Morocco is located at the northwest end of Africa, bordering Algeria in the east, the Sahara Desert in the south, the vast Atlantic Ocean in the west, and facing Spain across the Strait of Gibraltar in the north, forming the gateway from the Mediterranean Sea to the Atlantic Ocean.

The land area is 459,000 square kilometers (excluding Western Sahara, 266,000 square kilometers). The coastline is more than 1700 kilometers.

Morocco is rich in phosphate mineral resources, with proven reserves of up to 50 billion tons, accounting for 73% of global reserves. Phosphorus is the core material of lithium iron phosphate batteries. With the vigorous development of the global new energy industry, the potential value of Morocco in the future energy field cannot be underestimated.

Overview of Morocco's economy

In terms of economic development, Morocco's total economic volume will reach US$144.42 billion in 2023, ranking 59th in the global GDP ranking and sixth in Africa, behind Egypt, Nigeria, South Africa, Algeria, and Ethiopia.

In terms of trade, according to the latest data from the Morocco Administration of Foreign Exchange in March 2025, the total trade in goods in Morocco in 2024 was US$121.64 billion, a year-on-year increase of 6%. Among them, imports were US$76.14 billion, an increase of 6.4%; exports were US$45.49 billion, an increase of 5.8%.

Development of Morocco's automobile industry

In 2023,"automobiles and parts products" will account for about 26% of Morocco's foreign trade, making it the largest exporter of automobiles to Europe.

The reason why Morocco's automobile industry can flourish is due to its unique geographical location and cultural background. Its geographical location close to Europe gives Morocco more bargaining chips in diplomacy, while its cultural background similar to that of the Arab region facilitates its cooperation with Arab countries. In addition, Morocco has also signed free trade agreements with the European Union, Arab countries, the United States and Turkey, allowing car-related products to be exported to these countries without tariffs or at very low tariffs.

Market sales: Adil Bennani, chairman of the Morocco Automobile Importers Association, said that new car sales in Morocco will increase by 7% year-on-year to 174,000 units in 2024, and are expected to exceed 200,000 units in 2025. The electric vehicle market share is only 7%, but the growth rate is significant (53% year-on-year growth in 2024), and demand for hybrid and plug-in models is increasing.

Production target: According to data from the "2025 New Energy Vehicle Strategy" of the Ministry of Industry of Morocco, Morocco has set a 25% electric vehicle production target in 2025 and plans to account for 60% of electric vehicle exports in 2030.

Rich resources: Morocco has 70% of the world's phosphate ore resources, providing key raw material guarantee for power battery production. This natural advantage has attracted many automobile companies to invest and build factories. As of 2021, there are more than 250 companies producing vehicles or vehicle parts in Morocco, including well-known car companies such as Renault, Hyundai, and Volkswagen. The Renault factory near Tangier produces almost all of the Dacia Sandero small cars on European roads. These companies have jointly created a "city of the automobile industry" in Morocco.

In 2017, BYD announced plans to set up an electric vehicle factory in Tangier, Morocco, becoming the third automaker to build a factory in North Africa after Renault and Peugeot. BYD hopes that the Morocco factory will become its gateway to European and African markets.

Future prospects for the Morocco automobile industry

Morocco's automobile industry at this stage is still a labor-intensive industry, a growth period in the industry cycle, and there is still great development potential in the future. On the one hand, Morocco can face overseas markets and promote the transition of the automobile industry from low-end manufacturing to high-tech technology; on the other hand, it can also look to the African continent and promote low-cost vehicles to some relatively developed regions to maintain the existing automobile production chain.

In order to protect the sustainable development of the domestic automobile industry, the Morocco government has also introduced a series of favorable policies, including strict restrictions on the import of used cars and improving urban infrastructure.

The Morocco government promotes the upgrading of the automobile industry through measures such as tax incentives, infrastructure investment and skills training. For example, industrial parks such as Tangier Automobile City provide companies with low tax rates and logistics facilities, and the government has also set up technical training centers to cultivate professionals in the automotive industry.

As global demand for electric vehicles grows, Morocco has begun to deploy its new energy vehicle industry. China companies such as Guoxuan High-Tech have invested in battery factories in Morocco to promote the development of the local battery supply chain.

Morocco's automobile industry plans to further increase production capacity and localization rates, aiming to increase electric vehicle production to 60% of total exports by 2030. The government will continue to improve charging infrastructure and attract more foreign investment into the field of new energy vehicles. At the same time, China-Morocco cooperation is expected to achieve breakthroughs in battery technology, parts production and supply chain integration, helping Morocco become an electric vehicle manufacturing center in Africa.

Source: Yangtze River Delta new energy vehicle industry offshore base

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