Madrid: Morocco continues to stand out as a major player in the automotive industry, attracting investment from major European manufacturers, the Spanish magazine “Gizmodo” wrote on Monday.

According to Agence Marocaine De Presse, Morocco’s lower production costs and abundant renewable energy are key factors that have encouraged manufacturers such as Stellantis and Renault to transfer production of their strategic models to Moroccan plants. The magazine, in an article titled “Morocco, Future Leader in Automotive Production… for Europe,” emphasizes that these assets position Morocco as a “key production hub for the European automotive industry.”

Morocco’s competitive edge is further reinforced by lower salaries compared to Europe and cheaper electricity rates, thanks to its commitment to renewable energies. As a result, Stellantis and Renault have been increasing their production capacity in the country to boost their global competitiveness. The Stellantis plant in Kenitra, for instance, plans to double it
s production capacity by 2025 to 450,000 units per year, as noted by the magazine.

Currently, Morocco produces 700,000 cars annually, with projections to exceed one million by 2027. The production portfolio already includes models such as the Peugeot 208, Citroën Ami, Opel Rocks, and Fiat Topolino. In response to the growing automotive industry, the Moroccan government has expanded the capacity of the ‘Tangier Automotive City’ business park in the port of Tangier Med, a crucial export hub for vehicles destined for Europe.

This growth trajectory underscores Morocco’s robust automotive industry and solidifies its position in the global market, where production costs and sustainability are pivotal, the Spanish magazine concluded.