Hyundai International has officially chosen Algeria for the establishment of its main production plant in the region. This ambitious project, led by the SAUD BAHWAN group, represents one of the most significant industrial investments ever made in Algeria, with an estimated value of $400 million, as announced by Al-Mukhaini Bahouan Selman Saad Souhail, representative of the SAUD BAHWAN group, during a detailed presentation on the project’s progress. It aims to meet the growing demand for affordable vehicles and marks a strategic shift for the Korean manufacturer, which seeks to strengthen its presence in the African market.
The plant is set to produce a variety of Hyundai models, including utility vehicles and passenger cars, with a special focus on the financial accessibility of the products. The project is particularly significant as it represents a major direct investment in Algeria’s industrial sector, a key area for the country’s economic development. The factory’s location is yet to be confirmed, but it is expected to create thousands of direct and indirect jobs, while boosting the growth of the local value chain in manufacturing, distribution, and automotive services.
This Hyundai plant project aligns with a broader strategy of opening up the Algerian market for exports. According to the information obtained, the models manufactured in Algeria will be targeted at the local market as well as other African countries and beyond. The production of low-cost vehicles, both for individuals and professionals, should allow Hyundai to capture a significant market share, while enhancing Algeria’s strategic role as an automotive production hub in North Africa.
The choice of Algeria meets several strategic criteria. Market stability, economic reforms by the Algerian government to encourage foreign investment, and proximity to other African and European markets make it a prime location for Hyundai. Moreover, local production enables the South Korean manufacturer to bypass import-related challenges and meet the region’s growing demand for vehicles at competitive prices.
A unique aspect of this project is the diversity of models to be produced. Three types of passenger cars will be manufactured, along with two types of utility vehicles. Notably, the inclusion of electric vehicles in future production stands out. Hyundai, which has made innovation and sustainability central to its global strategy, plans to launch electric models in Algeria, marking a significant step towards energy transition in the region.
The models coming off the production lines will include a low-cost SUV and a utility vehicle, expected to be available from late 2026. By 2027, the plant will expand its production to include a low-cost sedan and another utility vehicle, and in 2028, new production lines will enable the assembly of a small city car.