Automotive industry in Morocco - statistics & facts
In recent years, Morocco has overtaken South Africa as the biggest vehicle exporter on the continent. The North African country has managed to grow its exports and secure investments from international manufacturers looking to move or expand their vehicle production, drawn by lower costs and the country's proximity to Europe. Additionally, Morocco's advancements in the electric vehicle market have boosted its automotive sector, positioning it as a key player to help the EU meet its low carbon emissions target by 2035. This is further solidified by the country's substantial phosphate resources, holding almost 70 percent of the world's reserves. So, just how advanced is Morocco’s automotive industry, and what actions have been taken that foster new investments and global partnerships?
As Morocco establishes itself as a global hub for vehicle production and exports, it continues to garner substantial partnerships. However, climate change is affecting the country’s water supply and drought is slowly spreading in the region. This could present a challenge to large-scale EV production, especially in water-intensive processes such as battery manufacturing. Hence, to fully capitalize on its automotive potential, Morocco needs to address these environmental concerns.
A market overview
By the end of 2023, Morocco's vehicle production reached 535,825 units, most of which were passenger cars. Of those, 145,292 were sold domestically as of the same year. Renault Group, a longstanding partner in Morocco’s automotive sector, had a crucial role in this output, particularly with its factories located in the major cities of Tangier and Casablanca. The French automaker has also been instrumental in driving automotive exports, which reached around 15.3 billion U.S. dollars in 2023. Despite the slight decline the industry experienced in exports in 2020 following the COVID-19 pandemic, the country's automotive industry managed to recover, achieving its highest exports yet of 329,049 passenger cars to the EU by 2022. This has solidified its position as one of Africa's top vehicle exporters and opened new opportunities for electric vehicle developments.Electric and hybrid vehicles – a new era?
Electric and hybrid vehicles have recently garnered popularity all over the world. In Morocco, consumers are gradually embracing this trend, with the country registering the sale of 463 electric vehicles, 561 plug-in hybrids, and 6,141 regular hybrids in 2023. Despite being in its early adoption stages of EVs, this moderate growth naturally entailed a development of infrastructure for charging these vehicles, therefore installing 1,500 AC charging stations and 100 DC fast chargers at various gas stations nationwide. Moreover, thanks to its Tanger Med port, one of the largest in Africa, the country’s role as a trade hub is further reinforced, making it an increasingly attractive destination for EV production and export. Recognizing this potential, Chinese companies have invested approximately ten billion U.S. dollars in Morocco’s growing EV sector.As Morocco establishes itself as a global hub for vehicle production and exports, it continues to garner substantial partnerships. However, climate change is affecting the country’s water supply and drought is slowly spreading in the region. This could present a challenge to large-scale EV production, especially in water-intensive processes such as battery manufacturing. Hence, to fully capitalize on its automotive potential, Morocco needs to address these environmental concerns.
