Casablanca – In 2025, Morocco achieved a historic milestone in the African automotive industry, surpassing South Africa to become the continent’s largest vehicle producer. By early December, Moroccan factories had produced nearly one million vehicles, representing a record annual growth of 79% compared with 2024, when production totaled around 559,645 units. This unprecedented performance reflects more than a decade of consistent industrial strategy and positions Morocco as a rising powerhouse in both conventional and electric vehicle manufacturing.

For decades, South Africa dominated Africa’s automotive sector, supported by a long-established industrial base and robust export networks. However, in 2025, South Africa’s total vehicle sales reached approximately 596,818 units, including over 408,000 sold domestically, showing growth of 15–16% from the previous year. While these figures indicate a positive trend, they remained insufficient to maintain its leadership as Morocco’s industrial capacity surged forward.

A strategic rise over fifteen years

Morocco’s ascent has been the result of deliberate, long-term planning. Around 2010, the country had no significant automotive exports. Today, it is a regional hub producing vehicles for Europe, the United States, and various global markets. The arrival of major international manufacturers, including Renault in 2012 and Stellantis in 2019, has been pivotal, transforming the country into a competitive, export-oriented platform with integrated industrial zones. These investments were further supported by government incentives, tax advantages, and free trade agreements with the European Union, the United States, and China, all of which have strengthened Morocco’s international industrial appeal.

This methodical approach has not only expanded production capacity but also allowed Morocco to move up the value chain. By gradually integrating more local value-added components and targeting higher-end segments, the Kingdom has positioned itself as a key player in Africa’s automotive industry.

Leading the electric vehicle transition

A distinguishing feature of Morocco’s industrial strategy has been its early investment in electric vehicle (EV) production. The Kingdom began assembling the Opel Rocks-e in 2021, becoming the first African country to manufacture a commercially available electric car. Looking forward, Neo Motors is expected to launch the Dial-E in January 2026, the first EV entirely designed and developed locally. Tesla has also selected Morocco as its first official base on the continent, reinforcing the country’s position as a hub for innovative automotive technologies.

In contrast, South Africa has yet to begin local production of fully integrated electric vehicles. Structural constraints, including chronic electricity shortages, load shedding, and heavy dependence on coal-generated energy, have hindered the competitiveness of South Africa’s automotive industry. Geopolitical and trade uncertainties with key Western partners have further challenged investor confidence, limiting access to vital export markets.

Morocco’s comparative advantage in this sector is reinforced by its energy strategy. Substantial investments in renewable energy have created a more reliable, increasingly low-carbon electricity supply—an essential factor for manufacturers facing rising environmental standards in global automotive markets.

Implications for Africa’s industrial landscape

Morocco’s rise signals a broader shift in the African industrial landscape. Countries capable of combining political stability, reliable energy, strategic incentives, and long-term vision are increasingly attracting investment and gaining a competitive edge. By surpassing South Africa, Morocco is not only claiming a statistical milestone but also redefining Africa’s industrial center of gravity.

The success also demonstrates the potential of industrial policy when coupled with international collaboration and forward-looking strategies. From Tangier and Kenitra to Casablanca, Morocco’s automotive ecosystem is poised to influence both the African market and global automotive trends, particularly in the electric mobility sector.

Outlook and future prospects

Looking ahead, Morocco aims to consolidate its position as a leading industrial hub bridging Europe and Africa. The Kingdom’s combination of high production volumes, integration into global value chains, and early adoption of electric vehicle technology is likely to sustain its competitive edge in the coming years. For South Africa, catching up will require addressing structural energy challenges, investing in renewable technologies, and expanding local EV production to remain competitive.

Morocco’s achievements in 2025 illustrate the tangible results of strategic planning, public-private collaboration, and investment in future-oriented technologies. The country’s rise in automotive manufacturing, particularly in the electric vehicle sector, positions it as a model for industrial transformation in Africa and a growing influence on the continent’s economic and technological landscape.