Following the implementation of the Algerian government’s 2025 Finance Law, significant adjustments have been made to the country’s car import policies! These changes directly impact individual buyers and dealership operations. This article provides a clear explanation of the key updates to help you seize the latest opportunities.
1. Personal Import Rules: Eased Resale Restrictions
First, individuals may import only one used car every three years, and the vehicle must be less than three years old.
The key change lies in the resale clause:
- Old rule: Resale of imported vehicles within three years was prohibited.
- New rule: Resale is permitted but subject to a tiered tax rebate repayment system:
- Resale within 12 months: Repay 100% of the tax benefits
- Resale within 12-24 months: Repay 66% of the tax benefits
- Resale within 24-36 months: Repay 33% of the tax benefits
This policy balances market circulation and tax supervision, boosting activity in the used car market.
2. Expanded Vehicle Range: Strong Support for Eco-Friendly Cars
Notably, vehicles of all energy types can now be imported, including:
- Gasoline cars, plug-in hybrids (PHEV)
- Electric vehicles (EV), hydrogen-powered vehicles
- Light commercial vehicles
Special incentives:
- Up to 80% tariff reduction for electric vehicles
- 50% tariff reduction for small-displacement hybrid vehicles (<1800cc)
However, diesel vehicles are explicitly excluded to prevent the influx of high-pollution models.
3. Dealer Obligations: Localization and Green Quotas
Meanwhile, dealers face new requirements:
- Must establish vehicle manufacturing/assembly operations within three years, or risk license revocation
- Mandatory import of liquefied petroleum gas (LPG) or natural gas vehicles; failure to comply will result in suspended import eligibility
This policy aims to promote the development of local supply chains and accelerate the transition to clean energy.
4. Market Impact: Stabilized Supply, Lower Prices
Latest data shows:
- Car imports in Q1 2025 decreased by 15.58% year-on-year
- The government explicitly stated that importing used cars will “put pressure on locally assembled vehicles to reduce prices“
Consumers will enjoy more choices, while local automakers must enhance their competitiveness.
Conclusion: Actionable Advice
If you plan to import a vehicle:
- Prioritize electric or hybrid vehicles under three years old to benefit from up to 80% tariff reduction
- Plan resale timing wisely; the 24-36 month window offers the lowest tax repayment pressure
- Verify dealers’ compliance to avoid supply chain disruptions due to localization policies
Additionally, if you want to learn more about the complete details of Algeria’s 2025 car import policies, check out our other blog: Importing Cars to Algeria: Policies, Restrictions and Taxes in Detail.
