Over 100 Local Producers to Supply 300,000 Cars With 40% of Algerian-made Spare Parts

The Algerian Stock Exchange counted 100 dealers in the field of producing automobile spare parts, which are currently in the process of obtaining approval to begin supplying local car factories, such as Stellantis in Oran (western Algeria), to produce Fiat cars, which began manufacturing at the end of 2023.

Thus, the number of qualified handlers to produce Algerian auto parts will increase during the next stage to 130 small and medium enterprises capable of supplying 300,000 locally manufactured cars with 40% of their equipment.

In a statement to Echorouk, the head of the Algerian Stock Exchange for handling, Kamel Agsous, appreciated the measures taken recently by the authorities to encourage handling activity and consider it a priority sector in investment projects, as the Algerian Investment Promotion Agency announced the allocation of real estate properties with an area of 11,800 square metres for those wishing to invest in the car handling sector.

Kamel Agsous explained in the interview with Echorouk that the number of small and medium-sized enterprises active in the field of car handling and that have obtained a certificate of approval to work with the approved car factories in Algeria, and this initially relates to the Stellantis factory in Oran for the production of Algerian Fiat cars, is equivalent to 30 dealers, waiting for the entry of other factories to service like Geely and Chery.

Moreover, there are 100 other dealers in the matching phase, as meetings are expected to be organized with the relevant car manufacturers soon to agree with them on the parts that can be manufactured locally, indicating that Algerian companies have enormous capabilities to produce locally, and in case of dealing with the factories, they are expected to enter the field of production at the beginning of 2025. In the future, Algerian handlers will be able to supply up to 300,000 cars, with 40% of Algerian spare parts.

In this context, Agsous asserted that most of these dealers had previously worked alongside well-known car factories such as Renault and Kia and were supplied with the necessary parts for their cars while stressing that these companies are also subject to constant training and continuous qualification so that they can provide spare parts that conform to international standards, as required by the factories producing in Algeria.

Regarding the parts produced by handling factories in Algeria, Agsous talked about entering new fields such as electronics, car dashboards, car electrical supplies, cables in various forms, car headlights, seats, mechanical parts, iron, rubber, car seat fabric, the metal cabinet, and car bodies.

The “Tosyali” factory will start in Oran (western Algeria) and the Algerian Qatari Steel production company in Jijel (eastern Algeria) will begin production in 2025, in addition to the wheels produced by the Iris factory and currently supplying Fiat vehicles produced in Algeria, including the new Doblo vehicles.

In a related context, Agsous revealed that the handling salon is expected to be organized from October 2 to 5 at the Algiers Pins Maritimes Exhibition Palace (SAFEX) in its ninth edition, in which major handlers in the national market and the leading companies dealing with them, such as Sonatrach and Sonalgaz, as well as representatives of automobile factories, will attend the event, stressing that during this edition they will discuss how to raise national production to record levels and also reduce the import bill and revive the national economy.