Hyundai Leaves Algeria For Morocco
After Volkswagen’s move to end its operations in Algeria, the South Korean giant is now following suit.
Hyundai has decided to leave Algeria and is now considering settling in Morocco, Algerian media reported.
According to reports, Hyundai decided to suspend its presence in Algeria because of the uncertainty that currently hangs over the country’s automotive sector.
Political instability prompted the Korean company to leave Algeria and consider investing in Morocco, Algerian newspaper Le Soir d'Algerie reported.
Citing “negative assessments about the investment climate in Algeria” as the company’s primary motivation to exit the Algerian market, the newspaper stated that Morocco “provides better investment opportunities.”
Hyundai followed the German Volkswagen approach, which decided to leave Algeria in the same month.
The German group decided to break its partnership with Sovac, its official representative in Algeria. Sovac announced the decision in a statement on August 11, saying that the two companies had agreed to end their relationship after several years of working together.
Hyundai’s decision is based on the “uncertainty” that currently hangs over the car industry in Algeria, according to the statement. It specified that the South Korean company was particularly concerned by the Algerian government’s suspension of marketing licenses for new cars.
Having ended its presence in Algeria over the government’s reluctance to issue or renew import licenses, Hyundai now seeks to expand to markets that are "promising and more stable in terms of organization to find outlets," according to Le Soir d'Algerie.
Hyundai Motor Co. dethroned Japanese rival Toyota Motor Corp. in the global hydrogen fuel cell electric car (FCEV) market in the first half of this year with the launch of a new business model, Yonhap news agency reported August 2.
Hyundai Motor, the maker of the Nexo SUV, sold about 4,700 units in the January-June period, up 62.7% year-on-year, according to the same source.
Hyundai had fallen to second place in the FCEV market in the first quarter but regained the lead with a 51.7% market share in the second quarter of the year thanks to strong sales of the Nexo 2021, which has been on sale since January.
Morocco is gradually becoming a hub for the automotive industry.
Automotive exports, which stood at MAD 72.18 billion ($80 million) in 2020, have remained Morocco's leading export sector for seven years, according to data from the Office des Changes.
In addition to traditional automotive manufacturing, Morocco has been developing its electric car manufacturing capacities through projects such as the Bouskoura plant, partnering with sector giants such as Tesla.
Source: Morocco World News.