Morocco Emerges as Global Automotive Manufacturing Powerhouse, Rivaling China and India

"There are now only two countries that surpass us in terms of competitiveness. These are China and India," said the PSA group, stressing that "two weeks ago, we produced a car door whose level of competitiveness is equal to that of India, which is the best in the world," the minister reassured Parliament recently. He was also pleased with the local industry integration rate, as the 80 billion DH in annual exports from the sector are made up of more than 60% local products. This will allow the sector to surpass the phosphate industry in terms of added value.

Moreover, despite the impacts of the health crisis, the automotive sector remains one of the sectors that has quickly got back on track, as between "September 2019 and September 2020, automotive exports increased by 34%," said the minister in charge. These feats encourage officials to set other goals. It is in this framework that a memorandum of understanding was signed on Tuesday, December 8, 2020, concerning the extension of the Industrial Acceleration Zone (ZAI) of Kénitra, which now has 49 companies representing an investment of 20 billion DH and having created 36,571 jobs.

Several famous equipment manufacturers, including the American Adient, which has just signed an agreement with the Kingdom, are consolidating their investment in Morocco. Adient’s unit will be built on an area of 24,500 m² within the ZAI of Kénitra and will require a budget of 15.5 million euros with the creation of 1,600 jobs. This agreement also aims to launch a supplier ecosystem in order to manage the development of the automotive value chain in Morocco, and proves the group’s determination to detect new activities in Morocco, mainly including headrests and armrests.