South Korea’s Hyundai Motor Co. plans to accelerate its African and Middle-Eastern expansion by building a $400 million automobile assembly plant in Relizane Province of Algeria. According to a report published on August 15, 2025, by KED Global, Hyundai aims to open the completely knocked-down (CKD) assembly plant in 2027 in partnership with Oman’s Saud Bahwan Group. The proposed site is a former Volkswagen factory in the Sidi Khettab industrial park, roughly 300 km west of Algiers.
The plant will produce compact sport-utility vehicles and hatchback cars popular in the region. Hyundai is currently seeking final approval from the Algerian government after securing preliminary marketing clearance in May. Once completed, it will be the company’s fourth manufacturing base in Africa, complementing facilities in South Africa, Ghana, and Ethiopia. Hyundai’s investment underscores confidence in Algeria’s market and will position the plant as a gateway to serve the entire African auto market, where more than 1.05 million vehicles were sold in 2024. The project is expected to create jobs, transfer manufacturing know-how, and support Algeria’s strategy to diversify its economy.
