European Automakers Shift Focus to Morocco Amid Electric Vehicle Transition

Almost all European automakers are in great difficulty since the entry into force of this European regulation in favor of the electric car. Their shares have fallen considerably in the last semester of 2024, with a drop of 2.49% for Renault, 32.4% for Stellantis, 22.7% for Ford, 16.9% for Mercedes Benz, 16.4% for Volkswagen and 11.4% for BMW.

The reason is the low demand for electric vehicles compared to conventional vehicles. A lack of enthusiasm that is explained by the high price of this type of vehicle, the lack or insufficiency of charging points, the difficulty of use and the almost total devaluation of the vehicle after eight years of use, reports La Razon.

In 2026, the EU will impose a new 20% reduction in CO₂ emissions to 93.6 grams per kilometer traveled. A measure that will be difficult for European manufacturers to comply with, as they will be forced to produce more electric cars. For the moment, the solution found by the manufacturers to circumvent this difficulty is to align the prices of combustion cars with those of electric cars.

This measure will undoubtedly lead to a drop in vehicle sales and the loss of thousands of jobs in Europe. This is why manufacturers are considering setting up their production sites in Africa, particularly in Morocco, or in America, where labor and transportation costs are affordable. Stellantis, for example, plans to double the production capacity of its Kenitra plant in Morocco to 400,000 units per year.