Algeria is seeking to develop a stronger automotive industry by increasing local production, supporting suppliers and attracting foreign manufacturers. The government aims to move beyond vehicle assembly and build a more integrated industrial sector.
On October 13, 2026, Industry Minister Farid Kourtel met a delegation from US automaker General Motors (GM), led by Rohan Fernandes, the company’s chairman and managing director for Africa. According to the Industry Ministry, discussions focused on potential cooperation and industrial partnerships in Algeria.
The two sides explored ways to use GM’s expertise to boost local manufacturing, strengthen industrial subcontracting and increase the share of locally produced components. However, no investment, factory project or implementation timeline was announced.
Algeria Seeks to Expand Local Automotive Production
Meanwhile, Algeria is working to reduce its dependence on imported components by developing domestic suppliers and attracting international manufacturers.
On September 24, Prime Minister Sifi Ghrieb inaugurated General Plastic Injection (GPI), a facility in Tissemsilt that produces technical plastic parts for the automotive industry. The plant is expected to strengthen local supply chains and increase Algerian companies’ participation in vehicle manufacturing.
In addition, Hyundai confirmed in August 2026 that Algeria forms part of its development strategy through 2030. The South Korean automaker plans to invest an estimated $400 million in an assembly plant, with production expected to begin in 2027, subject to final approvals.
Similarly, Opel Automobile GmbH and Algeria’s AGM Holding signed a memorandum of understanding in July 2026 to develop local engine manufacturing. The initiative supports Stellantis’ broader plans to expand its industrial presence in Algeria, where the group already operates a Fiat plant in Tafraoui.
New Measures to Support Industrial Competitiveness
Finally, Algeria is considering tax and customs measures to improve the competitiveness of local suppliers. The proposed 2027 Finance Bill includes changes to the rules governing mechanical, electronic and electrical industries.
These measures are intended to encourage local production, strengthen domestic supply chains and make Algeria more attractive to automotive investors.
