According to media reports, Morocco's Minister of Industry and Trade, Ryad Mezzour, announced that the country aims to increase its electric vehicle (EV) production by 53% by the end of 2025, reaching a total output of 107,000 units. This production boost is a key element of Morocco's strategy to diversify its export markets and reduce reliance on Europe.
As Morocco's largest export sector, the automotive industry currently has an annual production capacity of 700,000 vehicles, with plans to raise that figure to 1 million units by the end of this year. While the European Union remains the primary destination for Moroccan car exports, recent data indicates weakening demand in the EU's new car market.
According to the Moroccan Foreign Exchange Office, automotive exports in the first four months of this year declined by 7% year-over-year to around 49 billion Moroccan dirhams (approximately USD 5.42 billion). This drop contributed to a 22.8% year-over-year increase in Morocco's trade deficit, which widened to 108.9 billion dirhams.
However, Mezzour described the export decline as a temporary setback and stressed that Morocco is actively promoting market diversification. Currently exporting vehicles to 70 countries, Morocco aims to expand this reach to 100 markets in the coming years. Notably, Reuters reported that Morocco achieved a record high in automotive export revenue in 2024, reaching 157 billion dirhams-an increase of 6.3% compared to the previous year. The country is already home to full vehicle assembly plants operated by Renault and Stellantis.
Global market trends are also supporting Morocco's strategic shift toward EV production. Data from the European Automobile Manufacturers' Association (ACEA) shows that in the first four months of this year, sales of gasoline and diesel vehicles in the EU fell by 20.6% and 26.4%, respectively. In contrast, pure electric vehicle sales rose by 26.4%, with market share growing from 12% last year to 15.3%.
The implementation of this production plan marks the first phase of Morocco's broader strategy to establish an electric vehicle battery manufacturing ecosystem in North Africa. The country aims to become a leader in EV production and sustainable mobility. Mezzour stated that Morocco plans to develop a complete EV manufacturing supply chain-from raw material extraction to battery production and vehicle assembly. This approach will not only enhance domestic production capacity but also position Morocco as the only country in the Euro-African region with end-to-end EV manufacturing capabilities.
The government's strategy includes tapping into key battery materials such as phosphate and cobalt. By 2030, Morocco expects to triple its export capacity through this initiative. In alignment with its automotive ambitions, the government is also investing in electric public transport, with plans to purchase 7,000 electric buses-1,300 of which have already been ordered.
By leveraging its industrial infrastructure and international partnerships, and by adapting to global market shifts, Morocco's push to expand EV manufacturing is set to strengthen its position as a competitive automotive manufacturing hub.
