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Rabat – Morocco aims to build on its strengthened automotive approach to increase its electric vehicle production capacity by 53%.
Morocco’s Minister of Industry, Ryad Mezzour, announced the news on Tuesday, noting that the country’s goal is to increase production to reach 107,000 electric vehicles by the end of 2025.
The minister said that Morocco’s automotive production stands at 700,000 vehicles. By the end of the year, Morocco is expected to produce one million vehicles.
The automotive sector is a key industry for Morocco’s economic growth.
According to data from the Moroccan Ministry of Industry, the sector is Morocco’s first exporting industry.
Between 2014 and 2018, the sector created at least 116,000 jobs. Morocco is also the first automotive manufacturer in Africa.
Data from 2019 shows that job integration from the sector reached over 220,000 opportunities, as well as the presence of 250 companies involved in the sector.
“Strategic sector in the national industrial policy, since the 2000s, the automotive industry has released a two-digit annual growth towards the creation of employment and export,” the ministry said.
Several renowned foreign groups have established production facilities in Morocco, including Renault, Peugeot, Yazaki, and many others.
Most recently, the Moroccan Exchange Office reported that the Moroccan automotive sector’s exports totaled MAD 49 billion ( $5.4 billion) as of April.
The number shows a slight decrease of MAD 3.67 billion ($399 million) or -7.0% year-on-year.
Exports from the vehicle construction segment totaled MAD 17.84 billion ($1.9 billion), compared to MAD 22.884 billion a year earlier.
Exports of exterior vehicle components reached MAD 1.172 billion, down from MAD 1.30 billion, showing a drop of MAD 121 million or -10.1%.
As for interior vehicle components and seats, they increased in exports, rising to MAD 3.34 billion, or 10.3%.
Automotive wiring exports also increased to reach MAD 18.93 billion, representing a 1.7% increase.
Despite the boom, Morocco’s automotive sector is facing challenges, including the EU’s recent decision to impose countervailing duties on Morocco.
In March, the European Commission released a statement announcing the news of imposing countervailing duties on imports of aluminum road wheels from Morocco.
The commission claimed that this decision aims to shield EU producers and defend 16,600 jobs from “unfair trading practices.”
The decision came as Morocco continues to boost its global position in industrial sectors.
Morocco responded to the commission’s decision, noting that the Moroccan government was studying all possibilities to take “any measures it deems appropriate to address these issues.”
The government stressed that the partnership between Morocco and the EU is global, warning that this partnership “cannot be subject to a selective logic or to tailored treatment.”
“It is necessary to find a solution to these problems,” the Moroccan government spokesperson said.
