Morocco’s automotive industry has reported robust growth in the first half of 2024, with export revenues reaching MAD 80.5 billion ($8.2 billion), marking a 9% increase from the previous year.
According to a recent report from the Office d’Exchange (OE), the country’s foreign trade regulatory authority, the sector’s expansion is driven primarily by construction-related manufacturing, which covers the full spectrum of vehicle design, engineering, and assembly.
In the first six months of 2024, the construction sub-segment’s exports totaled MAD 35.3 billion ($3.5 billion), up 8% year-on-year.
Wiring manufacturing follows as the second-largest contributor, with MAD 28.2 billion ($2.8 billion) in exports, also reflecting an 8% annual growth.
Vehicle interiors and seat production generated MAD 4.7 billion ($479 million) in exports, demonstrating a substantial 18% growth.
Since surpassing South Africa in 2018, Morocco has established itself as Africa’s largest car manufacturing hub. The automotive sector overtook the phosphate industry to become the leading export sector in 2023.
The industry’s evolution from simple vehicle assembly to comprehensive production capabilities began in 1957.
In 2021, Morocco produced 403,007 vehicles, with $8.3 billion worth of exports, including $3.4 billion in finished vehicles.
The stellar growth has led to the creation of approximately 220,000 jobs and the emergence of over 230 Tier 1 and 2 suppliers, achieving a local integration rate of 60% (reflecting the proportion of local suppliers in the supply chain relative to the total number of suppliers).
Morocco’s entry into the global economy, supported by free trade agreements, has enhanced its appeal to investors, according to a 2023 report from UNCTAD.
The country’s engineering and R&D capabilities have advanced, with the establishment of Africa’s first automobile testing center and Stellantis’ auto technical center near Casablanca.
The country continues to set ambitious targets for the industry. By 2025, Morocco aims to reach an annual production of one million vehicles by 2025 and increase the local integration rate to 80%.