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[Economics] Automotive: 300 to 350 subcontractors available to supply manufacturers

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These subcontractors benefit from support from the Ministry of the sector in their discussions with international manufacturers who must settle in Algeria in order to obtain the necessary approvals, said the director of the steel, mechanical, aeronautical and naval industries. at the level of the ministry, Mohamed Djebili who spoke on the airwaves of Channel III of the Algerian Radio.

"A legal arsenal has been put in place to support subcontractors until they are approved by manufacturers based in Algeria", he assured, adding that the law also includes the obligation for the manufacturer to supply at the level of subcontractors approved for the activity of its other production sites abroad.

Noting that subcontractors will be able to produce parts for original equipment but also spare parts, Mr. Djebili stressed that subcontractors are already approved, activating in cables, pneumatics, plastic components and car seats in particular.

"From 2025, we estimate that we will have a very diversified panoply of subcontractors which will make it possible to save foreign currencies intended for the import of spare parts", he planned.

122 applicants for automotive approvals

Regarding the new digital platform set up by the ministry for the receipt of license applications for dealership and vehicle construction activities, Mr. Djebili said that 122 operators have registered since its launch this week, of which a majority for the concessionary activity.

Regarding the regulation of imports in this sector, the official highlighted the role to be played by the Ministry of Trade and Export Promotion, in particular through the National Agency for the Promotion of Exports (Algex) for the control of any attempts at overcharging.

However, these measures aimed at controlling imports only concern dealers of new vehicles and not manufacturers who import collections intended for their activity, he specified.

Thus, the Algerian subsidiary of the Stellantis group, which has just signed the new specifications as well as an agreement with the Algerian Agency for the Promotion of Investment (AAPI), should begin "at the end of 2023" to produce these first vehicles of the Italian brand "FIAT", from assembled collections, before integrating locally manufactured components "end of 2024".

This manufacturer is also required to produce vehicles with bodies and chassis manufactured and painted locally, according to the deadlines set in the specifications, adds the same manager.


Asked about the vehicles that will have to be manufactured in Algeria, Mr. Djebili explained that it will mainly be mid-range cars intended to meet the needs of the local market, and possibly other markets like the 'Europe.

Recalling that the import and production of diesel vehicles are "prohibited", the official said that manufacturers based in Algeria will also produce electric vehicles, stressing that investors have expressed their wish to set up charging stations as well as the equipment necessary for the circulation of this type of vehicle.

According to him, manufacturers must reach a production level of 60,000 to 70,000 units/year to be competitive and integrate a "good part" of locally produced parts.


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