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Marruecos

Part of Ukraine's car industry leaves the country to set up shop in Morocco

Car companies flee Ukrainian territory after the Russian invasion and settle in the Alawi kingdom, taking advantage of the fact that the sector is one of the most promoted in the national economy
Morocco's automotive industry

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The war in Ukraine is causing serious damage to the companies that are installed in the country. Due to the conflict, many of them have had to leave in a hurry to continue operating despite the economic consequences they are suffering. The latest of these are in the automotive sector. Several companies have decided to set up in Morocco because of the opportunities the country offers for this industry.

Among these companies is Sumito Electric Industries, a Japanese manufacturer of electrical and fibre optic cables for cars. "This process will take up to six weeks, leaving some car manufacturers without parts during that time," the company said in a statement following its departure from Ukraine. Aptiv, an Irish car parts manufacturer, has also announced that it will set up shop in the UK.

Following the war, Aptiv has decided to build a new wiring plant in the city of Oujda. The company has financed the factory to the tune of 400 million dirhams and expects it to be ready by June. This is a very important project for the Moroccan economy, as it will create 3,500 direct jobs that will improve the unemployment situation in the country following the COVID-19 pandemic. The plant will also occupy a total surface area of eight hectares.

Industria automovilística de Marruecos

Aptiv has been working in Morocco for more than two decades, where it has been able to make large profits due to the importance of this sector in the Alawi kingdom. The company already has several production plants in cities such as Tangier, Kenitra and Meknes. 

Fitch Solution has also chosen the North African nation to open a vehicle factory. This subsidiary of B&D intends to open a plant in the city of Tangier, after signing a preliminary agreement for its construction.

The choice to set up in the Maghreb country is no coincidence. The automotive sector in Morocco enjoys great importance in the country and, over the years, it has become one of the countries that invests the most in promoting this industry. This has led the Kingdom to achieve numerous benefits, making it one of the best car suppliers in the world.

Industria automovilística de Marruecos

The North African nation has dedicated years of effort to boosting this industry, which has ensured that it has become one of the most important sectors for the national economy. Thanks to this positioning, Morocco has reaped a great boom in this field and, therefore, several international groups choose the Kingdom because of the attractiveness of the opportunities in this industry.

The promotion of this strategic sector is due to the clear dedication of successive governments, which have been committed to the automotive industry as one of the country's driving forces. To this end, several measures have been implemented, such as the improvement of the workforce, which has become highly qualified in the work that is carried out.

In addition, it is worth noting that the Kingdom has maintained its leadership in this industry since 2017. The Alawi country has been Africa's leading vehicle manufacturer since 2017. Last year alone, this sector was able to produce a total of 403,000 vehicles despite the problems of the pandemic. 

Industria automovilística de Marruecos

It is worth remembering that Morocco offers great tax advantages to international companies. Firms wishing to set up in the Kingdom obtain numerous benefits through tax reductions and incentives. For this reason, many businesses see the opportunity in the Maghreb country. Since 2019, more than 250 companies dedicated to car manufacturing have settled in the nation.

Morocco has a very strategic geographical position in terms of trade. Settling in the nation serves as a gateway to enter the African market, as well as its proximity to Europe and the great relationship it has with the European Union (EU) allows companies to create very important and significant expansion business agreements.