Automotive Industry in Algeria

Algeria' Automotive Industry

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

## Early growth and decline (2000s-2010s)

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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.

## Domestic players and recent developments

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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)

SNVI's Fennec line

* 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]

## Revitalization efforts (2020s)

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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

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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.

## See also

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

## References

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1. ^ Caradisiac.com (20 October 2014). "Les 1res Renault fabriquées en Algérie sont déjà sur les routes!". Caradisiac.com (in French). Retrieved 23 June 2024.
2. ^ Rédaction, La (29 May 2022). "Industrie automobile en Algérie : l'usine de Batna dotée d'équipements ultramodernes". Dzair Daily (in French). Retrieved 23 June 2024.
3. ^ "Usine Fiat Oran : Ouverture de la deuxième ligne de production fin juin – Horizons".
4. ^ "Histoire de la SNVI".
5. ^ B, Yanis (27 February 2022). "Automobile Algérie : le prix des motos et la disponibilité du mois de mars 2022". Dzair Daily (in French). Retrieved 23 June 2024.
6. ^ Hichem (11 December 2018). "Oryx Motors présente le pick-up Timgad". www.algerie360.com (in French). Retrieved 23 June 2024.
7. ^ "Timgad Oryx : l'Algérie a son pick-up". Autonews (in French). 20 December 2018. Retrieved 23 June 2024.
8. ^ Siouane, Zoheir (6 December 2018). "18ème édition du Salon de l'automobile «Autowest 2018»: Plus de 40 exposants attendus, ce dimanche". www.algerie360.com (in French). Retrieved 23 June 2024.
9. ^ "AUTOBIP". Autobip.com. Retrieved 23 June 2024.
10. ^ Rédaction, La (17 June 2024). "Facilitation de l'importation de voitures neuves en Algérie : une mesure pour stimuler le marché automobile". Algérie Focus (in French). Retrieved 23 June 2024.