Morocco’s Automotive Boom: From Underdog to European Rival in EV Manufacturing

"The remarkable growth of Moroccan automotive production, which is exponentially multiplying its investments, has recently caught attention," reports the Spanish media El Economista, noting that in addition to European manufacturers like Renault or Stellantis who have been established in the kingdom for years, Chinese giants are investing more and more in Morocco. "Chinese manufacturers of electric vehicle batteries have strongly bet on Spain’s neighbor," the publication notes, stressing that this influx of Chinese investors has contributed to Morocco’s rise, which "now produces more than certain European economies like Poland or Hungary."

If this momentum is maintained, Morocco could overtake Italy this year, it is warned. According to the International Organization of Motor Vehicle Manufacturers (OICA), "Morocco produced 559,645 vehicles in 2024, compared to 591,067 for Italy." With this performance, Morocco "has clearly surpassed Portugal or Belgium," but still lags behind major producers like Germany (over four million), Spain (2.3 million) or France (900,000). Capital Economics confirms that Morocco produced 560,000 units in 2024 compared to 40,000 units in 2010, rising to 25th place globally. In the first half of 2025, the kingdom has already produced more than 350,000 vehicles, according to official sources, an annual increase of 36%.

James Swanston, senior economist for North Africa and the Middle East at Capital Economics, emphasizes the massive investment of Chinese companies "in component manufacturing, particularly for electric vehicles" in Morocco. Over the past twelve months, "CNGR, Gotion High Tech and BTR New Material Group have concluded major agreements to build battery factories" in the kingdom, while "Sentury and Yongsheng Rubber have announced new tire units in Tangier and Kénitra," the Spanish media reports, specifying that "sales of Chinese vehicles and chassis have increased from 3,000 units in 2023 to nearly 20,000 in the spring of 2025, a quarter of which are electric models."

The interest of Chinese groups in Morocco is explained by the fact that "Morocco holds about 70% of the world’s known phosphate reserves, a key element for batteries" and that "the country benefits from a free trade agreement with the European Union, in force since 2000." According to James Swanston, "if the EU tightened its customs duties on Chinese vehicles, it would encourage the transfer of operations to Morocco." Rabat aims for a production of two million vehicles by the end of the decade. To achieve this goal, "the ports of Tangier and Kénitra are being expanded to increase export revenues by 20% in two years."