Car Assembly: Imports bill of CKD-SKD kits up in Q1 2019


ALGIERS- Algeria has imported USD920.86 million worth of CKD-SKD kits meant for car assembly in the first quarter 2019, against USD758.47 million over the same period in 2018, an increase of 21.41%, the General Directorate of Customs told APS.

The amount of SKD collections used in the assembly of light vehicles reached $ 694.23 million in the first quarter of 2019, compared with $ 652.66 million in the same comparison period of 2018, an increase of of nearly 41.6 million dollars (+ 6.37%), specified the Directorate of Studies and Prospects of Customs (DEPD).

For their part, imports of SKD collections for the assembly of passenger and freight vehicles increased by more than 100%, reaching $ 226.63 million in the first three months of the year compared to $ 105.81 million in the same comparative period, an increase of $ 120.82 million (114.2%).

In addition, imports of spare parts used for the maintenance of used vehicles increased to $ 102.23 million in the first quarter of 2019, compared to $ 76.70 million in the same period of 2018, an increase of $ 26.53 million (+ 33.29%).

This upward trend also affected the tractor import bill, which reached $ 59.17 million, compared to $ 46.80 million, an increase of 26.43%.

Important decisions to reduce import costs

In 2018, the total import bill for the CKD-SKD collections for the assembly of vehicles (for tourism and utilities) and the import of vehicles for the transport of persons and goods (finished products) amounted to more than 3 , $ 73 billion in 2018, compared to $ 2.2 billion in 2017, an annual increase of $ 1.53 billion (+ 70%).

The local assembly of vehicles has achieved a production of 180,000 passenger vehicles in 2018 (against 110,000 in 2017) and 4,500 industrial vehicles in 2018.

The continued rise in imports of CKD-SKD kits, particularly in recent years, has prompted the government to make decisions to limit imports in order to reduce the balance of payments deficit and preserve foreign exchange reserves.








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