• Expansion to lift Tafraoui plant capacity to 135,000 vehicles by 2028

• Project aims to boost local integration and create over 1,000 jobs

• Move aligns with broader strategy to grow Stellantis footprint in Africa

Stellantis announced on April 7 plans to expand its Fiat vehicle plant in Algeria, marking a new phase for the facility inaugurated in December 2023.

The expansion will increase the plant’s production capacity to 135,000 vehicles per year by 2028, according to Samir Cherfan, the group’s chief operating officer for Africa and the Middle East. He said the Tafraoui site, located in the country’s northwest, is set to become one of Stellantis’ key production hubs in the region. The company did not disclose the investment amount.

Cherfan said the project aims to “build a modern and competitive automotive industry” in Algeria. By strengthening local integration, supporting suppliers, and creating more than 1,000 jobs, Stellantis intends to develop a more resilient industrial ecosystem while advancing its strategy of producing vehicles within the region for regional markets.

Since entering production in December 2023, the plant has ramped up output steadily, with capacity rising from 17,000 vehicles in 2024 to 53,000 in 2025. The target for 2026 is set at 90,000 vehicles, supported by the ongoing expansion.

First Opel plant outside Europe

In January, Stellantis also announced plans to establish a production site for its German brand Opel in Algeria. The facility will be the first Opel plant outside Europe and is intended to serve both the Algerian market and the broader Africa and Middle East region.

Formed in 2021 through the merger of France’s PSA Group and Fiat Chrysler Automobiles, Stellantis owns 14 brands, including Fiat, Opel, Peugeot, Citroën, Alfa Romeo, and Dodge. In May 2025, the group also indicated it was considering assembling Alfa Romeo vehicles in Algeria.

The Algerian government offers incentives to attract automakers, including tax exemptions on imported inputs and access to land at reduced cost. In return, manufacturers must meet local integration requirements, reaching at least 10% within two years of production and 30% within five years.

Beyond Algeria, Stellantis operates assembly plants in Morocco and Egypt and is developing a project in South Africa. The company has said it aims to reach a 22% market share in the Africa and Middle East region by 2030.

Walid Kéfi