Tunisia Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in tunisia, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Automotive Parts, Services & Equipment
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Overview

Vehicles are not fully manufactured locally, but Tunisia does have a small car-assembly industry. The government utilizes a quota system that caps the number of vehicles imported into the country annually; domestically assembled vehicles are not subject to a quota. Quota thresholds take into consideration the trade deficit, market demand for new vehicles, and investment arrangements among foreign carmakers and domestic parts manufacturers.  In 2012, the government prohibited the entry of vehicles older than five years. Tunisia applies a graduated customs tax on all vehicle imports that increases with vehicle age up to the five-year limit.

In 2024, combined sales of new and used vehicles totaled 79,369, reflecting a 9.7% year-on-year increase. New vehicles accounted for more than 70% of total sales, with Korean brands Hyundai and Kia leading market share with 11.8% and 9.6%, respectively, followed by French brand Peugeot and Japanese brands Suzuki and Toyota. The used car market represented 28% of overall sales, up 5% from 2023, with European brands like Volkswagen and Peugeot dominating the segment. Asian brands collectively accounted for more than half of total sales in 2024, though their overall market share declined by 2% year-on-year. Chinese manufacturers gained 4.6% of new car sales to reach a 13.6% market share, while European brands grew by 3.3% to capture 40% of the new sales market, led by French and German brands at 16.7% and 8%, respectively. Indian manufacturers held a smaller share of the market at 3.8%. Both GM and Ford are present, though market share for U.S. cars remains less than 2%.

Tunisia aims to put 50,000 electric vehicles (EVs) on the road and install 5,000 charging stations by 2030.  Using attractive tariffs, financing incentives, and import exceptions, the government is well on the way to meeting its 2026 goal of 5,000 EVs and 60 public charging stations.  In 2022, the Tunisian government implemented a 50% import duty reduction on hybrid cars and a full duty exemption on EVs to encourage sector expansion. However, a lack of charging station infrastructure, little after-sales service know-how, and the relatively high vehicle prices still hamper growth.  Asian and European brands are competing to penetrate the hybrid and EV market and position their products as pioneers in these new-to-Tunisia segments. Japanese brand Toyota currently leads the hybrid segment and Chinese brand BYD leads the EV segment.  American brands currently have no inventory in either segment.  

Automobiles with large-capacity engines carry a higher consumption tax, with rates up to 277% for gasoline engines and 360% for diesel-fueled engines. The government reduces these rates to 67% and 88%, respectively, if imported via authorized distributors.  The reduced tax scale is intended to allow the price of automobiles sold through authorized dealerships to be competitive with vehicles purchased privately overseas and shipped back to Tunisia.  

The pump price for diesel and gasoline is controlled by the government but comparable to fuel costs in the United States. Tunisian drivers pay more than their counterparts in neighboring Libya and Algeria but substantially less than European drivers.  Two grades of diesel and unleaded fuel are available.  

More than 260 automotive component companies, of which 65% are fully exporting, operate in Tunisia through the entire value chain of automotive spare parts, electrical cables and wires, electronics, engine components, design, plastic and rubber, and textile and leather. In 2022, the automotive industry in Tunisia employed about 90,000 direct jobs.  The Tunisian Automotive Association, a leading Tunisian automotive component industry trade organization, has 40 member companies. Annual automotive part exports now exceed $2.5 billion, accounting for more than 14% of the country’s total exports. 

Leading Sub-Sectors

The market presents opportunities for compact and mid-sized U.S. vehicles.  Dealers express interest in representing U.S. auto manufacturers. There is local demand for larger vehicle assembly plants, mainly for heavy trucks (3.5+ tons), pickup trucks, and minibus vans, which could attract foreign investors. Some Asian brands such as Geely (China), Hyundai (South Korea), Kinglong (China), Mahindra (India), and SsangYong (South Korea) are already investing in local assembly projects. Expansion of the market for U.S.-brand vehicles will contribute to higher demand for U.S. automotive parts and components. Dealer service departments will remain a potential profit center as well, despite the widespread availability of mechanic shops.

Opportunities

Growth opportunities continue to exist for foreign brands.  U.S. manufacturers should be sensitive to the current Asian and European dominated market structure and consumer preferences for smaller vehicles. The motorization rate in Tunisia is low, with only 187 vehicles per 1,000 inhabitants in 2021 (a quarter of the rate in Europe).

Attracting investment in the manufacture of automobile components for export is a priority for the government.  Operations dedicated for export of automotive parts to European markets offer significant promise, and several U.S. companies have successfully invested in this sector.  For domestic sales of vehicles and parts, Tunisians are typically price sensitive.

Resources

Tunisian Automotive Association
Tunisia Investment Authority (TIA)
Foreign Investment Promotion Agency (FIPA)
Ministry of Transportation
Tunisian Customs
Ministry of Industry, Mines, and Energy
Ministry of Trade and Export Development
 

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