Morocco’s Automotive Exports Soar By 30% In 2023

The automobile market in Morocco is seeing a significant 30% yearly growth, shattering all previous sales records. An astounding MAD 130.6 billion ($13 billion) in exports from the automobile sector were recorded in 2023, according to a study from the Office Exchange (OE), the country’s foreign trade watchdog.

With these historic sales, the automotive sector has outperformed the phosphate industry for the first time. Exports from the phosphate industry stood at MAD 67.2 billion ($6.7 billion). According to the OE report, the surge in exports for the car manufacturing industry is due to the “remarkable” performance of various sub-segments of the industry. The report explains:

“The surge in exports underscores a robust growth trend within the automotive sector, signaling promising developments and indicating consumer confidence in specific areas of the industry.”

Morocco’s automotive industry has been on an impressive trajectory thanks to a committed government vision. In a report released in August 2023, UNCTAD described Morocco’s car manufacturing industry as “exemplary.” Over the years, the Moroccan automotive sector has transitioned from basic vehicle assembly to a comprehensive manufacturing sector, a transformation outlined in the report.

It is pertinent to mention that the country manufactured over 400,000 vehicles in 2021, with a substantial $8.3 billion worth of exports, including $3.4 billion in fully completed vehicles. This means (in 2023) the export value increased by a massive 56.6% in just 3 years. The growth spurt also led to the creation of around 220,000 jobs within the industry and the emergence of a robust network of more than 230 tier 1 and 2 suppliers, resulting in a local integration rate of 60%.

Morocco has in recent years strategically positioned itself as a key production hub, attracting major global players including renowned parts & component makers in addition to OEMs. Moreover, the Moroccan automotive sector’s focus has notably shifted to producing high-value components, including engine manufacturing, R&D, and around 40,000 to 50,000 electric vehicles annually.

With a production capacity already reaching 700,000 vehicles annually, the Moroccan government’s strategies center around enhancing local integration, expanding industrial activities, refining the value chain, facilitating technology transfer, and diversifying export markets. Morocco aims to produce 1 million cars annually by 2025 while elevating the localization rate to 80%.