Global Transformation in the Automotive Industry
The global automotive industry is undergoing significant changes, driven by stricter environmental regulations aimed at combating climate change, increased international competition, and a rise in protectionist policies. These factors have profound implications for the automotive sector in Morocco, as highlighted in the annual report of Bank Al-Maghrib (BAM) for 2025. Since the adoption of the Paris Agreement in 2015, many countries have gradually incorporated climate imperatives into their public policies. In Europe, the regulatory framework governing the automotive sector has been progressively strengthened with the goal of decarbonizing road transport and achieving carbon neutrality by 2050.
In this context, ambitious targets for reducing CO₂ emissions from new vehicles have been set under the "European Green Deal" and the "Regulation (EU) 2019/631," which was adopted in 2019 and revised in 2023 as part of the "Fit for 55" legislative package. However, in response to the challenges faced by the industry, the European Commission introduced an "automotive package" in December 2025, easing emission standards set for 2035 while still maintaining the objective of carbon neutrality.
Simultaneously, BAM notes the increasing dominance of China in the new energy vehicle (NEV) segment, fueled by supportive public policies and substantial investments in research and development, which has led to overcapacity in production. This dynamic has allowed the Asian giant to strengthen its presence in international markets, particularly in Europe. To counter this offensive, the European Union (EU) imposed anti-dumping duties in 2024, ranging from 7.8% to 35.3% depending on the manufacturers, on electric battery vehicle imports from China.
Challenges and Opportunities for Morocco's Automotive Sector
Furthermore, BAM highlights a rise in protectionism and escalating trade tensions between China and the United States, which are translating into increased production costs and disruptions in the reconfiguration of supply chains. In Morocco, the automotive industry has gradually established itself as a major hub in Africa, supported by the establishment of large international manufacturers and the development of an ecosystem that includes numerous suppliers. The sector is now entering a new phase with the attraction of investments in electric battery manufacturing and the creation of research and development (R&D) centers, aiming to position the Kingdom among the global players in electrified vehicle production.
According to BAM's data, exports from the automotive industry have grown at an average annual rate of 11.8% between 2014 and 2025, making it the leading sector in Moroccan exports, accounting for 33% of the total in 2025. This performance reflects the strong dynamics within the wiring and automotive construction segments, which account for 37% and 40% of the sector's exports, respectively. To evaluate Morocco's positioning in the European market, the report compares the volume of passenger car exports from the Kingdom with those of its main competitors: Spain, Turkey, Romania, Poland, Slovenia, Hungary, and South Africa. These countries were selected due to their relatively close export levels to Morocco and their strong sales orientation towards the European Union.
In conclusion, BAM emphasizes that despite the complex international context characterized by intensified competition, particularly from China, and the ongoing rise in protectionism, the Moroccan automotive industry is expected to continue its development and maintain its competitiveness. This will be aided by efforts to enhance the attractiveness of foreign direct investments in strategic segments, along with a focus on electrification and strengthening the local content of exports.
As reported by fr.le360.ma.
