Algerian media reports revealed that the Algerian Ministry of Industry rejected Renault Algeria’s application to manufacture vehicles in Algeria. Renault Trucks Algeria’s application was also rejected due to the required integration rate.
Renault Algeria began manufacturing vehicles at its plant located in Oued Tlelat, Oran, in 2014. However, it faced production disruptions starting in 2020, leading to significant fluctuations that continued until 2022 before the plant was completely shut down.
The Renault Trucks Algeria plant is located in the Meftah municipality in Blida province. It began operating in June 2019 before production was suspended. Renault trucks are among the most in-demand trucks in the Algerian market. However, in recent years, due to the import ban and deteriorating relations between Algeria and France, Chinese trucks have dominated the majority of the market share.
According to reports circulating in the Algerian media, the reason for the rejection of both Renault and Renault Trucks is due to the requirement to achieve a 30% integration rate within five years of starting production, according to the terms of the current specifications for vehicle manufacturing in Algeria.
Former Minister of Industry Ferhat Ait Ali stated in an interview with a YouTube channel that Renault Algeria’s local manufacturing rate was very low, not exceeding 4%. He also stated that Renault was inflating figures and was not manufacturing anything at its Oran plant.
The President of the Algerian-French Chamber of Commerce and Industry, Michel Bisac, told an Algerian electronic newspaper: “The negative opinion does not mean a final rejection or Renault’s withdrawal from Algeria.
The Algerian government has sent Renault a reasoned rejection, with reservations that the company is working to address in order to request a new permit to resume production at its Oran plant.” Bisac added, emphasizing: “Renault is determined to remain in the Algerian market.”
Regarding Renault Trucks, Pessac explained: “Just as Renault was asked to reconsider its application, Renault Trucks was also asked to reconsider its application to lift the reservations raised by the Algerian authorities.”
For your information, Renault cars produced at the Oran plant are popular in Algeria. Their prices were good and suited employees and the middle class. However, in recent years before the plant’s closure, prices doubled.
When the plant opened, the price of a Renault Symbol was 95 million centimes (approximately $7,500), and before the plant’s closure, the price reached 276 million centimes (approximately $21,000).
Reports have circulated in recent months about the permanent closure of the Renault plant in Algeria due to the deterioration of diplomatic relations between Algeria and France. However, no official statement has been issued by the French brand regarding the departure of the brand from Algeria.
It appears that Renault wants to remain in Algeria and maintain its market share, especially in the economy car category, of which it dominates a large portion.
