Last year saw new successes for the automotive sector, an ever-expanding industry in Morocco. This sector successfully overtook phosphates and became the country's largest export industry.
Exports related to this sector amounted to 141.7 billion dirhams ($13.9 billion) at the end of 2023, up from 111.2 billion dirhams ($11 billion) the previous year.. This is a staggering 27% year-on-year increase, according to a recent report by the country's foreign trade watchdog, the Office of Foreign Exchange (OE).
According to Morocco World News, The growth in automobile exports was driven by the expansion of the automobile field and automobile wiring-related businesses., involves assembling electrical wires, connectors, and other components to create a wiring system in a vehicle. By the end of 2023, exports from the wiring sector also increased significantly by 32%, reaching AED 46.1 billion ($4.5 billion).
Similarly, the automotive construction industry, which includes the manufacturing and assembly of structural components, body panels, chassis, and other critical components, grew at an annual rate of 22%. Exports related to this sector amounted to AED 67.6 billion ($6.7 billion).
Meanwhile, the propulsion systems industry, which manufactures the internal systems of automobiles, recorded an annual growth rate of 25%. The value of these exports exceeded 11.3 billion dirhams ($1.1 billion).
As Moroccan media recalls, since 1957 Morocco's automotive sector has undergone a transformation from simple vehicle assembly to general production.Production volume has increased in recent years, and in 2021 The kingdom produced a total of 403,007 units, of which $8.3 billion was exported.
This growth created approximately 220,000 jobs in the industry. Additionally, a network of more than 230 Tier 1 and Tier 2 suppliers emerged, contributing to a 60% local integration rate.
Thanks to concrete government policies and a favorable business environment that facilitated the creation of large-scale infrastructure projects. Morocco has established itself as the continent's leader in the automotive industry.
in the policies of these countriesFor example, the Industrial Acceleration Plan 2014-2020 stands out.the automotive ecosystem was strengthened with the construction of industrial parks and motor cities such as Kenitra and Tangier.
On the other hand, at the global level, Morocco's integration into the global economy through free trade agreements has further strengthened its attractiveness for investorsaccording to UNCTAD's 2023 report.
In addition, engineering research and development capabilities are increasing domestically as well. Making Morocco one of Africa's leading automotive testing centers. Additionally, Stellantis has established an automotive technical center near Casablanca.
Despite these optimal conditions, Morocco's goal is to achieve annual production of 1 million cars by 2025, while increasing local integration to 80%.
In 2020, The Kingdom has already reached annual production capacity of 700,000 vehicles. The government's strategy focuses, inter alia, on improving regional integration, expanding industrial activity, upgrading value chains, promoting technology transfer and diversifying export markets.
Morocco positions itself as a major producing region and attracts several major groups German motor distributors Renault, Snop, Stellantis Sumitomo Electric Wiring Systems, Yazaki Corporation, etc.
The country's automotive industry has reached an important milestone as the focus of manufacturing shifts to complex, high-value components such as engine manufacturing, engineering, and research and development.. It is also worth mentioning that in this country between 40,000 and 50,000 electric cars are produced annually.
However, the number of registered automobiles in Japan is still small (175,435 in 2021). The main focus for vehicle assembly is the European market.
Renault, for example, exports most of its production, even though it has the largest assembly plant with a production capacity of 400,000 cars.. The Citroën Ami, produced in the Moroccan city of Kenitra, has emerged as Spain's best-selling car in 2022.
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