Morocco’s Automotive Industry Set to Benefit from €30 Million Huawei Investment

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Huawei Technologies Co. Ltd., the Chinese tech giant, has announced a significant investment in the automotive sector, in partnership with another Chinese company, Wan’an Technology, according to Chinese media. The joint venture will focus on manufacturing and selling car parts, with a total investment of 30 million euros to establish a production facility in Morocco. This marks a significant step in expanding China’s role in Morocco’s automotive industry.

Huawei, renowned for its IT infrastructure and smart devices, will contribute 19.5 million euros (around 65% of the venture), while Wan’an Technology will invest 10.5 million euros (about 35%). Wan’an specializes in automotive brake component manufacturing and design, with a strong presence in China’s automotive industry. It owns a manufacturing base and holds full ownership of about 8 companies, in addition to 13 subsidiaries and joint ventures.

The goal of this venture is to enhance the competitiveness of Chinese automotive parts manufacturers in the North African and European markets. Huawei’s investment is part of its broader strategy to strengthen its international footprint and improve the competitiveness of its global operations.

This move follows the European Union’s imposition of tariffs on Moroccan aluminum alloy wheel imports, a decision tied to China’s financial backing of a Moroccan exporter under the Belt and Road Initiative. The European Commission determined that these subsidised imports were damaging European industries producing the same products.

Chinese economic analyst Nader Rong noted that the ongoing trade tensions between China and the U.S., along with numerous tariffs on Chinese exports to European and American markets, have made Morocco an attractive base for Chinese companies. He emphasized that Morocco’s strategic location and favourable tariff conditions have made it a key destination for Chinese automotive investments.

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Rong also pointed out that Morocco’s robust automotive manufacturing capabilities, particularly in electric vehicles, and its abundant supply of raw materials, such as metals for battery production, make it an ideal investment hub. Moroccan economist Mehdi Fakir added that Huawei, like other Chinese companies, is moving closer to its target markets to reduce production and shipping costs. He noted that tax incentives, improved infrastructure, and lower production costs, especially in labour and energy, were major factors influencing the decision to invest in Morocco rather than Europe.