Here's why Fiat has halted orders for its 500 hybrid in this country, despite strong demand

Fiat is facing an unprecedented situation in Algeria. And the Fiat 500 hybrid model is proving exceptionally popular, the brand was forced to temporarily suspend orders. Behind this decision lie logistical and financial challenges. an atypical year marked by the absence of import quotas.

Record demand due to local constraints

In Algeria, 2024 has been described as a "blank year" in terms of vehicle import quotas. Every year, the Algerian authorities set quotas allowing dealers to import cars. However, these quotas were never allocated in 2024. Deprived of access to new imported vehicles, Algerians naturally turned to locally produced cars.

Against this backdrop, the Fiat plant at Tafraoui, near Oran, has seen its models take on crucial importance. These include the Fiat 500 hybrid and the Fiat Doblo have seen exponential demand. In just ten days of November, orders for the 500 hybrid exceeded those for the whole month of October, prompting Stellantis Algérie to suspend sales to avoid excessive delivery times.

The Tafraoui plant, inaugurated after an investment of 200 million eurosplays a key role in Fiat's strategy in North Africa. Capable of producing up to 90,000 vehicles a year by 2026, it focuses on models adapted to the local market, where combustion and hybrid cars remain popular. This plant represents a pragmatic response to the strong demand for affordable, reliable cars.

The Fiat 500 hybrid, with its timeless design and tailored performance, has established itself as a real star in Algeria. But this popularity is outstripping production forecasts, creating a tension between supply and demand.

The absence of quotas: an opportunity for Fiat?

According to Aniss, Fiat distributor in Algeria, who contacted Italpassion, The absence of import quotas in 2024 played a decisive role in this situation. In the absence of imported vehicles, Algerian consumers have invested massively in locally produced cars. If this situation continues into 2025, Fiat may be prompted to further expand its Algerian-produced range.

Could the absence of quotas encourage Fiat to invest more in local production to meet this growing demand? Such a decision would not only strengthen the brand's presence in Algeria, but also its role in the region's industrial development.

A striking contrast with Europe

While the Fiat 500 hybrid shines in Algeria, the electric model is struggling to win over customers in Europe. The Mirafiori plant in Italy, dedicated to the production of electric versions, faces frequent shutdowns due to low demand. The latest announcement plant shutdown until January 2025. This contrast illustrates the profound differences between our markets: a Europe focused on electric vehicles, and a North African market where hybrids and combustion engines remain highly attractive.