Morocco Tops Global Ranking as Cheapest Country for Car Manufacturing

With a labor cost for the production of a single vehicle not exceeding $106, Morocco tops the ranking of over 250 factories analyzed worldwide, established by the industrial and financial consulting firm "Oliver Wyman," part of Marsh & McLennan, a large American group present in numerous services related to risk management for companies (historically in insurance brokerage). The kingdom surpasses countries like Romania ($273), Mexico ($305), Turkey ($414), and even China ($597).

Morocco has become a central industrial base for French automakers, thanks to its geographical position, advanced infrastructure, and costs lower than those in Europe and Asia, in a role comparable to that played by Mexico for the American automotive industry for decades, according to the report’s authors. They explain that the low cost in Morocco is justified by modest wages, but also by high productivity, modern factories, stable supply chains, and simplified designs.

Labor costs represent between 65% and 70% of the industrial transformation cost, making its control a key lever for achieving profitability and strengthening competitiveness, the report specifies. Morocco also owes this position to simple and intermediate production models that reduce the number of engineering hours and lower the final cost per vehicle.

The kingdom is progressing at a time when the global automotive industry faces significant challenges, including slowing demand for electric vehicles, increasing production and energy costs, as well as rising trade barriers between major economic powers. Morocco has indeed recorded a 29% growth in its automotive production between 2019 and 2024, compared to a decline observed in major industrial countries such as France, Germany, and Italy.

Morocco thus emerges as an integrated industrial structure benefiting from cost stability and the evolution of logistical infrastructure, thus ensuring smooth and continuous production, notes the firm.