Stellantis Expands Tafraoui Fiat Plant to Scale Production to 135,000 Units Annually by 2028

Stellantis Expands Tafraoui Fiat Plant to Scale Production to 135,000 Units Annually by 2028

By Dr. Hana Saada

Stellantis has entered a decisive new phase in its industrial deployment in Algeria, initiating the expansion of its Fiat manufacturing facility in Tafraoui with a clearly defined objective: to elevate annual production capacity to 135,000 vehicles by 2028.

This expansion marks a structural recalibration of the site’s industrial scope. By extending body welding operations, reinforcing assembly lines, and installing a new paint unit, the group is aligning the plant’s technical architecture with the accelerating rhythm of production and the sustained growth of domestic demand. The Tafraoui facility is thus being repositioned within Stellantis’ manufacturing hierarchy as a core hub for Africa and the Middle East.

Beyond its operational dimension, the project reflects a deliberate industrial strategy aimed at embedding Algeria within the regional automotive value chain. The approach combines progressive localization with scaled production capacity, reinforcing the country’s role as a competitive manufacturing base rather than a peripheral assembly point.

For Samir Cherfan, Chief Operating Officer for the Middle East and Africa region, the trajectory of the Tafraoui plant illustrates a rapid and disciplined industrial build-up. Within a compressed timeframe, the facility has transitioned from initial assembly stages to the activation of welding and painting operations, signaling a sustained acceleration in capability and output.

He further underscored that the current expansion phase is integral to a broader objective: establishing Algeria as a solid industrial platform capable of supporting the growth of a fully integrated automotive ecosystem.

Since its commissioning in December 2023, the plant has demonstrated a steep production curve, moving from 17,000 units in 2024 to 53,000 vehicles in 2025. The commissioning of welding and paint workshops in September 2025 has reinforced operational depth and underpins the forthcoming local rollout of the Fiat Grande Panda under the CKD system.

Simultaneously, the conclusion of an agreement covering pressed metal components with a domestic industrial partner has strengthened upstream integration, contributing to the consolidation of the local value chain and the densification of Algeria’s industrial fabric.

Projections indicate that output will reach 90,000 vehicles in 2026 before converging toward the 135,000-unit annual target by 2028, driven by the ongoing expansion programme.

This investment is expected to generate more than 1,000 direct and indirect jobs while deepening local integration through increased production volumes. It also extends new industrial opportunities to Algerian suppliers and partners, reinforcing the country’s positioning as an emerging automotive manufacturing pole at the regional level.