Automobile Industry in Algeria: Minister Ali Aoun Stresses Local Manufacturing Over Importation
✏️ BY: Dr. Hana Saada
Algiers, Algeria | May 28, 2024 — During his appearance at the radio forum yesterday, Ali Aoun, Algeria’s Minister of Industry, emphasized the country’s ambition to move beyond being merely a market for automobile imports. Highlighting ongoing discussions with various car brands, some already active in the market, Aoun reaffirmed that only those committed to establishing local manufacturing would be allowed entry. “We do not want to be just a market for the importation of vehicles,” he stated. Addressing the issue of new vehicle imports, he reiterated that while cars are necessary, they are not a government priority, suggesting that citizens capable of affording new vehicles import them directly, as the law permits.
Current State of Automobile Imports and Local Manufacturing
Several brands have been approved for the importation of new vehicles, with some already initiating commercial operations. Others are awaiting notification of their quotas for 2024. Notably, Fiat, part of the Stellantis group, inaugurated its factory in Oran (Tafraoui) in December 2023, marking a significant step in local manufacturing.
Aoun hinted that other brands are preparing to enter the market, though he did not disclose their identities or the specifics of their applications. However, he emphasized that these brands must comply with the latest automotive manufacturing regulations outlined in the government’s revised guidelines.
Stabilizing Prices Through Local Manufacturing
Discussing the broader automobile industry, Minister Aoun criticized the pseudo-industry established since 2014 for contributing to the current high vehicle prices. He believes that the prices of newly imported vehicles since 2023 are reasonable for Algerian consumers. Aoun expressed confidence that prices would stabilize once a genuine local automobile industry is fully operational.
A significant development supporting this vision is the expansion of Tosyali’s activities. The factory has recently started producing flat iron, a critical component for both the automotive and home appliance industries. This move is expected to enhance the local manufacturing sector, reducing reliance on imports and contributing to price stabilization.
A New Era for Algeria’s Automobile Sector
The government’s focus is on creating a robust local automotive industry, contrasting with previous efforts deemed inadequate. Minister Aoun’s statements underscore a strategic shift towards sustainable industrial development, aimed at reducing dependency on imports and fostering economic growth.
By prioritizing local manufacturing, Algeria aims to transform its automotive market, ensuring affordability and boosting the domestic economy. The efforts are part of a broader initiative to diversify the country’s industrial base and enhance its economic resilience.
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