• Chinese brand Omoda & Jaecoo to partner with Algeria's IRIS to produce tourist vehicles
• Project targets local industrial growth and possible exports to African markets
• Government offers tax and land incentives tied to minimum integration thresholds

Chinese carmaker Omoda & Jaecoo plans to build a factory for tourist vehicles in Algeria through a joint venture with local private group IRIS, the Algerian Ministry of Industry announced on Wednesday, June 11, 2025.

The project aims to support the growth of Algeria's automotive industry by boosting domestic production and increasing the local integration rate for vehicles and spare parts. The announcement followed a meeting between Industry Minister Sifi Ghrieb and representatives of New Generation, a joint venture formed by Omoda & Jaecoo and IRIS.

The Ministry stated that both parties also discussed involving Chinese subcontractors in the project’s future stages to promote technology transfer and strengthen industrial integration. They also reviewed potential export opportunities to African markets.

Omoda & Jaecoo is a subsidiary of China’s Chery Automobile. In April 2025, Chery signed a separate agreement with IRIS to establish a vehicle body painting and welding facility.

IRIS, based in Sétif in northeastern Algeria, specializes in producing electrical and electronic devices, along with car tires.

To reduce vehicle imports and diversify its economy, Algeria offers several benefits to car manufacturers. These include tax exemptions on imported production inputs and access to industrial land at discounted prices. In return, manufacturers must meet specific integration thresholds: at least 10% by the end of the second year of operations, and 30% by the end of the fifth year.