Morocco’s driving ambition

For years, Morocco was better known for its carpets than its cars. No longer. The North African kingdom has quietly become one of the world’s most cost-efficient auto manufacturers—and a darling of European supply-chain strategists eager to cut their dependence on Asia.

According to consultancy Oliver Wyman, Morocco now offers the lowest labor cost per vehicle globally, at just $106—cheaper even than China or Mexico. Carmakers have taken note. Renault and Stellantis churn out up to 700,000 vehicles annually from plants in Tangier and Kenitra, most of them destined for export. In 2023, Morocco overtook China and Japan to become the EU’s largest car supplier. Not bad for a country that, until recently, imported most of its own.

Geography helps. Europe is a ferry ride away. So does policy: free-trade agreements, industrial parks with decent infrastructure, and a government that courts multinationals with the diligence of a junior banker. The state’s hand is everywhere—from land concessions and training subsidies to renewable energy mandates that help meet EU carbon rules.

But Rabat is not stopping at combustion engines. It now wants to lead Africa’s charge into electric vehicles. China’s Gotion High Tech has pledged $1.3bn for a battery gigafactory in Kenitra, due to start production in 2026. BTR New Material Group and other Chinese firms are investing too, embedding Morocco in the global EV supply chain. Talks are also under way with European and Korean players. Officials say electric models could make up 60% of exports by 2030.

The logic is not just environmental. With the EU set to ban new petrol and diesel cars by 2035, Morocco sees an opening to future-proof its industrial base while deepening trade ties with Europe.

Compared with regional peers, Morocco’s trajectory stands out. Tunisia remains politically fragile. Algeria, flush with hydrocarbons and wary of foreign capital, is sitting out the transition. Morocco, by contrast, has embraced globalization with the zeal of a mid-sized Asian tiger.

Risks remain. Overcapacity in EVs could sap investor appetite. And some Western governments may grow wary of Morocco’s state-led model, in which generous subsidies, opaque land deals and royal holding companies play a central role. That has not deterred capital—yet—but it may prompt concern in Brussels about transparency, governance and long-term resilience. For now, though, geopolitical pragmatism—and the lure of affordable, nearshore production—wins the argument.

As the global car industry rewires itself for an electric future, Morocco looks less like a periphery and more like a production hub. Others may soon follow. For now, the kingdom has the fast lane to itself.

*Lonzo Cook is a journalist and writer. He spent two decades at CNN in a series of senior editorial and management roles including leading breaking news operations across Asia, the Middle East and Latin America. He currently works as a senior communications strategist, partnering with corporations and executives to develop integrated communication strategies to connect with audiences in our fast paced, ever changing engagement landscape.