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Hyundai's Algerian car plant edges toward production as minister presses for local parts makers

8 November 2026 · Algeria Now

Hyundai's Algerian car plant edges toward production as minister presses for local parts makers — Photo : Carol M. Highsmith / Wikimedia Commons, Public domain

Algeria's industry minister met a delegation from Hyundai Motor Manufacturing Algeria on Saturday to review progress on the carmaker's investment project and the conditions needed to start production, the ministry said in a statement.

Farid Kourtel received the delegation at the ministry's headquarters, together with representatives of South Korean companies that make automotive parts. Discussions centred on closer ties between Hyundai, its Korean suppliers and Algerian subcontractors. The stated aim is to build a local supplier network, make more components inside the country and gradually raise the national integration rate, the share of a vehicle's value produced locally. The ministry said it stands ready to support the project and coordinate with all parties so that it can enter production.

The project was announced in 2023 with an Omani partner, Bahwan Saud. It is estimated at nearly 400 million dollars, with an initial capacity of 50,000 vehicles a year, and is planned for the Sidi Khettab zone in Relizane province, in western Algeria. On 26 August, in Seoul, Hyundai Motor's chief executive, José Muñoz, said the Algerian unit could begin production at the end of 2026 or in early 2027. Output would start with sport utility vehicles and light commercial vehicles, with small cars and electric models possible later.

The plant still depends on the completion of administrative procedures and the issuing of required permits, and no start date has been announced.

The meeting matters for Algeria's industrial strategy. After years of heavy reliance on imported vehicles, the government wants carmakers to build in the country and, above all, to source parts locally, so that factories create a domestic supply chain and lasting jobs rather than simply assembling imported kits. Local integration is therefore the real test of the project, more than the date of the first vehicle.

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