Automotive sector

Morocco celebrates the achievements of the automotive sector

Morocco achieved two years ahead of schedule in 2018 the targets it set for the automotive industry, particularly in terms of turnover, exports, local procurement and jobs.

Thanks to an ambitious industrial acceleration plan which has stimulated public-private partnership and encouraged investments from global suppliers, the Moroccan automotive industry has reached the objectives set for 2020 two years in advance, achieving a turnover 80 billion dirhams in 2019 and 72 billion dirhams in 2020 when the industry was affected by the pandemic.

The sector could resume its pace this year with a growth of 42.8% until June showing exports worth 42.3 billion dirhams, according to exchange data.

The automotive ecosystem includes 250 suppliers providing 160,000 jobs, the Peugeot and Renault factories in Morocco together producing 700,000 vehicles per year.

Speaking at an event on the advance of the automobile in Morocco, Minister of Industry Moulay Hafid Elalamy said Moroccan car exports exceeded those of phosphates by a year and a half.

Renault CEO Luca De Meo highlighted Morocco’s competitiveness and the key contribution of Renault’s Tangier plant.

He said the group aims to increase the percentage of locally produced parts to 80% and spend up to € 3 billion per year, benefiting local suppliers.

Morocco, which has outclassed South Africa as the continent’s leading carmaker, also appears to be benefiting from the offshoring triggered by the coronavirus, as manufacturers see Morocco as a more competitive destination for investments compared to the United States. India and China.

Morocco’s automotive industry development strategy is based on the country’s competitive strengths, in particular the proximity to European, African and Middle Eastern markets, developed infrastructure, a favorable investment climate and tax incentives as well. than a well-trained workforce.