Nexteer Automotive is expanding in Morocco and other fast-growing markets as the global car industry changes. The US-based car parts company is focusing on new markets while keeping a presence in established ones.
Worldwide production of cars rose 3.1% in the first half of 2025. But growth was uneven. North America and Europe saw slow gains, while Asia-Pacific, led by China, Southeast Asia, and parts of South America, grew more strongly.
Trade tensions, protectionist rules and different approaches to electric cars are making supply chains more complicated. Suppliers need to meet local rules while working with global networks.
Nexteer, which makes steering and car control systems, has factories in the US, Mexico, China, Poland, India, Brazil, and Morocco. Its Moroccan plant is in the Atlantic Free Zone of Kénitra.
Morocco is now Africa’s biggest producer of passenger cars. It offers good industrial infrastructure, training centres and modern ports like Tanger Med. This makes it a good base for suppliers like Nexteer.
The company makes technologies such as electric steering, steer-by-wire systems, steering columns, transmissions, and onboard software. Steer-by-wire replaces the mechanical connection between the steering wheel and wheels with electronic signals. This is important for self-driving cars and more flexible car designs. These technologies also support electric vehicles and driver-assistance systems.
Nexteer’s revenue in the first half of 2025 was $2.2bn, up 6.8% from a year earlier. Adjusted for market changes, growth was 7.6%, above the global car industry average.
The strongest growth was in Asia-Pacific, up 17%, and Europe, the Middle East, Africa, and South America, up 11%. Adjusted profit before interest, tax, depreciation and amortisation (EBITDA) rose 16.8% to $230m. Operating profit margin increased to 10.3% from 9.4%, and net profit rose to $63m from $16m.
These gains come from lower costs, better efficiency and past restructuring, although some cost pressures remain from tariffs and supply issues.
Nexteer’s orders in the first half of 2025 totalled $1.5bn, supporting expectations of a record year. Its share price rose 16.5% over 12 months, valuing the company at about $2.1bn. Most analysts are positive, with 11 out of 13 recommending a buy. Average target prices suggest the stock could rise about 24%, with some forecasts reaching $1.28 per share.
However, the company faces risks from global trade tensions. Its work with Chinese carmakers brings growth opportunities but could become a risk if international relations worsen.
