2024-07-29 17:00:14
Morocco has solidified its positioning in the automotive industry. However, to move forward, the sector is called to invest in new, more promising niches in global markets, such as electric vehicles. This segment is booming, experiencing an ever-increasing demand driven by a strong interest from manufacturers. This is due to the fact that governments have imposed restrictions on the circulation of thermal engine vehicles. These include European countries, the United States, China, South Korea, and Japan. In 2023, nearly 9.5 million electric vehicles were produced worldwide compared to 7.2 million in 2022, representing a 32% increase. This volume is expected to increase further in the coming years. In several countries, gigantic development programs are being implemented, and massive investments are being launched. There is also fierce competition among various global automotive firms to produce reliable electric models that are well-equipped, have a large range, are easily rechargeable, and offer competitive pricing.
The national automotive industrial ecosystem has not remained on the sidelines of this evolution. A dynamic is underway among manufacturers, equipment suppliers, and subcontractors. Thus, the Renault and Stellantis groups have well-designed programs in this field. Both manufacturers want to take advantage of their already operational platforms in Tangier and Kenitra, and the very interesting factor costs in Morocco to produce 100% electric models that meet the required standards at affordable prices. Stellantis’ site invested in this segment right from its launch with the Citroën AMI. Produced since 2020, this micro-citadine will, in a short time, become the best-selling without a license car in France and Spain. Other brands from the Stellantis group have followed suit, including Opel Rocks-e, Opel Rocks Electric, and Fiat Topolino.
The success of this vehicle is explained by its practicality. It meets the needs of sustainable mobility. Ultra-compact (2.41 m long, 1.30 m wide, and 1.52 m high), the Citroën AMI ensures smooth traffic in cities and easier parking possibilities. It has a turning radius of 7.20 m, a range of 75 km, and a top speed of 45 km/h. For its part, the Renault group plans to produce Mobilize Duo at the Melloussa site, starting with a rate of 17,000 units, which will eventually increase to 50,000. The production process uses 50% recycled materials. This small quadricycle (2.43 m in length and 1.30 m in width) will also be available in a utility version with a loading volume of 700 liters. In addition to assembling vehicles, the equipment supplier sector is showing interest in investing in the manufacture of parts dedicated to this type of vehicle. As the battery is the key component of electric cars, many producers have announced megaprojects in this area.
During a session of oral questions in Parliament, Ryad Mezzour, the Minister of Industry and Trade, stated that “the Kingdom aims to position itself in the manufacture of electric cars, batteries, and components that are used in the production of these types of vehicles.” In this context, Morocco signed an investment agreement worth 3 billion dirhams with the Chinese company BTR New Material Group in March for the construction of a cathode production plant in Tangier, an essential element in electric batteries.
This site will have a production capacity of 50,000 tons of cathodes per year. It will be established within the Mohammed VI Tanger Tech City and is expected to produce around 25,000 tons of cathodes by 2026. As explained by the Ministry of Industry, the BTR project is expected to create 2,500 direct jobs and contribute to “the consolidation of Morocco’s position as a leader in the field of electric mobility.” It is worth noting that almost all the production of electric vehicles and electric batteries is intended for export, as the local market is not able to absorb them. Generally, most brands offer 100% electric ranges. However, the share of the electric vehicle segment in the global market remains insignificant.
Indeed, in 2023, only 463 vehicles were sold, representing a jump of 133%. Certainly, there is a growing interest from buyers, but major constraints delay the widespread adoption of this type of vehicle. These obstacles are primarily due to the low number of charging stations, with only 119 units across the entire national territory. For example, France had 129,525 units as of April 30, 2024, with the prospect of reaching 400,000 charging points by 2030. This difficulty discourages potential buyers from opting for electric vehicles. Moreover, the acquisition cost is also unappealing to many buyers. The Citroën AMI, priced at 100,900 DH, is the most affordable vehicle. This two-seater micro city car has been adopted by companies and institutions such as Al Barid Bank, but it does not interest individuals who prefer vehicles with 4 or 5 seats and a trunk. In the compact segment, Dacia Spring offers the most competitive entry price at 199,000 DH. Although many importers offer Chinese vehicles with an interesting quality-price ratio, they are not within reach of all budgets.
Another factor, psychological, is rooted in customs. Moroccan motorists are more interested in diesel engines, which is reflected in car sales, consisting of 85% thermal vehicles. “A lot of effort is needed to develop non-thermal engines in Morocco. Compared to Europe, which has a share of 47%, our country is still lagging behind with only a 4.5% share. We are still in discussions with the government and have proposed many suggestions to boost this segment,” explains the Association of Importers of Motor Vehicles in Morocco (AIVAM) during its annual press conference in January 2024. Industry professionals are calling for fiscal and regulatory measures to develop this segment. They propose exemptions and VAT reductions, as well as restrictions on the circulation of thermal cars in urban centers.
The Future of Electric Vehicles in Morocco
As Morocco strengthens its position in the automotive industry, the spotlight increasingly falls on electric vehicles (EVs). The demand for EVs worldwide is surging, driven by government restrictions on internal combustion engine vehicles in various global markets, including Europe, the United States, China, Korea, and Japan. In 2023 alone, nearly 9.5 million electric vehicles were produced globally, marking a significant 32% increase from the previous year. This upward trajectory is expected to continue, prompting Morocco to adapt and invest in this burgeoning sector.
Major automotive players operating in Morocco, such as Renault and Stellantis, are already laying down strategic plans to capitalize on this growth. With operational platforms in Tanger and Kénitra, these companies are well-positioned to manufacture affordable, 100% electric models that adhere to global standards. The Citroën AMI, launched in 2020, has already made a significant impact as the best-selling micro-car in France and Spain. Meanwhile, the Renault group aims to roll out the Mobilize Duo quadricycle, highlighting the increasing interest in practical, compact electric vehicles.
Investment is not limited to vehicle assembly; the ecosystem for manufacturing component parts, especially batteries, is rapidly expanding. The Moroccan government is keen to establish the country as a leader in EV production and has secured a significant investment with BTR New Material Group to build a cathode production plant in Tanger. This ambitious project is projected to create 2,500 direct jobs and boost Morocco’s capacity in the electric mobility landscape.
However, the pathway to widespread EV adoption in Morocco faces several hurdles. Despite a remarkable increase in electric vehicle sales—463 units sold in 2023, a 133% growth—overall penetration remains low, especially when compared to Europe. Challenges such as the insufficient number of charging stations (only 119 nationwide) and relatively high purchase costs deter potential buyers. Furthermore, a cultural preference for diesel vehicles complicates matters, with thermal vehicles making up 85% of sales.
To remedy these challenges, the automotive sector’s stakeholders are advocating for government intervention, including fiscal incentives, reduced VAT for EVs, and restrictions on thermal vehicles within urban areas. Addressing these barriers will be critical to facilitating a smoother transition to sustainable mobility and aligning with global trends.
#une #niche #importante #pour #filière #automobile #marocaine