(MENAFN- Morocco World News)
By Hajare El Khaldi
Rabat – In its latest report, asserts that vehicle production in Morocco is becoming more attractive and efficient drawing more automakers to the favorable operating environment, and expanding the kingdom's access to both the MENA and European region.
The report expects the vehicle production to reach 468,389 units in 2018, which will result in a16.9 percent increase from current production. The industry is predicted to maintain its current pace with an average annual growth of 19.8 percent from 2018-2022, with an annual production of 988, 477 units.
BMI Research highlights the role that Gestamp, a designer and manufacturer of metal automotive components that announced its entry into Morocco on February 2018, will play in improving the country's supply chain efficiency for automakers by allowing them to source more local components.
's entry followed a similar move by two of its main global partners: Renault-Nissan Group and Group PSA. The proximity of the corporations will allow them to maintain the annual growth with few barriers, such as supply delays and time-consuming import regulations.
Gestamp also joins a fast-developing supplier base, including Magneti Marelli and Linmar Group, which strengthen Morocco's position as 'an attractive production hub.'
Automakers in Morocco will also benefit from the Agadir Agreement, which exempts member countries from custom duties on the condition that 40 percent of the value is added in all member countries.
The BMI research believes that the development of the value chain, the process by which goods are created, in Morocco will positively influence the country's exports, given the rising demand from Europe and the Middle East and North Africa Regions (MENA).
The report predicts that vehicle sales volume in the European and MENA regions will reach 24.33 million units and 5.26 million units by 2022, with a growth average of 2.9 percent and 8.5 percent, respectively, over 2018-2022 forecast period.
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