SMMT Algeria Visit Report 2015

19 Pages·2015·1.15 MB·English

by  Richard Logan

Algeria Market Report – March 2015
Matthew Smith
THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED SMMT, the ‘S’ symbol and the ‘Driving the motor industry’
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Algeria – Key Country Data

World’s 10th largest country (bigger than
Mexico & Saudi)

Population: 39m
Independence from France
1962
GDP $284 bn (around the same as Czech

Republic or Norway)

GDP / Capita - $7,500 (2013) (Morocco
$5,500, Tunisia $9,900)

Large oil reserves (more than Mexico, less
than Brazil)

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Algeria – Today

State a major
player in the economy

Oil + gas 98% of exports –
government looking to
diversify economy

Encouraging
Manufacturing investment

Reduce imports of cars,
encourage local
production and supply
chain

Many construction projects

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Algeria – Safety & Security
Foreign & Commonwealth Office Travel Advice:
-There is a threat of terrorism
- It is generally safe to move around Algiers
- No go areas around Southern & Western Borders and
some cities and provinces
- Travel to some cities by air
- Avoid demonstrations and areas in Algiers you don’t
know. Take care after dark

My Experience:
-Significant police presence on roads, junctions with
frequent security checks
- I felt safe moving around the city and taking taxis
- Good security at major hotels
- Obvious foreigner – no hassle in the street

Check FCO travel advice
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Algeria – Automotive Sector

Around 4 - 500,000 cars per annum – almost all imported

Car importer must invest in local manufacturing (details not known)

49% equity limit for investment (introduced 2009)

Investment incentives include no taxes on exports from Algeria

Renault plant – 17% local content (target 40% local by 2016)

Mercedes plant (military vehicles)

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Algeria – Automotive Sector

Three key segments:

Low cost - € 8,000 - €11,000 (Dacia, Renault)

Medium €11,000 - €20,000 (VW, Skoda, Seat, PSA, Hyundai,
GROWTH
Japanese brands)

High end €20,000+ - Audi (3,000), Mercedes (1,800), BMW,
Land Rover / Range Rover

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Algeria – Automotive Sector Data
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Algeria – Equipe Auto

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Algeria – Equipe Auto

Palais Du Expositions, Algiers,
2 – 5 March 2015

 315 exhibitors from 18 countries
 9,720 visitors from 28 countries

Old venue. Convenient for airport,
city, Hilton hotel

National Pavilions: China, Turkey,
Tunisia, France, Taiwan, Morocco

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Algeria – Market Opportunities
Aftermarket – low margins, high volume

British brands already represented in market

British companies are doing business there

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