Global vehicles manufacturer Stellantis plans to produce 1,000 units annually of its Automated Guided Vehicles (AGVs) at the group’s Kenitra plant in Morocco, Al Maghrebia reported on February 9. 

The Kenitra plant is the first in the Middle East and Africa (MEA) region to have an AGV workshop. The facility assembles one AGV every three hours.

Morocco has become a key player in the global automotive sector. The North African country overtook China as the EU’s top automotive trading partner. Its exports to the block were €15.1bn in 2023 compared to China’s €13.6bn.

Stellantis was formed in 2021 through the merger of Fiat Chrysler Automobiles (FCA) and Groupe PSA (Peugeot Société Anonyme). In 2023, it acquired Sopriam and announced plans to raise production capacity to 400,000 vehicles by 2027 and achieve a 22% market share by 2030 with a 90% local integration rate.

Morocco’s automotive industry is the largest in Africa and is poised to become an even more significant economic driver, potentially contributing nearly a quarter of the country’s GDP. Over the years, the sector has evolved from basic vehicle assembly to a comprehensive manufacturing ecosystem. In 2023, it created over 220,000 jobs, with projections for growth to $14bn by 2026, supported by foreign investments and government incentives.

Morocco has set ambitious goals to produce 1mn cars annually by 2025 while increasing the local integration rate from 60% to 80%. The country has signed numerous trade agreements with manufacturers from the EU, China, and the US to support its automotive sector and meet the growing demand for vehicles.

Global industry leaders, including Renault, Stellantis, Yazaki, and others, have already established a strong presence in Morocco. In November last year, Romanian automotive supplier MP Industry Group inaugurated its first factory in Morocco, located in Tanger Automotive City (TAC).