over 2013, as higher spending on public sector wages is scaled back by the government. This may act as a brake on demand for new vehicles over the remainder of 2013. BMI forecasts private consumption increasing 5.0% and 5.5% in 2013 and 2014, respectively, from 6.0% in 2012.

However, with presidential elections scheduled to take place in April 2014, there is every indication that the government may look to boost expenditure in the run-up to the vote, which could see further increases in public sector spending (potentially including wages).

One other key development in the Algerian auto sector over the past quarter was a statement from Prime Minister Abdelmalek Sellal in October 2013, which indicated that, in future, only car dealerships will be allowed to import vehicles into Algeria. This would see an end to informal imports to individual private buyers, a move which the government hopes will 'bring order' to the national new vehicle sales market. Certainly, BMI would concur that only allowing imports via dealerships could allow for a clearer picture of the evolution of new car sales in Algeria to emerge.

The measure to limit car imports solely to dealerships comes in tandem with some other new budgetary measures from the government. These seek to forbid dealerships from importing vehicles on behalf of other dealerships outside of their own distribution network and to stop them extending credit lines to their clients. Looking at new car sales over H113, the local Motors Magazine website has reported that Peugeot has surpassed Renault over the first six months of the year. Peugeot's sales rose by 62.74% over the first six months of the year, to 48,617 units, according to data published by Motors Magazine. Over the same period, Renault sales fell by 3.77%, to 43,392 units.

In third place was Renault subsidiary Dacia, on 23,972. If Dacia and Renault sales are added together, then overall Renault sales stand at a market-leading 67,364 units and certainly Renault remains one of the dominant players in the Algerian new car sales market. However, Peugeot's strong performance means that Renault has a fight on its hands to retain local market dominance, at least over the short term.

About Business Monitor International

Business Monitor International (BMI) offers a comprehensive range of products and services designed to help senior executives, analysts and researchers assess and better manage operating risks, and exploit business opportunities, across 175 markets. BMI offers three main areas of expertise: Country Risk BMI's country risk and macroeconomic forecast portfolio includes weekly financial market reports, monthly regional Monitors, and in-depth quarterly Business Forecast Reports. Industry Analysis BMI covers a total of 17 industry verticals through a portfolio of services, including in-depth quarterly Country Forecast Reports. View more research from Business Monitor International at

About Fast Market Research

Fast Market Research is an online aggregator and distributor of market research and business information. We represent the world's top research publishers and analysts and provide quick and easy access to the best competitive intelligence available.

For more information about these or related research reports, please visit our website at or call us at 1.800.844.8156.

Bill Thompson
Phone: 18008448156

Disclaimer: If you have any questions regarding information in these press releases please contact the company added in the press release. Please do not contact pr-inside. We will not be able to assist you. PR-inside disclaims contents contained in this release.
Latest News
Read the Latest News


Terms & Conditions | Privacy | About us | Contact | BidVertiser