Stellantis Group has announced a $1.4 billion investment to expand its factory in the city of Kenitra, aiming to enhance production capabilities in the area of electric engines and vehicles, positioning Morocco as a key hub for the automotive industry in Africa.
According to the French magazine Jeune Afrique, this expansion, which began in July 2025, will increase engine production from 100,000 to 350,000 units annually by 2030, while the production capacity for light electric vehicles will rise from 20,000 to 70,000 units per year.
The magazine noted that this industrial development is supported by government initiatives that include tax incentives, provision of industrial land, and specialized vocational training programs, creating an attractive investment environment and fostering sector growth. It highlighted that Morocco is steadily moving towards its goal of producing one million vehicles annually by 2025, while South Africa is experiencing a decline in this sector due to Chinese competition, a drop in global brand sales, and rising U.S. tariffs on its exports.
The magazine confirmed that Morocco is benefiting from a 52% increase in electric vehicle sales in 2024 and plans to expand its charging network to 3,500 stations by 2026, further enhancing its future position, especially as it opens up to new markets in Sub-Saharan Africa through the continental free trade agreement, making Kenitra a strong candidate to become the continent’s primary industrial center.
