Vehicle shortages push Algerian buyers to treat autos as investments

Rising prices of used cars and vehicle parts in Algeria have prompted the government to adopt a new strategy aimed at strengthening the country's automotive industry.

Authorities plan to boost local manufacturing and reduce reliance on imported vehicle components through new projects in the provinces of Batna and Tissemsilt. The facilities will produce vehicle bodies, plastic interior components and spare parts.

"We have established the right foundation for developing an automotive industry. Vehicle bodies will be manufactured in Batna, while all types of interior plastic components will be produced in Tissemsilt," Prime Minister Sifi Ghrieb said in an interview.

The projects mark another step in Algeria's efforts to move beyond basic vehicle assembly and develop a more integrated automotive supply chain.

"All manufacturers who want to come to Algeria should know one new thing: a new industry is emerging in the country. We are working to build a real automotive industry that meets the needs of the national market, moving beyond superficial manufacturing or simple assembly," Ghrieb added.

According to automotive expert Fares Bouchaala, the latest initiative aims to revive industrial assets while building a stronger ecosystem of manufacturers, suppliers and skilled workers.

"With its strategic location and the advantages it offers investors, Algeria has the potential to create an attractive investment environment capable of supporting the development of a genuine automotive manufacturing industry," he said.

As new manufacturing projects take shape, Algeria is betting that greater local integration will help transform its automotive sector into a driver of industrial growth, job creation and long-term economic diversification.