Morocco is emerging as the top car producer in Africa, surpassing South Africa. This shift is due to significant investments and partnerships with global car companies like Renault-Dacia and Stellantis. For a long time, South Africa held the title of the biggest vehicle manufacturer in Africa. However, Nigeria took over as the largest economy in Africa in the mid-2010s. Now Morocco has claimed the crown as Africa’s major vehicle manufacturer.
Production Numbers
In 2023, Morocco produced 582,000 cars and LCVs. Analysts expect that number to rise to nearly 614,000 units this year. Conversely, South Africa’s light-vehicle production will decline to 591,000 units. Several factors drive this decline in South Africa’s automotive industry. For example, factors include worsening industrial logistics, high vehicle taxes affecting local demand, and overreliance on automotive exports, particularly catalytic converters.
Morocco’s Strategy
Morocco’s rise as a vehicle manufacturing hub is a result of its strategic approach to incentivizing investments in the automotive supply chain. Companies like Renault-Dacia and Stellantis have set up factories in Morocco. These factories contribute to the country’s automotive success. Nonetheless, Morocco has been proactive in developing industries that cater to the EV value chain. Morocco is anticipating the growing demand for electric vehicles in Europe. Recently, Dacia launched production of the Jogger, the first hybrid vehicle manufactured in Morocco. Furthermore, plans are underway to open a Giga factory in 2026 that will manufacture 20 GWh of battery capacity per year.
Chinese Investments
Morocco has free trade agreements with China, the U.S., and the EU. This allows Chinese manufacturers to potentially set up factories in Morocco. They could avoid tariffs and trade barriers imposed by the EU and the U.S. on vehicle imports from China.
Future Outlook
As Morocco’s automotive industry continues to grow, it is expected to play a significant role across Africa, Europe, and the U.S. The industry is projected to expand at an average annual rate of 6.8% over the next decade and reach nearly 1.1 million units annually by 2033.
Challenges Ahead
While Morocco’s automotive muscle is increasing, questions remain about the extent of Chinese influence in the country’s automotive sector. The U.S. and the EU may develop policies to address Chinese automotive investments in Morocco. This would be similar to the pressure being exerted on Mexico. Morocco is positioning itself as a key automotive manufacturing hub for Africa, Europe, and North America, strengthening its role in the global automotive industry.
Also Read:
Morocco to produce up to 1 Million vehicles per year by 2030
Tesla Enters the African EV Market in Morocco
Morocco becomes EUs Second Largest Car Exporter
