In Algeria, the automotive sector has been blocked for more than two years. Car dealers and manufacturers that moved into the country during President Abdelaziz Bouteflika’s rule were forced to close shop due to changing laws. It was not until 2023 that things started to move with the return of certain brands to the country.
However, as the economy is not independent of politics, Algeria has turned to Italy with which it maintains very good relations, unlike France with which relations are constantly deteriorating. This situation therefore benefits the Italian manufacturer Fiat, which has found itself in pole position to revive the automotive sector in Algeria. As for the French manufacturers present for ages in the country, they are struggling to make their way.
Fiat featured in Algeria
The Algerian preference for Fiat was further verified during the Algiers International Fair . The Algerian President, Abdelmadjid Tebboune, visited the Fiat stand to express his wish to speed up the start of production at the factory, which is scheduled to open at the end of the current year. He assured, in this regard, that Algeria would give its full support to Stellantis to materialize its projects.
Thus, this fair was an opportunity for Algeria and Italy to show their agreement and reaffirm their desire to work together in many sectors, including the automotive sector. Abdelmadjid Tebboune is therefore counting on the Italians to revive the sector in Algeria. He recalled that the local automotive market was characterized by a sharply growing demand and that the start of production of Fiat vehicles in the country had to be accelerated . He made a point of ensuring, in the same context, that in the event of difficulties of any kind whatsoever, the Algerian State would be ready to intervene. The Minister of Transport could be seized, and, through him, the Presidency of the Republic.
The choice of the manufacturer Fiat at the expense of French manufacturers?
It must be said that French manufacturers are still interested in the Algerian market. The vice-president and spokesperson of the Mouvement des entreprises de France (Medef), Fabrice le Saché, had expressed this interest at the end of 2022. Manufacturers such as Peugeot, Citroën, Opel, etc. want, in fact, to start in Algeria. However, they find themselves downgraded by the Italians, who have already started exporting cars to Algeria before producing them there. Fiat enjoys a substantial advantage thanks to the good relations between Algeria and Italy . As for the French manufacturers, they must redouble their efforts to carve out a share of the Algerian market, given that they do not enjoy the support enjoyed by the Italian manufacturer.
