Morocco has signed new investment deals worth $180 million with five automotive cable suppliers. “This deal comes at a time when Morocco is trying to meet the growing demand from electric vehicle makers,” Moroccan industry minister Ryad Mezzour said.
As part of these deals, Japan’s Yazaki will establish a new wiring plant worth $38 million in Tangiers and expand its existing factories in Kenitra as well as Tangier for $40 million, a representative of the company said during the signing ceremony.
Japan’s Sumitomo also confirmed its expansion of its electric harness plant in Casablanca in a $15 million capital investment.
During the same event, U.S. auto parts maker Lear said it will set up a plant for electric cables in Meknes totaling $20.6 million and a new terminals and connectors plant in Tangier for $28 million.
Germany’s Stahlschmidt said it will launch a plant making cables and locking systems in Tangier for $11 million. TE connectivity said it will set up a connectors molding and assembly plant worth $20.8 million in Tangier.
The automotive ecosystem has been a leader in Morocco’s exports over the last seven years with sales totaling $8.6 billion in 2021, up 16% in 2020. With total car exports reaching 358,745 in 2021
Morocco is home to production plants of French carmakers Renault and PSA. Morocco plans to increase its car production capacity to 1 million vehicles annually, from 700,000 currently, which includes 40,000 electric vehicles, said Mezzour. Locally-made parts now represent 63% of Morocco-exported cars, he said.