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Morocco’s automotive sector: A rising star in Africa’s industrial landscape

In less than two decades, Morocco has emerged as a continental leader in vehicle production and exports, driven by a strategic focus on innovation, integrated ecosystems, and a competitive business environment. The nation’s automotive success story has become a cornerstone of its industrial policy, turning Morocco into a vital hub for global car manufacturers.

Record production and export milestones

In 2023, Morocco produced 535,825 vehicles, securing its position as Africa’s second-largest car producer, just behind South Africa. This achievement is the result of strategic investments in key industrial hubs such as Tangier and Kénitra, home to major plants operated by global giants like Renault and Stellantis. These facilities have transformed into export powerhouses, sending Moroccan-made vehicles to markets across Europe, the Americas, and beyond.

Automobile exports have surpassed phosphates as Morocco’s top revenue generator, bringing in a staggering 141.7 billion dirhams ($13.7 billion) in 2023. This rise is underpinned by a government-backed initiative to establish comprehensive industrial ecosystems. These ecosystems integrate everything from design and parts manufacturing to vehicle assembly and logistics. Tanger Med, Morocco’s premier port, plays a crucial role, ensuring efficient transport of vehicles and components to meet global demand with unmatched speed and reliability.

Driving economic transformation and job creation

The automotive boom reflects broader changes in Morocco’s economy, including a significant push to develop local expertise. Tens of thousands of direct and indirect jobs have been created, spanning production lines, supplier networks, and logistics chains. Partnerships with universities and technical training centers have enhanced Morocco’s capabilities in automotive engineering, industrial maintenance, and emerging technologies. These efforts aim to build a sustainable talent pipeline that can support the continued expansion of the sector.

Homegrown brands making waves

Morocco’s ambitions have extended beyond foreign investment to include the creation of its own automotive brands. One of the most notable successes is NEO Motors, which launched its first fully Moroccan-designed and manufactured vehicle in 2023. This landmark achievement showcases the nation’s growing proficiency in engineering and design.

Targeting both domestic and regional markets, NEO Motors offers competitively priced, reliable vehicles tailored to local needs. The project has benefited from strong governmental support through partnerships with national investors and research institutes. Its Benslimane-based factory has an initial production capacity of several thousand units annually, with plans for rapid growth as demand increases.

Other Moroccan startups are also innovating, particularly in the electric vehicle (EV) sector. These include projects focused on developing charging stations and locally produced EV batteries. Institutions like Mohammed VI Polytechnic University and the Office Chérifien des Phosphates (OCP) have backed these efforts, investing in applied research to advance clean mobility technologies.

A vision for sustainable mobility

As part of its commitment to global climate goals, Morocco is accelerating the shift towards cleaner transportation. By 2026, the country plans to install 2,500 electric vehicle charging stations nationwide, preparing for the EU’s impending ban on combustion engines by 2035. This infrastructure initiative is supported by both national and international consortia aiming to make Morocco a regional leader in sustainable mobility.

The growing demand for next-generation batteries has prompted strategic partnerships with Asian manufacturers to establish battery production plants. By leveraging its abundant natural resources and renewable energy capabilities, Morocco seeks to position itself at the forefront of eco-friendly automotive solutions. The country’s long-term objective is to reduce greenhouse gas emissions by 45% by 2030, reinforcing its commitment to environmental sustainability.

International recognition and future opportunities

Morocco’s automotive achievements have earned praise from global organizations. The United Nations Conference on Trade and Development (UNCTAD) has highlighted the country as a model for integrating into global value chains. The World Bank has also recognized Morocco’s success in attracting large-scale foreign investment in strategic sectors such as transportation and clean energy.

However, challenges remain. The domestic market is still heavily dominated by used vehicles, with over 415,000 second-hand car transactions recorded in 2023—more than triple the volume of new car sales. To address this, Morocco is working to expand financing options and improve infrastructure to attract more first-time buyers.

Additionally, the competition from Asian manufacturers in the electric vehicle market poses a growing threat. To maintain its edge, Morocco is investing in technological innovation and product diversification. Local manufacturers are incorporating advanced digital solutions, including smart navigation systems and safety sensors, to enhance the appeal of Moroccan-made vehicles.

A promising road ahead

Morocco’s automotive sector is entering a new phase, where sustainable mobility, regional integration, and technological innovation will play pivotal roles. The Kingdom’s strategy—combining economic competitiveness with environmental responsibility—positions it as a potential leader in both the African and Mediterranean automotive markets. With continued investment and innovation, Morocco is poised to become an indispensable player on the global automotive stage.

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