Algerian Industry Minister Farid Kourtel recently met with a delegation from Hyundai Motor Manufacturing Algeria to assess the current state of their investment project. The meeting, which took place in Algiers, was attended by representatives from Korean subcontracting companies operating in the automotive parts and components manufacturing sector. The primary objective of the meeting was to evaluate the project's progress and discuss strategies for its successful implementation.
The meeting focused on examining ways to develop industrial partnerships with suppliers and Korean subcontracting companies, while expanding cooperation opportunities with local operators, particularly Algerian subcontracting companies. This aims to enhance the local production of automotive components and increase the local integration rate. The Ministry of Industry stated that it will continue to support the project and provide necessary assistance to ensure its requirements are met.
The meeting occurred just three days after the Algerian-Korean Economic Forum, organized by the Korean Embassy in Algeria and the Korean Trade and Investment Promotion Agency. The forum included a presentation on Hyundai's automotive project in Algeria. During the forum, the Director General of the Algerian Investment Promotion Agency recalled that Algeria expects Korean investments, including the automotive production project, to serve as a foundation for high-value-added projects.
The Hyundai project involves a joint venture between Korean automaker Hyundai Motor Co. and Omani company Saud Bahwan to construct an automobile factory in Algeria. In April 2025, the project received a provisional authorization, preceding the issuance of a manufacturing license in Algeria. The President of the Republic had previously instructed the acceleration of the project's implementation.
In preparation for the factory's expected start of production in the first quarter of 2027, several independent distributors were approved across 14 wilayas by Majestic Auto, the official distributor of Hyundai in Algeria and partner of Bahwan Saudi in commercial activities. This move aims to establish a robust distribution network for Hyundai vehicles in Algeria.
The Algerian government is keen on supporting the project, with the Ministry of Industry coordinating with relevant parties to expedite its entry into production. The project is expected to contribute significantly to the development of industrial subcontracting, job creation, and technology transfer.
The successful implementation of the Hyundai project is anticipated to have a positive impact on Algeria's automotive sector, fostering growth and increasing the country's industrial capacity. The project's progress will be closely monitored by the Algerian government, which is committed to providing necessary support to ensure its success.
Key points
- The Algerian government is committed to supporting the Hyundai project, with a focus on developing industrial partnerships and enhancing local production of automotive components.
