Morocco consolidates role in EU auto market despite global slowdown

Despite a cooling in global vehicle output, Morocco continues to strengthen its foothold in the European automobile market. A recent report by the European Automobile Manufacturers’ Association shows the kingdom accounted for 4 percent of total EU sales in the first half of 2025, ranking alongside China, Japan, Turkey, and South Korea among the bloc’s leading external suppliers.

The ACEA report highlights a balance in Europe’s supply chain, with domestic production supplemented by rising imports. Germany retains its dominant position, representing 20 percent of EU sales, followed by Spain, the Czech Republic, and France.

Yet growing competition from non-EU suppliers is gradually altering market dynamics.

Global production climbed 3.5 percent to 37.7 million vehicles in the first six months of the year, driven by Asia, which accounted for 60 percent of output.

China alone produced nearly 13 million vehicles, fueled by replacement programs, easier credit, and renewed domestic demand. In contrast, European production contracted 2.6 percent, led by a 2.8 percent decline in the EU, while North America fell 4.6 percent.

South America bucked the trend, rising 6.3 percent thanks to Brazil’s new tax incentives and local assembly by Chinese automakers.

The MENA region recorded a 3.5 percent drop to 890,000 vehicles, with Iran down 6.5 percent due to weak demand and energy disruptions. Morocco posted a modest 1.3 percent increase, reflecting expanded capacity and stronger export orientation.

On EU imports, China remains the top supplier with 17.6 percent of total value, or €6.2 billion, up 3.7 percent year on year. The country also dominated volumes, exporting 465,000 vehicles to the EU, a 36 percent jump that made up more than a quarter of non-EU imports.

Japan and the United Kingdom followed with 15.3 percent and 14.6 percent shares, while Turkey and South Korea captured 17.9 percent and 10.1 percent, respectively. Moroccan imports slipped by over 7 percent in the same period.

In the bus segment, Morocco ranks third among EU suppliers with €40 million in exports, up 58 percent from last year and accounting for 2.3 percent of the market. Turkey leads with €1.1 billion, followed by China with more than €400 million.