Morocco has become a new highland for China car companies

Located in North Africa and known as the "Back Garden of Europe", Morocco is becoming a new strategic highland for China car companies to "go out to sea." Recently, Geely held a new energy product launch conference in Casablanca, Morocco, officially announcing its entry into the local new energy vehicle market. Jianghuai Automobile also released eight models and officially entered the Morocco market with a full product lineup. The two major China car companies have made efforts at the same time, opening a new curtain for Chinese companies to deeply explore the Morocco market. As a number of China car companies intensify their efforts, the trend of China car companies collectively advancing into Morocco has become increasingly clear.

Morocco has become a new highland for China car companies

1. China car companies seize the fertile soil of North Africa

In recent years, the Morocco automobile market has quietly set off a strong "China style." Many domestic leading car companies have accelerated the layout of this fertile land in North Africa, relying on precise differentiated product layout and operating models that suit local needs to deepen the market, making Morocco gradually become another core testing ground for China automobile brands to explore overseas territory and test the global development.

Take Geely as an example. It recently held a new product launch event in Casablanca, the largest city in Morocco, focusing on displaying two core new energy models, the Geely EX2 and the Geely EX5EM-i. The former is a compact pure electric vehicle with a body length of 4.14 meters and a flexible and compact design. It mainly focuses on urban commuting, daily transportation and short-distance travel scenarios; the latter is a plug-in hybrid SUV equipped with a new generation of EM-i Hybrid technology, the driving range can reach 112 kilometers in pure electric mode, which is suitable for family travel and long-distance driving needs. In fact, the EX5EM-i was first launched in Morocco in December 2025. The release of the EX2 has further improved the product matrix and formed a dual-line layout of "pure electric + hybrid".

Relying on the advantages of Morocco being adjacent to Europe, signing free trade agreements with many countries and regions, and having mature port resources, Geely plans to use the country as a fulcrum to expand the North African and European markets and support the transformation of local green travel. Market data shows that Geely's growth momentum in Morocco is strong. According to data from the Morocco Automobile Importers Association (AIVAM), in January 2026, Geely's local sales were 133 vehicles, a year-on-year increase of 224%; in February, sales further rose to 202 vehicles, a year-on-year increase of 92%.

At the same time, Jianghuai also held a brand launch conference in Casablanca, officially entering the Morocco market with its entire product lineup. This time, Jianghuai has released a total of 8 models. The product matrix comprehensively covers the three major areas of passenger cars, commercial vehicles and new energy, fully adapting to the diversified travel and logistics needs of Morocco. From urban commuting to family travel, from logistics and transportation to public services, from fuel power to green electric, targeted solutions can be provided. The reason why fuel and electric vehicles are arranged simultaneously is also to accurately match the local market characteristics that are in the early stages of electrification transformation and where old and new momentum coexist.

This listing conference further improved Jianghuai's strategic map in the North African market. Zhang Peng, deputy general manager of Jianghuai Automobile Group Co., Ltd., said that with its unique geographical location and support policies for the automobile industry, Morocco has become a key hub connecting the North African region and even the European and Middle Eastern markets.

As one of the representatives of the new forces in car-building, Xiaopeng Automobile has also achieved strategic positioning against Morocco. In September 2025, Xiaopeng signed a strategic cooperation with Morocco luxury car group SMEIA. In April 2026, the first city flagship exhibition hall opened by both parties in Casablanca opened, and Xiaopeng officially launched in the Morocco market. Coupled with Egypt and Tunisia, they together constitute Xiao Peng's "strategic iron triangle" layout in North Africa. Wang Ke, head of the Xiaopeng Middle East Africa Region, said: "The three North African countries will become the fastest-growing regions and the most obvious advantages in the Xiaopeng Middle East Africa Region."

2. Both location, resource and industrial advantages

In addition to the above-mentioned car companies, a number of China car companies such as BYD, Chery, and Chang 'an are also continuing to deploy the Morocco market. Data shows that new car sales in Morocco in 2025 will be 235,000 units, a year-on-year increase of 33%, a record high. Among them, the proportion of diesel vehicles continued to decline to 70%; the popularization of gasoline-electric hybrid vehicles, plug-in hybrid vehicles and pure electric vehicles accelerated, and the total proportion increased to 12.5%. In 2025, the total number of brands on sale in the Morocco automobile market will increase to 51, of which 17 are China brands, increasing their market share to 7.7%, and their influence will continue to expand.

"Although European brands still account for about 75% of the market share, China car companies are reshaping market competition with their price competitiveness, configuration advantages and new energy layout." Morocco Media24 Information Network commented. Morocco World News Network also pointed out that the Morocco automobile market is undergoing a transformation, and China automobile brands are gradually emerging. Although their current market share is not as good as that of European automobile companies, their growth rate is rapid. Among them, BYD has become the leading China brand in the field of new energy vehicles in Morocco. In January 2026, BYD's sales in Morocco were 300 vehicles, a year-on-year increase of 295%. Companies such as Geely, Chang 'an and Chery also grew rapidly.

