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Automotive: An industry that breaks records in Africa

It took a little less than 10 years for Morocco to climb the podium of car manufacturers. Currently, the Moroccan automotive sector ranks first in Africa, ahead of South Africa.

Morocco produced, in 2018, 402,000 vehicles distributed between the factories of Somaca, in Casablanca, and Tangiers, both belonging to the Renault manufacturer. The figures have been on an upward trend since 2012, the date of the launch of the Renault plant in Tangier. At the time, production had not exceeded 50,000 units, but it had heralded the beginnings of a real automotive industry.

At the same time, automotive export turnover is also on the road to growth. The export has tripled in less than six years to reach MAD 65.5 billion in 2018, a figure raised to 70 billion by correcting exports previously allocated to other sectors. By 2022, it is expected to exceed the 100 billion mark, with probably double by 2025.

The rapid rise in sales is due to growing exports of vehicles. Figures to which will be added, this year, the performance of PSA which will bring an additional capacity of 200,000 vehicles, as well as the future installation of BYD whose return on the scene was announced recently.

This excitement is also due to the establishment of outsourcing channels of various car manufacturers working in Europe, one of the most prominent is the Ford manufacturer. The latter announced last year its intention to increase the volume of its purchases by installing a plant in Morocco to monitor the equipment manufacturers working on its behalf.

This is also the case for other Tier 1 equipment manufacturers who have chosen to install part of their manufacturing in Morocco, such as Valeo, which has even signed the establishment of an ecosystem with the State. In this way, the group will be able to supply the Renault and PSA chains as well as those of various manufacturers in Southern Europe.

The same scheme had been put in place by other smaller equipment manufacturers who could count on the increase in production volume offered by this perspective and on its effects on competitiveness, which is important in a sector constantly seeking to reduce costs.

3rd constructor: The BYD track materializes

The 3rd constructor could arrive faster than expected. The implementation of BYD, the Chinese specialist in electric cars, is accelerating. This was announced by Moulay Hafid Elalamy, Minister of Trade and Industry, at the 6th edition of Automotive Meeting Days in Tangiers.

BYD signed a memorandum of understanding in December 2017 for the implementation of a 50-hectare unit including 30 hectares covered with the creation of 2,500 direct jobs. The project eventually included the installation, in addition to a vehicle factory, a second dedicated to batteries and a third bus and electric trucks.

The project has since been kept on stand-by, the time that the discussions between the Chinese group and the Moroccan authorities end. It is likely that the first picks of the first factory, scheduled for Tangier, take place this year.

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