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Morocco is establishing itself as the continental leader in the automotive industry, aiming to achieve an annual production of 1 million units by 2025. Last year marked the latest milestone for Morocco’s continuously expanding automotive sector, as the industry dethroned the phosphate business to become the country’s largest exporting industry.
In 2023 Morocco’s automotive industry export clocked USD 13.9 billion export up from USD 11 billion from the previous year marking an impressive 27% year-on-year increase, according to the Office d’Exchange (OE), the country’s foreign trade watchdog. The growth in the car industry exports was propelled by the expanding automotive wiring harness industry, which is the assembly of electrical wires, connectors, and other components to create the wiring system within a vehicle.
At the end of 2023, the wiring industry’s exports rose by a sweeping 32%, settling at USD 4.5 billion. Likewise, the car construction industry which covers the fabrication and assembly of structural components, body panels, chassis, and other essential parts, grew by an annual rate of 22%, with exports reaching USD 6.7 billion. Meanwhile, the powertrain industry, which manufactures internal vehicular systems, recorded a 25% annual growth rate, with exports exceeding USD 1.1 billion.
Since 1957, the automotive sector in Morocco has transformed from merely assembling vehicles to full-fledged production. In 2021, the country manufactured a total of 403,007 units, of which USD 8.3 billion worth was exported, with USD 3.4 billion accounting for finalized vehicle exports. The production growth led to the creation of about 220,000 jobs in the industry. In addition, a network of more than 230 Tier 1 and 2 suppliers emerged, contributing to a local integration rate of 60%.
State policies like the Industrial Acceleration Plan 2014-2020 along with the construction of industrial parks and automotive cities like Kenitra and Tangier, have nurtured the automotive ecosystem. Morocco’s integration into the global economy through free trade agreements has further solidified its attractiveness to investors. The country’s engineering research and development capabilities have grown, with Morocco becoming home to Africa’s first automobile testing center. In addition, Stellantis established an auto technical center near Casablanca.
Morocco positioned itself as a prominent production hub, attracting various major groups like German Motor Distributors, Renault, Snop, Stellantis Sumitomo Electric Wiring Systems, and Yazaki. The country’s automotive industry reached a significant milestone as the focus of manufacturing is shifting toward intricate high-value components, including engine manufacturing, engineering, as well as research and development. The country also produces around 40,000 to 50,000 electric vehicles annually.
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However, domestic vehicle registration remains low – recording 175,435 units in 2021– the primary orientation for vehicle assembly is the European market. Renault, for instance, exports the majority of its production despite having the largest assembly plant with a capacity of 400,000 units. The Citroen Ami, produced in the Moroccan city of Kenitra, emerged as Spain’s best-selling vehicle in 2022.
