The CEO of the Algerian car brand BAIC, Noureddine Seriak, revealed details of his meeting last weekend with Liu Yin, the regional director for the Middle East and North Africa at the Chinese company BAIC, during the latter’s visit to the Maghreb region. The meeting, held in Tunisia, addressed the future of the Chinese brand in Algeria and the region, given the significant delays facing the BAIC factory in Wadi Chaaba, Batna, in obtaining final approval from the Ministry of Industry and commencing production.
Seriak explained that the regional director explicitly expressed the Chinese partner’s dissatisfaction with the lengthy administrative procedures, hinting at the possibility of taking “undesirable” decisions for Algeria, including the cancellation of the exclusive export contract for BAIC vehicles from Algeria to African and European markets. Algeria was supposed to be a major supply base for the Tunisian, Egyptian, Libyan, and Mauritanian markets, which had already received a significant shipment of BAIC vehicles produced at the Batna plant in 2018. Previous agreements also included a joint venture with South Africa to produce spare parts within Algeria.
During the meeting, the possibility of canceling the car export contract with Tunisia and allowing the Tunisian representative to import directly from China was raised. This would mean the loss of economic advantages for Algeria, achieved after years of negotiation. Even more concerning, according to Seriac, was that the regional director, Liu Yin, did not rule out relocating the factory project from Algeria to Tunisia if the administrative obstacles preventing the completed plant from commencing production persist.
According to informed sources, during his recent visit to Morocco to participate in the opening of a BAIC showroom, the regional director received a formal offer to establish a factory there. Although he temporarily rejected the proposal due to existing agreements with Algeria, he indicated his willingness to reconsider it in the future should the current situation continue. Meanwhile, the African continent witnessed the launch of new BAIC manufacturing plants in both South Africa and Egypt, reflecting a rapidly evolving industrial dynamic in the region, one from which Algeria remains excluded despite the readiness of its projects.
For his part, Amar Bourhala, General Manager of Administration and Finance at BAIC Algeria, confirmed that Algeria had obtained exclusive export privileges to African and European markets, benefiting from customs and tax exemptions, Arab free trade agreements, and the high tariffs imposed on Chinese products in Europe. This made Algerian BAIC vehicles competitive at lower prices. Bourhala explained that export contracts included Tunisia, Egypt, Libya, and Mauritania, which was the first export destination in 2018.
He added that more than 1,000 local subcontracting companies had submitted their applications to the Ministry of Industry, some of which had already begun production, such as factories manufacturing batteries, brake pads, and car seats. This would have boosted the local integration rate and supported national industrial value chains. He pointed out that the factory was completed without bank loans or tax breaks, and employs 1,200 workers in three daily shifts, with an assembly capacity of 40,000 vehicles annually and a local integration rate of 15%, 5% higher than the required percentage stipulated in the specifications. The current distribution network includes 30 authorized dealers, with plans to expand to other provinces across the country.
According to Bourhala, the factory is capable of launching its first vehicle within just 45 days of receiving certification. Prices will be 30% lower than imported vehicles, with warranties ranging from 6 to 10 years and financing options available through banks. The initial lineup will consist of three models: the X35, X55, and U5 Plus, targeted at the middle class due to their economical nature.
Noureddine Seriak expressed his commitment to continuing the project in Algeria, stating, “We have surprises in store for Algerians… Let’s just get started.” He emphasized that BAIC possesses vehicles meeting European (Euro 6) standards, as well as hybrid and modern models, with export contracts to two European countries through Mercedes-Benz. He noted that prices would be “unprecedented” compared to competitors, and that the company prioritized Algerian labor over robots to achieve a direct social impact. He also confirmed that after-sales services and a spare parts network are ready and currently operating in 30 provinces.
The BAIC Algeria case raises once again a fundamental question about the reasons for the stalled car assembly projects in the country, despite their readiness and their connection to export contracts and global partnerships. The delay in granting approval not only threatens a single project but also puts Algeria at risk of losing significant export revenues, thousands of jobs, and strategic gains in the African market, at a time when neighboring countries are rapidly moving to attract major industrial investments.
The file is now in the hands of the Ministry of Industry, and time does not appear to be on Algeria’s side. The issue is no longer merely economic; it has become a matter of national sovereignty.
