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Automotive industry: Morocco, 1st in MENA region

Morocco maintains itself as the head of the automotive industry in the MENA region, despite the impact of Covid-19, which has affected its auto production and exports. Many automakers choose the Kingdom for its geographic position between the MENA region and Europe and for business opportunities.

Morocco is a preferred destination for companies to set up their factories. This choice takes into account the industrial political strength of the Kingdom which, in addition, offers affordable labor costs. Its average labor cost score is 66.1 out of 100, while the strength of its industrial policy is 81.3, according to the Fitch Solutions Foundation in its latest report. To this must be added the active support of the government to the sector.

The Kingdom has a strong network of highways, railways and ports. Speaking of ports, Africa’s busiest terminals are in the north of the country. These are all assets that have driven the French car manufacturers PSA and Renault as well as several global automotive suppliers who have set up their production plants there. “There is still room to improve, in terms of the country’s logistics network and the growth of the active workforce,” Fitch projects.

Morocco’s highest score, both on the industry awards side and as a whole, is for its vehicle production growth, at 83.9 out of 100, based on Fitch’s forecast for growth in the production.

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