Morocco’s Auto Industry Breaks Export Records

Morocco’s foreign exchange bureau has reported that its automotive industry has set a record with exports of 44 billion dirhams (around $4.8 billion) in the half year (June-Dec) of FY23. The figure shows an increase of 23% over the previous year and puts the automotive industry at the top of Morocco’s export chart, ahead of agriculture and forestry.

The monetary value of exports that are part of the automotive sector has increased by 40.4% compared to the previous year. Sectors such as construction, and the manufacture of vehicle interiors/ wiring have also experienced a large increase in sales. The electronics industry has grown by 34%, while the mining sector has only increased its growth by 1.6%, the report added.

According to the Ministry of Industry, Trade and Green and Digital Economy, more than 400,000 vehicles were manufactured in Morocco in the first half of 2023, an increase of 18% over the previous year. The Moroccan automotive industry is projected to grow by $14 billion by 2026, according to a report published by the advisory firm Mordor Intelligence. Morocco is also predicted to outpace Italy’s car manufacturing by 2030, which, according to the International Organization of Motor Car Manufacturers, produced more than 750,000 units in 2022.

In addition to leading carmakers including Stellantis, and Renault-Nissan, more than 250 companies, including Valeo, Delphi, and other global suppliers such as Denso or Lear, are part of the automotive industry ecosystem in Morocco. In 2021 alone, Morocco signed 25 trade agreements with European and US manufacturers.

The automotive industry has made Morocco a prime destination for foreign investment, thanks to the competitive advantages of its location close to Europe and Africa, preferential trade agreements with more than 50 countries, tax incentives through the country’s central government, and the availability of a skilled and competitive workforce.

In addition, a national industrial strategy has been established to promote local integration of components and services in vehicles, as well as to diversify export markets and value chains. Morocco has been postulated as one of the greatest industrial potentials on the African continent, with the “African Industrialisation Index” ranking Morocco second as the most improved industrialization in Africa.

Source: Atalayar