The Fiat 500 has become a significant success story in Algeria. Less than two years after its introduction to the Algerian market in March 2023, this compact Italian city car is widely seen on Algerian roads, carving out a dominant position among other automotive brands.
Recently, orders for the Fiat 500 hybrid model, assembled in Oran, have surged dramatically, compelling Stellantis El Djazaïr to implement drastic measures.
According to a memo dated November 13, the Franco-Italian-American conglomerate that includes Fiat directed its teams to halt order-taking for the small city car effective Thursday, November 14.
The memo, shared on social media by Stellantis El Djazaïr, highlighted that orders for the Fiat 500, which has been produced at Fiat’s Algerian facility since December 2023, surpassed October's total orders within just ten days.
Fiat Algeria introduces measures to manage overwhelming demand
"Within ten days, thanks to your efforts, you have more than doubled the number of orders compared to the entire month of October," Stellantis Algérie stated in the note to its teams working at the Oran plant.
No date has been determined for the resumption of Fiat 500 orders. Only pre-order registrations will be accepted, and customer payments are prohibited, according to the document obtained by TSA.
Besides the Fiat 500, which faces overwhelming demand compounded by limited new vehicle supply in Algeria, Stellantis has taken further action regarding its Fiat Doblo SUV.
Since Thursday, orders for this Oran-assembled SUV now come with a “90-day lead time,” reflecting Fiat's struggle to keep up with surging demand for these popular models.
Fiat’s Algerian assembly plant, inaugurated in December 2023, was initially set to produce 60,000 vehicles in 2024, with plans to increase its capacity to 90,000 units in the following years.
Algeria's automotive market: grappling with a massive deficit
Fiat is the first automaker to establish an assembly plant in Algeria under new regulations introduced in November 2022.
Stellantis El Djazaïr’s steps to manage demand for its two flagship models underscore the ongoing crisis within Algeria's automotive market, which has been without new vehicle imports for over three years.
In 2020, the government dismantled several assembly units operated by various automakers, which had been established since the opening of the first Renault plant in Oran in 2014.
Many executives of Algerian car dealerships involved in assembly operations were arrested and handed heavy prison sentences amid anti-corruption investigations following the fall of President Abdelaziz Bouteflika in April 2019.
The closure of the market has triggered a severe crisis, with vehicle shortages and skyrocketing second-hand car prices.
Experts estimate that Algeria's market deficit exceeds 1.2 million new vehicles, necessary to meet demand and replace aging or damaged vehicles.
Comments