Geely, Chery, and JAC are gearing up to establish car manufacturing facilities in Algeria, marking a strategic move to solidify their presence in the African automotive market. This development follows Algeria’s 2023 import restrictions aimed at boosting local industry and reducing reliance on foreign vehicles.
Algeria has been grappling with economic challenges in recent years, prompting the government to implement strict measures on automobile imports. These regulations are designed to encourage international manufacturers to invest in local production, and the response from Chinese automakers indicates that this strategy is taking effect.
Manufacturing Plans
- Chery’s Ambitious Goals: Chery is set to launch a manufacturing plant in Bordj Bou Arreridji, targeting an initial production capacity of 24,000 vehicles annually, with plans to scale up to 100,000 units within three years. This facility will also facilitate exports to other North African countries.
- Geely’s Investment Commitment: Geely has announced a $200 million investment through its local partner, Sovidem, to build an assembly plant that aims for an initial output of 50,000 vehicles per year. Operations are expected to commence in 2026, starting with the Geely GX3 Pro crossover.
- JAC’s Involvement: Although JAC previously operated a light truck assembly plant in Algeria, specific details about its new manufacturing plans have yet to be disclosed.
Economic Implications
The establishment of these manufacturing plants is seen as a positive step for Algeria’s economy, potentially reviving the local automotive industry. For Chinese companies, these facilities represent a crucial foothold in the growing African market, allowing them to produce vehicles closer to their target customers and reduce shipping costs.
While the plans are promising, it’s important to note that Geely, Chery, and JAC have yet to receive official approval to begin production in Algeria. This development highlights the growing interest in the African automotive sector and the potential for increased collaboration between international manufacturers and local economies.