Morocco‘sโข Automotive โIndustry Accelerates Economic growth
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Rabat, โคMorocco – โคAugust 16, 2025 -โฃ Morocco is experiencing a notable surge in its automotive sector, transforming the nation into a regional โmanufacturing hub and bolstering its economic โฃdiversificationโค efforts. โStrategic investments and a proactive government policy โare fueling this growth, withโฃ exports โreaching record levels despite recentโ global economic headwinds.
A Strategic shift Awayโ From Agriculture
Historically reliant on agriculture, Morocco has strategically โขprioritized industrial growth to create a more resilient โand diversified economy. โขThis focused approachโ has โyielded impressive results,with the automotive industry leading the charge. Government initiatives have โdoubled employment โขinโ the sector, tripledโ the numberโข of new โคbusinesses,โ andโ quadrupledโค overall turnover.
The โsuccessโ is largely attributed to the influx of automotive manufacturers andโค a robust ecosystem of equipment suppliers serving firms worldwide.This โhasโ attracted substantial foreign investment, solidifying Morocco’s position as a key player in the automotive supplyโค chain.
Export Performance and Infrastructureโ Development
Automobile โฃexports reached 157.6 billion moroccan Dirham (DH) by the โend of โ2024, representing a 6.3% โฃincrease. This growth was driven by strong performance in vehicle assembly, wiring, and interiorโ componentโค manufacturing. In 2023, exports totaled 148 billion DH, a 28% jump from 2022 and an 82% increase compared to 2019. โข
Despite a 7% sector-wide decline in the first four months of 2025, attributed to a slowdown in the European market-particularly France- officials remain โoptimistic. ryad Mezzour,โ Morocco’s Minister โof Industry and Commerce, stated, “We are confident as to โa new dynamic allowing toโค boost our exports. We continue to develop our policy to diversify marketsโ and aspireโ toโข become less vulnerableโค to this kind of economic situation.”
Did โขYou Know? morocco’s strategic location, coupled with its port โinfrastructure like Tangier Med, provides efficient access to globalโ value chains, making it an attractive โคdestination for โขautomotiveโฃ investment.
The Dacia Sandero: A European Bestseller
The Dacia Sandero, manufactured โin Morocco, โhas consistently โฃranked as โฃthe best-selling car inโฃ Europe for several years. In 2024, 270,000 units where sold, โdriven by its affordability (priced aroundโค 13,000โ euros), reliable performance, and high โcustomer loyalty-currently at โฃ68%.โ Othre Moroccan-made โDacia models, including the โฃLogan,โ Lodgy, and Jogger, are also gaining traction, alongside Renault’s Express andโ Kardian vehicles.
Futureโข Outlook and โขInvestment
Bank Al-Maghrib โคforecasts a stabilizationโฃ of automotive sector sales in the current year, followed by improvementโ to โค188 billion DH in 2026.โข Morocco is actively โคexpanding โฃitsโ export markets, currently reaching 70 countries, with aโ long-term goal of โค95 to 100 to mitigate geographic concentration risks.
The kingdom isโฃ also investing heavily โin emerging โคautomotive technologies, particularly electric vehicle components.โ Aโค largeโฃ factory operated by Gtion Hight Tech, โฃwith an โคinvestment of 65 โฃbillion DH, is โunder construction within the Atlantic Free โZone (AFZ) and will primarilyโ serve European and Chinese manufacturers. โข Zhejianj Hailiang โisโข alsoโ investing 3.9 billion โDH in a lithium battery construction project,โฃ with a โplanned production capacity of โ50,000โข tonnes of alloys, 35,000 tonnes of tubes, 40,000 tonnesโ of bars, and โข25,000 tonnesโ of โleaves annually. Citic dicastal is expanding โits presence with a third factory focused on aluminum rims.
Pro Tip: Morocco’s competitive labor โคcosts and favorable โbusiness environment โare key factors attracting automotive manufacturers and suppliers.
Key Automotive Sector Data (2023-2026)
| year | Exports (Billion DH) | Growth Rate (%) |
|---|---|---|
| 2023 | 148 | 28% (vs. 2022) |
| 2024 | 157.6 | 6.3% |
| 2025 (Projected) | Stagnant | – |
| 2026 (Forecast) | 188 | – |
Abdellatif Jouahri,โข Wali of Bank โAl-Maghrib,โข expressedโค confidence in the sector’s future, noting โฃthat Renault and Stellantis areโค operating atโฃ nearly full capacity (97-98%).He acknowledged the challenges posedโ by the โขinflux of Chineseโข electric vehicles in โขEurope but emphasized Morocco’s adaptability and commitment to innovation.
What role will Morocco play in theโฃ global shift towards electric โvehicles, and how will it navigate the competitive landscape? How โขwill the country continue to attract foreign investment and maintain its growth โขtrajectory โฃin the automotive sector?
Morocco’s โคautomotive success story is part of a broader trend โof nearshoring and reshoring in the global manufacturing landscape.โ Companies are increasingly seeking to diversify their supply chains and reduce reliance on single sources, making countries like Morocco-with their strategic locations, competitive costs,โข and stable political environments-highly โattractive. The development of theโข electric vehicle battery sector is particularly significant, positioningโ Morocco as a potential leader in the green energy transition.
Frequentlyโค Asked Questions
- What is driving theโฃ growth of the automotive โindustry in Morocco? Strategic government policies, โforeignโค investment,โฃ and a skilled โฃworkforce are key drivers.
- Which car is โฃcurrently theโ best-selling inโ Europe and is made in Morocco? The Dacia Sandero.
- What โฃare Morocco’s plans for โthe future of automotive manufacturing? โFocus on electric vehicle components, diversification โฃof export markets, and expansionโค of infrastructure.
- What challenges does the Moroccan automotive industry face? Competition from Chinese electric vehicles and โfluctuations in the European market.
- How is Morocco attractingโฃ foreign investment in the automotive sector? โข Throughโฃ a favorable business environment, strategicโข location, and competitive labor costs.
The automotive industry’s success in Morocco is a testament to โthe country’s strategic vision and commitment to economic diversification. As โขthe sectorโ continues to evolve, Moroccoโ is poised to play an increasingly important role in the global automotive landscape.