Morocco New Vehicle and used Vehicle Market Outlook to 2030

Morocco New Vehicle and used Vehicle Market Overview

• The Morocco vehicle market, both new and used, is valued at USD 4.50 billion based on a five-year historical analysis. This market is driven by several factors, including increased urbanization, rising disposable incomes, and government support for the automotive sector. The establishment of automotive assembly plants and the growing middle class have contributed significantly to the demand for new vehicles, while used vehicles remain popular due to their affordability, especially among lower-income households. The Moroccan government's incentives for electric vehicles (EVs) are also stimulating the new vehicle market.

• Key cities driving the Morocco vehicle market include Casablanca, Tangier, and Rabat. Casablanca serves as the largest economic hub, with higher disposable incomes and robust automotive retail networks supporting new vehicle purchases. Tangier’s dominance is due to its proximity to the Tangier Automotive City, home to several large automotive plants such as Renault. Rabat, as the political capital, benefits from government fleet purchases and infrastructure expansion. These cities have strong economic activity, making them pivotal for both the new and used vehicle markets.
• The Moroccan government has ramped up its subsidies for electric and hybrid vehicles in 2024, offering financial incentives worth up to $4,000 per vehicle to encourage adoption. These subsidies, combined with tax exemptions and reduced registration fees, are part of Morocco's effort to transition to greener transportation. Over 10,000 vehicles have benefited from these incentives in 2024, signaling a growing market for eco-friendly vehicles. These policies are aligned with the country's goals to reduce fossil fuel dependence and promote sustainable transportation solutions.

Morocco New Vehicle and Used Vehicle Market Segmentation

• By Vehicle Type: The Morocco vehicle market is segmented into passenger vehicles and commercial vehicles. Passenger vehicles dominate the market, driven by rising incomes and urbanization. The affordability of small sedans and hatchbacks, coupled with attractive financing options from local banks, makes passenger vehicles the primary choice for Moroccan consumers. Additionally, the growing demand for electric passenger vehicles has begun to gain traction, especially in larger cities with increasing EV infrastructure.

• By Fuel Type: The fuel type segmentation includes petrol, diesel, hybrid, and electric vehicles. Petrol vehicles hold the majority of the market share due to their affordability and availability across urban and rural areas. However, the demand for electric and hybrid vehicles is rising, fueled by government incentives and the gradual development of EV charging stations. Diesel remains prevalent among commercial vehicles due to its fuel efficiency for long-distance transport, while hybrid vehicles are gaining interest from environmentally conscious consumers.

Morocco New Vehicle and used Vehicle Market Competitive Landscape

The Morocco vehicle market is dominated by global players with localized manufacturing and strong distribution networks. These include both new vehicle manufacturers and used vehicle importers. Key players like Renault, Stellantis, and Hyundai have local manufacturing plants, enabling them to offer competitively priced models, while used vehicle imports are dominated by small local traders.

Morocco New Vehicle and used Vehicle Industry Analysis

Growth Drivers

• Increasing Urbanization (Urban Population Growth): Morocco's urban population has seen a steady rise due to internal migration and economic development. In 2024, over 25 million people, around 70% of the total population, live in urban areas, up from 23.5 million in 2022. This growth drives demand for new and used vehicles, as urban residents require personal transport for commuting. The government’s focus on expanding urban infrastructure and services further boosts vehicle sales. Data from the World Bank confirms Morocco's continuous urban growth, contributing to higher demand for vehicles, especially in growing metropolitan areas like Casablanca and Rabat.

• Rise in Middle-Class Incomes (GDP per Capita): Morocco's GDP per capita reached $4,165 in 2024, up from $3,805 in 2022, indicating rising disposable incomes, particularly among the middle class. As household incomes increase, so does the purchasing power for vehicles, including new and premium models. With more financial flexibility, middle-income families are increasingly considering vehicle ownership as a status symbol and for practical mobility. The upward trend in GDP per capita, as recorded by the IMF, reflects economic improvements that are directly supporting the growth of both the new and used vehicle markets in Morocco.
• Government Incentives for Electric Vehicles (EV) (Tax Benefits): To promote sustainable transportation, the Moroccan government introduced tax exemptions and reduced registration fees for electric vehicles in 2024. EV buyers can now benefit from zero customs duties, which typically amount to 40% for non-electric vehicles. These incentives have led to a notable increase in EV imports, with over 5,000 new EV registrations in 2024, compared to 3,000 in 2022. Such tax benefits are part of the government’s strategy to reduce reliance on fossil fuels and encourage eco-friendly transportation, fostering growth in the EV segment of the market.

Market Restraints

• Lack of Affordable Financing Options (Interest Rates): The vehicle financing market in Morocco remains underdeveloped, with high-interest rates making loans expensive for the average consumer. In 2024, average loan interest rates for car purchases stand at 7%, which deters many potential buyers, especially in the middle-income bracket. Limited access to affordable credit continues to challenge new vehicle sales, as many consumers opt for used vehicles, which are more affordable and often bought without financing. The lack of competitive financing options is a significant constraint on the broader market for new cars.

• Dominance of Used Vehicle Market (Import Volume of Used Vehicles): Morocco's used vehicle market continues to dominate, with over 180,000 used vehicles imported in 2024 compared to 95,000 new vehicles. The preference for used vehicles stems from affordability and lower import taxes on older models. Additionally, a large portion of the population sees used cars as a more economical choice, contributing to the market's growth. This heavy reliance on used vehicle imports presents challenges for the new vehicle market and impacts the overall environmental sustainability of the automotive sector.

Morocco New Vehicle and used Vehicle Market Future Outlook

The Morocco vehicle market is expected to experience sustained growth, driven by government initiatives supporting electric vehicles and the continued rise of disposable incomes. In particular, the government's National Automotive Industry Development Plan aims to increase local manufacturing capabilities and foster international partnerships. The expansion of EV infrastructure, such as the installation of new charging stations in major cities, is expected to accelerate the growth of electric vehicles. Meanwhile, used vehicles will remain popular in rural areas where affordability is a key factor.

Market Opportunities

• Expansion of EV Infrastructure (Charging Stations): Morocco's electric vehicle infrastructure has seen significant development, with over 250 new charging stations installed across the country in 2024, up from 100 in 2022. The government is prioritizing the expansion of EV charging networks in urban areas and along major highways. This infrastructure expansion is crucial for increasing the adoption of electric vehicles, making them a more viable option for consumers and supporting the country’s green mobility goals. The growth of charging stations is directly aligned with the rising demand for EVs, contributing to market opportunities for automakers and infrastructure providers.

• Partnership with International Automakers (Joint Ventures): In 2024, Morocco has strengthened partnerships with international automakers through joint ventures, particularly in the EV and hybrid vehicle segments. Companies like Stellantis and Renault have announced joint ventures with local firms to produce eco-friendly vehicles tailored to the Moroccan and broader African markets. These partnerships are aimed at capitalizing on Morocco’s strategic position as a manufacturing and export hub, while also addressing domestic demand for greener vehicles. The involvement of global automotive leaders presents significant growth opportunities for Morocco's automotive sector.