Morocco is poised to overtake South Africa in the automotive industry on the continent. The Kingdom has become a rising industrial player in Africa, making significant strides toward becoming a major production hub for cars, particularly electric vehicles. Government strategies, along with substantial investments from global companies, have positioned Morocco at the forefront of continental competition and reshaped the automotive landscape in Africa. According to French magazine Jeune Afrique, Morocco is steadily advancing toward surpassing South Africa in this sector, following the launch of a major project by Stellantis on July 16, 2025, to expand the industrial zone in Kenitra with an investment of $1.4 billion.
The project aims to triple engine production from 100,000 to 350,000 units annually by 2030, while increasing the production of small electric vehicles from 20,000 to 70,000 units. This move provides a significant boost for Morocco in continental competition and places Kenitra on the map of strategic industrial centers in Africa.
Stellantis benefits from direct government support, including tax exemptions, allocation of land for free, and labor training, making Morocco an attractive environment for industrial investment, especially with plans to raise total production to one million vehicles by 2025, up from 700,000 in 2024.
In contrast, South Africa remains the leader in vehicle production and consumption on the continent, but it faces increasing challenges, including declining sales from major companies like Mercedes-Benz and BMW, as well as the impact of new 25% tariffs on exports to the United States. Moreover, its electric vehicle production remains limited, with only 15,611 units produced in 2024.
Morocco aims to produce 100,000 electric vehicles annually by 2025 and has recorded a 52% growth in sales in 2024, along with plans to increase charging stations from 1,000 to 3,500 by 2026.
Jeune Afrique concluded that Morocco’s proximity to Europe and its industrial integration with it provides an opportunity to enhance its African presence through the continental free trade area, especially if stringent origin rules are established to protect investments and jobs.
