With the entry of many Chinese and European brands into Algeria this November, many Algerians are wondering about the reality of prices, whether they will return to what they were, and whether there are new cars on the market between 150 and 200 million.
In fact, the prices announced so far by some brands such as Fiat Algeria, JAC, and DFSK have not met expectations because they far exceed the ability of middle-income families to buy a car.
With the entry of Chinese cars such as Chery and Geely, Algerians hope that the prices will be competitive and reasonable. However, the great technology available in these cars and the abundance of equipment stipulated in the specifications booklet make them cars that compete in quality with European brands, and this is what raises their prices.
Specialists in the field confirm that the prices of the cars that were marketed in Algeria and were installed in each of the Renault, Hyundai, Kia and Sovac factories were prices subsidized by the state by exempting the factories from taxes and customs duties for a period of 5 years according to the terms and conditions book, and this is what made Renault Sambol marketed at competitive prices. It starts from 140 million. The same goes for Kia and Hyundai cars, which had prices starting at 139 million centimes. Even Volkswagen, Seat, and Skoda cars that were marketed by the Sovac Group and installed in the Mostaganem factory were reasonable, starting from 200 million centimes, and this is as we said because they are exempt from duties.
The factor of the collapse of the dinar against other currencies must also be included, especially the euro and the dollar. This is what contributed to the increase in imported cars compared to the year 2015, when the official price of the dinar was estimated at 110 euros compared to 10 thousand dinars, and today it has exceeded 160 euros in the official price and 220 euros on the black market.
As for cars imported by car agents who recently obtained import licenses, they will pay customs duties and various taxes on new cars, and this will make their prices high. In general, observers confirm that there will be no new cars on the market for less than 200 million centimes, and the average prices will range between 240 and 300. One million centimeters.
Specialists are calling for state intervention in reducing new cars, by enabling agents with customs and tax exemptions to reduce their prices in proportion to the purchasing power of Algerians, by providing popular cars at prices not exceeding 200 million so that Algerians can buy a new car, in addition to encouraging halal loans to purchase new cars.