Algeria is negotiating with 13 international car manufacturers for possible investment in vehicle production in the North African Arab country, an official has said.

The companies include South Korea’s Hyundai which already produces auto spare parts in Algeria, said Bilal Lamita, an adviser at the Industry Ministry.

“The Ministry has entered negotiations with 13 international car production companies for investment in car manufacturing in Algeria,” Lamita told the Arabic language Elkhabar newspaper on Friday.

He said OPEC member Algeria currently has nearly 120 car parts factories but that it needs at least 500 such projects to serve the local and foreign markets.

Several automakers have set up joint ventures in Algeria over the past years following a government decision in 2018 to ban the import of vehicles as part of a strategy to encourage local car production for the domestic market and export.

The latest company to enter the Algerian market is China’s Great Wall Motor, (GWM), which announced its decision last month to build a car assembly plant as a joint venture with an Algerian partner.

(Writing by Nadim Kawach; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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