Morocco Automotive Industry Outlook - Growth, Trends, and Forecast (2020 - 2025)

The Morocco Automotive Market is segmented by Vehicle Type (Passenger Cars and Commercial Vehicles).

Market Snapshot

Study Period:


Base Year:



5.6 %

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Market Overview

The Moroccan automotive industry is expected to register a CAGR of over 7% during the forecast period (2020-2025).

  • The increasing investment from the leading automakers in the African region, and incentives offered by the government, by removing certain taxes during the first five years is majorly driving the automotive market in Morocco. The automotive production capacity is expected to be doubled by the end of 2022, to reach 160,000 vehicles a year. Foreign investment is encouraged by the Moroccan Government. The automotive sector exports went from 14.7 billion dirhams to almost 65.1 billion dirhams 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 has signed a deal with more than 25 auto industry projects worth 1.5 billion USD as it seeks to position itself as an international hub for automotive production. These trade agreements contributed positively toward the emergence of auto export activities in the country. For instance, in 2007, an agreement was formed between Morocco and Renault-Nissan Group, which resulted in a vast expansion of the company’s engagement in the country, by creating an environment-friendly production site in Tangier, costing more than EUR 600 million.

Scope of the Report

The Morocco automotive industry outlook contains the latest trends and technological developments in this market, demand by vehicle type and share of major players across the country.

By Vehicle Type
Passenger Vehicles
Commercial Vehicles

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Key Market Trends

Foreign Investments from Leading Auto Manufacturers

Foreign direct investment has been continually increasing, as companies are attracted toward the country’s favourable economic conditions, government support through their initiatives (such as tax exemptions for the first five years, VAT exemptions, and land purchase subsidies), skilled workforce, and modern infrastructure.

  • Some of the recent investments in the Morocco’s automotive sector include PSA Peugeot Citroen’s investment of USD 615 million for setting up its manufacturing facility, which is expected to be operational in 2019.
  • 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 having a low population and less sales of vehicles within the country, automobile manufacturers in Morocco made noteworthy exports to Europe, the 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 toward the emergence of export activities in the country.
  • Additionally, in April 2016, an agreement was made between Morocco and the Renault Group, to further expand Renault’s involvement and position in Morocco, which included the manufacturing of 450,000 vehicles in the country.
  • In 2018 alone Renault Maroc has produced over 400,000 vehicles due to high national and international demand. Faurecia, another French group has entered Moroccan market by setting up new factory with an investment of over 300 million dirhams.

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Increasing Demand for Passenger Vehicles

The passenger cars segment witnessed a considerable increase of 4.11% in sales during 2017, reaching 155,218 units from its previous year.

During the Q1 of 2019, Dacia stood as the market leader, with a 30.3% market share. The Renault group, in April 2019, has sold about 5,364 units of passenger cars and utility vehicles, out of which, Dacia alone contributed to 3,157 units. This was followed by Volkswagen with 11,810 units, Peugeot with 11,316 units, and Hyundai with 9,882 units, sold during 2018.

Morocco developed an investment cluster program, which saw Renault enter the local market. Renault will be the only global automaker, assembling vehicles in the country, until the arrival of Peugeot in 2019.

The demand for luxury cars has increased during 2018, when compared to the previous year. A total of 1,140 hybrid vehicles were sold in the same year, as compared to 342 units in 2017. Luxury car manufacturers have also witnessed an increase in their sales. Mercedes-Benz sold 3,105 units, and stood as the market leader in the luxury segment, followed by BMW with 2,700 units and Audi with 2.572 units.

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Competitive Landscape

The Morocco automotive industry is consolidated. Some of the key players in this market are Renault, Nissan, Peugeot, Volkswagen, and Dacia. The country has attracted several investments from international automotive firms, such as Renault, Peugeot, and the Volkswagen group. The country has seen 91 million vehicle sales in 2019.

Renault/Dacia owns a market share of over one-third of the new vehicle sales and is the largest automotive entity in Morocco. The company has two production plants in the country, and sources about 42% of its parts from local suppliers.

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Table Of Contents


    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study




    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Porter's 5 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


    1. 5.1 By Vehicle Type

      1. 5.1.1 Passenger Vehicles

      2. 5.1.2 Commercial Vehicles


    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles

      1. 6.2.1 Automotive Vehicle Manufacturers

        1. Renault-Nissan

        2. Ford Motor Company

        3. Peugeot

        4. Hyundai Motor Company

        5. Fiat SpA

        6. Dacia

        7. Volkswagen AG

        8. Mercedes-Benz

        9. BMW

        10. Audi


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