Moroccan Car Rental Industry Faces Slump as Expat Visits Decline

"There has been no particular activity or dynamism in car rental services since last June," complains a member of the Union of Car Rental Agency Owners in Morocco to Hespress, noting "low demand in the face of an abundant supply of cars (including new cars) of different models and types". Several factors have led to this situation, explains this professional, citing the delay in the arrival in Morocco of Moroccans residing abroad and the 25% increase in the prices of certain new models.

For example, the price of a car worth 150,000 dirhams has reached 180,000 or even 190,000 dirhams, he details, adding that "the minimum price for the daily rental of an ordinary car currently varies from 300 to 350 dirhams depending on the model, type, engine and fuel consumption...". The member of the Union of Car Rental Agency Owners in Morocco also stressed the "competitiveness of car rental prices, particularly in the major cities (such as the Casablanca-Settat region)".

"There is indeed a stagnation of the car rental market in most Moroccan cities, compared to previous years at the same period," confirms for his part a professional in the sector and treasurer of the Association of Car Rental Agencies in Tétouan, adding that "the demand for car rentals for travel, especially by Moroccans residing abroad, represents only less than 5% of the transactions of most car rental agencies".

For his part, the president of the National Federation of Consumer Protection Associations in Morocco, believes that the average rate of 200 dirhams per day for renting a car remains "reasonable" for the average Moroccan families, but "high when compared to what the large specialized rental companies offer". He will add: "The stagnation mentioned by some professionals is logical, given the strong competitiveness and the fact that the supply currently exceeds the demand".