Morocco on track to overtake Italian car manufacturers
Morocco looks set to challenge European car manufacturers as the country prepares to surpass Italy in vehicle output, according to Moroccan government-friendly outlet The North Africa Post on August 21st.
Reportedly, the country has relied on a variety of circumstances to outperform its competitors in Italy. Namely, its competitive labour costs, strategic location at the crossroads of two great continents, and an attractive foreign investment policy, particularly from China and Spain.
This marks a significant moment in the car industry, as a rising nation’s car manufacturing power catches up with traditional and well-established names in the sector.
The news comes at a time when Moroccan-Italian relations remain high, with Italy’s ambassador explaining earlier this year that Morocco will continue to be a strategic ally for the energy transition, even encouraging greater investment surrounding the 2030 men’s World Cup.
Labour costs average just $106 per vehicle in Morocco, which has allowed companies to greatly outpace Italian and German manufacturers due to their high wages and steep energy costs. With quickly modernising industry standards and streamlined production capabilities, the country’s output increased by 29% between the years 2019 and 2024. Meanwhile, European countries are seeing a decline in vehicle output in the same amount of time.
Morocco produced around 700,000 cars in 2024, with projections indicating output could reach 1 million in 2025.
Meanwhile, in Italy, the country only saw 591,000 vehicles leave its assembly line in 2024. This has led industry analysts to project Morocco overtaking Italy in 2025 for the very first time.
The news has sent shockwaves through analysts and car enthusiasts everywhere that have been accustomed to European-manufactured cars for so long.
With the manufacturing base in Morocco expanding, the country is also preparing for the age of the electric engine. In particular, Morocco is seeing huge investments from China in electric vehicle supply chains.
Chinese investments have poured into the country from companies like Gotion High-Tech, BTR New Material Group and CNGR Advanced Materials to construct battery gigafactories, anode and cathode plants and component facilities across Morocco.
As a nation rich in resources from phosphates and cobalt to copper, Morocco looks to capitalise on its reserves, putting its free trade agreements with both the US and EU to good use.
With this greatly expanded potential and proven output, Morocco has quickly become a potential option for those seeking a way around Chinese manufacturers that are heavily tariffed by The West, while also maintaining efficient access to the US and EU markets.
The North Africa Post, Maghrebi.org
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