Algerian Vehicles Market in September 2024 grew 17th month in a row, reporting 29,940 new sales (+106.4%). YTD figures at 149,147 were up 172.9%. Geely rose 14 spots and ranked in 2nd.
Market Trend and Outlook
Algerian automotive industry is booming back, after the introduction of new rules by the government (2022) and the arrival of Stellantis and other groups, opening local facilities.
In March 2023 Fiat launched its first plant in Algeria, in Oran, with a capacity of 90,000 cars per year. The Fiat 500 and Doblò models to be manufactured at the new facility will be imported in SKD (semi-knocked down) form, before being completely put together in Oran. Fiat’s long-term objective is to export CKD (completely knocked down) kits for local assembly from 2026.
The group has invested €200m ($220m) to bring this 32-hectare assembly plant into being. Stellantis wants to make Algeria a regional hub for automotive production and exports. Thanks to the rapid success obtained in the country, Fiat just announced to anticipate further investments, originally planned for 2026, to increase local production integration and volumes.
Fiat’s arrival comes amid a tense climate between the Algerian authorities and carmakers, notably Renault, which has been operating in the country since 2014. Welcomed at the time with great fanfare, Renault, which held 61% of the market in 2019, saw its expansion ambitions slowed by the introduction of a $600m (around €546m) cap on imports of spare parts. This decision prompted the group to halt production at its Oran site.
The company has since resumed importing and marketing its cars in the country. In early December, it was granted a provisional authorisation to reopen its plant. But Renault is determined to make a stronger comeback in Algeria. In 2024, the group will launch vehicle production, turning its back on imports of SKD and CKD kits.
Starting with first local-made Fiat models delivery in the first half 2024, the market is booming up. In September 2024 29,940 new vehicles were sold (+106.4%). YTD figures confirm the trend, showing that, with 149,147 cumulative registrations, the market grew 172.9% in year-on-year volume.
Brand-wise, Fiat was still the undisputed leader with sales up 145.8%, followed by Geely -up 14 spots- with 29,240 units sold (+11321.9%). Chery -up 2 spots- ranked in 3rd with 15,095 (+499.5%), followed by the Chinese DFSK -down 2 spots- with 12,391 (+87.9%).
