Due to the ongoing war, many Ukraine-based car companies left the country and decided to relocate to Morocco instead, given the opportunities the country offers for the car industry.
The automotive industry is a key sector in Morocco’s economy, and it is among the preferred countries for car companies worldwide due to its low operating costs.
One of these companies is Aptiv, an Irish car parts manufacturer that decided to set up in the city of Oujda. The company already has production plants in several cities such as Tangier, Kenitra, and Meknes.
In addition, Japanese electrical wire and fiber optic cable manufacturer, Sumitomo Electric Industries, announced in March that “it is moving its cable harness production from Ukraine to its factories in Romania and Morocco.”
“Sumitomo will add production lines at the Romanian and Moroccan plants, after suspending operations at its factory in western Ukraine at the end of last month,” the company said in a statement following its decision to leave Ukraine.
The Kingdom is increasingly becoming an attractive alternative for car manufacturers, as the industry continues to grow exponentially.
Moroccan automotive exports reached USD 8 billion in November 2021, according to the trade indicator report from the country’s Exchange Office.
Official data suggest the Moroccan automotive industry comprised over 250 companies, creating over 220.000 job opportunities in 2019.
In 2021, US magazine “Automotive Industries” described Morocco as “a leader” in the African automotive industry, with a production capacity of 700,000 cars per year.
In one its pieces, the magazine argued that the Moroccan automotive industry “has been undergoing steady growth, and experts predict the country will have the capacity to produce a million cars in the short term.”
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