Car manufacturing, backbone of Morocco’s industrial development

The official opening of French car manufacturer PSA plant in Kenitra bolsters Morocco’s place as an African industrial hub offering international investors sound infrastructure, macro-economic and political stability, qualified work force and competitive ports.

Morocco unseated South Africa last year from the top of the podium of African car producers. The North African country produced 402,000 cars in 2018 a number which is set to increase as PSA plans to produce 100,000 cars in its Kenitra factory while Renault expects to produce 500,000 in its Tangier and Casablanca plants.

PSA, whose Kenitra factory was officially inaugurated Thursday (June 20) by King Mohammed VI, aims at doubling production to 200,000 by 2021 along with 200,000 motorbikes.

Cars were Morocco’s main exports accounting for 27% of total exports as the country is also home to car part suppliers working within industrial clusters.

The setting up of PSA factory alone has attracted some 27 leading car suppliers including Japan’s AGC wind shield manufacturer, Citic DIcastal Chinese wheel maker and car interior manufacturer Faurecia.

Jobs created in the automotive sector reached 116,000, while the part of locally produced parts in Renault and PSA cars stand at an average of 50% with the goal of bringing that rate to 65% in 2020.

Morocco has also benefited from having world-class ports such as Tangier port, which has been expanded to accommodate for an increase in car exports. PSA factory is planning to channel its cars through rail pending the setting up of an Atlantic port through which the factory will export directly.

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