Morocco’s Auto Market Leader Dacia, Trade Deficit Improvement, and Tourism Surge with MAD 9.4 Billion Revenues

Dacia has firmly entrenched itself as the dominant force in Morocco’s automotive landscape, capturing an impressive 26% share of the country’s passenger vehicle (PV) market. According to the latest insights from the Association of Vehicle Importers in Morocco (AIVAM), Dacia’s market leadership coincides with a steady overall increase in new car sales across the nation.

In the last month alone, Morocco saw a total of 82,286 new cars hit the roads, marking a modest 1.06% rise compared to the same period last year, as reported by AIVAM. Dacia’s performance stands out with 19,732 new registrations since the beginning of the year, positioning it significantly ahead of its closest competitors.

Following Dacia, Renault maintains its stronghold in second place with 11,657 units sold, securing a 15% market share. Hyundai follows closely with 5,933 units and an 8% share. Despite a slight decrease of 0.24% in PV registrations, totaling 74,048 units, the light commercial vehicle (LCV) segment exhibited robust growth, surging by 14% to reach 8,238 units sold.

Renault leads the charge in the LCV market, selling 2,040 units for a commanding 24% share, followed by Ford with 1,138 units (13% share) and DFSK with 963 units (11% share).

Turning to the luxury automobile sector, Audi emerges as the frontrunner with a 3% market share and over 2,250 cars sold in the first half of 2024. BMW and Mercedes-Benz follow closely with 2% each. Porsche notably reported a remarkable increase in sales, with 354 units sold representing a 54% surge compared to May 2023, while Jaguar experienced a 15% decline with only 51 units sold.

June 2024 witnessed a marginal overall decline in vehicle sales compared to the same month last year, totaling 17,368 units, including 15,855 PVs and 1,513 LCVs. This slight 0.15% decrease from June 2023 underscores the resilience and competitive dynamics within Morocco’s automotive sector amidst global economic fluctuations.

Dacia’s ascendancy in Morocco’s automotive market, coupled with robust performances across various vehicle segments, underscores the nation’s growing automotive prowess and strategic importance in the regional automotive landscape. As Morocco continues to attract investment and expand its automotive manufacturing capabilities, the sector’s future looks promising, driving economic growth and technological advancement in the country.

Morocco Sees 14% Reduction in Trade Deficit for 2024 Due to Increased Exports

Morocco’s trade balance showed significant improvement in the first quarter of 2024, with the trade deficit narrowing by nearly 15% to MAD 10.7 billion ($1 billion). This positive development was driven by robust export growth and a modest decline in imports, according to the latest data from the Office d’Echange (OE), Morocco’s foreign trade regulator.

Exports increased by 3.2% to MAD 113.8 billion ($11.4 billion) compared to MAD 110.2 billion ($11 billion) the previous year, while imports decreased by 4% to MAD 175.6 billion ($17.6 billion) from MAD 182.7 billion ($18.2 billion) in the same period.

Looking ahead, Bank Al-Maghrib (BAM), Morocco’s central bank, forecasts a promising outlook for exports, expecting them to grow at an annualized rate of 4.4% by the end of 2024 and nearly 9% in 2025. This growth trajectory is largely attributed to expansions in the automotive and fertilizer industries, projected to contribute significantly with exports reaching MAD 185.1 billion ($18.5 billion) and MAD 88.5 billion ($8.8 billion) respectively by 2025.

Exports play a pivotal role in Morocco’s economy, alongside tourism, remittances, and Foreign Direct Investments (FDIs). BAM forecasts indicate robust performances across these sectors, with tourism revenues projected to increase to MAD 117.2 billion ($11.7 billion) in 2025, marking a 5.8% year-over-year rise. Similarly, remittances are expected to reach MAD 123.7 billion ($12.3 billion) in 2025, reflecting a 5.3% year-over-year increase.

FDIs are also anticipated to grow, stabilizing at nearly 3.1% of GDP in both 2024 and 2025 after a dip to 2.4% in 2023. Concurrently, Morocco’s official reserve assets are projected to continue their upward trend, reaching MAD 382 billion ($38.2 billion) by the end of 2024 and MAD 395.6 billion ($39.6 billion) by 2025. These reserves are forecasted to cover five and a half months’ worth of imports of goods and services by the end of 2025, underpinning Morocco’s economic stability and resilience in global trade dynamics.

Morocco Reports MAD 9.4 Billion in Foreign Currency Tourism Revenues for the First Five Months of 2024

Morocco’s Tourism Ministry is celebrating a robust performance in the sector, marking a significant milestone with revenues of MAD 9.4 billion ($942.7 million) in foreign currency as of May. This achievement represents an impressive 11% increase compared to the same period last year, underscoring the sector’s resilience and recovery amid global uncertainties.

In the first five months of 2024, the tourism sector accumulated MAD 41.3 billion ($4.1 billion) in revenue, reflecting an overall growth of 1.6% year-over-year and a remarkable 45% increase compared to pre-pandemic levels in 2019. This resurgence in earnings over the past months aligns closely with Morocco’s tourism forecasts and demonstrates the sector’s capacity to rebound and thrive.

Fatim Zahra Ammor, Minister of Tourism for Morocco, highlighted the pivotal role of strategic planning and development initiatives in revitalizing tourism. She emphasized the ministry’s commitment to enhancing visitor experiences through high-quality offerings that not only attract tourists but also benefit local communities economically.

Ammor underscored the importance of fostering deeper connections between tourists and the local culture, ensuring that the tourism momentum translates into tangible benefits for Moroccan communities. This commitment is part of Morocco’s broader strategy to sustainably boost tourism and leverage it as a driver of economic growth and cultural exchange.

Looking forward, Morocco aims to surpass 15 million tourists in 2024, building on the success of hosting 14.5 million visitors in 2023. The Tourism Ministry, in collaboration with Morocco’s Tourism Office (ONMT), continues to prioritize initiatives aimed at enhancing infrastructure and service quality. Recently launched initiatives like Cap Hospitality exemplify this commitment, targeting the renovation of 25,000 rooms in classified tourist accommodations. This ambitious effort is expected to stimulate additional investments of up to MAD 4 billion ($402.8 million), further bolstering Morocco’s tourism infrastructure and attractiveness on the global stage.

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