Morocco: Better Economic Performance in 2019 & 2020 to Support Vehicle Sales- Fitch Solutions
“We believe that Morocco’s expansionary fiscal policy will further support the demand for vehicles”, adds the Fitch Think-Thank, noting that the availability of locally produced vehicles, such as those produced by Renault and PSA, will keep the cost of vehicles low enough so that more consumers entering the labor market will be able to afford to own vehicles.
“We maintain our forecast that total vehicle sales in Morocco will expand by 4.3 pc in 2019 and 4.8 pc in 2020, followed by an annual average growth rate of 4.7 pc over the remainder of our 2019-2028 forecast period”, stresses the study.
According to previous forecasts of Fitch analysts, Morocco’s robust economic performance coupled with the expectation that the government would adopt a more expansionary fiscal policy in the 2019 budget and the availability of lower cost locally produced vehicles, will continue to create a supportive environment for consumers and businesses to purchase new vehicles.
They also forecast passenger vehicle sales to expand by 4.0 pc and light commercial vehicle sales to increase by 8.0 pc, noting that demand for vehicles from both businesses and consumers will remain robust
Existing vehicle producers in the country are doubling down on their local production. PSA and Renault are both looking to double their production capacity by 2020 and 2022 respectively.
This will not only support robust economic growth over the forecast period, but also continue to maintain a steady supply of locally produced vehicles.