Morocco ranks first in the world for the lowest cost of car manufacturing, according to a recent report by the industrial consulting firm Oliver Wyman. The labor cost for producing a single vehicle does not exceed 1,000 dirhams, equivalent to approximately 106 US dollars.
In the report, Morocco topped a list that analyzed more than 250 factories worldwide, surpassing notable industrial countries such as Romania, where labor costs reach 273 dollars, Mexico at 305 dollars, Turkey at 414 dollars, and China at 597 dollars.
The report indicated that labor costs represent between 65% and 70% of the total industrial transformation costs, making control over these costs crucial for enhancing profitability and competitiveness. Morocco’s advantage in this sector is attributed to several factors, including low wages, high productivity, and developed industrial infrastructure, attracting major global car manufacturing companies, especially French ones, seeking more efficient alternatives outside their national borders.
The Moroccan automotive sector recorded a production growth of 29% between 2019 and 2024, at a time when many European countries experienced declines in this area. The report also noted that Morocco’s reliance on simple to medium production models has contributed to reducing engineering work hours, thereby lowering the final vehicle cost while maintaining the required quality and competitiveness standards in the global market.
