Morocco’s Auto Industry Boom Draws Major Manufacturers from Neighboring Countries

Morocco’s political stability is attracting foreign investors. Two Asian giants, Japan’s Yazaki and South Korea’s Hyundai, are considering carrying out their automotive projects in the kingdom rather than in Tunisia and Algeria as initially planned.

The Tunisian General Labor Union unsuccessfully tried to dissuade the managers of the automotive parts manufacturer Yazaki from transferring the two projects expected to create around 5,000 jobs in Tunisia to Morocco, reports the Tunisian press. According to the same source, the Japanese company and many other foreign companies prefer to settle in Morocco, which enjoys political stability, unlike Tunisia where the vision lacks clarity and is not reassuring for investors.

However, this departure has been denied by the Tunisian Ministry of Industry, threatening to file a complaint against all those who spread this type of rumor. "This is unfounded information," the ministry said in a statement dated Thursday, October 14, 2021, attaching a letter received from Yazaki denying the information and expressing its surprise at these rumors that are damaging to its brand image.

Before the Japanese company that has given up on Tunisia, the South Korean company Hyundai Motors announced the cessation of its activities in Algeria and the transfer of its automotive projects to Morocco, fearing for the future of the sector in Algeria. The South Korean company has chosen to invest in Morocco for its national skills and its foothold in the automotive industry at the international level, causing the neighboring country to lose many job opportunities.

Similarly, the German company Volkswagen has been in contact with the Moroccan authorities to transfer its activities from Algeria to Morocco, which, it should be noted, is on the verge of surpassing South Africa and becoming the largest car producer in Africa.