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Morocco automotive market and manufacturing trends

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2026-09-06 19:27 UTC → 2026-09-08 05:49 UTC · added ~~removed~~

The Moroccan automotive sector is experiencing simultaneous shifts in domestic market trends and international manufacturing investment. In the domestic market, August 2026 saw a marginal 0.9% increase in total new vehicle registrations, though passenger car sales experienced their first monthly decline of the year. There is a notable trend toward electrification, with electrified vehicles accounting for 17.4% of passenger car sales. Additionally, Chinese brands have significantly expanded their market share, growing from 5.4% in August 2025 to 11.6% by August 2026. On the industrial side, Morocco is strengthening its position as a strategic manufacturing hub for the European market. Foreign investment is increasing, particularly from Chinese and Indian firms. Chinese companies such as Xin Hongye and Minth Group are establishing new production sites for electrical components and sealing systems. Specifically, Wuxi Xinhongye Wire and Cable is planning a joint venture with France’s Acome Automotive to establish a factory in Tangier, aiming to combine Chinese manufacturing with French industrial expertise. Meanwhile, India’s Suprajit Engineering has expanded its operations in Tangier Automotive City by transferring production capabilities from Poland and specialized tooling capabilities from Germany to its Moroccan facilities, following its acquisition of Germany’s Stahlschmidt Cable Systems. Beyond automotive components, Morocco maintains a presence in the semiconductor value chain through STMicroelectronics, which operates a chip packaging and testing facility in Bouskoura. Morocco is actively transitioning from a low-cost manufacturing hub to a high-tech industrial player to increase its role in global supply chains. This strategy is supported by inbound foreign direct investment, which rose by 50.7 percent in the first nine months of 2024, exceeding $1.6 billion. To support this evolution, the government is investing 1.3 billion dirhams to support domestic startups, targeting the creation of 1,000 startups by 2026 and 3,000 by 2030 through specialized free zones.

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