Possessing the ideal requirements of an automotive industry, like business incentives and investment in infrastructure like the freight railway line, enables Morocco to grow in success as an automotive industry in less than two decades.
More than 250 companies get their cars or car-related components manufactured, constituting 22% of Morocco’s gross domestic product and $14 billion in exports.
The government also suggests to those companies that are looking to outsource their production units to cheaper locales that Morocco is the right place, as the approval required for new factories and construction can be obtained within less than five months.
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According to Ryad Mezzour, Minister of Industry and Trade of Morocco, the automotive industry is the first exporting sector of the country, and it is expanding its ports, free trade zones, and highways.
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He also stated he and his predecessors have focused on offering more than cheap labour to foreign automakers looking for new places to build cars and have components manufactured, keeping in mind one simple priority, which is to create jobs for the workforce.
Though the major automakers pay the workers less in Morocco as compared to Europe, these jobs still pay more than the median income in Morocco, employing over 220,000 people. While US and European countries encourage their automakers to produce vehicles domestically, it isn’t sure how Morocco will outstand it, pointing to instability in terms of trade rules that make it difficult for countries like Morocco.