Morocco’s Automotive Industry Surges, Challenging Spain’s Dominance

Morocco is aiming higher in terms of automotive production. The kingdom plans to exceed one million units per year and multiply its automotive exports by six by 2030, to reach a turnover of more than 85 billion euros (including vehicles and components), compared to more than 14 billion euros in 2023. In doing so, Morocco is approaching the production capacity of Spain, which was 1.8 million units in 2023, positioning the country as the second largest automotive power in Europe after Germany, with an annual production of 4.1 million vehicles, according to El Debate.

Morocco has managed to position itself among the major global automakers. Several automakers, including Renault and Stellantis, have established themselves in the kingdom over the past decade and are maximizing their production there. Renault opened its plant in Tangier in 2012 where it mainly produces Dacia models. Some 300,000 to 400,000 units of this model are produced there each year. The plant is expected to start production of the Dacia Jogger, a hybrid vehicle, this year. The French manufacturer also produces nearly 100,000 units of Sandero and Logan per year in the former plant of the Société marocaine des constructions automobiles (SOMACA) in Casablanca.

As for Stellantis, its Kenitra plant has a production capacity of around 400,000 units per year. Essentially hybrid cars are assembled there. Its CEO, Carlos Tavares, aims to produce one million units of these vehicles by 2030. Similarly, Chinese companies have set their sights on Morocco where they plan to build giant battery factories for electric vehicles. This is the case of Gotion, which will invest more than 1.2 billion euros to build its plant near Rabat, which is scheduled to start operations in 2026.

The rush of automakers to Morocco is justified by its low-cost labor. A worker in Morocco earns between 500 and 1,000 euros depending on his level of training, while he earns at least 1,500 euros in Spain, the Spanish media reports. For its part, Morocco has just launched the expansion work of the port of Tangier Med in order to double its capacity, which will increase from 520 hectares to 1,190 hectares. The goal is to increase the vehicle storage capacity before their shipment to Europe, from 500,000 to more than one million units. This is worrying news for Spain, in a context where production and energy costs are essential to contain the cost of new cars.