Morocco soon to become the top auto producer ahead of Spain? The figures that worry Madrid

– bySaid · 2 min read
Morocco soon to become the top auto producer ahead of Spain? The figures that worry Madrid

The Moroccan automotive industry is emerging as a direct competitor to Spain thanks to very competitive production costs and major port infrastructure. Between state subsidies and affordable labor, the Kingdom is attracting global manufacturers and now threatens the Spanish components sector.

Morocco has developed an attractive industrial environment for international brands by offering low-cost renewable energy, virtually free land, and financial support for logistics infrastructure, worries El Debate. The ports of Tanger Med and Nador Med, partly financed by European subsidies, are pillars of this strategy. This system is complemented by a labor cost three times lower than that of Spain, with monthly wages ranging from 500 to 600 euros.

This rise in power, already anticipated by industry leaders like Carlos Tavares, is reflected in the increased performance of local factories. The Stellantis site in Morocco is now capable of manufacturing engines and could soon take over the assembly of iconic models, such as the Citroën C4 currently produced in Spain. This dynamic is no longer limited to assembly and is now extending to the production of essential components.

The tire sector illustrates this new threat to the Spanish ecosystem. The Golden Tire Morocco project, led by the Chinese group Shandong Yongsheng Rubber in Driouch, plans to create the largest tire factory in Africa. With a capacity of 19 million units per year, this Sino-Moroccan industrial complex is directly competing with Spanish production, which amounts to around 30 million tires per year, while creating thousands of local jobs.