Morocco Automotive Industry Size Insights On Share, Application And Forecast Assumptions 2022-2031

Shibuya-ku, Tokyo, Japan, Japan, Jun 10, 2022, 06:48 /Comserve / -- Morocco Automotive Industry With Top Countries Data, Industry Analysis , Size, Share, Revenue, Prominent Players, Developing Technologies, Tendencies and Forecast

The Moroccan automotive market studied was valued at USD 8 billion in 2020, and it is expected to reach a value of USD 22 billion by 2026 while registering a CAGR of over 15% during the forecast period.

Due to the spread of Novel Coronavirus (COVID-19) disease, the automotive market in morocco witnessed a slump in growth due to lower footfalls in the showrooms. Various automobile manufacturers were forced to temporarily shut their production as the supply chain was disrupted by the country-wide lockdown imposed by the government, which restrained the growth of the market.

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The increasing investment from the leading automakers in the African region, and incentives offered by the government, by removing certain taxes during the first five years is majorly driving the automotive market in Morocco. Foreign investment is encouraged by the Moroccan Government. The automotive sector exports went from 14.7 billion dirhams to almost 65.1 billion dirhams at the end of 2018 which is an increase of 14.5% per 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. Morocco has signed a deal with more than 25 auto industry projects worth 1.5 billion USD as it seeks to position itself as an international hub for automotive production. These trade agreements contributed positively toward the emergence of auto export activities in the country.

Key Market Trends

Foreign Investments from Leading Auto Manufacturers

Foreign direct investment has been continually increasing, as companies are attracted toward the country's favourable economic conditions, government support through their initiatives (such as tax exemptions for the first five years, VAT exemptions, and land purchase subsidies), skilled workforce, and modern infrastructure.

The Financial and Training support provided by the National Government is encouraging the manufacturers and local candidates to join the industry and contribute to country's economy.

- Some of the recent investments in the Morocco's automotive sector include PSA Peugeot Citroen's investment of USD 615 million for setting up its manufacturing facility, which is expected to be operational in 2019.
- The company aims to manufacture 90,000 B-and C-segment passenger vehicles in a year, and internal combustion engines (ICE) for passenger cars, for both the domestic and regional markets.
- Despite having a low population and less sales of vehicles within the country, automobile manufacturers in Morocco made noteworthy exports to Europe, the Middle East & Africa.
- Additionally, Morocco's integration into the global economy was facilitated by the signing of numerous free trade agreements with the European Union and the United States. These trade agreements contributed positively toward the emergence of export activities in the country.
- From 2019 to 2020, Renault-Nissan alliance has produced close to 588,400 vehicles in the span of two years with the total production combined in two years going upto 676,000 approximatey.

Increasing Demand for Passenger Vehicles

Although the industry was thriving before, the pandemic forced the sales numbers to take a dip of almost 20% comparing 2019 with 2020. With virtually no movement and a stranded economy and low availability of cash, the passenger car sales took a dip from 148,354 in 2019 to 117046 in 2020 owing to the pandemic.

During the Q1 of 2019, Dacia stood as the market leader, with a 30.3% market share. The 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. 

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.

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.

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Commerciaal vehicle sales of the Moroccan automotive industry is expected to go up in the coming years, thanks to the strategically beneficial geographical location of the country. The trade time to Spain from Morocco is one day and 2 days to all the other European countries. This makes it central to Africa's trade relations with Europe. With Morocco closing important trade relation deals with the United States, European Union and many Asian countries and majority of the deals with respect to automotive industry, it is expected to stabilize the market in the post pandemic scenario.

Competitive Landscape

The Morocco automotive industry is consolidated. Some of the key players in this market are Renault, Nissan, Peugeot, Volkswagen, and Dacia. The country has attracted several investments from international automotive firms, such as Renault, Peugeot, and the Volkswagen group. The country has seen 91 million vehicle sales in 2019.

Renault/Dacia owns a market share of over one-third of the new vehicle sales and 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.

1 INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study

2 RESEARCH METHODOLOGY

3 EXECUTIVE SUMMARY

4 MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry

5 MARKET SEGMENTATION

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