Chery in Algeria: Major Investment in the Automotive Industry

Algeria is getting a new boost in the car market, with the arrival of several international car manufacturers, including Italy’s Fiat, China’s Chery and Germany’s Opel. The opening of assembly plants with a high level of cooperation arouses the interest of public authorities. While the Fiat plant in Oran is preparing to enter production, the Chery plant, for its part, is on the horizon, with significant investment.

According to Aïmene Cheriet, General Manager of Auto Leader Company (ALC), Chery’s Algerian partner, the Chery car factory will be located in Bordj Bou Arreridj. To achieve this ambitious project, an impressive amount of 110 million dollars will be invested by the joint venture between Chery and ALC. Although details about the distribution of these funds between the two parties have not been disclosed, it is understood that Chery will own 35% of the shares, while ALC will hold 65%, thus deviating from the 51/49% rule used in Algeria.

A Promising Vision of the Future

Chery’s major investment in Algeria is not limited to the construction of the factory, but also to the production of cars. The agreement between ALC and Chery allows the production of three models of the Chinese brand in their Bordj Bou Arreridj factory, namely Tiggo 2, Tiggo 4 and Arrizo 5. Aïmene Cheriet, during the interview, recalled the promise made by the Minister of Industry and Production of Medicine, Ali Aoun, to reach an annual production of 100,000 cars.

However, it must be understood that production will not start with this large amount in the first year. According to plans, Chery Algeria will assemble 24,000 cars in the first year, this figure will increase to 50,000 cars from the second year, finally reaching a maximum capacity of 100,000 cars from the third year of production. The calendar predicts that production will begin in 2024, an important year given that “2024 will be the last year to import Chery cars in Algeria,” according to Aïmene Cheriet.

A Bright Future for the Algerian Automotive Industry

Chery’s major investment in Algeria marks a major change in the country’s automotive industry. With a state-of-the-art factory in Bordj Bou Arreridj, production of Chery cars will begin, creating new job opportunities and boosting local economic growth. Algeria is poised to become a major player in the automotive industry in Africa, and this partnership between Chery and ALC is proof enough of this.

There is no doubt that all eyes will be on the Bordj Bou Arreridj in 2024, a year that will mark the beginning of a new era for the Algerian automotive industry. Algerians will soon have the opportunity to drive high-quality Chery cars, made in the country, as the country’s automotive industry continues to expand, paving the way for a bright future.