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Stellantis CEO Highlights Morocco’s Rising Threat to Spanish Auto Factories
Morocco aims to increase its vehicle production to one million units per year by 2025, up from the current 700,000, as part of its ambitious automotive industry growth strategy.
During a recent media briefing at the 2024 Paris Motor Show, Carlos Tavares, CEO of Stellantis, praised the performance of Spanish automotive factories but raised concerns about the growing competition from Morocco, which could impact the company’s operations in Spain and Portugal.
“The future of our factories in Spain is currently promising, as they have worked diligently to enhance quality and reduce costs. They rank among the best in the European Union, particularly those in Vigo, Madrid, and Zaragoza, where we have solid plans in place,” Tavares stated. However, he pointed out that the real competition is now emerging from the south. “The competition is Morocco today, and possibly soon from Algeria, Tunisia, Egypt, and Turkey. Instead of focusing on the north, towards Spain and Portugal, the real competition lies to the south,” he added.
In a strategic move to bolster its presence in Morocco, Stellantis recently acquired Sopriam, a subsidiary of the Al Mada group. The company has set a goal to double its production capacity at the Kenitra factory to 400,000 vehicles by 2027, with the aim of securing a market share of over 22% by 2030.
Morocco's rise in the automotive sector has been remarkable, with the country surpassing China to become the European Union's top automotive trading partner in 2023. Exports reached €15.1 billion, outpacing China's €13.6 billion. This growth has been driven by the country’s strategic investments and focus on high-value production, especially in its industrial hubs of Tangier and Kenitra.
The Moroccan government has set its sights on producing one million vehicles annually by 2025, a significant leap from the current output of 700,000. Between 2020 and 2023, Morocco's automotive production surged by 63%, cementing its status as Africa's top car manufacturer, second only to South Africa.
Spain, meanwhile, has expressed concerns about Morocco's potential to "steal" the production of thousands of electric vehicles. With its strategic location, affordable labor, access to raw materials, and renewable energy resources, Morocco is well-positioned to become a major player in electric vehicle manufacturing.
European automotive giants, including Renault and Stellantis, have established manufacturing plants in Morocco, attracted by the country’s competitive labor costs and skilled workforce. Additionally, five Chinese battery manufacturers have announced plans to set up facilities in Morocco to produce batteries for electric vehicles and related accessories.
Morocco's automotive sector continues to experience rapid growth, with a government-led push to strengthen its position as a leading global car producer.