(Ecofin Agency) – Algeria’s road map for the automobile industry is underway. The policies currently applied encourage several manufacturers to set up in the country.
Officials of the Italian automobile brand Iveco were received on Tuesday by the Algerian Minister of Industry Ali Aoun, expressing their intention to relaunch the construction of the brand’s assembly plant in Bouira (120 km southeast of ‘Algiers). The project, 65% complete, has been at a standstill since 2019. The work will be entrusted to the Ferrovial group, whose CEO announced the start of work in September.
Once in place, the factory will produce medium and heavy utility vehicles in Algeria, specifies the ministry. It will follow in the footsteps of the assembly plant of Fiat, another Italian manufacturer, launched in 2023 in Oran. Promoters benefit from incentive measures from the State roadmap to develop the local automobile industry.
The government, which promotes within the framework of this plan the reduction of imports of used vehicles, would like, in addition to satisfying the national market, to leave its mark and position itself alongside Morocco and Egypt, among the main players in this industry in North Africa.
European manufacturers are added to the Chinese, who are also at an advanced stage of installing production units in the country. Fiat, which will close 12 months of activity in December 2024, has set a goal of assembling 24,000 cars by the end of the year. According to the ministry, this corresponds to nearly 70% of the needs of the local market. The manufacturer then plans to increase production to 90,000 vehicles in 2025.
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