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Morocco Automotive Industry Outlook - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

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  • 80 Pages
  • June 2022
  • Region: Morocco
  • Mordor Intelligence
  • ID: 4773661
The Moroccan automotive market studied was valued at USD 4 billion in 2021, and it is expected to reach a value of USD 5.5 billion by 2027, registering a CAGR of about 6% during the Forecasts period.

Due to the spread of COVID-19, the automotive market in Morocco witnessed a slump in growth due to lower footfalls in the showrooms. Various automobile manufacturers were forced to temporarily shut their production as the supply chain was disrupted by the country-wide lockdown imposed by the government, which restrained the growth of the market.

The increasing investment from the leading automakers in Africa and incentives offered by the government by removing certain taxes during the first five years are majorly driving the automotive market in Morocco. Foreign investment is encouraged by the Moroccan government. The automotive sector exports went from MAD 14.7 billion to almost MAD 65.1 billion at the end of 2018, which is an increase of 14.5% per year.

Additionally, Morocco's integration into the global economy was facilitated by the signing of numerous automotive free trade agreements with the European Union and the United States. Morocco signed a deal with more than 25 automotive industry projects worth USD 1.5 billion as it seeks to position itself as an international hub for automotive production. These trade agreements contributed positively to the emergence of automotive export activities.

Key Market Trends

Foreign Investments from Leading Auto Manufacturers

Foreign direct investment is continually increasing as companies are attracted to the country's favorable economic conditions, government support through various initiatives (such as tax exemptions for the first five years, VAT exemptions, and land purchase subsidies), skilled workforce, and modern infrastructure.

The financial and training support provided by the national government is encouraging manufacturers and local candidates to join the industry and contribute to the country's economy.
  • One of the recent investments in Morocco's automotive sector is PSA Peugeot Citroen's investment of USD 615 million for setting up its manufacturing facility
  • The company aims to manufacture 90,000 B-and C-segment passenger vehicles in a year and internal combustion engines (ICE) for passenger cars for both the domestic and regional markets.
  • Despite a low population and few sales of vehicles within the country, automobile manufacturers in Morocco made noteworthy exports to Europe and Middle East & Africa.
  • Additionally, Morocco's integration into the global economy was facilitated by the signing of numerous free trade agreements with the European Union and the United States. These trade agreements contributed positively to the emergence of export activities in the country.
  • From 2019 to 2020, Renault-Nissan alliance produced close to 588,400 vehicles in the span of two years, with the total production in two years reaching 676,000 approximately.

Increasing Demand for Passenger Vehicles

Although the industry was thriving before, the pandemic forced the sales numbers to take a dip of almost 20%, comparing 2019 with 2020. With virtually no movement, a stranded economy, and the low availability of cash, passenger car sales took a dip from 148,354 in 2019 to 117,046 in 2020 due to the pandemic.

Morocco developed an investment cluster program, which saw Renault enter the local market. Renault was the only global automaker assembling vehicles in the country until the arrival of Peugeot in 2019.

Luxury car manufacturers witnessed an increase in their sales. Mercedes-Benz sold 3,105 units, and it stood as the market leader in the luxury segment, followed by BMW with 2,700 units and Audi with 2.572 units.

Commercial vehicle sales in the Moroccan automotive industry are expected to increase in the coming years, owing to the strategically beneficial geographical location of the country. The trade time to Spain from Morocco is one to two days for all the other European countries. This makes Morocco central to Africa's trade relations with Europe. With Morocco closing important trade relation deals with the United States, the European Union, and many Asian countries, and the majority of the deals with respect to the automotive industry, the country is expected to stabilize the market in the post-pandemic scenario.

Competitive Landscape

The Moroccan automotive industry is consolidated. Some of the key players in this market are Renault, Nissan, Peugeot, Volkswagen, and Dacia. The country attracted several investments from international automotive firms, such as Renault, Peugeot, and the Volkswagen group.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
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Table of Contents

1.1 Study Assumptions
1.2 Scope of the Study
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5.1 By Vehicle Type
5.1.1 Passenger Vehicles
5.1.2 Commercial Vehicles
5.2 By Drive Type
5.2.1 Internal Combustion Engine
5.2.2 Plug-In Hybrid
5.2.3 Battery Electric
6.1 Vendor Market Share
6.2 Company Profiles*
6.2.1 Renault-Nissan
6.2.2 Ford Motor Company
6.2.3 Peugeot
6.2.4 Hyundai Motor Company
6.2.5 Fiat SpA
6.2.6 Dacia
6.2.7 Volkswagen AG
6.2.8 Mercedes-Benz
6.2.9 BMW
6.2.10 Audi

Companies Mentioned (Partial List)

A selection of companies mentioned in this report includes, but is not limited to:

  • Renault-Nissan
  • Ford Motor Company
  • Peugeot
  • Hyundai Motor Company
  • Fiat SpA
  • Dacia
  • Volkswagen AG
  • Mercedes-Benz
  • BMW
  • Audi