Morocco: a black year for the automotive industry, but a rebound in 2026

"I’m not going to lie to you, 2025 was very, very difficult. We started the year with very modest figures for the automotive industry. Frankly, the first three or four months, the results were really weak," said Mezzour, during his presentation of the ministry’s sectoral project to Parliament. This regression was due to the change in European demand towards electric vehicles and market share losses for the internal combustion engine segment. In reality, the problem was more structural than cyclical, notes Médias24.

Added to this were the engine problems encountered by a brand produced in Morocco, as well as the fierce competition from Chinese electric cars that flooded the European market. "We had a model produced in Morocco, at a rate of 180,000 to 190,000 units per year, which encountered engine problems [...]. Its sales have plummeted in Europe, in parallel with a general decline in car sales on the continent and increased competition from China. We were in a rather uncomfortable situation," the minister points out.

And he continues: "We have straightened out the situation: we have made improvements, worked hard and adjusted several aspects, both with our manufacturers and on the markets. Today, we have returned to a level equivalent to that of last year. And what is most important for the automotive industry is that we have regained the balance compared to 2024, with a slight decline of 2.7%." Similarly, automotive exports fell by 2.7% at the end of September 2025, according to data from the Foreign Exchange Office. The construction segment, for its part, recorded a 14.6% decline.

In terms of outlook, Ryad Mezzour expects exports to stagnate by the end of the year. "We will therefore end the year at about the same level. But at the same time, and this is what matters most, the investors present in our country have renewed their confidence in the Moroccan industrial platform," he said, before adding: "I can say with pride that Morocco now has an automotive industrial platform with a production capacity of one million vehicles per year."

The member of the government also highlighted the growth of the Moroccan industry. "We have also seen the emergence, for the manufacturer who had engine problems, of two new high-end models that will be produced in Kenitra, models that should be a great commercial success. At the same time, the other manufacturer has established with us an action plan until 2030. This plan will allow us to transform the entire production capacity, i.e. 500,000 vehicles per year, so that it can manufacture electric, hybrid and thermal cars on the same production line... We will also be able to diversify our markets and reduce our dependence on certain ones. We will see the positive effects on the performance of the automotive sector as early as next year."