Morocco's automotive industry: Aiming for a sustainable future

Tuesday 22 April 2025 - 16:45

By: Dakir Madiha

Morocco's automotive industry: Aiming for a sustainable future

Morocco is charting a course toward a greener and more autonomous automotive future. The Moroccan automotive industry, backed by public authorities, is undergoing a profound transformation with ambitious goals for local integration and the production of electric vehicle batteries. At the eighth edition of the Automotive Industry Meetings in Tangier, Rachid Machou, president of the Moroccan Association for the Automotive Industry and Construction (AMICA), outlined the key elements of this new development phase.

Currently, the automotive sector in Morocco boasts a local integration rate of 69%. This figure is expected to exceed 80% in the coming years as local suppliers become increasingly competitive and production chains strengthen. This momentum is largely dependent on collaboration with major international manufacturers such as Stellantis and Renault, which have established Morocco as a key site for automotive production in Africa. The recent arrival of Neo Motors, a Moroccan manufacturer, further enhances this strategic vision.

By the end of 2024, Morocco's automotive production reached one million vehicles, positioning it as the leading producer of passenger cars in Africa and the top exporter to the European Union for thermal vehicles. In 2023, the sector's exports generated approximately 157.6 billion dirhams (nearly 15 billion dollars), with half consisting of complete vehicles and the other half of components destined for European assembly lines.

Projections for 2026 suggest exports could reach 200 billion dirhams, according to Bank Al-Maghrib's forecasts, with the production of electric batteries set to begin next year—a pivotal moment for the Moroccan industry. The initiative to establish battery factories on Moroccan soil aims to secure the autonomy of the production chain and strengthen the country's industrial sovereignty.

Morocco is not only enhancing its automotive sector in terms of vehicle production but is also preparing to take a leading role in electric vehicle battery production. By 2026, the country is expected to locally produce its first electric vehicle batteries, a project supported by foreign investors, particularly from China. The Sino-European consortium Gotion High-Tech plans to invest 65 billion dirhams in an industrial site in Morocco, while the Chinese company CNGR, in partnership with the Moroccan sovereign fund Al Mada, has launched a two-billion-dollar project.

These initiatives are part of a broader strategy to create a fully integrated automotive ecosystem and bolster Morocco's competitiveness on the global stage. The country aims to move beyond mere assembly and become a key player in the entire value chain, from vehicle design to the production of electronic components and batteries.

This growth dynamic is accompanied by a commitment to support innovation and energy transition. In collaboration with the Moroccan government, AMICA has signed two agreements to adapt training to the new technological challenges of the sector, including electrification, artificial intelligence, and connectivity. The goal is to anticipate the need for skilled labor to keep pace with these rapid changes and ensure a prosperous future for the Moroccan automotive industry.

In summary, Morocco is poised to reach new heights in its automotive industry with clear ambitions: to increase local integration, produce electric vehicles and batteries, and reinforce its industrial sovereignty. The kingdom is positioning itself as an essential player in the African automotive industry, with positive implications for the national economy and energy transition.