Morocco car rental market faces fragility despite 12,000 agencies

The car rental sector in Morocco is experiencing a period of paradoxical growth characterized by a high number of operators but increasing structural fragility. According to Mohamed El Manouni, vice-president of the Federation of Car Renters Without Driver in Morocco (FLSCAM), the country had approximately 12,000 agencies in 2025.

While demand remains steady, the market faces significant pressure from tightening profit margins and rising operational costs, including insurance, social charges, and credit repayments. The industry's current state is linked to regulatory easing in the mid-2010s, which lowered barriers to entry but did not ensure the financial stability of new companies.

Small agencies with fewer than fifteen vehicles struggle to cover current expenses, while larger fleets face heavy monthly installments. This capital-intensive nature of the business, combined with stricter lending criteria from banks, has led to a high failure rate, with many young companies closing within three years of operation.