Italian automaker Fiat has officially opened its inaugural assembly and manufacturing plant in Algeria, signalling a potential resurgence for the country's automobile industry. The move comes after a downturn caused by Algeria's 2019 decision to halt car imports and shut down assembly factories.

The Algerian car market faced a significant setback following the government's decision to cease car imports and close assembly plants, a move justified by President Abdelmadjid Tebboune, who criticized the facilities for primarily assembling vehicles in exchange for substantial tax concessions.

Fiat's new manufacturing facility, located in the northwestern city of Oran, stands as a significant milestone and the first of its kind inaugurated during President Tebboune's tenure, as reported by the Algerian news website TSA. The selection of Fiat, a renowned Italian brand, for the inaugural locally manufactured cars underscores its popularity in the Algerian market.

Algeria's Minister of Industry, Ali Aoun, emphasized Fiat's widespread appeal during the opening ceremony, stating that the brand was chosen due to its popularity among consumers. "Given Italian manufacturer Fiat's popularity, the brand was chosen to be the first manufactured locally,"  Algeria's industry minister Ali Aoun said during the plant's opening ceremony.

The establishment of the Fiat plant is seen as a positive development for Algeria's automotive sector, offering the potential to breathe new life into the market and contribute to the country's economic revitalization.

As Fiat takes its place in Algeria's burgeoning automotive landscape, industry watchers are keenly observing the impact of this development on the nation's economic and industrial trajectory. The inauguration marks a notable step towards reshaping Algeria's automotive industry and fostering economic growth in the region.