Morocco Automotive Industry Outlook - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Moroccan Automotive Market is Segmented by Vehicle Type (Passenger Cars and Commercial Vehicles) and Drive Type (Internal Combustion Engine, Plug-in Hybrid, and Battery Electric). The report offers market size and forecast for the Moroccan Automotive market in terms of value (in USD billion) for all the above segments.

Market Snapshot

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Study Period: 2018-2027
Base Year: 2021
CAGR: >6 %

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Market Overview

The Moroccan automotive market studied was valued at USD 4 billion in 2021, and it is expected to reach a value of USD 5.5 billion by 2027, registering a CAGR of about 6% during the forecast period.

Due to the spread of COVID-19, the automotive market in Morocco witnessed a slump in growth due to lower footfalls in the showrooms. Various automobile manufacturers were forced to temporarily shut their production as the supply chain was disrupted by the country-wide lockdown imposed by the government, which restrained the growth of the market. However, after the government provided relaxations in lockdown measures and companies resumed production activities, Morocco registered 143,900 new cars in the last 10 months of 2021. Given that it is a growth of 10.10% higher than at the end of October 2019. Hence, It is expected that there will be substantial growth in the automobile industry.

Over the long term, the increasing investment from the leading automakers in Africa and incentives offered by the government by removing certain taxes during the first five years are majorly driving the automotive market in Morocco. Foreign investment is encouraged by the Moroccan government. The automotive sector exports went from MAD 14.7 billion to almost MAD 65.1 billion at the end of 2018, which is an increase of 14.5% per year.

Additionally, Morocco's integration into the global economy was facilitated by the signing of numerous automotive free trade agreements with the European Union and the United States. Morocco signed a deal with more than 25 automotive industry projects worth USD 1.5 billion as it seeks to position itself as an international hub for automotive production. These trade agreements contributed positively to the emergence of automotive export activities.

Scope of the Report

The Moroccan automotive market is segmented by Vehicle Type and Drive Type. The report offers market size and forecast for Moroccan automotive in terms of volume (in units) and value (USD billion) for all the above segments.

By Vehicle Type, the market is segmented into Passenger Vehicles and Commercial Vehicles.

By Drive Type, the market is segmented into Internal Combustion Engine, Plug-In Hybrid and Battery Electric.

By Vehicle Type
Passenger Vehicles
Commercial Vehicles
By Drive Type
Internal Combustion Engine
Plug-In Hybrid
Battery Electric

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Key Market Trends

Foreign Investments from Leading Auto Manufacturers

Foreign direct investment is continually increasing as companies are attracted to the country's favorable economic conditions, government support through various initiatives (such as tax exemptions for the first five years, VAT exemptions, and land purchase subsidies), skilled workforce, and modern infrastructure.

The financial and training support provided by the national government is encouraging manufacturers and local candidates to join the industry and contribute to the country's economy.

  • One of the recent investments in Morocco's automotive sector is PSA Peugeot Citroen's investment of USD 615 million for setting up its manufacturing facility
  • The company aims to manufacture 90,000 B-and C-segment passenger vehicles in a year and internal combustion engines (ICE) for passenger cars for both the domestic and regional markets.
  • Despite a low population and few sales of vehicles within the country, automobile manufacturers in Morocco made noteworthy exports to Europe and Middle East & Africa.
  • Additionally, Morocco's integration into the global economy was facilitated by the signing of numerous free trade agreements with the European Union and the United States. These trade agreements contributed positively to the emergence of export activities in the country.
  • From 2019 to 2020, Renault-Nissan alliance produced close to 588,400 vehicles in the span of two years, with the total production in two years reaching 676,000 approximately.
trend_1

Increasing Demand for Passenger Vehicles

Although the industry was thriving before, the pandemic forced the sales numbers to take a dip of almost 20%, comparing 2019 with 2020. With virtually no movement, a stranded economy, and the low availability of cash, passenger car sales took a dip from 148,354 in 2019 to 117,046 in 2020 due to the pandemic.

Morocco developed an investment cluster program, which saw Renault enter the local market. Renault was the only global automaker assembling vehicles in the country until the arrival of Peugeot in 2019. Luxury car manufacturers witnessed an increase in their sales. Mercedes-Benz sold 3,105 units, and it stood as the market leader in the luxury segment, followed by BMW with 2,700 units and Audi with 2.572 units.

