Renault opens new plant in Algeria to benefit from the surge in North African markets

Article by Christian Andrei, on November 12, 2014

Renault has commenced production operations at its new site in Oran, Algeria as it bids to benefit from the surge in North African markets. The Oran site is assembling the New Symbol sedan, which is derived from the Dacia platform, from completely knocked down production (CKD) for the local market.

According to the French carmaker, the Symbol will offer a high level of equipment and will be the first vehicle in Algeria to feature a GPS navigation system. Renault currently controls 25.5 percent of the Algerian auto market, which is in turn its tenth-largest market. According to Renault, the site currently has one production line with an annual capacity of 25,000 vehicles.

It added that it is mulling to implement a second phase that should hike output to 75,000 annually. Renault initially invested EUR50 million into the Oran site, which it owns 49 percent. The site has almost 350 employees, some of the new ones received training at Renault-Nissan alliance factories, including in Romania.

Last year, carmakers delivered around 425,000 vehicles in Algeria, making the country the second-largest auto market in Africa. But the Algerian market has shrunk this year, as carmakers have only sold just over 265,000 vehicles in the first nine months of 2014, according Renault said.

While Renault’s budget models and presence in emerging markets have helped it brave a six-year auto sale crisis in Europe, the carmaker now has to deal with weakening currencies and demand in many of those markets.

Despite the somewhat gloomy situation in Algeria, Renault remains positive on the growth potential of the market, considering the fact the around 70 percent of the cars plying the streets are over a decade one and only 100 vehicles are owned for every 1,000 inhabitants.

Topics: renault, plant

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Whether or not you’re a tech addict, you realize that the digital revolution is now moving at high speed. Before you know it, there’s already a new one on the...
by - January 17, 2017
We really couldn’t deny that quite a number of Audi customers and would-be-buyers are intently waiting for higher performance RS versions of the Audi A4 and A5. Of course, these...
by - January 17, 2017
The Chevrolet Cruze is coming to Australia. But it won’t be known as the Chevrolet Cruze. Instead, it will bear the Holden badge and get the Astra moniker. The 2017...
by - January 17, 2017
As expected, four years after the current generation of the BMW 4 Series was introduced in 2013 with the BMW 4 Series Coupe, the German premium carmaker is implementing a...
by - January 17, 2017
As BMW continues to pursue its plans for the coming years, President-elect Donald Trump gave out a warning to car manufacturers to prevent them from exporting their cars to the...
by - January 17, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries