Morocco, a role model for Africa
The Moroccan model has become a benchmark on the African continent. 65 are the years of experience, development and growth that the sector has in the Alawite country. Since the opening of the Société Marocaine de Constructions Automobiles in 1957 to the present day, the growth has been exponential.
According to the latest report of the United Nations Conference on Trade and Development (UNCTAD), the Kingdom generated 8,300 million in exports in 2021, of which 3,400 million were cars. Compared to other countries analyzed, UNCTAD granted Morocco the status of “reference”.
According to the report, 403,007 units were produced in 2021. A growing Original Equipment Manufacturer (OEM) network of more than 230 tier 1 and tier 2 suppliers has been established, and the sector has generated around 220,000 new jobs. The country is now positioned as a productive platform with the entry of several groups, including Stellantis Sumitomo Electric Wiring Systems (technical range of systems and components), Renault, German Motor Distributors, Snop (supplier of parts and components) and Yazaki (the world's largest cable manufacturer).
UNCTAD stresses that this represents a local integration rate of 60%. In addition, in order to maintain this manufacturing, it is moving towards more complex and high-added-value components, such as engine manufacturing, engineering and R&D.
The creation of six special economic zones, where investors receive tax advantages and other incentives, as well as investments in infrastructure (connectivity at national and international level), and proximity to Europe, are just some of the factors cited in the analysis that have made it possible for Morocco to attract multinational corporations and promote local integration.
The report noted that national industry policies and plans, such as the Industrial Acceleration Plan 2104-2020, have promoted the development of an ecosystem for the automotive industry and large industrial parks such as Kenitra and Tangier, two of the largest industrial complexes on the continent, have emerged. .
The signing of numerous free trade agreements has helped Morocco's integration into the global economy and has helped the nation become a popular destination for foreign investment. A regional technical center established by Stellantis and the first car testing facility in Africa have also enhanced engineering and R&D capabilities, allowing Morocco to be independent in terms of validation and certification of vehicles and components.
According to the study, systematic investments in supplier development programs, digitalization and education and skill development have also made it possible for Moroccan expertise in the production of parts and components to emerge.
Morocco aims to produce one million vehicles a year
By 2025, the North African country expects to produce one million cars a year and achieve a local integration rate of 80%. According to the report, the Kingdom already had an installed capacity of 700,000 vehicles per year by 2020.
“The above-mentioned government initiatives and plans aim at strengthening local integration, expanding industrial activities, modernizing operations along the value chain, improving levels of technology and knowledge transfer, and diversifying export markets," the UNCTAD report reads. “It could also help to increase the participation of national small and medium-sized enterprises in the assembly phase, which is still minimal," he continued.
Vehicle export destinations should be diversified, and Morocco's automotive industry should focus on the continent's heavy-duty vehicle secondary market to maintain growth and promote supply chain sustainability. According to the report, Stellantis announced in November 2022 that it would invest $300 million in its manufacturing facilities to double production capacity to 400,000 units and serve the Middle East and Africa market.