Hyundai Motor Company is making significant moves to expand its presence in the Middle East and Africa by planning to construct a new vehicle assembly plant in Algeria. Reports from industry sources suggest that Hyundai’s local subsidiary, SARL Hyundai Motors Manufacturing Algeria, has partnered with Oman’s Saud Bahwan Group to establish a plant with an estimated investment of US$400 million. The final government approval is pending, although marketing approval for Hyundai vehicles was secured in May.
The proposed location for the assembly plant is at the site of a former Volkswagen facility in Sidi Khettab, Relizane Province, about 300 km west of Algiers. The plant aims to assemble compact hatchbacks and SUVs from completely knocked down (CKD) kits starting in 2027. If the project moves forward, this facility will become Hyundai’s fourth assembly plant in Africa, joining existing facilities in South Africa, Ghana, Ethiopia, and Egypt (operated through a local partner, GB Auto).
In 2018, Hyundai had previously partnered with Global Group, an Algerian private industrial group, to establish a commercial vehicle plant in the country. However, due to political instability in Algeria in 2020, those plans were abandoned. This new venture signifies Hyundai’s commitment to strengthening its presence in key markets and meeting the growing demand for its vehicles in the region.
As Hyundai continues to expand its manufacturing footprint globally, this strategic move in Algeria demonstrates the company’s focus on enhancing its production capacity and meeting the needs of customers in the Middle East and Africa. Stay tuned for more updates on Hyundai’s expansion efforts and its impact on the automotive industry.
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