Morocco's automotive industry poised for global leadership

Tuesday 18 March 2025 - 12:50

By: Dakir Madiha

Morocco's automotive industry poised for global leadership

Morocco's automotive sector is experiencing remarkable growth, with ambitious production goals set to reach 2 million vehicles by 2030. This surge is accompanied by an increase in local integration and a strategic positioning on the global stage, particularly as the industry transitions towards electrification.

The nation's automotive production capacity has rapidly escalated from 700,000 to 1 million vehicles annually. According to the Minister of Industry, this figure is expected to rise to between 1.3 and 1.4 million units by 2026-2028, ultimately achieving the target of 2 million by 2030. This evolution is bolstered by significant investments from major players such as Renault and Stellantis.

Local integration remains central to Morocco's strategy, emphasizing the production of crucial components like engines, gearboxes, and tires. Stellantis, for instance, plans to quadruple its engine production from 80,000 to 350,000 units. Simultaneously, the country is focusing on integrating advanced technologies, including electronic chips, sensors, and battery management systems.

With the rise of electric vehicles, Morocco is positioning itself in the battery market, which comprises up to 40% of a vehicle's value. The development of a battery production ecosystem and management systems represents a strategic opportunity for the nation.

Following a challenging period, the tire industry is experiencing a resurgence in Morocco, highlighted by the establishment of a factory in Tangier by Chinese group Sentury Tire. Initially, this plant is expected to produce 3 million tires, with a long-term goal of reaching 8 million units annually to meet the demands of local Renault and Stellantis plants.

Through these investments and a strategy focused on innovation, local integration, and electrification, Morocco is solidifying its position as a leading industrial hub. The expansion of production and the adoption of new technologies present promising prospects for the Moroccan automotive industry, further enhancing its role as a driver of the country's economic and industrial development.