Hyundai forms joint venture for Algerian assembly plant

1 min readUpdated May 26, 2025Dec 19, 20187:35 AM

In this article (4)

Hyundai Motor and Algerian car maker Global Group signed a deal on Monday to establish a joint venture to produce commercial cars in Algeria. The joint venture will operate a factory that assembles knock down kits in Batna, Algeria. The assembly facility is scheduled to start operations in 2020.

In the early stage, the factory will assemble 6,500 cars a year and gradually increase production. Medium and large trucks like the Mighty and Xcient, as well as the Hyundai County bus, will be assembled at the facility.

According to the Korean automaker, the commercial vehicle market in Algeria has been expanding. Last year demand for commercial cars in the country was around 8,000 units, but that has increased to 12,000 units this year. By 2025, the automaker projects demand will reach 22,000.

AdvertisementAdvertise with usMobile 320×100

What this means

Hyundai's Algerian commercial vehicle assembly plant is a pragmatic move to capitalise on a rapidly expanding regional market, avoiding the higher risk of a full manufacturing investment. This joint venture directly pressures established import channels and local competitors by offering locally assembled Mighty, Xcient, and County models. While Hyundai has diversified its Asian presence through various models, this focused approach in Africa mirrors strategic plays seen across varied consumer goods sectors in emerging markets, albeit with lower capital expenditure. The main risk lies in local market stability and supply chain consistency for knock-down kits. We should monitor the initial assembly volume and product pricing upon operations commencing in 2020.

Wei Zhang · Retail News Asia newsroom

Questions & Answers

What types of commercial vehicles will the new joint venture produce in Algeria?

The facility will assemble medium and large trucks, specifically the Mighty and Xcient models. Also, the Hyundai County bus will also be assembled at the new plant in Batna.

When is the new Algerian assembly plant expected to commence operations?

The factory, established by the joint venture between Hyundai Motor and Global Group, is scheduled to begin its assembly operations in 2020. It will initially assemble 6,500 cars annually.

What is the projected demand for commercial vehicles in Algeria by 2025?

The Korean automaker projects that the demand for commercial vehicles in Algeria will reach 22,000 units by 2025. This indicates a significant increase from current market figures.

Reader pulse

Is this Algerian JV a smart move?

16,013 votes so far