Morocco’s automotive manufacturing sector has grown significantly over the past 5 years with the country fast establishing itself as a viable automotive producing nation. In 2015 the country produced 278,329 vehicles across two plants – the SOMACA-Renault factory in Casablanca, established in 1960; and the Renault factory in Tangiers established in 2012 – and with current installed capacity of over 400,000 units1 this is expected to grow. Additional capacity will soon be added with Peugeot-Citroen’s commitment to invest $615 million in a new assembly plant in Kenitra between 2015 and 2019.
While there are numerous drivers behind this success, at its most simple Morocco has leveraged its close proximity with Europe and affordability as a manufacturing hub to define itself as an alternative manufacturing location for both OEMs and suppliers. However this alone is insufficient to foster growth. At the same time Morocco has implemented a programme of wide ranging reforms which have led to a safer and more open and democratic society; and has instituted industrial policy that strongly encourages investment and supports trade.
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