How many opportunities are there for a Chinese car to make money from the port to the streets of Algeria?What kind of cars are favored by local policy?Why do people earn millions of dollars a year by exporting used cars?This article will take you through the process of unlocking the wealth code of China’s automobile breakout into North Africa –
I. Market environment
According to Worldometer’s projections based on the latest UN data, Algeria’s population is expected to be 47.43 million by mid-2025.According to the network data, its current car ownership of more than 6.5 million vehicles, 1,000 people car ownership of 137, so that the calculation, per capita car ownership is extremely low, the market potential is huge.
II. Policy advantages
– Relaxed import policy: Algerian private citizens can import used cars less than three years old, one every three years, and pay for them in personal foreign currency.
There are tax reductions and exemptions: 50% of the total tax for models with displacement ≤1800cc; 20% of the total tax for models with displacement >1800cc; and 80% of the total tax for pure electric vehicles, which greatly reduces the cost of purchasing a car and makes the cost-effective advantage of used cars in China stand out.
– Clear certification process: Used cars exported to Algeria need to undergo CoC certification, the process and standards are clearer, companies prepare materials according to the requirements, and at the same time testing the vehicle, you can successfully complete the certification, thus laying the foundation for export customs clearance.
– Wide range of vehicle types to be imported: electric, gasoline and hybrid vehicles are allowed to be imported to meet the diverse needs and open the door for all types of used vehicles in China.
III. Challenges
1. Strict age restriction: only used cars <3 years old are allowed to be imported, which requires high screening of the domestic stock of used cars.
2. The certification process is more cumbersome: need to go through the CoC certification, the process involves vehicle testing and document review and many other links, the time spent is relatively long.
3. Higher logistics costs: long-distance shipping plus land transport, this mode of transportation leads to a longer transportation cycle, and the cost is also more expensive, thus causing a compression of profit margins.
4. Fierce competition in the market: facing Europe, as well as Japan and South Korea’s used cars in terms of price and brand competition, the need to highlight the advantages of cost-effective.
IV. Opportunities for development
1. High market demand: Algeria has a low number of cars per 1,000 inhabitants, and there is a strong demand for car purchases, especially for economical cars.
2. Strong adaptability of the policy: the local government allows the importation of second-hand vehicles that have not been in use for more than three years, and this provision has a high degree of compatibility with the existing vehicle sources in China, as well as the age status of the vehicles, and the degree of compatibility between the two is relatively good.
3. Cost-effective advantage: China’s used cars, its price is relatively speaking, more people, this time, but also superimposed on the local tax relief policy, which makes it in the market competitiveness can be clearly highlighted.
4. New energy potential is extremely huge: pure electric vehicle import taxes and fees, was substantially reduced by 80%, which and China’s new energy used car is showing an export trend, just fit each other.
V. Recommended export models
1. Volkswagen Tango: good balance of power and fuel consumption, space to meet family needs, rich configuration is popular in the local community.Hunan Yongxuan has exported this model.
2. Golf: flexible handling, good fuel economy, compact body in the city accessibility, is one of the first export models of Yiwu Mall Group.
3. Geely Colorado L: Configuration of intelligent technology is very rich, the price is friendly and cost-effective, to meet the local consumers for practical as well as the pursuit of science and technology.
The Volkswagen Tango, Golf, and Geely Colorful L models recommended above fit the Algerian market’s pursuit of cost-effectiveness, practicality, and fuel economy, and are expected to shine in the local used-vehicle market by virtue of their excellent quality and rich configurations, and become “potential stocks” for exporting to Algeria, which will help China’s used-vehicle export business to reach new heights.It is expected to become a “potential stock” for exporting to Algeria and help China’s used car export business move to a new height.
Text source: Digital Export Jiajia
