Algeria's Vehicle Industry Grows with Legacy OEM Investment
Deal News | Feb 18, 2025 | fitch media ventures
Algeria is experiencing a resurgence in its vehicle manufacturing sector, attracting investments from major OEMs such as Stellantis, Renault, and Hyundai. The region's appeal is bolstered by its proximity to Western Europe, making it an attractive location for supply chain localization, especially for Chinese manufacturers facing EU import tariffs. Despite the country's previous challenges in the automotive sector due to policy shifts and the pandemic, recent reforms and eased restrictions have made it a favorable market for international automakers. In 2024, Algeria secured seven auto production-related investments, although still behind Egypt and Morocco. Stellantis has invested EUR200mn in its Algerian plant aiming for high production capacity, while Renault and Hyundai also plan to expand operations in the country. The positive outlook for 2025 predicts a 123.2% growth in vehicle production. The influx of Asian EV-makers adds potential growth to Algeria's nascent EV sector, supported by government plans to establish extensive charging infrastructure. This renewed interest and investment highlight Algeria's potential as a competitive vehicle production hub in North Africa.
Sectors
- Automotive Manufacturing
- Electric Vehicles (EV)
Geography
- Algeria – Algeria is the central geography in the article, being the location where vehicle manufacturing investments are being made.
- North Africa – Algeria's position and comparative analysis with North African peers like Morocco and Egypt are significant, providing regional context for the sector's growth.
Industry
- Automotive Manufacturing – The article discusses vehicle production investments and growth in Algeria involving major OEMs, indicating a focus on the automotive manufacturing sector.
- Electric Vehicles (EV) – The mention of investments from EV-makers and the development of supportive infrastructure for EVs highlights the relevance of the electric vehicles sector in Algeria's market.
Financials
- EUR200 million – Investment made by Stellantis in its Tafraoui plant located in Algeria.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Stellantis | Investor | Company | Stellantis has made significant investments in Algeria's automotive sector, including a EUR200mn investment in the Tafraoui plant. |
| Renault | Investor | Company | Renault plans to resume production at its Oran plant, aiming for expanding its production capacity in Algeria. |
| Hyundai | Investor | Company | Hyundai announced intentions to set up a vehicle manufacturing plant in Algeria focusing on passenger vehicles and SUVs. |
| Geely | Investor | Company | Geely is one of the Asian EV manufacturers planning to establish local production in Algeria. |
| Chery | Investor | Company | Chery has received approval to set up a manufacturing plant in Algeria, with plans to scale its production capacity. |
| JAC | Investor | Company | JAC announced plans to launch a vehicle plant in Algeria, with a focus on localizing production. |