Automotive Industry in Morocco

Morocco's Automotive Revolution

Morocco has emerged as Africa's automotive manufacturing powerhouse and one of the top vehicle exporters to the European Union. In 2024, Morocco produced 559,645 vehicles, representing a 5% year-over-year increase, with production capacity targeting 1 million units annually by 2025—double the capacity from just a decade ago. In the first half of 2025 alone, vehicle production surged 36% to over 350,000 units. Morocco officially became the largest automotive exporter to the EU by value (€15.1 billion) in 2023, surpassing China and Japan, with nearly 80% of domestically produced vehicles exported primarily to European markets.

Major Manufacturers & Production Facilities

Renault Operations

Renault operates two major facilities: the flagship plant in Melloussa (Tangier) and the SOMACA factory in Casablanca. Combined, these facilities exported 341,758 vehicles in 2023, with Renault's exports growing 8% in 2024. Approximately 76% of Renault's production leaves through Tanger Med port bound for Europe. In a landmark development for 2025-2030, Morocco and Renault signed an updated investment agreement to launch hybrid and electric vehicle production by 2030, establish an engineering and R&D center by 2025, and create 7,500 direct and indirect jobs.

Stellantis Expansion

The Stellantis plant in Kenitra exported 176,208 vehicles in 2023 and is undergoing major expansion. Plant capacity is set to double to 400,000 units by 2027. In July 2024, Stellantis completed the acquisition of Sopriam, a subsidiary of Al Mada Group, to strengthen its market position and achieve a targeted 22% market share in Morocco by 2030. The Kenitra facility produces popular models including the Peugeot 208 and Opel Corsa for European and African markets.

Export Markets & Performance

Morocco's automotive export shipments topped EUR 15.1 billion in 2024, with automotive exports growing 6.3% during the year. Spain leads the list of Morocco's largest sales markets, followed by France, Turkey, Germany, and Italy. The sector benefits enormously from free trade agreements with the European Union and the United States, zero tariffs for qualified products, and short shipping distances to major European cities.

Supplier Ecosystem & Components

Morocco has successfully built a comprehensive automotive supplier ecosystem with over 250 tier-1 and tier-2 suppliers. International companies have established production facilities for wiring harnesses, seats, dashboards, engines, gearboxes, and electronic components. This integrated supply chain reduces costs, improves quality control, and enables just-in-time delivery to assembly plants. The supplier network creates tens of thousands of jobs and supports technical skills development.

Electric Vehicle Transition

Morocco is actively preparing for the electric vehicle (EV) era. The country is attracting investments in EV battery components, electric motors, and charging infrastructure. Projects are underway to produce battery materials, with Morocco's phosphate reserves providing potential feedstock for battery cathode materials. The transition to EVs presents both challenges and opportunities as Morocco positions itself as a competitive location for next-generation automotive manufacturing.

Free Zones & Investment Incentives

Automotive manufacturers benefit from Morocco's Atlantic Free Zone near Kenitra, Tangier Free Zone, and other industrial parks offering attractive incentives including zero corporate tax for the first five years, exemptions from value-added tax on equipment, streamlined customs procedures, and access to modern infrastructure. These zones provide ready-to-use facilities with utilities, logistics services, and proximity to Tanger Med port.

Skills Development & Employment

The automotive sector employs over 220,000 people directly and indirectly in Morocco. Specialized training institutes like the Institut de Formation aux Métiers de l'Industrie Automobile (IFMIA) in Tangier and the Automotive Institute in Casablanca produce thousands of skilled technicians, engineers, and managers annually. Partnerships between manufacturers, government, and educational institutions ensure workforce readiness and continuous skill upgrading to meet industry 4.0 requirements.

Future Growth Trajectory

Industry forecasts project Morocco's automotive production could exceed 1.2 million vehicles by 2030, supported by new investments, capacity expansions, and diversification into electric and hybrid vehicles. The government's strategic vision includes strengthening the entire value chain from raw materials to finished vehicles, increasing local content, boosting R&D capabilities, and establishing Morocco as a global automotive hub serving Europe, Africa, and the Middle East.