The Kingdom of Morocco's automotive industry has exceeded the executive's expectations for the year 2023

Morocco's car exports reach 8.2 billion dollars

AFP/FADEL SENNA - Línea de montaje de automóviles en la planta de montaje de automóviles PSA de Kenitra
AFP/FADEL SENNA - Car assembly line at the PSA car assembly plant in Kenitra

The growth of automotive manufacturing in Morocco has been a constant in recent years. With the exception of 2020, annual vehicle production has doubled from 403,007 in 2021 to more than 400,000 in the first 6 months of 2023. The Office d'Echange (OE) reports that during the first seven months of 2023, automotive exports to Morocco amounted to 82 billion dirhams ($8.2 billion), compared to 59 billion dirhams ($5.9 billion) during the same period in 2022. 

Along with increased production, the industry added around 220,000 new jobs. In addition, a network of more than 230 tier 1 and 2 suppliers has been developed, which has helped to increase local integration by 60%. 

Moreover, continuous investment in the sector and the attraction of international investors have meant that production can now stretch to 700,000 vehicles a year. Even so, the government is working to ensure that the country has the capacity to produce more than 1 million cars a year by 2025. 

PHOTO/ARCHIVO - Complejo industrial de Renault en Tánger, Marruecos
PHOTO/ARCHIVO - Renault industrial Complex in Tangier, Morocco

Vehicle export destinations are becoming increasingly diversified. The Alawi nation's open-mindedness is favouring the boost and growth of the industrial fabric. Morocco's automotive industry must focus on the continent's secondary market for goods vehicles to maintain growth and promote supply chain sustainability. 

In a report published in August, UNCTAD (United Nations Conference on Trade and Development) praised the Moroccan automotive industry as "exemplary" and noted that manufacturing is gradually shifting towards complex, high value-added components. 

The Moroccan automotive industry has undergone a major transformation since its birth in 1957. The Moroccan Society of Automotive Construction (SOMACA), which was initially involved in vehicle assembly, has become a fully-fledged production sector, as described in the report. Total vehicles manufactured in Morocco accounted for $30.4 billion in exports. 

Yazaki, the world's largest producer of wiring harnesses, as well as major players such as Renault, Stellantis Sumitomo Electric Wiring Systems, German Motor Distributors and Snop have chosen Morocco as their main production site. 

By refocusing its efforts on the creation of complex, high-value components, such as engine manufacturing, engineering and research and development, the country's automotive industry has achieved a remarkable milestone. In addition, Morocco manufactures between 40,000 and 50,000 electric vehicles per year. Despite these successes, only 175,435 new vehicles were registered in the entire country in 2021. Consequently, the European market remains the main focus for vehicle assembly. 

PHOTO/ARCHIVO - Renault headquarters in Boulogne-Billancourt, France

Morocco's ambitious goal is to increase local integration to 80% and at the same time increase annual car production to one million units by 2025. Government strategies focus on strengthening local integration, boosting industrial activity, upgrading the value chain, promoting technology transfer and diversifying export markets.