Elsewedy Electric proposes EV assembly plant in Algeria under Elsewedy Ezz brand

Elsewedy Electric submitted a feasibility study to Algeria’s Prime Minister’s Office to build an electric and hybrid vehicle assembly plant, Elsewedy Electric Algeria GM Mostafa Awad said on the sidelines of the NAPEC 2026 energy conference in Oran last Friday, according to Algerian press reports. The proposed facility would assemble vehicles under the Elsewedy Ezz brand, targeting an 80% electric and 20% petrol production split. The company aims for a 50-60% local integration rate, sourcing engines from German and Chinese suppliers while manufacturing other components locally. No site or commissioning timeline has been set.

Brand & capacity: Elsewedy plans to export 25% of the plant’s output to roughly 20 international markets — including the US, Italy, Saudi Arabia, and Chile — targeting USD 25-30 mn in annual export revenues. The Algerian plant would replicate the Elsewedy Ezz assembly model the group built in Egypt — where Elsewedy Capital and Ezz El Arab first partnered to launch Ezz Elsewedy Automotive Factories and are now expanding their 6th of October complex to target over 80k vehicles annually.

Why it matters: Elsewedy is trying to “de-risk and diversify” supply chains, insulating itself from foreign-exchange volatility and regional trade bottlenecks, Confluence Consultants Head of Research Amandeep Ahuja tells EnterpriseAM. Algerian-assembled EVs could also offer a “cheaper alternative to European EV brands,” simplifying market entry into Spain and Italy while compounding pressure on European automakers already facing Chinese competition, Ahuja notes. For broader African markets, she sees the venture as a “new and exciting [prospect] for the green transition.” The move also aligns with Algeria’s national strategy to convert 30% of its domestic vehicle fleet to clean energy by 2030.

REMEMBER- The EV proposal builds on Elsewedy’s 15-year, USD 20 bn infrastructure presence in Algeria, allowing the firm to branch into automotive manufacturing. Elsewedy proposed an additional USD 1.3 bn investment package in Algeria’s industry, housing, tourism, and agriculture sectors in May, following a USD 2.5 bn multi-factory commitment signed in September 2025 covering electrical industries and water infrastructure.

What’s next: The company is awaiting regulatory approvals for a steel plant, an aluminum facility, and seven specialized manufacturing sites covering piping, PVC resin, fiber optics, center-pivot irrigation systems, and electrical transformers, for which Algerian authorities are currently evaluating land allocation.