Industry Trend Analysis - Investment Moratorium Dampens Sales Outlook - OCT 2017

BMI View: Uncertainty surrounding the new Algerian government ' s direction on automotive manufacturing policy will lead to a deep contraction in sales as production investment is suspended and import quotas are drastically reduced. In the longer term, however, an increase in local content would be more beneficial for the domestic industry.

The recent decision of the new Algerian government to put a moratorium on new production plants will increase uncertainty around new vehicle sales, as the government rethinks the national automotive policy. A drastic reduction in import quotas, coupled with the crackdown on new plants to produce models domestically, means stocks of available vehicles will be reduced. As such we have revised down our forecast for vehicle sales to a contraction of 35% in 2017 as we believe the disruption to sales over the first half of the year will be too much to make up for over the remainder of the year.

Import Quotas Slashed Further

Pushing For Self-Sufficiency
Algeria Vehicle Imports (CBUs)
Local press

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