In the space of a few years, Morocco has emerged as one of the most prominent actors in the automotive industry, in regard to the good performances of this sector in terms of both: exports and attractiveness of investments.
The surge in exports along with the establishment of world-class equipment manufacturers and automobile construction giants illustrate, from year to year, the relevance of this strategy while confirming the place of the Kingdom in the big league of Africa and in the Euro-Mediterranean area.
In numbers, the automotive sector's exports went from 14.7 billion dirhams (MMDH) to almost 65.1 billion dirhams at the end of 2018, i.e. a clear average increase of 14.5% per year. No less than 116,600 jobs have been created since the launch of the Industrial Acceleration Plan (PAI) in 2014, with an installed production capacity of 700,000 vehicles.
Obviously, the development of such a promising sector is hardly the result of a daring national strategy whose contours are traced by the PAI. The gains have come quickly: 28 new investors have already settled in the Gharb-Kénitra industrial zone and 22 others in the Tanger zone, according to official information.
Morocco car industry develop Morocco employment sector
The exports of this branch of industry, which currently employs a total of 189,600 people, doubled between 2013 and 2018, going from 31.7 billion dirhams to 65.1 billion dirhams, placing the automobile sector at the forefront of all the sectors in the Kingdom because its exporters align for the 4th>/sup> time consecutively.
Exceeding all expectations, this rise reflects above all, in the opinion of analysts, the stability and security practised by Morocco, under the impetus of King Mohammed VI who recently presided over the inauguration ceremony in Kenitra, the ecosystem of the French group PSA. While highlighting the excellence of "Made in Morocco", the project strongly stimulates the development of the national automotive sector, strong to date from three main car manufacturers and more than 200 equipment manufacturers.
It is in this perspective that the Sovereign inaugurated the new PSA factory, with an annual production capacity of 100,000 vehicles and associated engines, as well as the launch of the extension works of the last generation industrial complex of the group. The factory, whose production capacity will be doubled before 2023, will eventually generate 4,000 jobs.
The French company has invested three billion dirhams and plans to invest as much in its future projects in Morocco. Its new factory in Kenitra was designed to produce both thermal and electric vehicles, confirming the industrial ambition of the Kingdom but also the King's stated desire to make Morocco a model on the continent on the front line of sustainable development.
Another highlight of 2019, the Chinese automotive equipment giant Nexteer Automotive has just inaugurated its first production site in Africa in Kenitra, for an investment of more than $ 35 million.
With a surface area of 10,000 m2, the factory is already planning to recruit 500 employees in the Atlantic Free Zone (AFZ) of Kenitra with the main mission of producing power-assisted pinion steering systems. It will have to position itself as the first production unit for the Chinese firm on the scale of the African continent and the 25th worldwide.
Automotive aluminium parts plant installed to improve the car industry
The CITIC Dicastal group, world leader specialized in aluminium casting and in the production of aluminium automotive parts, also recently inaugurated its first factory in Morocco for a global investment 350 million euros. This inauguration formalizes the framework agreement and the investment agreement signed between the Kingdom and China, with a view to setting up a production unit for aluminium rims at the Atlantic Free Zone - Kenitra, an annual production capacity of 6 million units.
In fact, this first factory in Morocco called Dicastal Morocco Africa gives the measure of the fruitful Moroccan-Chinese cooperation in the industrial field just as it is in line with the initiative of the Chinese government "One Road, One Belt” and the industrial acceleration plan dedicated to reviving the national industry.
On the social side, the company plans to employ 420 people for its beginnings, before reaching around 1,200 jobs for a total investment of 350 million euros.
In addition, the multinational group Varroc Lighting Systems inaugurated its 17,000 square meter factory in Tanger Automotive City, where headlights and taillights will be produced for its customers in Morocco, Spain and France. Ultimately, this ambitious project should create around 650 jobs by 2024 for an investment of 45 million euros.
Automotive sector increases Morocco exports
The national export offer was further strengthened thanks to the establishment of the Japanese company Asahi Glass Co (AGC), the world leader in flat glass, automotive and displays. Its alliance with the Moroccan company Induver has enabled the emergence of an industrial unit with an investment of 1.5 billion dirhams, specialized in the manufacture of latest generation windshields and glazing.
But across the whole line, the Renault group retains its position as the sector leader on a national scale: the production volume of its factories in Tanger and Casablanca continues to grow, driven above all by an evolution of the market which makes the share beautiful to the two popular brands Dacia and Renault.
In 2018 alone, Renault Maroc crossed the bar of 400,000 vehicles in annual production, maintaining a high rate thanks to national and international demand.
In full acceleration since its launch seven years ago, the Tanger site alone employs 8,600 people, produces a car every minute, exports to 74 countries from the neighbouring port and attracts subcontractors from various horizons.
In the footsteps of Renault and PSA, another French group, Faurecia, world number one in the vehicle interior, is present on the Moroccan market through its new factory with an investment of 300 million dirhams.
Beyond the exploits of an industrial scope, we must emphasize the other eminently significant orientation towards "zero CO2 emissions". This is the case with the Tanger plant, where most of the electricity comes from a huge wind farm located nearby.