info.afrindex.com
China-Africa Trade Information Service
info.afrindex.com
China-Africa Trade Information Service
(H.Y.)
This was explained yesterday by Mr. Mokhtar Chahboub, an expert in the automotive industry and EX-PG of the Snvi on Radio Chaine 3. The latter revealed that "the importation of kits cars ( SKD) generates incremental costs of 5 to 6% "and that this extra cost, added to the various taxes indexed in recent years, contributes to the increase in the prices of vehicles offered for sale.
However, he added "this phase of importing kits vehicles is a must". He explained that "in large manufacturers, the production process of a vehicle is very automated. As soon as they are asked to take volumes that are not very significant, it is incremental costs that are generated ".
The expert who spoke on Guest Writer's series insisted, however, on the phase of importing kits vehicles that "should not last long". He recalled that the specifications obliged dealers to achieve an integration rate of 15% at the end of the 3rd year of production and 40% at the 5th year. For, "beyond these deadlines," he points out, "if there is no integration rate, then it will be unprofitable vehicles that will be produced in Algeria." The objective of " Achieving an integration rate of 40% is achievable, according to Mr. Chahboub who cites the example of the Snvi which integrates in its vehicles 55% of parts produced locally.
To achieve such a level, the expert recommends using existing subcontractors. He cites, in this regard, the local companies specializing in the manufacture of automotive parts, such as batteries, wiring harnesses, glazing and other "exhaust mufflers".
According to this expert, "we must federate these subcontractors by providing them with the support that can enable them to upgrade and become competitive". The guest of Chain 3 suggests "to encourage, through manufacturers, equipment manufacturers who manufacture more than 65% of spare parts, to settle in Algeria and to develop partnerships in the field". Recall that Algeria decided, in the face of the financial crisis, to carry out deep economic reforms in order to get out of the dependence on hydrocarbons. It was thus decided to diversify the national economy and create an important industrial fabric while drastically reducing imports in order to curb the currency hemorrhage.
For example, in the automotive sector, Algeria has decided to impose import quotas on dealers by requiring them to create a mechanical industry in the country. A specification regulating the automobile business requires the concessionaires to make investments in the assembly of vehicles or in the manufacture of the spare part, otherwise the business license will be forfeited. It is true that the result was not long in coming, units are already operational, others are nearing completion while some are waiting for the green light for the launch of the works.
By the year 2020, the theoretical production capacity of all these installations would reach 350,000 units assembled. The first stage of this process is the SKD (Semi Knocked Down), ie the import of kit vehicles. But investment in an assembly plant will not be able to develop and gradually increase integration rates in the absence of a fabric of subcontractors to international standards. It is therefore essential to encourage the development of subcontracting in parallel with the assembly of cars in order to give the national automobile industry more profitability.
According to one expert, cited a few weeks ago by the media, it is inconceivable to talk about the concept of SKD and even less of CKD especially for models of higher segments stuffed with modern technologies and dozens of calculators. In other words, currently imported vehicles are almost unaltered and the rate of integration is insignificant.
Yet the selling price of some locally-assembled vehicles is higher than that of the same model imported previously, whereas it was expected that these vehicles would be marketed at a lower price.
