China’s Sokon to build 60,000-capacity car plant in Algeria

Chinese carmaker Sokon, a subsidiary of the state-owned Dongfeng Motor Group, is building a car and bus assembly plant in Algeria with a production capacity of about 60,000 vehicles per year.

Sokon is the latest Chinese carmaker to enter the growing Algerian market to take advantage of a set of incentives announced by the Arab country for industrial projects three years ago, including tax exemptions and affordable land lease.

Sokon said in a statement that it would initially invest about AD8.9 billion ($67 million) in the project in the Northeastern Batna city.

The plant will have three production lines, the first of which will be operational in August, the company said. It added that the project will produce nearly 60,000 assembled cars and buses per year when it is fully commissioned within 15 months.

Algeria’s incentives for industrial projects, mainly vehicles, are part of a strategy to reduce reliance on imports and expand domestic car production capacity.

Earlier in March, another Chinese car manufacturer, Great Wall Motor, said it would build a car assembly plant in Algeria as a joint venture with a local partner to take advantage of a steady growth in the Algerian market.

In May 2025, Chinese car maker Jetour announced plans to build a car assembly plant in Algeria within an expansion strategy in the Middle East and North Africa.

Earlier in March, another Chinese car manufacturer, Great Wall Motor, said it would build a car assembly plant in Algeria as a joint venture with a local partner to take advantage of a steady growth in the Algerian market.

Other major global automobile makers such as Fiat, Kia and Peugeot already have production units in Algeria.

Further reading:

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• Algeria approves $5.4bn oil deal with Midad Energy
• Egypt launches first project in car production city