BY: Hana Saada
ALGIERS– In a bid to tap into Africa’s flourishing automotive markets, AvtoVAZ, the leading car manufacturer in Russia, has expressed renewed interest in establishing an automobile industry in Algeria. This comes after the Chinese and other players have shown interest in investing in Africa’s rapidly growing automotive sector.
Maxim Sokolov, the CEO of AvtoVAZ, revealed the company’s intentions during the Russia-Africa summit in Saint Petersburg. Speaking to reporters, Sokolov affirmed that the company is considering potential partnerships for the assembly of its vehicles in various African countries, with a keen focus on Algeria in North Africa.
AvtoVAZ had previously shown interest in Algeria’s market, with initial reports emerging in 2019 when Russian Energy Minister Alexander Novak communicated the company’s desire to set up a Lada brand vehicle assembly plant in Algeria. This time, the automaker is emphasizing its commitment to realizing its expansion plans in the region.
Algeria holds immense appeal for AvtoVAZ due to its strategic position as a gateway to Africa, offering access to a continent with a growing demand for automobiles. By establishing a solid presence in Algeria, the Russian manufacturer aims to meet the rising demand of the Algerian automotive market while also targeting neighboring markets like Nigeria, Ethiopia, and Ghana.
Sokolov confirmed the company’s intention to maintain its relationship with its Egyptian partner, where AvtoVAZ already has an assembly unit since 2011. Additionally, he highlighted the company’s interest in partnering with several other African countries for similar assembly projects.
The potential move to Algeria is in line with Russian President Vladimir Putin’s expressed interest in fostering cooperation and technological exchange with Algeria to advance the automotive industry. During a state visit to Russia by Algerian President Abdelmadjid Tebboune, both leaders recognized the immense potential for collaboration in the automotive and mechanical engineering sectors.
A memorandum of understanding was signed between Russia and Algeria, specifically addressing technology transfer in the automotive assembly industry for both heavy and light vehicles. This signifies the strong commitment of both countries to develop a mutually beneficial partnership.
Last March, during the 16th edition of the Equip Auto Algérie after-sales fair, representatives from six Russian equipment manufacturers expressed their interest in investing in the Algerian automotive industry. They engaged in discussions with Algerian businessmen, exploring possibilities for partnerships and investments in areas such as electronics, plastics, and mechanics.
AvtoVAZ’s potential investment in Algeria’s automotive industry heralds a new chapter in Algeria-Russia economic relations. As Africa’s automotive markets continue to surge, Algeria has become an attractive destination for international automakers seeking to establish a strong foothold on the continent. The partnership between AvtoVAZ and Algeria has the potential to shape the future of the automotive industry in the region, opening up new avenues for trade, investment, and technology transfer.
