Morocco’s Automotive Revolution: From Zero to One Million Cars by 2025

Morocco has been investing in the development of the automotive industry for a few years now. It all started with the modernization of the port of Tanger Med, which is now one of the most efficient in the Mediterranean. Then, the adjacent area, known as Automotive City, has gone from a capacity of 500,000 cars to one million in just a few years. The modernization of infrastructure, tax incentives, and geographical proximity to Europe have made Morocco the promised land for automotive giants such as Renault and Stellantis.

The kingdom is also working on the construction of the port of Beni Enzar in Nador. This mega-project aims to make this platform one of the most powerful logistics hubs in the world, with the capacity to transport millions of tons of goods per year, including automobiles, raw materials, and energy products. The future port of Beni Enzar is expected to be operational by 2027 and could help strengthen the logistics flow between Africa, Europe, and the United States.

This rise of Morocco in the automotive industry is worrying Spain. The kingdom is increasingly attracting automakers and manufacturers who are rushing to relocate their production there due to its skilled and inexpensive labor, more flexible environmental regulations, tax incentives, the availability of renewable energy, particularly solar, and its strategic geographical proximity to Europe.

In 2020, Morocco was producing around 250,000 vehicles per year, according to local experts consulted by El Economista. This production has quadrupled in just five years. If the forecasts for 2025 are confirmed, Morocco will join the group of the 15 largest global manufacturers, alongside Spain and Brazil. Spanish industry professionals have already expressed their concern about this Moroccan breakthrough, which could lead to job losses and investment cuts for the Spanish automotive industry.