Morocco’s automotive industry gains prominence on the African stage

Morocco’s automotive industry gains prominence on the African stage

Morocco’s automotive industry is gaining prominence, as highlighted in a recent report by the United Nations Conference on Trade and Development (UNCTAD).

Despite challenges from supply chain disruptions, notably due to the impact of COVID-19, Morocco’s proactive strategies have positioned it significantly within the regional automotive manufacturing landscape.

The UNCTAD report not only acknowledges global automotive industry challenges but also spotlights Morocco’s commendable achievements.

Although contributing a modest 1.2% to the total global automotive volume, Morocco strategically aligns itself with key players like South Africa, Algeria, and Egypt.

Several factors contribute to Morocco’s success, including savvy investments in infrastructure, favorable geographic proximity to Europe, and well-crafted policies fostering the sector. A narrative of growth underscores Morocco’s shift from vehicle assembly to direct production over time.

The report also highlights Morocco’s appeal as a preferred destination for global automotive leaders. The business-friendly environment has attracted giants like German Motor Distributors, Renault, Snop, Stellantis, Sumitomo Electric Wiring Systems, and Yazaki.

UNCTAD attributes Morocco’s success in luring multinational corporations and nurturing local contributions to a multifaceted approach. This includes significant infrastructure investments, creation of tax-incentive special economic zones, and leveraging Europe’s strategic proximity.

Initiatives like the 2014–2020 Industrial Acceleration Plan and the establishment of automotive hubs, such as those in Kenitra and Tangier, have been pivotal in nurturing an automotive ecosystem.

The report underscores Morocco’s integration into the global economy through free trade agreements, further enhancing its appeal to potential investors.

The report advocates diversifying vehicle export destinations to ensure sustained growth and secure supply chain stability.

Morocco’s growth narrative extends to engineering, research, and development capabilities. The establishment of a regional technical center by Stellantis and Africa’s inaugural automobile testing center highlight the country’s commitment to progress.

With ambitious goals, Morocco aims to reach an annual production of one million vehicles by 2025, alongside elevating local integration rates to an impressive 80%. The 2020 annual production capacity of 700,000 vehicles serves as a significant milestone.


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