Automotive Industry in Algeria

The Algerian automotive industry has a complex history, marked by periods of both high production and struggle.

In the early 2000s Algeria experienced a boom in car manufacturing, with production reaching a peak of over 70,000 vehicles in 2018. This growth was driven by government policies promoting local assembly and import restrictions. Established manufacturers like Renault^[1] and Hyundai^[2] set up plants in the country, while Fiat opened a new factory in Oran in 2023^[3]

But these positive developments were overshadowed by a decline in global oil prices and stricter import limitations. The Algerian government, heavily reliant on oil revenue, faced economic difficulties. This, coupled with the import restrictions, led to a significant decrease in car sales and production. By 2020, production had plummeted to a record low of 4,400 units.

Algeria's automotive industry boasts not only established international manufacturers but also a growing domestic scene. Here's a closer look at some key players and recent developments: Established Domestic Player: SNVI (Société Nationale des Véhicules Industriels)

• Founded in 1967, SNVI, formerly known as SONACOME, is a vital force in the Algerian automotive landscape.^[4]
• This state-owned company plays a critical role in producing commercial vehicles, particularly trucks and buses.
• The company's trajectory will likely be influenced by the government's push to revitalize the industry, with potential opportunities arising from the new industrial assembly regime.

Other Algerian manufacturers

Alongside SNVI, several Algerian manufacturers are contributing to the industry's growth, though the extent of their production activities may vary:

• AS Motors: Information about AS Motors' specific area of focus and production capacity is currently limited.^[5]
• ORYX Motors: Similar to AS Motors, details regarding Oryx Motors' current production activities require further investigation.^[6][7][8]
• VMS Industrie: More information is needed to determine the specific vehicle segments VMS Industrie specializes in and their current production scale.^[9]

Recognizing the need for a turnaround, the Algerian government launched initiatives to revive the sector:

• Relaxed import restrictions: Import restrictions were partially lifted, with a focus on newer vehicles to improve safety and fuel efficiency.^[10]
• New Assembly Regime: A new industrial assembly regime was introduced to incentivize local manufacturing and attract foreign investment.

These efforts seem to be yielding results. Partnerships with international players like Stellantis, signed in 2023, aim to expand local production and create a skilled workforce through training programs. Additionally, production figures have shown some improvement, reaching an estimated 2,456,000 units in 2023

Laika Motors is a recently established Algerian engine manufacturer (As of 2024) founded by Zakaria Lamdjad. Backed by the Algerian government, the company aspires to challenge the dominance of major international engine brands within the Algerian market.

• SNVI (ex-sonacome)
• AS Motors
• ORYX Motors
• VMS Industrie
• Cycma