Morocco Strengthens Its Position as a Regional Platform for Affordable Electric Car Production
Experts in the automotive sector have revealed that the Dacia group, a subsidiary of Renault, is preparing to launch a major project involving the production of a new electric vehicle named “Hipster,” which will be manufactured at the Tangier factory currently producing small models like the Mobilize Duo.
The car is expected to be available in European markets starting in 2027 at a price not exceeding 13,000 euros, making it one of the cheapest electric cars on the continent, while simultaneously enhancing Morocco’s status as one of the key regional centers for low-cost electric vehicle production.
Moroccan factories, especially in Tangier and Kenitra, continue to produce a wide range of well-known models such as the Dacia Sandero, Dacia Jogger, Renault Express, Peugeot 208, Citroën AMI, Opel Rocks Electric, and Fiat Topolino, with expectations for steadily increasing production volumes in the coming years coinciding with the rising European demand for reasonably priced electric vehicles.
Conversely, Spain is currently facing concerns over this shift, as its industrial sector continues to decline after losing its eighth position globally in vehicle production in 2024, falling to ninth place with a decrease of 3% compared to 2023. According to data, its production by the end of August 2025 reached approximately 1.47 million vehicles, down by 7%, while private car sales plummeted by more than 11.5%.
Spanish apprehensions have intensified with the announcement of the transfer of Citroën C4 production to Kenitra in 2029, seen by analysts as evidence of Morocco’s growing competition in the low-cost vehicle market. Experts attribute this advantage to several factors, the most significant being the low labor costs, which do not exceed $173 per vehicle—a figure much lower than that in countries like Mexico, China, or South Korea.
The Moroccan industrial sector also benefits from lower energy prices and flexible environmental regulations compared to the strict European standards, granting companies operating in the kingdom greater control over production costs and faster adaptability to market demands.
European Union circles are observing this transformation with interest and caution, amidst fears of a shift in the region’s industrial power balance. There are rising calls within Europe for measures to protect local production, particularly as an increasing number of vehicles labeled “Made in Europe” rely on components manufactured in Morocco or Turkey, raising questions about the future of European supply chains in the electric vehicle sector.
