Casablanca – The Moroccan automotive industry is rapidly gaining ground in the European market, posing a significant challenge to established players in Spain and Portugal. Recent statements from Carlos Tavares, CEO of Stellantis, underscore the urgency of this situation, as he highlighted the growing threat that Moroccan factories represent to their Iberian counterparts.
During the 2024 Paris Motor Show, Tavares commended the performance of Spanish automotive factories, noting their impressive strides in improving quality and reducing costs. However, he cautioned that the real competition is emerging from the south, particularly from Morocco, which has swiftly positioned itself as a formidable player in the automotive sector. With production figures reaching 700,000 vehicles annually, Morocco is now recognized as a leading hub for automotive manufacturing and assembly, attracting substantial investments and enhancing its profile on the global stage.
Tavares emphasized that while Spanish factories have made considerable efforts to adapt and thrive, they must now contend with the rapid rise of Moroccan manufacturing capabilities. He pointed out that instead of focusing on competition from Northern Europe, it is crucial to shift attention southward, where competitors from Morocco, Algeria, Tunisia, and Egypt are on the rise.
The Moroccan government’s commitment to expanding the automotive sector aligns with these trends. With an ambitious target of reaching one million vehicles produced annually by 2025, Morocco is not only enhancing its production capacity but is also drawing attention from major automotive players. Stellantis itself has recently strengthened its presence in Morocco by acquiring Sopriam, with plans to double its production capacity at the Kenitra plant to 400,000 vehicles annually by 2027. This move highlights the increasing reliance of European manufacturers on Morocco as a strategic manufacturing base.
Moreover, Morocco’s recent achievement of surpassing China as the European Union’s top trading partner in the automotive sector further illustrates its rapid ascent. In 2023, Moroccan automotive exports reached approximately $16.2 billion, outpacing China’s $14.9 billion. This remarkable growth can be attributed to high value-added production and significant investments in regions like Tangier and Kenitra.
Despite these challenges, Tavares expressed confidence in the resilience of Spanish factories, asserting that they remain among the best in the European Union. However, he also acknowledged the necessity for these factories to adapt to the changing landscape, particularly as competition intensifies from Moroccan and other North African manufacturers.
As the Moroccan automotive industry continues to grow, the implications for the European market are clear. The competition is no longer confined to traditional European rivals; it now includes emerging players from North Africa, compelling Spanish and Portuguese factories to innovate and respond swiftly to maintain their competitive edge. The automotive landscape in Europe is evolving, and the Moroccan automotive sector is poised to play a pivotal role in shaping its future.
