[Auto] Morocco’s Car Industry Exports Surge by 27%, Hit $13.9 Billion in 2023

[Angel of Death]

Rabat - Last year marked the latest milestone for Morocco’s continuously expanding automotive sector, as the industry dethroned the phosphate business to become the country’s largest exporting industry. The industry’s exports at the end of 2023 totaled a staggering MAD 141.7 billion ($13.9 billion), up from MAD 111.2 billion ($11 billion) a year earlier,  marking an impressive 27% year-on-year increase, according to a recent report from the Office d’Exchange (OE), the country’s foreign trade watchdog. The growth in the car industry exports was propelled by the expanding automotive wiring harness industry, which is the assembly of electrical wires, connectors, and other components to create the wiring system within a vehicle. At the end of 2023, the wiring industry’s exports rose by a sweeping 32%, settling at MAD 46.1 billion ($4.5 billion). Likewise, the car construction industry which covers the fabrication and assembly of structural components, body panels, chassis, and other essential parts, grew by an annual rate of 22%, with exports reaching MAD 67.6 billion ($6.7 billion). Meanwhile, the powertrain industry, which manufactures internal vehicular systems, recorded a 25% annual growth rate, with exports exceeding MAD 11.3 billion ($1.1 billion). Since 1957, the automotive sector in Morocco has undergone a transformation from merely assembling vehicles to full-fledged production. In 2021, the country manufactured a total of 403,007 units, of which $8.3 billion worth was exported, with $3.4 billion accounting for finalized vehicle exports. The growth in production led to the creation of about 220,000 jobs in the industry. In addition, a network of more than 230 Tier 1 and 2 suppliers emerged, contributing to a local integration rate of 60%. Thanks to dedicated government policies that paved the way for the creation of massive infrastructure projects and a business-friendly climate, Morocco established itself as a continental leader in the automotive industry. State policies like the Industrial Acceleration Plan 2014–2020, along with the construction of industrial parks and automotive cities like Kenitra and Tangier, have nurtured the automotive ecosystem. Morocco’s integration into the global economy through free trade agreements has further solidified its attractiveness to investors, the 2023 UNCTAD report maintains The country’s engineering research and development capabilities have grown, with Morocco becoming home to Africa’s first automobile testing center. In addition, Stellantis established an auto technical center near Casablanca. Morocco’s ambition is to achieve an annual production of one million cars by 2025 while raising the local integration rate to 80%. As of 2020, it already achieved an annual production capacity of 700,000 vehicles. The government’s strategies aim to enhance local integration, expand industrial activities, upgrade the value chain, facilitate technology transfer, and diversify export markets. Morocco positioned itself as a prominent production hub, attracting various major groups like German Motor Distributors, Renault, Snop, Stellantis Sumitomo Electric Wiring Systems, and Yazaki. The country’s automotive industry reached a significant milestone as the focus of manufacturing is shifting toward intricate high-value components, including engine manufacturing, engineering, as well as research and development. The country also produces around 40,000 to 50,000 electric vehicles annually. However, since domestic vehicle registration remains low – recording 175,435 units in 2021– the primary orientation for vehicle assembly is the European market. Renault, for instance, exports the majority of its production despite having the largest assembly plant with a capacity of 400,000 units. The Citroen Ami, produced in the Moroccan city of Kenitra, emerged as Spain’s best-selling vehicle in 2022.

https://www.moroccoworldnews.com/2024/02/360591/moroccos-car-industry-exports-surge-by-27-hit-13-9-billion-in-2023