Algeria targets 2028 for national vehicle production and major industrial growth

Algeria is pursuing aggressive economic diversification through major industrial and infrastructure investments. President Abdelmadjid Tebboune has set a target to produce a fully nationalized vehicle by 2028, emphasizing high local integration—including components like gearboxes and wheels—rather than simple assembly. This follows previous attempts at the automotive sector that struggled with low integration rates.

In support of this industrial shift, Opel has confirmed two distinct projects in Algeria: a vehicle assembly plant and a local engine production facility. This engine production project is notable as it aims to make Opel the first automaker to manufacture engines locally in the country. Currently, the sector relies heavily on the Fiat plant in Oran, operated by Stellantis.

Beyond the automotive sector, the Algerian government has proposed a 2027 budget that earmarks $27.5 billion for large-scale mining, railway, and energy projects. Key initiatives include the Gara Djebilet iron ore project, the Blad El Hadba phosphate project, and the Algiers–Tamanrasset railway, all designed to reduce the nation's economic dependence on hydrocarbons.