[REVISION HISTORY]

Morocco automotive market and manufacturing trends

Updated 5 times since CLSTR started tracking revisions of this situation.

What changed

2026-09-30 15:43 UTC → 2026-10-12 22:52 UTC · added ~~removed~~

The Moroccan automotive sector is ~~experiencing simultaneous shifts in domestic market trends~~ undergoing a significant transition toward electrification and ~~international manufacturing investment.~~ industrial diversification. 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~~ electric and hybrid 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. The market remains heavily reliant on imports, which represented 85.6% of sales in 2023, while the national vehicle fleet grew from 2.68 million in 2015 to 4.47 million in 2023. Despite industrial growth, environmental challenges persist. A report surged by ~~the German agency GIZ notes that Morocco lacks mandatory fuel consumption standards, mandatory labeling, and zero-emission vehicle quotas.~~ 74.4% through September 2026, totaling 29,522 units. This ~~is significant as~~ growth brought the ~~transport sector accounts~~ combined market share for ~~35.5% of~~ these vehicles to 17.8%, up from 11.4% in the ~~country’s final energy consumption and over 28% of national CO2 emissions, which rose~~ same period in 2025. While diesel vehicles maintain a 63.5% market share, this represents a decline from ~~14.2 to 17.9 million tonnes~~ approximately 71% the previous year. Plug-in hybrids specifically saw a growth rate of ~~CO2 equivalent between 2010 and 2022.~~ 120.3%. On the industrial ~~side,~~ front, Morocco is strengthening its position as a strategic manufacturing hub. Production capacity is projected to rise from under 60,000 vehicles in 2010 to over one million by 2025. The sector accounted for more than 23% of industrial value added role in ~~2024 and employs approximately 280,000 people. Foreign investment continues to drive this evolution, with Chinese and Indian firms establishing production sites for components, while~~ the ~~government invests 1.3 billion dirhams to support domestic startups. Recent industrial expansion has extended into the~~ global electric vehicle supply ~~chain and aerospace sectors.~~ chain. A partnership between Volkswagen Group, ~~its subsidiary~~ PowerCo, and Gotion High-tech ~~will establish~~ is establishing a facility in ~~Kenitra, Morocco, dedicated~~ Kenitra to ~~producing~~ produce active cathode materials for lithium iron phosphate (LFP) batteries. This initiative is part of a broader effort to regionalize supply chains. Morocco’s strategic position is further bolstered by its proximity to major industrial zones, the Tanger Med port, and its possession of approximately 70% of the world’s phosphate reserves, a critical component for battery development. Industrial expansion is also extending into the aerospace sector. APS Coating Solutions has announced a new subsidiary in Morocco to provide integrated surface treatments and non-destructive testing for aeronautical parts. This facility is expected to become operational in the first quarter of 2028, with a stated focus on environmental goals such as “zero liquid discharge.”

Versions

Only revisions since CLSTR began indexing content versions appear here. Select a version to see what changed compared to the one before it.