Automotive: Morocco, leading exporter to Europe, outperforming China in 2023

Morocco has become the largest automotive exporter to the European Union. With a robust growth trajectory in finished vehicle production, the country’s trade with Europe is set to further expand in the coming years, said London-based magazine “Automotive Logistics”.

In 2023, Morocco’s automotive exports to the EU saw a substantial increase, reaching a value of €15.1 billion, while China vehicle’s exports to the European bloc stood at €13 billion, said the publication.

Morocco’s recent growth has largely been driven by automotive components. According to latest data released by Morocco’s Foreign Exchange Office (FCO), the country’s foreign trade authority, the wiring industry’s exports reached last year $4.7 billion, nearly a third above the 2022 level, while the powertrain industry enjoyed a 25% hike in exports to $1.1 billion.

Spain takes the lead of Morocco’s largest sales markets, followed by France, Turkey, Germany and Italy. The projections for 2024 suggest that Morocco is on track to surpass South Africa and become the largest African finished vehicle manufacturer.

According to experts, the Moroccan automotive industry is success story. Out of the 700,000 finished vehicles produced domestically, nearly 80% are exported primarily to the EU.

Domestic sales remain close to 150,000 per year and are unlikely to change substantially in the coming years. Under the government plan, Morocco is expected to push its finished vehicle production to 1 million units in 2025. Apparently, the additional volumes are destined for foreign customers.

Just 14-km from Spain, Morocco is a natural gateway to the European market. With modern ports and constantly improving infrastructure, the country can ensure quick and efficient access to major European markets with reasonable delivery time and competitive logistics costs.