Algeria seeks to build its automotive industry

Algeria is working to develop an integrated automotive industry beyond simple assembly, focusing on revising local integration rules and offering tax relief for subcontractors to strengthen the national industrial fabric and attract new projects.

Meeting with General Motors

On October 13, 2026, Farid Kourtel, the Minister of Industry, met with a delegation from General Motors (GM), led by Rohan Fernandes, chairman of the board and general manager of the company for Africa. The discussions centered on cooperation in the automotive industry and the possibilities of industrial partnerships in Algeria.

Focus on local production

The two parties explored ways to leverage GM's expertise to develop local production, strengthen industrial subcontracting, and increase national integration. However, no investment, factory project, or implementation schedule was announced following this meeting.

Accelerating localization

Algeria is accelerating the localization of automotive production. These discussions with General Motors occur as Algeria seeks to strengthen the production capacity of its automotive sector and reduce its dependence on imported components.

New production unit launched

On September 24, 2026, Prime Minister Sifi Ghrieb inaugurated the General Plastic Injection (GPI) unit in Tissemsilt, which specializes in the production of parts and technical plastic components for the automotive industry. According to the authorities, its start of operations is expected to contribute to expanding the base of local suppliers.

New vehicle manufacturing projects

In August 2026, Hyundai confirmed the inclusion of Algeria in its development strategy up to 2030, with a factory assembly project estimated at 400 million dollars in investment. The South Korean manufacturer plans to start production in 2027 but still awaits final approvals to begin the works.

Opel and Stellantis expand presence

Earlier, in July 2026, the German Opel Automobile GmbH and the Algerian holding AGM Holding signed a memorandum of understanding to integrate a local unit for motor production into the future industrial setup of the brand in Algeria. This initiative accompanies the Opel factory project announced in January by the Stellantis group.

New tax measures planned

New measures are planned to enhance the competitiveness of local subcontractors. In this perspective, the measures planned in the draft 2027 finance bill aim to revise the tax and customs regime applicable to companies in the mechanical, electronic, and electrical industries.