Algeria Gate: Algeria is moving closer to launching a major automotive manufacturing project with South Korean giant Hyundai, as preparations for the construction of a new factory gather pace.
With an estimated investment of $400 million and an initial production capacity of 50,000 vehicles per year, the project represents a significant step in the development of Algeria’s automotive industry.
On November 7, 2026, a delegation from Hyundai Motor Manufacturing Algeria (HMMA), accompanied by representatives of South Korean companies specializing in automotive components, held discussions with officials from Algeria’s Ministry of Industry.
The meeting focused on reviewing the project’s progress, developing local subcontracting and exploring opportunities to manufacture automotive components directly in Algeria.
A new factory planned for Relizane
The future manufacturing plant is planned for Sidi Khettab, in Relizane province. It is expected to produce several vehicle models, including passenger cars and utility vehicles.
The project is also expected to contribute to the development of a local network of automotive suppliers, strengthening domestic production capabilities and reducing reliance on imported components.
When will the first Hyundai vehicles roll off the production line?
Hyundai had previously indicated that production could begin between late 2026 and early 2027. However, no definitive launch date has yet been officially confirmed.
Beyond its production targets, the project is expected to create employment opportunities, facilitate technology transfer and support the growth of Algeria’s automotive manufacturing sector.
As discussions continue between the South Korean manufacturer and Algerian authorities, the project is entering an important phase, bringing the prospect of locally manufactured Hyundai vehicles closer to reality.