Morocco’s car-making sector, a magnet for world-class suppliers

Morocco keeps attracting global car parts manufacturers thanks to the infrastructure and business climate it offers.

Yazaki is one of the Japanese car part manufacturers who grabbed the investment opportunities offered by Morocco as a platform for exports to Europe and Africa.

The company, which opened its first Moroccan plant in Tangier in 2000, is planning a fourth plant in Kenitra where a car industry is already operating to supply the French carmaker PSA factory.

PSA, whose Kenitra factory was officially inaugurated in June 20 by King Mohammed VI, aims at doubling production from 100,000 to 200,000 by 2021 along with 200,000 motorbikes.

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.

According to official figures, 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.

Besides PSA, Renault has been a trigger in attracting car part manufacturers as the French company plans to increase its annual production in its Tangier plant to 500,000 cars.

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.

Currently, about 10% of total cars sold by Renault in the globe are made in Morocco, where 73% of production is exported to 73 countries, notably in Europe and the MENA region.