The Madbouly government has approved raising next year’s passenger car import ceiling for agents to USD 2.5 bn, up from USD 1.8 bn, with an additional 5-10% flex allowance, sources in the automotive sector told EnterpriseAM.

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Passenger car imports are already on the up, climbing to USD 2.1 bn during the first eight months of the year, up 21.4% y-o-y, according to data from state statistics agency Capmas.

The higher quota reflects improved USD liquidity in the banking system, the sources told us, adding that this has given importers more room without clashing with the state’s broader plan to localize automotive manufacturing.

Starting 1 January, Chinese car imports will only be allowed through official agents and accredited companies, the sources added. The framework will also require commitments on local component manufacturing and after-sales service, in line with compliance standards set by Chinese authorities.

New requirements will govern EV imports as well, to be executed through formal agreements between Chinese manufacturers and their local agents, according to the sources. The Madbouly government aims to curb informal importing practices and push the market toward structured assembly and manufacturing, supported by a package of incentives for companies pursuing local production, the sources added.

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