Summary:

On 18 March 2025, the Minister of Industry signed a Memorandum of Understanding (MoU) with representatives from local and foreign automotive parts manufacturers to boost Algeria’s national vehicle industry. 

The MoU includes an agreement to enable international manufacturers to use spare parts produced by local manufacturers to reduce component imports and rely more on Algerian products.  

The Minister of Industry emphasized during the signing ceremony the intention of the government to create an attractive investment environment based on public-private partnerships established within a well-developed regulatory framework.  

Meanwhile, Chinese cars manufacturer Great Wall Motors announced the establishment of a new project in Algeria to produce cars and spare parts in addition to a research and development center. 

Stellanis El Djazair also announced 70% completion of an expansion of the Fiat Factory in Oran which aims to increase the factory’s production capacity. 

Outlook: 

Amidst tensions with France and broader setbacks regarding the conflict with Morocco over Western Sahara, Algeria is simultaneously making moves to expand engagement with foreign governments and international firms.  

The MoU and agreements with carmakers are additional steps in expanding cooperation, particularly with well-known brands like Great Wall Motors and Fiat.  

Reinforcing local production will help Algeria boost its export potential in the mechanical sector in the mid and long-terms. The partnership between the Ministry of Industry and local manufacturers of spare parts is likely to help foreign manufacturers increase their productivity.   

These partnerships could help spur job creation and increase Algeria’s competitiveness with neighboring countries.  

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