The collective gathering of China automobile companies in Morocco is not a short-term market follow-up, but the result of the superposition of multiple advantages such as local location advantages, mineral resources, and industrial foundation.

From the perspective of location and trade, Morocco has irreplaceable advantages in a global channel. The country is located at the northwest end of Africa, facing Europe across the Strait of Gibraltar in the north. It has a mature port logistics system and is a transportation hub connecting Africa, Europe and the Middle East. At the same time, Morocco has a global free trade agreement network and has signed free trade agreements with the European Union, the United States, Turkey, Saudi Arabia and many African countries. Products can enter these markets with zero tariffs and low tariffs.

In terms of mineral resources, Morocco has about 70% of the world's phosphate ore reserves, and phosphorus is the core raw material for lithium iron phosphate batteries. After the United States introduced the Inflation Reduction Act in 2022, leading lithium battery companies have flocked to Morocco, setting off a wave of "going out to sea" in the lithium battery industry chain. At present, a number of companies such as Guoxuan High-Tech, Yahua Group, Beitri, Hailiang, Zhongke Electric, and Tianci Materials have successively settled in, covering the entire chain fields such as lithium salts, electrolytes, copper foils, and battery materials.

As for the industrial foundation, Morocco's automobile industry ranks among the top in Africa. It is Africa's largest passenger car producer and automobile exporter. It leads the African continent in terms of localization supporting capabilities and perfection of the industrial chain. Over the years, international automobile companies such as Renault and Stellantis have continued to deepen the local market and gradually built mature vehicle manufacturing, parts supporting and logistics maintenance systems, accumulating a solid industrial foundation for the development of the local automobile industry.

At the same time, as local consumers continue to increase their acceptance of intelligent networking and new energy vehicles, and the market consumption concept continues to upgrade, providing a good market soil for China automobile companies to take root and develop. 90% of Morocco's annual automobile production is exported, and it is mainly supplied to Europe. In the future, China automobile companies are expected to use this to enter the mainstream European market at low cost.

3. Industrial collaboration empowers car companies to deeply cultivate

Relying on its unique comprehensive advantages, Morocco provides China automobile companies with broad growth space. From the perspective of market opportunities, the Morocco market has great growth potential. On the one hand, the local electrification transformation is in its infancy, and the new energy track has sufficient blue ocean potential and exploration space; on the other hand, relying on the dividends of free trade policies, Morocco is not only the core position for China car companies to deeply cultivate in Africa, but also a "experimental field" for entering the European market.

The gradual formation of industrial synergy advantages has become the core benefit for China automobile companies to take root in Morocco. In recent years, not only upstream lithium battery companies such as Guoxuan High-Tech, Baitri, and Tianci Materials, but also a large number of traditional automobile parts companies have invested and built factories in Morocco, covering chassis braking, precision bearings, automobile aluminum parts, thermal management systems and other core vehicle supporting fields, related companies include Sen Qilin, Guizhou Tire, CITIC Dica, Wan'an Technology, Huawei Technology, Nanjing Xiezhong, Aotega, etc. In the field of complete vehicles, China National Heavy Duty Truck's assembly plant in Casablanca will be put into operation in 2020. It adopts a localized assembly model of small batches of spare parts, mainly supplying North Africa and also selling the European commercial vehicle market.

The innovative achievements of industrial cooperation are continuing to be implemented. In April 2026, Guoxuan High-Tech, Morocco Green Energy Company and Chery Heavy Truck reached a tripartite strategic cooperation to plan to build a 2000-kilometer-long electric logistics corridor connecting Morocco and France. The three parties plan to gradually launch electric heavy trucks along the line and build supporting charging and energy infrastructure to reduce carbon emission intensity along the corridor. "This cooperation combines Guoxuan High-Tech's battery technology with Chery's manufacturing capabilities to create an electric logistics solution tailored to regional needs. Morocco's logistics industry has strong long-term development potential." said Phil Jenkins, CEO of GPM Holdings.

In addition to opportunities, China car companies are also facing multiple practical challenges in their deep exploration of Morocco. First of all, European mainstream brands such as Renault and Peugeot have been deeply involved in the local area for decades, accounting for more than half of Morocco's market share. They have a deep brand accumulation and a stable user base. It is difficult for consumers to quickly break the inherent perception of European automobile brands. China brands still need long-term word-of-mouth accumulation and brand building. In addition, Morocco's climate, road conditions, and user driving habits are quite different from those in the country, requiring car companies to continue to iterate products and optimize configuration. At the same time, local infrastructure is still imperfect, which restricts the popularization of electric vehicles to a certain extent. In addition, uncertainty about transnational operations still exists. Issues such as exchange rate fluctuations, geographical situation, differences in overseas laws and regulations, and local talent management have all put forward greater challenges to the refined operation capabilities of automobile companies.

Source: China Automobile News

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