As part of the implementation of the Industrial Partnership agreed in June 2015 under the Effective Presidency of His Majesty King Mohammed VI, the Moroccan Minister of Industry, Trade, Green Economy, and Digital Economy stated that it had signed a new Amendment with the Stellantis Group. The collaboration formed in 2015 gains additional momentum with the signing of this agreement. 

Commercial vehicle sales in the Moroccan automotive industry are expected to increase in the coming years, owing to the strategically beneficial geographical location of the country. The trade time to Spain from Morocco is one to two days for all the other European countries. This makes Morocco central to Africa's trade relations with Europe. With Morocco closing important trade relation deals with the United States, the European Union, and many Asian countries, and the majority of the deals with respect to the automotive industry, the country is expected to stabilize the market in the post-pandemic scenario.

Vehicle Sales

Competitive Landscape

The Moroccan automotive industry is consolidated. Some of the key players in this market are Renault, Nissan, Peugeot, Volkswagen, and Dacia. The country attracted several investments from international automotive firms, such as Renault, Peugeot, and the Volkswagen group. For instance,

In March 2022, Morocco pushed to fulfill the rising demand from manufacturers of electric vehicles by signing new investment agreements totaling USD 180 million with five automotive cable providers.

  • According to the agreements, a new wiring plant worth USD 38 million will be built by the Japanese business Yazaki in Tangiers, and its current facilities in Kenitra and Tangier will be expanded for USD 40 million, a company spokesman stated during the signing ceremony.
  • The Japanese company Sumitomo also announced plans to invest USD 15 million in expanding its Casablanca electric harness facility.
  • Lear, a U.S. manufacturer of auto parts, announced during the same occasion that it will invest USD 20.6 million in a new terminals and connections plant in Tangier and USD 28 million in an electric cable plant in Meknes.

Major Players

  1. Toyota Motor Corporation

  2. Volkswagen AG

  3. Groupe Renault

  4. Hyundai Motor Company

  5. Ford Motor Company

Toyota Motor Corporation, Volkswagen AG, Groupe Renault, Hyundai Motor Company, Ford Motor Company

Recent Developments

  • In July 2022, A memorandum of understanding (or "MoU") was signed between Renault Group and Managem Group, a Moroccan player in the mining and hydrometallurgy industries, to ensure the supply of low-carbon and ethical cobalt sulfate for use in electric batteries. In accordance with the conditions of the contract, Managem Group will deliver 5,000 tonnes of cobalt sulfate every year for seven years beginning in 2025.
  • In February 2022, a Moroccan heavy-duty transport vehicles management software startup raised USD 4 million to expand its services to optimize the freight industry in the country. This is expected to create demand for advanced freight vehicles and increase market opportunities for the manufacturers.
  • In February 2022, Rabat - Mobility and Automotive Centre (ATC) secured a MAD 127 million (USD 13.6 million) loan from the European Bank for Reconstruction and Development (EBRD) to equip the first automotive testing center of its kind in Africa to manufacture vehicles that can better cater to the country's automotive needs and increase cost savings for the OEMs.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION (Market Size in USD Billion)

    1. 5.1 By Vehicle Type

      1. 5.1.1 Passenger Vehicles

      2. 5.1.2 Commercial Vehicles

    2. 5.2 By Drive Type

      1. 5.2.1 Internal Combustion Engine

      2. 5.2.2 Plug-In Hybrid

      3. 5.2.3 Battery Electric

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles*

      1. 6.2.1 Renault-Nissan

      2. 6.2.2 Ford Motor Company

      3. 6.2.3 Peugeot

      4. 6.2.4 Hyundai Motor Company

      5. 6.2.5 Fiat SpA

      6. 6.2.6 Dacia

      7. 6.2.7 Volkswagen AG

      8. 6.2.8 Mercedes-Benz

      9. 6.2.9 BMW

      10. 6.2.10 Audi

  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

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Frequently Asked Questions

The Morocco Automotive Industry Outlook market is studied from 2018 - 2027.

The Morocco Automotive Industry Outlook is growing at a CAGR of >6% over the next 5 years.

The Morocco Automotive Industry Outlook is valued at 4 Billion USD in 2018.

The Morocco Automotive Industry Outlook is valued at 6 Billion USD in 2027.

Toyota Motor Corporation, Volkswagen AG, Groupe Renault, Hyundai Motor Company, Ford Motor Company are the major companies operating in Morocco Automotive Industry Outlook.

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