Morocco reaps benefits of car industry strategy

Morocco reaps benefits of car industry strategy

One dirham in two received out of industrial exports are generated by the car industry sector which topped Morocco’s industrial exports in 2018 taking 44.5%.

The sector employs 85,00 people as the automotive sector’s clusters continue to expand pushing car exports above phosphates and tourism revenues.

These achievements are all thanks to the industrial acceleration plan as Morocco is moving at a faster pace bringing the rate of locally produced parts to 50.5%.

Morocco has also offered investment incentives including tax exemption in the first five years, followed by an 8.75% tax for 20 years and 17.5% tax afterwards.

With 402,000 cars produced in 2018, Morocco overtook South Africa as the continent first car manufacturer.

Renault is now producing 12% of its cars globally in its Tangier factory. Peugeot has also launched production in Kenitra plant with a goal of reaching a production of 200,000 cars annually.

China’s Byd, is also on its way to launch production of electrical vehicles in the country.

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