Minister of Industry Yahia Bachir revealed new developments regarding the manufacturing of passenger and utility vehicles in Algeria during a public session at the National People’s Assembly on Thursday. In response to an oral question, the Minister explained that vehicle manufacturing is governed by several conditions, including the establishment of a structured investment project as defined by the investment law, registered with the Algerian Investment Promotion Agency. He added that the brand owner must be the investor, either through full foreign investment or a partnership with a local investor by creating a company subject to Algerian law.
Minister Yahia Bachir also emphasized that foreign investors must submit a letter of intent to invest in this field and confirm their commitment to the national strategy for the vehicle industry. They must register all investment details and, within 36 months of obtaining accreditation, begin manufacturing vehicles starting from locally produced and painted metal bodies. In this regard, the Minister noted that five license applications for manufacturing passenger and light utility vehicles have been submitted through the digital platform for vehicle manufacturing.
The Minister confirmed that studies conducted so far have resulted in granting two preliminary licenses and one accreditation for car manufacturing. These include the Italian company Fiat, which has entered the manufacturing phase, and the Algerian-Chinese company Chery, which has obtained a preliminary license and is waiting for industrial land to implement its project and receive final accreditation. He added that Hyundai Motors Manufacturing Algeria received its preliminary license last year and is also waiting for the project’s completion to benefit from final accreditation.
Regarding imports, Minister Yahia Bachir revealed figures for new cars and vehicles under three years old. He stated that 54,418 cars under three years old were imported, in addition to 42,000 new cars in 2025. Furthermore, the Minister asserted that Algeria possesses a decent mechanical industry, and the current deficiency lies only in passenger car manufacturing. He clarified that the mechanical industry in Algeria is performing well, and for passenger car manufacturing, the issue is solely related to industrial land.
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