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Renault Is Playing Its Survival in Algeria

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Renault Algeri

Far from its former commercial successes, Renault seems to be heading down a treacherous path in Algeria

An environment of increasing tensions between France and Algeria could well seal the future of the diamond-shaped brand in the country. After months of uncertainty, Renault Algeria has decided to resume the conformity process for its Oran assembly plant with the new specifications established in November 2022. After nearly two years of delays, this appears unfortunately more as a desperate attempt than a true sign of resilience.

The French company, which hopes to obtain approval from the Algerian Ministry of Industry to resume its assembly and import activities, cannot ignore the scale of the obstacles ahead. Strict legislative adjustments, combined with a volatile economic context, have already placed Renault Algeria Production (RAP) in a critical situation, fueling speculation about a possible permanent withdrawal.

What can industry do in the face of politics?

Although the brand hints at wanting to reorganize its activities, alarming signals abound. The reopening of the Oued Tlelat factory, near Oran, or the return of popular models like the Clio or Dacia Stepway, remain hypothetical. The fierce competition from Chinese brands, which leverage their aggressive positioning and competitive pricing, risks overshadowing Renault’s limited hopes.

Even more alarming, the tense relations between France and Algeria further complicate the equation. These unpredictable tensions, often exacerbated, could become a deal-breaker for Renault, threatening to put an abrupt end to its ambitions in this country.

With a deadline set for the end of the first half of 2025, Renault’s future in Algeria seems increasingly bleak. This date could very well mark the final act of a chapter that, despite the brand’s efforts, risks ending with a definitive withdrawal. Renault, once the undisputed leader, might become a footnote in Algerian automotive history.

READ ALSO: The first Algerian electric car ready to hit the road

This page is translated from the original post "Renault joue sa survie en Algérie" in French.

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