The impact of industrial policy on Morocco’s automotive industry development

Abstract

Since the early 2000s, Morocco has implemented a series of successive industrial strategies aimed at positioning the automotive industry as a driver of economic development and a key vector for attracting foreign direct investment (FDI). This paper seeks to examine the central role of public industrial policy in the development of the automotive sector in Morocco. Through a qualitative analysis based on institutional reports, recent economic studies, and academic research, it highlights how the Moroccan state has mobilized a range of industrial policy instruments to structure a competitive automotive ecosystem, contributing to the establishment of foreign investors and the emergence of a high value-added industrial sector. Thanks to this industrial policy, Morocco has gradually established itself as a continental leader in the automotive sector, surpassing South-Africa to become both the largest car producer and leading vehicle exporter in Africa. This industrial strategy has enabled the implantation of major international groups, the expansion of exports, the creation of jobs, and a gradual process of industrial integration. In 2024, the automotive sector became Morocco’s top export industry, generating 157,6 billion dirhams in revenue and providing more than 200 000 direct jobs. Morocco's industrial policy has also anticipated the transition to sustainable mobility by attracting investments in battery production and establishing charging infrastructure. However, structural challenges remain: technological dependence, weak local integration and the need to adapt to global changes. This study adopts a perspective that examines industrial policies as instruments for structural transformation, principally based on the principles of institutional economics.

Classification JEL : L52, F21, O25, R58

Paper type : Empirical Analysis