The Tunisian automobile market is at a crossroads. Vehicle prices are soaring, popular models are saturated, and the fleet is aging rapidly. According to Brahim Debbech, president of the Chamber of Automobile Dealers and Manufacturers, the current system of taxes and local assembly makes access to a car almost impossible for the average citizen.
A bill too heavy for the consumer
New cars, even basic ones, reach prohibitive prices. Between taxation which weighs on almost half of the final cost, import costs, and the additional cost of modern technologies (electric, hybrid, connected cars), the car has become a luxury. Tunisian purchasing power, weakened, can no longer keep up. Buyers are forced to turn to alternative solutions or postpone their acquisition.
The people’s car: a stuck success
The so-called “popular” models, capped at 35,000 dinars, are experiencing explosive demand. More than 7,800 units were sold until the end of October, and the figure is expected to exceed 10,000 for 2025. However, many Tunisians have been waiting for their vehicle for several years, highlighting a deep imbalance between production capacity and market needs.
Circumvention by imports
To get around the prices, nearly 25,000 vehicles were imported via the FCR mechanism until the end of October 2025. A breath of fresh air for buyers, but a temporary solution. It does not solve either the inaccessibility of new vehicles or the aging of the fleet, 50% of which are over 15 years old.
The electric transition hampered by cost and infrastructure
The electric vehicle market remains embryonic: barely 400 cars registered in 2025. The insufficiency of charging stations (less than 160 throughout the country) and the high cost prevent any growth. Even hybrid and plug-in models, despite the tax measures planned for 2026, will only see their prices drop marginally.
Local assembly: a dream shattered by taxation
Tunisia has a robust components sector, but local car production is collapsing. Cumulative taxes on components and the assembled vehicle make local assembly uncompetitive, favoring imports and maintaining high prices for consumers. A missed opportunity to produce at lower cost and open up export prospects.
Solutions to make the car accessible
Brahim Debbech recommends three levers to make the car accessible:
- Revise taxation on small vehicles to reduce the gap between popular and non-popular models;
- Relaunch local production with attractive fiscal and industrial measures;
- Develop electrical infrastructure to support the transition to modern vehicles and reduce the overall cost for the user.
Certain categories, notably plug-in hybrids, could benefit from tax breaks and see their prices fall slightly. But for the market to regain balance, structural reform is necessary, involving taxation, production and import policy.
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