Market Research Report
Morocco Automotive Industry Outlook - Growth, Trends, and Forecast (2019 - 2024)
|Published by||Mordor Intelligence Pvt Ltd||Product code||854041|
|Published||Content info||60 Pages
Delivery time: 2-3 business days
|Morocco Automotive Industry Outlook - Growth, Trends, and Forecast (2019 - 2024)|
|Published: May 1, 2019||Content info: 60 Pages||
The Morocco Automotive Industry is expected to grow at a CAGR of 5.6% during the forecast period 2019-2024.
The increase in investment from leading automakers in the African region and incentives offered by the government is majorly driving the automotive market in Morocco. The automotive production capacity is expected to be doubled by the end of 2022, to reach 160,000 vehicles a year.
Additionally, Morocco's integration into the global economy was facilitated by the signing of numerous automotive free trade agreements with the European Union and the United States. These trade agreements contributed positively to the emergence of auto export activities in the country. For instance, in 2007, an agreement was formed between Morocco and Renault-Nissan Group, which resulted in a vast expansion of the company's engagement in the country, by creating an environment-friendly production site in Tangier costing more than EUR 600 million.
The Moroccan automotive industry has been segmented by vehicle type.
Foreign Investments from Leading Auto Manufacturers
Foreign direct investment has been continually increasing as companies are attracted towards the country's favorable economic conditions, government support through their initiatives (such as tax exemptions for the first 5 years, VAT exemptions, and land purchase subsidies), skilled workforce, and modern infrastructure.
Increasing Demand for Passenger Vehicles
The passenger cars segment witnessed a considerable increase of 4.11% rise in sales during 2017, reaching 155,218 units from its previous year.
During the Q1 of 2019, Dacia stood as the market leader with a 30.3% market share. Renault group in April 2019 has sold about 5,364 units of passenger cars and utility vehicles out of which Dacia alone contributed to 3,157 units. This was followed by Volkswagen with 11,810 units, Peugeot with 11,316 units and Hyundai with 9,882 units sold during 2018.
Morocco developed an investment cluster program, which saw Renault enter the local market. Renault will be the only global automaker assembling vehicles in the country until the arrival of Peugeot in 2019.
The demand for luxury cars has increased in 2018 as compared to the previous year. A total of 1,140 hybrid vehicles were sold in the same year as compared to 342 units in 2017. Luxury car manufacturers have also witnessed an increase in their sales. Mercedes-Benz sold 3,105 units and stood as the market leader in the luxury segment followed by BMW with 2,700 units and Audi with 2.572 units.
Morocco has evolved as the largest automotive industry with 345,000 passenger vehicles, surpassing South Africa with 331,000 passenger vehicles in 2017. The country has attracted several investments from international automotive firms such as Renault, Peugeot, and the Volkswagen group.
Renault/Dacia owns a market share of over one-third of new vehicle sales and it is the largest automotive entity in Morocco. The company has two production plants in the country and sources about 42% of its parts from local suppliers.