Algeria is rebuilding its automotive ecosystem

The country endured five years of stagnation after the decision in 2019 to halt imports of new vehicles. This resulted in an inactive market, no new cars to renew the fleet, historical distributors-importers facing difficulties, and a completely blocked ecosystem. The after-sales activity was also affected by the health crisis, which complicated import procedures and led to a 30 to 40% decline in business. In March 2023, the government reopened import authorisations, granting accreditations to thirteen brands, including Stellantis, Renault, and several Chinese manufacturers like Geely and Chery. In May, rules for importing parts were relaxed.
 

This move breathed new life into the market, helping control speculation on parts prices and preventing the entry of counterfeit products. “To address the challenges, the Commission of spare and mechanical parts operators of the Algerian Economic Club (CEA) was established in 2022, bringing together distribution players with the goal of un-blocking the situation and implementing a quality label for spare parts and services. The automotive ecosystem is undergoing a redesign, and Algeria is reinventing its automotive world. Initiatives like Nexus Automotive’s launch of the Automotive Academy for training and the development of Nexus Auto garages are contributing to the posi- tive trajectory of the ecosystem”, according to Sami Larbes, director of Nexus Algeria.