Rabat – Sales from Morocco’s automotive sector reached MAD 70.9 billion ($7 billion) at the end of June, with an annual growth rate of 34%, according to data from Morocco’s Exchange Office (OE).
In a recent report, OE explains that the rise in the sector’s exports is a result of a rise in demand across all segments of the automotive sector. Imports from the wiring segment rose by 44%, while imports from the construction segment rose by 26%, and the interior vehicles and seats segment by 34%.
Morocco’s automotive sector surpassed expectations in May of this year, achieving a significant milestone by overtaking phosphate to become the country’s largest exporting sector for the first time.
The automotive industry in Morocco has witnessed remarkable growth, becoming the largest in Africa in 2018 and overtaking South Africa thanks to strategic state policies aimed at attracting investments.
The sector is expected to further grow by approximately $14 billion by 2026, according to research from advisory firm Mordor Intelligence.
Although faced with a temporary slowdown during the pandemic, the industry has signed 25 trade agreements with various car manufacturers in the European Union and the United States as of 2021, with demand for passenger vehicles on the rise.
Established manufacturers like Dacia, Renault, Peugeot, and new entrants like Chinese manufacturer BYD and German manufacturer Volkswagen have established production plants in Morocco. Luxury automobile manufacturing, led by Mercedes-Benz, BMW, and Audi, has also seen significant growth.
Experts forecast that Morocco will produce one million cars by 2030, potentially overtaking Italy in vehicle production.
Read Also: Morocco’s Automotive Sector Exceeds Expectations in 2023
