car industry, foreign automobiles, domestic industry

Chinese Automakers Set to Manufacture Cars in Algeria

Asia Manufacturing Review Team | Monday, 07 October 2024

 car industry, foreign automobiles, domestic industry

In a strategic move to strengthen their position in the African car industry, Geely, Chery, and JAC are preparing to set up car production plants in Algeria. This progress is a result of Algeria's 2023 import limitations with the goal of supporting domestic industry and decreasing dependence on foreign automobiles.   

Chery plans to open a factory in Bordj Bou Arreridji, with an initial output of 24,000 vehicles per year, aiming to increase to 100,000 units in three years.

In recent years, Algeria has been struggling with economic difficulties, leading the government to enforce strict regulations on the importation of automobiles. The aim of these rules is to prompt foreign manufacturers to invest in domestic manufacturing, and the reaction from Chinese car companies suggests that this approach is working.

The creation of these factories is viewed as a beneficial development for Algeria's economy, possibly bringing the local car manufacturing sector back to life. These facilities are vital for Chinese companies in the expanding African market as they enable production of vehicles in closer proximity to their customers, ultimately cutting down on shipping expenses.

Although the plans show potential, it is crucial to mention that Geely, Chery, and JAC have not been officially granted permission to start manufacturing in Algeria. This progress demonstrates the rising attention towards the automotive industry in Africa and the opportunity for enhanced partnerships between global car companies and domestic markets.