Morocco’s Auto Industry Boom: Chinese Investment Signals Growing Appeal

According to the magazine, the massive investment of 350 million euros by the Chinese group Citic dicastal in a rim factory inaugurated at the end of June in Kenitra is a testament to the dynamism of the automotive industry in Morocco.

This investment shows the arrival of Chinese equipment manufacturers in this country, despite a minimum wage almost twice as high, compared to neighboring countries and rather expensive land.

For the newspaper, the "industrialists vote for Morocco for its liberal policy (the country does not impose local capital), for its public aid (up to 10% of projects), but above all for its production volume".

With the PSA and Renault plants in Tangier and Casablanca, the Kingdom should produce more than 700,000 vehicles per year by 2022 - 90% for export - and thus become the number one on the African continent.

Jeune Afrique believes that the Peugeot site in Kenitra is giving "new momentum" to the sector, specifying that the industrial fabric is already "unparalleled" on the African continent, notably due to the integration rates targeted by the two manufacturers as part of their contractual relations with the State: 65% by 2023 for Renault and 80% for Peugeot (60% currently).