Morocco’s Auto Capacity to Reach 540,000 Units by 2023

Morocco’s auto industry will achieve annual capacity to build 430,000 light vehicles by 2020 and at least 540,000 units by 2023, the Financial Times reports.

The country produced only 43,000 vehicles in 2010, according to IHS Automotive. Since then Renault SA has added a factory there with capacity to make 340,000 cars per year, mostly for exports to France, Germany and Spain. The facility is Africa’s largest automaking facility.

PSA Peugeot Citroen will open an assembly plant in Kenitra in 2019 with initial annual capacity of 90,000 cars. Intended primarily to serve the African market, the factory aims to expand output to 200,000 units over the following three years.

The Moroccan Assn. for Automotive Industry and Trade tells the FT the country’s burgeoning auto industry has attracted some 150 suppliers to the country to date. The trade group says the value of Morocco’s auto exports totaled €4.8 billion ($5.4 billion) in 2015.

The association adds that Morocco’s ministry of industry is incentivizing suppliers in four areas: batteries, interiors/seating, cables/wiring and metal stamping. The FT says the country hopes to increase local content for exported vehicles to 65% by 2020 from 40% currently.