Algerian Industry Minister Farid Kourtel recently held a meeting with Tarek Ismail Mosaad, president of Hyundai Motor for the Middle East and North Africa region. The meeting took place on the sidelines of the African Automotive Investment Forum in El Alamein, Egypt. The forum, organized by Afreximbank and the Secretariat of the African Continental Free Trade Area, focused on unlocking the potential of Africa's automotive industry.
The African Automotive Investment Forum brought together policymakers, investors, funders, automakers, component manufacturers, and project promoters. During the forum, Minister Kourtel also had bilateral meetings with Egyptian ministers, including Badr Abdelatty, Khaled Hachem, and Mohamed Farid Saleh. Although the content of the discussions with Hyundai remains undisclosed, the meeting is significant given Hyundai's plans to establish an assembly plant in Algeria.
In August, Hyundai confirmed Algeria as one of the countries in its industrial strategy up to 2030. The South Korean company plans to set up an assembly plant in Algeria, primarily to cater to the North African market. The project, developed in partnership with Omani firm Bahwan Saud, was announced in 2023 and is expected to require an investment of around $400 million.
The proposed plant in Algeria's Relizane province is expected to have an initial annual capacity of 50,000 vehicles. Hyundai aims to start production at the site by the end of 2026 or early 2027, initially producing SUVs and light commercial vehicles. The company also plans to expand its product lineup in Algeria to include city cars and electric vehicles.
The Algerian government's efforts to attract investment in the automotive sector are part of a broader strategy to develop the industry. However, challenges have been reported, including issues related to land availability for industrial projects. Former Industry Minister Yahia Bachir mentioned difficulties in securing land for projects, including those of Hyundai and Chery.
Hyundai's plans for Algeria align with its regional strategy in the Middle East and North Africa. The company already operates a production unit in Egypt and is preparing to establish an industrial presence in Saudi Arabia. Hyundai aims to increase its global production capacity, targeting annual sales of 5.55 million vehicles by 2030.
The Algerian project is expected to serve as a production base for the North African market. Hyundai's expansion plans in the region are driven by its goal of increasing local production and developing its range of electrified vehicles. The company's strategy is likely to have a significant impact on the development of Algeria's automotive industry.
Key points
- Algerian Industry Minister Farid Kourtel met with Hyundai Motor's regional head Tarek Ismail Mosaad in Egypt's El Alamein to discuss Hyundai's plans for an assembly plant in Algeria.
- Hyundai plans to invest around $400 million in the Algerian plant, which is expected to produce 50,000 vehicles annually.
- The plant is part of Hyundai's broader strategy to increase production in the Middle East and North Africa region.
