As part of Renault’s strategy to achieve growth in Africa, it will construct a plant in Algeria. Renault spokeswoman Raluca Barb said that an agreement with the Algerian government is scheduled to be signed this week when French President Francois Hollande visits the North African country.
Barb said that this plant, which is located near the western Algerian city of Oran, will later build up to 75,000 vehicles in the same segment as the Renault Clio Symbol, a sedan based on the Clio subcompact.
After the former French colony's independence in 1962 led to nationalization seven years later, Renault deserted its last Algerian factory. With this new plant agreement, Renault would become the first car company to re-establish its local production.
Renault expects Africa to achieve some growth, promoting rugged, no-frills models like the Dacia Logan as its sales in Europe have been falling at a faster rate than any other major carmaker.
In the first half of the year, the new-car sales in Algeria rose by 46.5% to 225,000 units. Last week, a diplomatic source said that Hollande's visit to the country is likely to raise a potential Algerian investment in PSA/Peugeot-Citroen.
IHS Automotive said that Renault is the top-selling brand in Algeria with sales of 67,132 vehicle units in the first 10 months. Peugeot trails it with 54,500, while Hyundai has sold 43,260 units and Dacia has reported sales of 32,918 units.
Renault and alliance partner Nissan Motor Co. want to expand in North Africa and are increasing the output of their 1 billion-euro ($1.3 billion) plant in the Moroccan port city of Tangier. Renault's Oran facility will produce cars exclusively for the local market, different from the Morocco factory, which has an intended annual capacity of 400,000 vehicles.