Morocco's Automotive Export Boom Surges 27%, Reaching $13.9 Billion in 2023

Morocco's automotive industry is experiencing rapid acceleration, evidenced by a remarkable 27% surge in exports in 2023, reaching $13.9 billion, as reported by the nation's foreign trade regulator.

The North African kingdom has firmly established itself as a continental leader in car manufacturing, with ambitious plans to produce over 1 million vehicles annually by 2025. Notably, automotive exports surpassed the once-dominant phosphate industry last year, marking a significant milestone as Morocco's largest revenue generator.

This growth was propelled by various subsectors within the automotive ecosystem. Exports from the wiring harness industry, responsible for assembling electrical cabling and components within vehicles, surged by 32% to $4.5 billion. Similarly, car body and chassis assembly saw a 22% increase, reaching $6.7 billion in exports, while powertrain manufacturing, focusing on internal vehicular systems, grew by 25%, exceeding $1.1 billion in shipments overseas.

Since its initial foray into vehicle assembly in the late 1950s, Morocco has steadily evolved into a fully-fledged automotive producer. In 2021, 403,007 units were manufactured locally, with exports amounting to $8.3 billion. Finished vehicle shipments accounted for $3.4 billion of this total, contributing to the creation of over 220,000 well-paying jobs.

Government initiatives such as the Industrial Acceleration Plan and the development of industrial zones have bolstered Morocco's competitive advantage. Furthermore, free trade agreements and its status as Africa's first vehicle testing hub, along with the presence of Stellantis' technical center, have enhanced its appeal. Local integration rates have reached 60%, with Morocco targeting 80% by 2025 while doubling annual production to 1 million vehicles.

Major automakers including Renault, Groupe PSA, and Stellantis have been attracted to establish operations in Morocco. The country is transitioning towards higher value production, encompassing engines, research and development (R&D), and the production of around 50,000 electric vehicles per year. As the industry continues to accelerate, Morocco emerges as the preeminent automotive powerhouse across the African continent.