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Rabat – Morocco is set to launch a 100% Made in Morocco car brand that would be available on the local market at an average price of MAD 170,000 ($15,000), the country’s Trade and Industry Minister, Ryad Mezzour said.
After becoming the largest exporter of passenger vehicles to Europe, Morocco’s car industry now looks to increase its share of the domestic market, as the industry ministry announced plans to launch budget-friendly cars under the label “Neo.”
Speaking at the House of Representatives during a public hearing session, Mezzour explained that the country’s vehicle exports to Europe far exceeded those to China, Japan, South Korea, and the United States.
The minister further added that Morocco’s car exports to Europe remain unaffected by the drop in demand on the backdrop of the looming economic crisis. While demand in the European car market dropped by 26% in 2022, sales of vehicles made in Morocco surged by 50%.
Morocco’s flourishing automotive industry reflects a strong base of skilled labor. The minister pointed out that the country is home to 10,000 car design engineers working for world-class brands from German, Britain, France, and North America.
“The country is full of skills capable of manufacturing cars and dedicated factories,” he said in a statement reported by Supply Management.
The country is currently a go-to destination for car manufacturers looking to slash production costs while targeting European customers. However, maintaining its leading position in the industry does not come without challenges.
The European Union, the largest client of Morocco’s car production, is set to ban imports of vehicles with combustible engines by 2035. To keep its prime market, Morocco would have to transition to electric car manufacturing.
Transitioning to electric car manufacturing seems to top the agenda of the industry ministry.
In a statement earlier this year, Mezzour said that the national car industry is well on its way to doubling its production input of electric cars over the coming two years, with a production target of 100,000 units annually.
Besides Europe, the market of electric cars is fast growing as countries race to put on carbon neutrality policies.
Read Also: Morocco Satisfied with High Demand for Electric Cars
