Morocco's Automotive Growth Shapes Africa's Industrial Future

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Written by Sharun Anthony for IIR News Intelligence (Sugar Land, Texas)

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Summary

Africa's leading car manufacturer and exporter, Morocco, is witnessing robust growth in its automotive industry. Underpinned by the country's strategic location, government support and strong foreign investment particularly in green mobility, the industry has become pivotal in strengthening Morocco's economy.

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Morocco Gets Mileage Out of Strategic Position

Morocco's strategic location positions it as a gateway to European markets, enhancing its appeal for foreign automotive investment. According to BNP Paribas, about 95% of Morocco's car exports are destined for Europe. With government initiatives such as tax breaks, free trade zones, reduced import duties and incentives on corporate electric-vehicle purchases, Morocco offers a highly competitive environment for global auto investors like China and the U.S.

As per Morocco's government, about 1 million vehicles were manufactured in the country in 2025. Emerging as a hub for carbon-neutral transportation, Morocco has embraced clean technologies, such as hydrogen-fueled and electric vehicles (EVs). Morocco World News reported that passenger EV sales in the country are likely to rise by 36.3% to 7,237 units in 2026. Battery EVs (BEVs) are projected to total 4,248 units and plug-in-hybrid vehicles (PHEVs) are expected to account for 2,889 units.

In addition, development of charging infrastructure and hydrogen refueling stations is underway. With 300 public charging stations operational, the country aims to install 5,000 charging points by 2028. At the same time, as electrification gains momentum, traditional internal combustion engine (ICE) automakers continue to hold a strong base in the leading North African nation. Global auto giants such as Renault (Boulogne-Billancourt, France) and Stellantis (Hoofddorp, Netherlands) continue to ramp up production to serve both export markets and domestic demand.

Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database is tracking 18 active capital projects worth nearly US$8 billion aimed at the automotive sector in Morocco. GMI subscribers can learn more from a list of detailed project reports.

About 93% of the overall spend (more than US$7 billion across eight projects) is being tracked in the city of Kenitra. It is followed by Tangier, with an investment of US$462 million across five projects, and Casablanca, with an investment of US$25 million across three projects. An investment of US$16 million is also being tracked in Rabat-Sale.

With an aggregate spend of more than US$7 billion, Gotion High-Tech Company Limited (Anhui, China), Tesla Incorporated (Austin, Texas) and Qingdao Sentury Tire Company Limited (Shandong, China) are the top three players in the market. They collectively hold a market share of 96%. A recent entrant in Morocco's automotive market, Tesla is likely to invest in an electric cars assembly plant in Kenitra. While the project is still in the planning stage, it is likely to help the company gain ground in the African market while leveraging Morocco's automotive value chain. Subscribers can learn more from a detailed project report.

More than half of the investments are aimed at plant expansions, while 45% is geared for grassroot projects. Although a majority (83%) of the investments are in the planning phase and 17% are under construction, most of the projects are projected to reach fruition by December 2027.

Morocco is likely to continue its upward trajectory and double its production capacity to 2 million cars before 2030. While hurdles like market dependencies and transition pressures for internal combustion engine vehicle manufacturers persist, export market diversity and retraining programs are encouraging internal combustion engine automakers to pivot toward PHEVs.

Key Takeaways

• Morocco's strategic location positions it as a gateway to European auto markets.
• About 1 million vehicles were manufactured in the country in 2025.
• Industrial Info is tracking 18 active capital automotive projects in Morocco, worth nearly US$8 billion.

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About IIR News Intelligence
IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resources' Global Market Intelligence (GMI).

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).