Doha – Israel has begun importing cars from Morocco as it grapples with an ongoing trade embargo imposed by Turkey, according to the Israeli financial news site Calcalist.
Until recently, only a limited number of vehicles made in Morocco had been imported to Israel, primarily models from the French Renault group, including Renault and Dacia brands.
However, in the coming months, Peugeot 208 models produced at Stellantis’ factories in Kenitra, Morocco are expected to join them.
The first Peugeot 208 version slated for import is the turbocharged PURE TECH model, with hybrid versions expected to arrive from European production next year.
Stellantis opened its Kenitra plant in 2019. The automaker has announced plans to double the factory’s production capacity to 450,000 vehicles per year in Morocco, which will create 2,000 new jobs.
The shift to Moroccan imports comes as Israel’s car market faces significant supply shortages, months after Turkey halted trade with Israel in response to the country’s ongoing genocide in the Gaza Strip.
Major brands like Hyundai, Toyota, Renault and Ford have not been arriving from Turkey since May, leaving Israeli car importers struggling to meet market demand.
In response, Israeli Foreign Minister Israel Katz vowed to seek new trade alternatives, focusing on domestic production and imports from other nations.
Read also: Moroccan-Israeli Trade Surges Amid War on Gaza
Morocco appears to be an ideal choice, as the North African country aims to boost its automotive exports and maintains several trade agreements with Israel despite some domestic social and political opposition.
Morocco’s automotive industry now accounts for 22% of its GDP and $14 billion in exports. The country is working to maintain its position as a major car manufacturing hub, including a push into electric vehicles. The sector employs 220,000 people.
Trade between Morocco and Israel reached $8.5 million in June 2024, a 124% increase compared to June 2023, according to the Abraham Accords Peace Institute. However, this growing economic relationship has faced criticism from pro-Palestine activists in Morocco who oppose the normalization of ties with Israel that began in late 2020.
The developments come amid heightened tensions in the region. Israel has faced condemnation for its genocidal actions in Gaza, where over 41,000 Palestinians have been killed since October 2023.
Meanwhile, Lebanon is facing a dire situation as Israeli attacks have killed at least 569 people, including 50 children, and wounded 1,835 according to the Lebanese Health Ministry. Morocco has not yet officially commented on these incidents.
