Morocco, the New Eldorado for Electric Cars?

Resulting from a policy of openness to manufacturers, Morocco’s automobile production and exports are breaking records.

Today, Morocco is one of the most competitive and decarbonized automobile manufacturing platforms in the world. Over fifteen years, the kingdom has evolved from a novice to an industrial giant, aiming for an annual production capacity of one million vehicles by 2025.

More than 250 companies operate in the sector, including Renault, the main private employer. With 22% of GDP and $14 billion in exports according to figures from the Ministry of Industry and Commerce, the automotive industry is a key economic driver. The country relies on modern infrastructure, such as the Tanger Med port and free zones, to attract major players. Subsidies of up to 35% facilitate the establishment of factories, with record construction times of five months. This strategy has attracted investments like Stellantis in Kénitra and Renault in Tangier.

Meanwhile, Morocco positions itself as a strategic player in electric vehicles. The government plans to increase the production of hybrid and electric vehicles, aiming for a capacity of 500,000 vehicles annually by 2025, representing half of the total production. This development seeks to meet the growing demand from Europe, which is moving towards phasing out combustion engines within the next decade.

Despite these advances, challenges remain. Relocation policies in the United States and Europe complicate global supply chains. Although Morocco benefits from a free trade agreement with the United States, tax credits favor domestic industries, making international competition more complex.

By investing heavily in electric vehicles, the kingdom hopes to create jobs for its youth while strengthening its position on the global industrial scene. However, increased competition and protectionist pressures will pose obstacles on this promising path.

READ ALSO: Alpine Settles in Morocco