Automotive Division Head: Local Assembly Continues to Outperform Amid Regional Tensions

Automotive Division Head: Local Assembly Continues to Outperform Amid Regional Tensions

Analyses and Reports
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Jun 7, 2026 07:26 PM

Omar Belbaa, Head of the Automotive Division at the Federation of Chambers of Commerce, stated that locally assembled vehicles remain in a stronger position than imported models, particularly amid current conditions and ongoing regional tensions affecting trade flows and supply chains.

Belbaa noted that local vehicle assembly surpassed imported cars in terms of volumes during the previous year. He added that expectations had pointed to an even wider gap in favor of domestic production throughout 2026.

He explained that the current regional tensions have cast a shadow over the automotive market and have somewhat affected the anticipated pace of growth. However, these challenges have not prevented the local assembly sector from maintaining its strong performance and key competitive advantages over imported vehicles.

The Automotive Division head also emphasized that the availability of sufficient inventories of components and production parts within local factories is helping manufacturers sustain healthy operating rates and achieve strong production figures in the coming period, despite challenges facing regional and global markets.