Morocco’s Auto Industry Rebounds After COVID-19 Slump, Still Faces 15-20% Decline

The automotive sector is one of the sectors most affected by the crisis at the national and international level. However, the effect was less devastating than what professionals expected, says Mr. Bennani in an interview with Maroc diplomatique, adding that the year should end with a decline between -15% and -20% depending on the last two months. Addressing the increase in sales after the lockdown, the manager indicated that in the third quarter, a growth of around 10 to 12 points was observed. But, unable to make up for the losses of the second quarter, the note remains negative for the year 2020, even if professionals expected worse.

According to the president of AIVAM, all market segments have been affected, whether premium or generalist, but the segment that has suffered the most from this crisis is the minibus. The effects of the crisis were more felt in Marrakech. In detail, micro-city cars and MPVs are the only ones to experience an upturn.

Regarding the overall balance sheet, the year 2020 ends on a downward trend, which was already the case last year. So if "we compare the end of October 2018 to the end of October 2020, the market has fallen by 33%". A drop that is explained on the one hand by purchasing power and on the other hand, the slightly cyclical factor of taxis, he said.

But, "For now, we don’t yet know when a return to normal from a health point of view will take place," he said. Regarding his prospects for next year, we will have to wait until the second or third quarter of next year to hope for something. "We will probably see a last quarter of 2021 identical to that of 2019, for a return to normal as of 2022," he concluded.