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Hyundai International is preparing its return to Algeria for 2025, the factory project on the territory continues to take shape, on July 8, 2024, a delegation of senior officials from Hyundai and Oman Trading was received by the former Minister of Industry and Pharmaceutical Production, Mr. Ali Aoun, to present the progress of the Hyundai brand automobile manufacturing project in Algeria, then in October 2024, the President of the National People's Assembly (APN), Brahim Boughali to visit the Hyundai Motors automobile industrial complex in South Korea where the two parties reaffirmed their wishes for establishment. However, the choice of Algeria was only an option in competition with other Maghreb countries.
Now the choice is made, Hyundai International has officially chosen Algeria for the establishment of its main production plant in the region.
This announcement was made by Al-Mukhaini Bahouan Selman Saad Souhail, representative of the group, during a detailed presentation on the progress of the project, indicates the same source, which reveals that the factory, whose location remains to be confirmed, will produce several models of Hyundai vehicles, including passenger cars and utility vehicles, "with a particular emphasis on the financial accessibility of the products."
"The choice of Algeria seems to meet several strategic criteria. The stability of the market, the economic reforms undertaken by the Algerian government to encourage foreign investment, as well as the proximity to other markets in Africa and Europe, make it a preferred destination for Hyundai. In addition, local production allows the South Korean manufacturer to circumvent the difficulties related to imports and meet the growing demand for vehicles in the region at competitive prices." This ambitious project, led by the SAUD BAHWAN group, is estimated at $400 million and is intended to produce a varied range of Hyundai models, including utility vehicles and passenger cars, with a particular emphasis on the financial accessibility of the products. The models manufactured in Algeria will be intended for the local market and also for other countries in Africa and beyond.
Three models of passenger cars will be produced there, as well as two types of utility vehicles. But the most striking is the inclusion of electric vehicles in future production. Hyundai, which has made innovation and sustainability pillars of its global strategy, plans to launch electric models in Algeria, marking a significant step towards the energy transition in the region. The models that will come off the production lines will include a low-cost SUV and a utility vehicle, which should be available from the end of 2026. In 2027, the plant will expand its production, with the addition of a low-cost sedan and another utility vehicle, while in 2028, new production lines will allow the assembly of a small city car.
The production of low-cost vehicles, both for individuals and professionals, should allow Hyundai to conquer a significant share of this market, while reinforcing Algeria's strategic role as an automobile production center for North Africa.
As a reminder, Hyundai has been present in Algeria since 1997 with the import and distribution activities of all vehicles, tourist, utility, trucks, buses and construction equipment of the Hyundai brand represented by the Cevital Group and its company Hyundai Motor Algeria.
In 2016, change of partner for Cima Motors.
The Hyundai group includes the Hyundai and Kia brands, and both were present in Algeria through three assembly units (Hyundai vehicles in Tiaret -TMC, Hyundai Buses and trucks in Batna, Kia vehicles in Batna).
But the adventure ended in 2020 after the government's decision to remove the import system for CKD/SKD kits intended for the assembly of cars in Algeria.
Currently, only one automobile factory is active in Algeria. This is that of the Italian manufacturer Fiat, part of the Stellantis automobile group, inaugurated in December 2024 in the industrial zone of Tafraoui, in the wilaya of Oran.
In October 2024, Hyundai officially filed an application for approval to exercise the activity of new vehicle dealer in Algeria. The final decision on this application is still under review by the services of the ministry in charge of the file.
See you at the end of 2026 to see if this new attempt by Hyundai in Algeria will be realized with the release of its first Made in Bladi model.
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