The first Algerian car.. Specialists explore the features of the mechanical industry

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Algeria intends to launch the first Algerian-made car by the end of 2028, as it is expected that the dynamism of the mechanical industry will be enhanced by strengthening the fabric of small and medium enterprises that feed it, and that it will be a lever for the local economy.

The date was announced by Algerian President Abdelmadjid Tebboune, during his supervision of a meeting with economic operators, where he said: We expect to reach an Algerian car at the end of 2028, using components manufactured in Algeria, whether the chassis or the engine.

In light of the statement, specialists anticipated the dynamism the Algerian market needs in the field of mechanical industry, in order to make this project a success, including the human resources that must be created during the coming period.

In this regard, the specialist in the mechanical industry, Tawfiq Boualem, said that “the success of a project to manufacture cars, one hundred percent Algerian, is not measured only by the final assembly plant, but by the strength of the fabric of small and medium enterprises.”

The engineer added in his statement to Al Arabiya.net, saying: “I expect the launch of a handling network that includes at least 120 to 150 local factories specialized in manufacturing spare parts, such as (suspension systems, exhausts, batteries, electrical cables, plastic parts, seats...).”

According to the specialist: From an engineering and operational perspective, the main assembly plant is expected to accommodate about 3,500 direct workers (engineers, technicians, and production line workers). But the real strength lies in the indirect jobs created by spare parts factories and logistics services, which will provide between 12,000 and 15,000 permanent jobs, which requires the activation of intensive vocational and university training programs to keep pace with modern and robotic technologies used in production lines.”

In turn, the specialist in economic affairs, Belkacem Haddad, said: “Investment in the automobile industry for the year 2028 is not just meeting local demand, but rather a strategic lever to diversify the Algerian economy and reduce dependence on the fuel sector.”

He added to Al Arabiya.net: “Producing a local car with an acceptable rate of integration could allow Algeria to save approximately 1.5 to 2 billion dollars annually, and direct that liquidity to support the trade balance and infrastructure investments.”

According to Haddad: “The mechanical and automotive sector is expected to contribute between 2% and 3.5% to the gross domestic product by 2032, and the dynamism of this sector will revitalize other chemical and metal sectors (such as Balara Steel and the Al-Hajar factory for providing steel sheets and structures).”

The spokesman added, "To ensure economic feasibility, the volume of production must exceed 100,000 cars annually, as the local market will absorb a large portion to absorb the current deficit, but the real horizon lies in the African Continental Free Trade Area, where the economic vision aims to export between 15 to 20% of the total production to African markets and its regional neighborhood by 2030, which creates a new and sustainable source of foreign exchange."