Morocco is leading a surge in electric vehicle production and competing with Europe.
The automotive sector in Morocco is experiencing unprecedented growth, positioning the kingdom as a prominent player among the major production hubs on the southern shore of the Mediterranean. This growth is largely driven by the global shift towards electric vehicles and a lower production cost compared to European countries.
Spanish newspaper Motorpasión reported that growth rates in Morocco have significantly outpaced those in Spain, indicating a noticeable shift in the region’s industrial balance of power. While Spain—once known as “Europe’s second factory”—saw a production decline of 8.4% in the first half of 2025, reaching 1.22 million units, Morocco achieved a 36% increase during the same period, nearing an annual production milestone of one million vehicles. This suggests that the Moroccan automotive industry has entered a new phase of global competitiveness.
Morocco is the fifth-largest exporter of vehicles to the European Union, having shipped approximately 195,000 vehicles in the first half of the year, which accounts for 11% of total European car imports, surpassing countries such as Turkey, the United Kingdom, Japan, and China. This advancement can be attributed to several factors, most notably the low cost of labor and energy, as well as robust logistical infrastructure, particularly the Tangier Med Port and its free zone, which has transformed into an effective export platform connecting Moroccan factories to European markets in just a few days.
Moreover, Morocco has made significant strides in attracting investments related to electric vehicles, with an increasing number of global companies specializing in battery manufacturing and components, including Chinese groups like Hailiang, Shinzoom, and BTR. These companies are benefitting from the availability of raw materials like cobalt, along with financial and tax incentives to attract advanced industries.
The substantial investments by Renault and Stellantis underscore major manufacturers’ confidence in Morocco’s capabilities to lead this industrial phase. Production at Renault’s plants in Tangier and Somaca surpassed 400,000 vehicles in 2024, while Stellantis has doubled the capacity of its Kenitra plant to 535,000 units per year following an investment of 1.2 billion euros.
Conversely, Spanish factories are facing increasing challenges due to rising energy costs and difficulties in the transition to electric vehicle production. The report notes Stellantis’s decision to shift production of the next generation of Citroën C4 and C4 X models from Madrid to Kenitra starting in 2029, which is seen as a “strong signal” of the changing trajectory for future investments.
The report concludes that Morocco is not only a competitor to Spain but could also become a production partner through an integrated industrial model, with Spanish factories continuing to supply Moroccan plants with engines and spare parts, while the latter imports batteries and electric vehicles produced south of the Mediterranean. It confirms that Morocco’s ongoing growth may reshape the European industrial landscape in the coming years, reinforcing its position as a key hub for electric vehicle production in the region.
