Algeria’s automotive strategy has evolved beyond attracting vehicle assembly plants into a broader industrial vision focused on building a fully integrated manufacturing ecosystem. The country is investing in vehicle production, local component manufacturing, and a national network of suppliers to increase industrial integration, reduce imports, and position Algeria as a regional automotive manufacturing hub.
In line with this strategy, Prime Minister Seifi Ghrieb, on behalf of President Abdelmadjid Tebboune, inaugurated a brake pads and automotive accessories manufacturing plant in Reghaïa, Algiers, on August 5, 2026. The new facility represents another step toward strengthening Algeria’s automotive supply chain by expanding domestic production of key vehicle components.
The project builds on the momentum created by FIAT’s Tafraoui plant in Oran, which began production at the end of 2023 and has become the cornerstone of Algeria’s modern automotive industry. Since then, the facility has continued expanding its industrial capabilities through the addition of body welding and paint workshops while progressively increasing local integration. Stellantis aims to raise the plant’s annual production capacity to 135,000 vehicles by 2028.
Alongside vehicle manufacturing, Algeria is developing a domestic network of automotive suppliers. In this context, Stellantis Algeria signed a strategic partnership with IKAM Auto Industry to manufacture brake pads locally, supporting both the after-sales market and, eventually, the FIAT Tafraoui plant. The agreement reflects the country’s commitment to increasing the use of locally manufactured components that meet international quality standards.

The sector has also attracted growing interest from international automakers. Companies including Chery, Geely, and JAC Motors have announced investment plans for production projects in Algeria, highlighting increasing confidence in the country’s industrial policy and long-term automotive ambitions.
Together, these developments demonstrate Algeria’s transition from an import dependent automotive market to a country building a comprehensive automotive industry. By combining vehicle manufacturing with local production of components and spare parts, the country is laying the foundations for a competitive industrial sector capable of serving both domestic demand and export markets across Africa and the Mediterranean.
