Exports from Morocco’s automotive industry continue to grow
Last year witnessed a significant milestone for Morocco’s automotive sector, as it surpassed phosphates to become the country’s largest export industry. According to a recent report by the country’s foreign trade watchdog, the bureau de change (OE), exports from the automotive sector reached 141.7 billion dirhams ($13.9 billion) in 2023, marking a remarkable 27% increase compared to the previous year’s figure of 111.2 billion dirhams ($11 billion).
The impressive growth in automotive exports can be attributed to several factors, including the expansion of the automotive sector itself and the rise of businesses related to automotive wiring. The wiring sector experienced a staggering 32% increase in exports, amounting to 46.1 billion dirhams ($4.5 billion) by the end of 2023.
Additionally, the automotive construction industry, which encompasses the manufacture and assembly of essential components, witnessed an annual growth rate of 22%, with exports reaching 67.6 billion dirhams ($6.7 billion). The propulsion systems industry, responsible for manufacturing internal vehicle systems, also recorded substantial growth, with exports exceeding 11.3 billion dirhams ($1.1 billion) and an annual growth rate of 25%.
The automotive sector’s transformation in Morocco has been a long and fruitful journey, evolving from vehicle assembly to becoming a leading production center. Last year, the production of 403,007 units contributed to the creation of approximately 220,000 jobs within the industry. Moreover, the emergence of over 230 Tier 1 and 2 suppliers and a local integration rate of 60% further solidified Morocco’s position in the automotive industry.
This success can largely be attributed to specific government policies, which have created favorable conditions for massive infrastructure projects and facilitated a conducive business climate. Notably, the Industrial Acceleration Plan 2014-2020 has been instrumental in the creation of various industrial parks and automotive cities such as Kenitra and Tangier, which have played a pivotal role in fostering the growth of the automotive ecosystem.
Morocco’s integration into the global economy through free trade agreements has also contributed significantly to its attractiveness to investors, as highlighted in UNCTAD’s 2023 report. Additionally, the country’s engineering research and development capabilities have made it Africa’s leading automotive testing center, further enhancing its appeal. Industry giants like Stellantis have recognized Morocco’s potential and established automotive technical centers within the country.
Looking ahead, Morocco aims to increase its annual production capacity to one million cars by 2025 while raising the local integration rate to 80%. The government strategies prioritize improving local integration, expanding industrial activities, upgrading the value chain, facilitating technology transfer, and diversifying export markets. The country has successfully attracted major automotive groups, further reinforcing its status as a leading production center.
Despite the ambitions to expand global reach, the European market remains the primary focus for vehicle assembly due to relatively low domestic vehicle registrations. Renault, one of the key players in the Moroccan automotive sector, exports a significant portion of its production, even with a production capacity of 400,000 units. Notably, the Citroën Ami, manufactured in Kenitra, emerged as Spain’s best-selling vehicle in 2022.
With an increasing shift towards manufacturing complex and high-value components, such as engine manufacturing and research and development, Morocco’s automotive industry continues its upward trajectory. Furthermore, the country produces approximately 40,000 to 50,000 electric vehicles annually.
The growth of Morocco’s automotive industry showcases the country’s commitment to becoming a global player in the sector. Through strategic government policies, robust infrastructure development, and favorable trade agreements, Morocco has positioned itself as a hub for automotive manufacturing and innovation. As the industry expands and evolves, the country’s ambition to become a powerhouse in the global automotive market continues to drive progress and fuel economic growth.
