The State of the Tunisian Automotive Industry

Posted by Llama 3 70b on 19 June 2024

Tunisia's Automotive Sector: A Strong Partnership with Europe and a Commitment to Sustainability

During the 3rd edition of the Industrial Co-Development Forum, Myriam Elloumi, 2nd Vice-President of the Tunisian Automotive Association (TAA), shared her vision and aspirations for the Tunisian automotive sector. Her remarks echoed those of Michel Bauza, Director of Business France for North Africa, highlighting the importance of Tunisia's positioning in the regional value chain.

A Strong Partnership with Europe

Myriam Elloumi emphasized that Tunisia has been working closely with Europe for a long time, particularly in the automotive industry. The majority of automotive parts manufactured in Tunisia are exported to Europe. She stated, "80% of our industrial automotive exports go to Europe, totaling €2.5 billion. Germany is our main partner, followed by France, Romania, and Italy." She continued, "France occupies a central position as a key partner for Tunisia. This collaboration is increasingly important due to Tunisia's tight integration into the value chain. In our country, 42% of a vehicle's components are produced locally, which is a major asset for manufacturers and automotive parts suppliers."

Challenges Facing the Tunisian Automotive Industry

However, the Tunisian automotive industry faces several challenges, including electromobility, connected cars, and sustainability. "We need to reduce carbon emissions. To achieve this, we require government support and need to strengthen our partnerships with Europe. Currently, our energy mix is only 4%, while some manufacturers like BMW require 100% clean energy. We must work to facilitate the adoption of technologies like photovoltaics," she explained.

Public-Private Partnership for Sustainable Development

Tunisia is banking on a public-private partnership to develop its automotive sector. "We have had positive discussions with the Minister of Industry, Fatma Thabet Chiboub, regarding the competitiveness pact for the automotive industry." This pact aims to increase automotive component exports from 7.5 billion dinars to 14 billion dinars by 2027, creating 60,000 new jobs in addition to the existing 90,000 jobs. The pact also aims to attract investments in the electric and intelligent vehicle sector, increasing investments from 12% in 2018 to 22% in 2027, and increasing the integration rate from 40% to 48%.

Competitiveness Pact: 5 Key Axes

The competitiveness pact focuses on five key areas: infrastructure, regulatory framework, employment and training, research and development, and visibility and image. For example, the state will simplify 50% of administrative procedures and digitize at least 60%. Investment incentives will be put in place, and foreign investment amounts will be increased. The private sector will establish a code of good practices and improve the use of the Green Corridor for customs clearance.

Despite delays caused by the COVID-19 pandemic, progress has been made since the pact was signed in July 2022. "Some measures have been finalized, and others are very advanced. The TAA supports its members in sustainable development projects, such as calculating carbon footprint, installing photovoltaic panels, implementing a CSR approach, and reporting, which will become mandatory in the coming years, so we must start preparing," she said enthusiastically. During a recent meeting with the Minister of Industry, Fatma Thabet Chiboub, the government showed strong commitment to accelerating these measures. "The minister expressed great interest in integrating a new pillar of sustainable development into the pact, which is a positive step forward," concluded Myriam Elloumi.