Automotive industry, a safe bet for investment in Morocco

The automotive sector: a driving force in Moroccan development that generates huge profits 
Planta de Renault-Nissan Tánger en Melloussa - AFP/FADEL SENNA
Renault-Nissan Tánger plant in Melloussa - AFP/FADEL SENNA

From Morocco, local investors are encouraged to participate in the automotive sector. In order to achieve a qualitative leap that will increase the attractiveness of the national industry, Ryad Mezzour, Moroccan Minister of Industry and Trade, has stressed to investors the importance of getting involved in the automotive industry. 

Ryad Mezzour, ministro de Industria de Marruecos -PHOTO/FILE
Ryad Mezzour, Minister of Industry of Morocco - PHOTO/FILE

Automotive is Morocco's main industrial sector. It has the highest export figures. Specifically, it reached 14,000 in 2023 and is predicted to grow by 5.8% in 2024. It is also crucial for its ability to increase capital in the private sphere and strengthen the labour market, thanks to the number of jobs it generates.  

The sector boasts 86% of national exports, made possible by 260 active factories, which provide around 238,000 jobs for workers. All this results in an output of 35.9 billion dollars, which will increase when the 60 factories that are planned to be built in the near future are erected. 

The investment in this industry is the last step for the state to consolidate itself as a competitive platform for car production. The annual car production capacity is 700,000 vehicles a year. Rabat aims to reach one million per year by 2025 and two million by 2030. 

In the most favourable case, Casablanca would become an international financial hub. This could happen if the automotive industry and the stock exchange were to work together.  

Casablanca Finance City (CFC) - FILE
Casablanca Finance City (CFC) - FILE

The automotive sector currently represents 1% of the value of the Moroccan market (a figure that is expected to double or even triple in the not too distant future). Moreover, the stock exchange makes it possible to list on the capital market and opens up the horizon for financing. The combination of the automotive industry and the stock exchange would be a win-win deal. 

Morocco's industrial fabric is strong. Hence the concern to devise strategies to enhance its development. With the "Made in Morocco" label, a guarantee of quality and competitiveness, the country manages to integrate value chains in both a regional and global context. All of this with the aim of becoming an industrial benchmark. 

Planta de montaje de automóviles PSA de Kenitra - AFP/FADEL SENNA
PSA car assembly plant in Kenitra - AFP/FADEL SENNA

"Made in Morocco" includes a series of norms and standards that aim to make Morocco synonymous with quality and innovation. The brand has already presented several projects in the automotive field: the design of a car by the first Moroccan manufacturer, New Motors, and the prototype of a hydrogen car by NamX. 

Morocco set out to prosper and has succeeded. These proposals pave the way for a new generation of companies in the local market. According to data from the Automotive Federation of the General Confederation of Moroccan Enterprises, the annual turnover in the automotive sector exceeds 22 billion dollars. The growing competitive strength of an increasingly attractive automotive industry is therefore evident.