Business Emerging Markets Headlines International Morocco

Morocco, the new Eldorado for automakers

Morocco has established itself as a major automotive manufacturing hub, with French newspaper “Le Dauphiné libéré” describing the North African country as “the new Eldorado” for automakers. The automotive sector has become a pillar of Morocco’s economy and its leading export industry.

Renault leads French investment in Morocco, operating the world’s largest Renault factory in Tangier. Spanning 300 hectares, the facility employs 7,000 workers assembling various models, including the Dacia Sandero—Europe’s best-selling car. The company operates another production site in Casablanca manufacturing the Dacia Sandero 3, producing over 69,000 units for European markets.

French-Italian-American group Stellantis has also established operations in Morocco, relocating production to a factory in Kenitra. The facility produces the Fiat 500, Peugeot 208, and Citroen Ami, with plans to manufacture at least 400,000 vehicles by 2027.

Chinese tire manufacturer Sentury Tyres has established operations in Morocco, capitalizing on local component manufacturing to reduce production costs as the country positions itself for the growing electric vehicle market by 2030.

In 2023, Moroccan factories produced approximately 470,000 vehicles destined for Europe, surpassing China’s export volume to the continent according to Team France Export. Europe represents Morocco’s primary market, with 80% of new vehicle exports crossing the Mediterranean.
Morocco’s automotive industry success stems from competitive labor costs, strategic location near European markets, and government initiatives attracting foreign investment in the sector.

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