Algeria: Freezing of registrations of used cars less than 3 years old worries consumers.
The import of used cars less than three years old, which had seen a significant increase in the first half of 2024 in Algeria, could soon slow down.
Indeed, the Algerian authorities have just frozen the issuance of registration cards for these vehicles, raising concerns among consumers and players in the automotive market. This news was revealed by the Association for the Protection and Orientation of Consumers and their Environment (APOCE).
Sudden freeze on registrations
APOCE announced via its Facebook page that the issuance of registration cards for vehicles less than three years old, imported under Executive Decree No. 23-74, is suspended “until further notice”. This decree, signed in February 2023, sets out the terms of customs clearance and technical inspection for passenger and utility vehicles imported by individuals residing in Algeria.
The move comes as the country faces a difficult economic situation, marked by an unprecedented devaluation of the Algerian dinar against the euro. On the black market, the euro is trading at a record rate of 260 dinars, significantly increasing the cost of vehicle imports.
This context could partly explain the authorities’ decision to freeze registrations, although they have not yet officially communicated the precise reasons for this freeze.
A booming market slowed by the decision
The figures show the scale of the phenomenon of importing used vehicles into Algeria. In 2023, nearly 9,970 cars less than three years old were imported, for a total value of $142.40 million.
During the first half of 2024, imports saw a new increase with 16,592 vehicles imported, representing $243.88 million. This dynamic, stimulated by the decree of February 2023, responded to a strong demand from Algerian consumers in the face of the rise in the prices of new vehicles in Algeria.
However, with this freeze on registrations, residents who import used cars are now unable to obtain their registration cards, which could lead to a slowdown in this growing market.
The reasons for this decision
Asked by TSA, Mustapha Zebdi, president of APOCE, put forward several hypotheses to explain this sudden decision, the first of which would be linked to the recent surge of the euro on the black market. With an exchange rate reaching 260 dinars for one euro, the scarcity of the European currency in the country led to strong demand, which probably prompted the authorities to intervene to curb the importation of expensive vehicles.
Mustapha Zebdi also points out that, in a context where Algerians do not have access to an official exchange network, many are forced to turn to the parallel market to finance their vehicle purchases. This situation exacerbates currency speculation, making the situation even more unstable.
Another hypothesis raised by Mustapha Zebdi concerns “possible technical problems” encountered on imported vehicles, particularly those from Spain and Libya. These vehicles could not comply with Algerian technical and safety standards, which would have prompted the authorities to temporarily suspend their registration.
A crisis in the currency market
The freeze on registrations comes amid a broader crisis affecting the black market for foreign currency in Algeria. Strong demand for the euro, coupled with the scarcity of this currency on the black market, is leading to a surge in exchange rates.
Mustapha Zebdi also calls for the opening of official exchange offices in Algeria, considering it an “absolute economic necessity”. Without this system, speculation risks continuing to fuel price increases, with negative repercussions on many economic sectors, including the automobile industry.
A significant impact on consumers
For Algerians who have recently imported vehicles, this decision to freeze registrations is a hard blow. They find themselves unable to obtain their registration cards and therefore to legally drive their cars.
