Morocco is set to increase its electric vehicle production capacity by 53% by the end of 2025, reaching 107,000 vehicles, as part of a strategy aimed at diversifying markets and overcoming the slowdown in European demand, confirmed Minister of Industry and Trade Ryad Mezzour during a parliamentary session on Tuesday evening.
Currently, Morocco’s total automotive production capacity stands at 700,000 units, with expectations to reach one million vehicles annually by the end of this year. The European Union remains the primary destination for exports in this sector, but weak demand in the European market is pushing Morocco to strategically shift its export focus.
This transformation comes at a time when vehicle sector exports recorded approximately 49 billion dirhams during the first four months of 2025, reflecting a 7% decline compared to the same period last year, according to data from the Foreign Exchange Office. Despite this drop, the automotive industry remains the largest export sector in the kingdom.
Minister Mezzour commented on the decline, describing it as “temporary,” explaining that the kingdom is working to reduce its reliance on the European market, which he referred to as “no longer strong.” He highlighted that Morocco currently exports to 70 countries and plans to add 30 new markets as part of its strategy to diversify trading partners.
Data from the European Automobile Manufacturers Association indicates that car sales fell last year to 15 million units, down from 18 million in 2019, with a notable decline in demand for traditional vehicles and a significant rise in electric vehicles, which accounted for 15.2% of the European market by the end of the first quarter of 2025.
Morocco’s development of this industry relies on a robust ecosystem that includes companies like Renault and Stellantis, alongside a network of over 260 enterprises employing around 230,000 workers, reinforcing the kingdom’s position as a promising industrial hub for sustainable mobility on both the African and international fronts.
