With Peugeot-Citroen Joining Renault, Oran becomes the Capital of Algeria’s Car Assembly Business

Over the years, Peugeot has been struggling to maintain its presence in Africa, but the Peugeot 504 is still waxing strong in some West African countries especially Nigeria.

Although it has been largely used as bush taxi in some countries, it remains relevant because it is suited for rough road conditions—which is a normalcy in Africa

For nearly four decades until the mid-2000s, Peugeot 504 had an assembling plant in Nigeria where the company still largely dominated the market till the brand was ditched for other automobile brands.

In the automobile industry, Algeria’s industry is among the largest on the African continent, with French firm Renault as the largest manufacturer with estimated 25.5 percent of the national car market.

With the recent partnership between Peugeot maker PSA Group and Renault, the automobile industry in Algeria is set to witness a massive boom more than it already does. Making it an industrial hub in auto assembly.

This week, Peugeot maker PSA Group signed a joint venture agreement with three Algerian partners to build cars in the North African country. The joint venture aims at setting up a plant in the western Algerian city of Oran, where Renault opened a production plant in 2014 of the Renault Symbol model in Oued Tlelat began.

Other Algerian partners are Condor Electronics, Palpa Pro and Entreprise Nationale de Production de Machines-Outils (PMO), PSA said in a statement.

Also in Western Algeria, industrial firms are preparing to manufacture car seats, expanding the currently low level of local contracting. Other companies are currently submitting their plans for car accessories manufacturing, including plastics-related parts.

PSA noted that it sold 383,504 vehicles in the region in 2016 alone, and with plans to invest around 100 million euros ($117 million), equalling 49 pct of the joint venture’s capital, it hopes to sell more come 2018.

Another of PSA’s future commitment in Africa, is the agreement signed with the Kingdom of Morocco to build a plant in the commune of Ameur Seflia in Kenitra province.

Starting out with an initial production capacity of 90,000 engines and vehicles, the plant will ultimately raise output to 200,000 units in line with future market demand. This plant will begin producing B and C segment engines and vehicles as from 2019, to meet the needs of the region and of Moroccan customers.