Morocco is rapidly emerging as a global automotive manufacturing powerhouse, challenging traditional European players and poised to surpass Italy in vehicle output.
Once considered a peripheral actor, the North African kingdom has leveraged its strategic location, competitive labor costs, and aggressive industrial policy to attract billions in foreign investment, particularly from China and Europe, Spanish media elEconomista reported.
Morocco has indeed become the most cost-efficient country for automobile manufacturing globally, with labor costs averaging just $106 per vehicle, far below Italy’s and Germany’s, which face steep labor burdens due to union regulations and energy costs.
This cost advantage, combined with streamlined production and modern infrastructure, has helped Morocco increase car production by 29% between 2019 and 2024, while Italy and other European nations saw declines.
In 2024, Morocco produced over 700,000 vehicles, with projections indicating it will reach one million units in 2025.
Italy, by comparison, produced just over 591,000 vehicles last year. Industry analysts now expect Morocco to overtake Italy in total output by the end of 2025, marking a symbolic shift in the global automotive hierarchy.
Morocco is also preparing its automotive sector for new electric mobility demands. The transformation is being accelerated by massive Chinese investment in electric vehicle (EV) supply chains. Companies such as Gotion High-Tech, BTR New Material Group, and CNGR Advanced Materials have committed billions to build battery gigafactories, anode and cathode plants, and component facilities across the country
The Moroccan government has also capitalized on its vast reserves of phosphates, cobalt, and copper- critical for EV battery production- and its free trade agreements with the EU and the US. These factors make Morocco an attractive alternative for Chinese manufacturers seeking to bypass Western tariffs and trade restrictions.
