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19 March 2025

Algeria Advances Local Spare Parts Production For Vehicles

Several agreements signed to develop the national vehicle parts industry through local suppliers and collaboration.

In a significant advancement for Algeria's automotive sector, several agreements aimed at boosting the local spare parts industry were signed on March 18, 2025, in Algiers. The signing took place at the Ministry of Industry, featuring the presence of key government figures including Minister of Industry Sifi Ghrieb and Minister of Knowledge Economy, Start-ups, and Micro-enterprises Noureddine Ouadah.

The core goal of this initiative is to integrate local spare parts into the national vehicle production industry. A memorandum of understanding was established between the Ministry of Industry and 13 vehicle manufacturers, both local and international, to facilitate this integration. This collaborative effort aims to support local producers in achieving compliance and obtaining official approval for their products.

Minister Ghrieb emphasized the importance of this memorandum, stating it represents a crucial step in realizing President Abdelmadjid Tebboune's vision for a sustainable and robust vehicle industry in Algeria. He noted that this initiative reflects a strong commitment to reducing foreign dependency and enhancing the competitiveness of local products.

Furthermore, Stellantis El Djazaïr signed a subcontracting agreement with the start-up IDNAT, which specializes in cable manufacturing, alongside another agreement with Sarl Algeria Ham Motors, a company focused on producing plastic components. These agreements aim to supply the Fiat plant in Oran with locally produced parts, accessories, and kits, thereby significantly supporting local businesses.

Highlighting the objectives of this initiative, Ghrieb stated, "Our goals include strengthening local integration, allowing manufacturers to utilize local products, and ensuring compliance with the requirements to increase the local integration rate progressively." He reaffirmed the government's commitment to promoting the spare parts manufacturing sector by creating favorable conditions for component manufacturers and allowing them to engage in both national and international production systems.

The Minister also assured that the Department of Industry will assist manufacturers in developing supply chains, simplifying administrative procedures, and ensuring necessary technical compliance, all of which are vital for elevating the industry to higher standards of quality and innovation.

In his remarks, Minister Ouadah expressed his readiness to mobilize start-ups and micro-enterprises to meet the demands of the vehicle industry's subcontracting needs. He took pride in his department's contribution to building a national industry equipped with proven technical expertise and competitive economic value.

This ambitious initiative reflects Algeria's broader strategy to fortify its industrial landscape and is expected to generate local jobs, enhance economic stability, and lead to greater self-sufficiency in vehicle production.

As the project unfolds, industry stakeholders remain optimistic that these agreements will pave the way for a flourishing local spare parts sector, ultimately improving the resilience of the automotive industry and benefiting consumers through increased availability and reliability of locally manufactured vehicle components.