[Auto] Morocco’s Automotive Exports Soar to over $8 Billion in 2023

[Angel of Death]

Rabat - The automotive industry in Morocco has continued on its positive momentum, with exports soaring by 37% year-on-year at the end of July 2023. According to a monthly publication from Office d’Echange (OE), automotive exports in Morocco totaled MAD 82 billion ($8.2 billion) in the first seven months of 2023, up from MAD 59 billion ($5.9 billion) during the same period in 2022. In a report published in August, UNCTAD described Morocco’s automotive industry as “exemplary,” adding that manufacturing is gradually moving towards complex components with high added value. Since 1957, Morocco's automotive industry has undergone a significant transformation. Initially focused on vehicle assembly through the Moroccan Company for Automobile Construction (SOMACA), it has evolved into a full-fledged production sector, as detailed in the report. In 2021, Morocco manufactured over 400,000 vehicles, with $8.3 billion worth of those being exported. Among the exports, $3.4 billion represented fully completed vehicles. The growth in production also resulted in the creation of approximately 220,000 jobs within the industry. Additionally, a network of more than 230 tier 1 and 2 suppliers has emerged, contributing to a local integration rate of 60%. Morocco has strategically positioned itself as a significant production hub, attracting major players such as German Motor Distributors, Renault, part and component supplier Snop, Stellantis Sumitomo Electric Wiring Systems, and Yazaki – the world's largest wiring harness manufacturer). The country’s automotive industry has achieved a noteworthy milestone by shifting its focus toward producing intricate high-value components, including engine manufacturing, engineering, research, and development. Moreover, Morocco produces approximately 40,000 to 50,000 electric vehicles annually. However, despite these achievements, domestic vehicle registration remains relatively low, with 175,435 units registered in 2021. As a result, the primary focus for vehicle assembly continues to be the European market. Morocco’s ambitious goal is to achieve an annual production of one million cars by 2025 while increasing the local integration rate to 80%. As of 2020, the country already had an annual production capacity of 700,000 vehicles. The government's strategies are centered around enhancing local integration, expanding industrial activities, improving the value chain, facilitating technology transfer, and diversifying export markets.

https://www.moroccoworldnews.com/2023/09/357426/moroccos-automotive-exports-soar-to-over-8-billion-in-2023