Morocco intends to increase its automotive exports over the next seven years from the current figure of $14 billion, Minister of Industry and Trade, Ryad Mezzour, told Arabic-speaking news outlet Asharq Business on Wednesday
In an interview conducted with the news outlet on the sidelines of the 54th annual meeting of the World Economic Forum (WEF) in Davos, Switzerland, the Minister stated that the sector achieved a record-breaking $13 billion in exports by the end of November last year. This represents a 30% annual increase, placing it at the forefront of the Kingdom’s export sectors and surpassing phosphate exports which declined due to a return to lower international market prices.
Mezzour added that the automotive sector has witnessed significant investments, with current production capacity reaching 700,000 vehicles annually. It is expected to reach one million units next year.
The Minister said that his agency is currently conducting extensive consultations to prepare a new strategy for the sector, focusing on creating a more flexible and adaptable industry to address new global economic challenges, as well as generating more employment opportunities and value.
He also mentioned that this strategy focuses on sovereignty in all areas–food, pharmaceuticals, or energy–and on creating more jobs for youth, while at the same time successfully decarbonizing industrial procedures.
The Kingdom is relying on enhancing competitiveness to attract greater investment in the industrial sector.
“Morocco represents a competitive industrial hub at the global level, especially in the aviation and automotive industries, as evidenced by the cost of manufacturing per hour, which is around $110 in America, while in Morocco it does not exceed $35,” he said.
Morocco has an advanced automotive industry system led by Renault and Stellantis, where the local component in car production exceeds 65%, involving over 260 companies employing 220 to 230 thousand workers.
He went on to say that Morocco has established its position in the global industrial system, with 88% of its manufactured materials being exported, while locally manufactured cars rank second in sales in the European market.
Morocco’s Central Bank, Bank Al-Maghrib (BAM), projected last month that the industrial sector’s automotive exports will reach 168.8 billion MAD in 2024, jumping to 190 billion MAD over the course of the next 12 months.