A promising future despite silly growth

by time news

Morocco’s electric vehicle market began to make significant progress in 2023, although this is still modest compared to international trends. According to a recent report by the Association of Vehicle importers in Morocco (AIVAM), this sector, which includes 100% electric vehicles and plug-in hybrids, saw its sales double in the space of a year, with 463 units sold.

However, despite this 50% growth in market share, which now reaches 0.6%, Morocco is still far behind European levels where the marketing of electric vehicles will account for 47% of car sales in 2023.

Diversified offer: Key growth factor

One of the main reasons for this progress is undoubtedly the expansion of the offer. In 2023, for this purpose, the number of brands offering electric vehicles in Morocco increased from 18 to 24, and the range of models expanded from 71 to 82. This diversification, marked by the introduction of new players and more accessible models , now available. wider choice for consumers. This contributes to the growth of the all-electric vehicle (BEV) segment.

However, the road to wider adoption of electric vehicles is still fraught with challenges. Although their cost is relatively high, although they are decreasing, they are still a major obstacle for a large part of the Moroccan population. In addition there is the lack of adequate public charging infrastructure, a critical point for large-scale adoption. Although some initiatives have emerged to develop charging stations, there is still insufficient coverage, especially outside large cities.

In this sense, the Moroccan government, aware of these challenges, implemented tax and financial incentives to encourage the adoption of electric vehicles. But, as experts point out, the impact of these measures is always limited as long as there is no massive development of charging infrastructure.

Outlook for 2024: cautious optimism

The forecasts for 2024, however, are optimistic. With the planned expansion of charging networks and the arrival of new, more affordable models, the market could accelerate demand. Automakers are also preparing to introduce more competitively priced vehicles, making electric cars more accessible to a wider customer base.

However, obstacles remain. Access to financing electric vehicles is difficult, especially due to the strict conditions of the banking establishments. In addition, there is still insufficient awareness of the environmental and economic benefits, which hinders adoption. The AIVAM report calls for more public authorities and private actors to be mobilized to remove these obstacles.

SUVs and compact cars: Other market trends

In addition to the electric vehicle market, other car segments also showed interesting dynamics in 2023. This is the case of SUVs which continue to establish themselves as the dominant segment of the market, recording a growth of almost 7%. This type of vehicle, appreciated for its versatility and comfort, attracts an increasingly wide range of customers.

Meanwhile, compact cars saw a significant increase of 17%, driven by demand from car rental companies and urban consumers. By combining performance and practicality, they seem to meet the expectations of a population eager to optimize their travels and limit their costs.

Despite this progress, the Moroccan car market showed moderate growth in 2023. With 161,504 units sold, total sales increased by only 0.1% compared to 2022, reflecting ongoing economic challenges. Rising prices, fluctuating household incomes and uncertain economic conditions have weighed on overall demand, although some segments continue to have strong growth potential.

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