Morocco‘s Automotive Industry Accelerates Economic growth
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Rabat, Morocco – August 16, 2025 - Morocco is experiencing a notable surge in its automotive sector, transforming the nation into a regional manufacturing hub and bolstering its economic diversification efforts. Strategic investments and a proactive government policy are fueling this growth, with exports reaching record levels despite recent global economic headwinds.
A Strategic shift Away From Agriculture
Historically reliant on agriculture, Morocco has strategically prioritized industrial growth to create a more resilient and diversified economy. This focused approach has yielded impressive results,with the automotive industry leading the charge. Government initiatives have doubled employment in the sector, tripled the number of new businesses, and quadrupled overall turnover.
The success is largely attributed to the influx of automotive manufacturers and a robust ecosystem of equipment suppliers serving firms worldwide.This has attracted substantial foreign investment, solidifying Morocco’s position as a key player in the automotive supply chain.
Export Performance and Infrastructure Development
Automobile exports reached 157.6 billion moroccan Dirham (DH) by the end of 2024, representing a 6.3% increase. This growth was driven by strong performance in vehicle assembly, wiring, and interior component manufacturing. In 2023, exports totaled 148 billion DH, a 28% jump from 2022 and an 82% increase compared to 2019.
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 optimistic. ryad Mezzour, Morocco’s Minister of Industry and Commerce, stated, “We are confident as to a new dynamic allowing to boost our exports. We continue to develop our policy to diversify markets and aspire to become less vulnerable to this kind of economic situation.”
Did You Know? morocco’s strategic location, coupled with its port infrastructure like Tangier Med, provides efficient access to global value chains, making it an attractive destination for automotive investment.
The Dacia Sandero: A European Bestseller
The Dacia Sandero, manufactured in Morocco, has consistently ranked as the best-selling car in Europe for several years. In 2024, 270,000 units where sold, driven by its affordability (priced around 13,000 euros), reliable performance, and high customer loyalty-currently at 68%. Othre Moroccan-made Dacia models, including the Logan, Lodgy, and Jogger, are also gaining traction, alongside Renault’s Express and Kardian vehicles.
Future Outlook and Investment
Bank Al-Maghrib forecasts a stabilization of automotive sector sales in the current year, followed by improvement to 188 billion DH in 2026. Morocco is actively expanding its export markets, currently reaching 70 countries, with a long-term goal of 95 to 100 to mitigate geographic concentration risks.
The kingdom is also investing heavily in emerging automotive technologies, particularly electric vehicle components. A large factory operated by Gtion Hight Tech, with an investment of 65 billion DH, is under construction within the Atlantic Free Zone (AFZ) and will primarily serve European and Chinese manufacturers. Zhejianj Hailiang is also investing 3.9 billion DH in a lithium battery construction project, with a planned production capacity of 50,000 tonnes of alloys, 35,000 tonnes of tubes, 40,000 tonnes of bars, and 25,000 tonnes of leaves annually. Citic dicastal is expanding its presence with a third factory focused on aluminum rims.
Pro Tip: Morocco’s competitive labor costs and favorable business environment are 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, Wali of Bank Al-Maghrib, expressed confidence in the sector’s future, noting that Renault and Stellantis are operating at nearly full capacity (97-98%).He acknowledged the challenges posed by the influx of Chinese electric vehicles in Europe but emphasized Morocco’s adaptability and commitment to innovation.
What role will Morocco play in the global shift towards electric vehicles, and how will it navigate the competitive landscape? How will the country continue to attract foreign investment and maintain its growth trajectory in the automotive sector?
Morocco’s automotive success story is part of a broader trend of nearshoring and reshoring in the global manufacturing landscape. 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, and stable political environments-highly attractive. The development of the electric vehicle battery sector is particularly significant, positioning Morocco as a potential leader in the green energy transition.
Frequently Asked Questions
- What is driving the growth of the automotive industry in Morocco? Strategic government policies, foreign investment, and a skilled workforce are key drivers.
- Which car is currently the best-selling in Europe and is made in Morocco? The Dacia Sandero.
- What are Morocco’s plans for the future of automotive manufacturing? Focus on electric vehicle components, diversification of export markets, and expansion of infrastructure.
- What challenges does the Moroccan automotive industry face? Competition from Chinese electric vehicles and fluctuations in the European market.
- How is Morocco attracting foreign investment in the automotive sector? Through a favorable business environment, strategic location, and competitive labor costs.
The automotive industry’s success in Morocco is a testament to the country’s strategic vision and commitment to economic diversification. As the sector continues to evolve, Morocco is poised to play an increasingly important role in the global automotive landscape.
