Dacia: Morocco Surpasses Romania in Car Production – Challenges & Future Outlook

Across Borders

Renault has shifted production of its Sandero and Logan models to Morocco, while the electric Spring model is now manufactured in China by the state-owned Dongfeng group. This move comes as the automotive industry continues to reassess its manufacturing footprint in response to shifting market dynamics and cost considerations.

The Sandero remains Europe’s best-selling vehicle, making these production changes particularly noteworthy for the company’s overall sales performance.

Renault has also separated its Mioveni engine plant and the Titu technical center into Horse, a company jointly owned with Geely and Saudi oil giant Aramco. This restructuring reflects a broader trend of automakers forming strategic partnerships to share resources and expertise in key areas like powertrain development.

Dacia recently achieved a motorsport victory at the Dakar Rally with the Sandrider model, a prototype built in the United Kingdom and powered by a 3-liter Nissan engine. While a significant achievement for the brand, this vehicle represents a specialized project distinct from its mainstream production.

Morocco Surpasses Romania in Production

In 2024, Dacia produced 297,182 units in Romania, down from 309,432 vehicles in 2023 and 322,086 units in 2022, according to data from the Association of Automobile Constructors in Romania (ACAROM). This decline in Romanian production coincides with a rise in output at Dacia’s Moroccan facility.

Dacia sold 697,408 vehicles in 2025, and the company now manufactures more cars in Morocco than in its home country, Profit.ro reported. The shift underscores the growing importance of Morocco as a key manufacturing hub for the automaker.

Last year, reports indicated that Dacia aimed to exceed one million vehicles sold globally, signaling ambitious growth targets for the brand.

Production Capacity Remains Static Despite Support

While Dacia previously announced plans to increase production capacity in Romania, those expansion efforts have been set on hold. This decision suggests a reassessment of investment priorities and a focus on optimizing existing facilities.

Dacia is a significant recipient of government subsidies in Romania, particularly through the Rabla program. These incentives play a role in supporting the company’s operations and sales within the domestic market.

In 2023, Dacia received 82.92 million lei (approximately $17.5 million USD) in state aid for a total investment of 296.08 million lei (approximately $62.5 million USD).

Highway Construction Underway

The Romanian government has begun construction on the Sibiu-Pitești highway, a critical infrastructure project for the Mioveni-based manufacturer to facilitate easier vehicle exports to Western markets. Improved transportation links are essential for streamlining supply chains and reducing logistical costs.

Despite being discussed for over 15 years, the highway remains incomplete. The delay highlights ongoing infrastructure challenges in the region.

As early as 2014, then-President Traian Băsescu warned that Romania could lose Dacia’s assembly operations to Morocco, according to Digi24. This prediction appears to be materializing as production shifts towards Morocco.

Ongoing Challenges in Romania

Dacia’s leadership has consistently voiced concerns to the Romanian government regarding issues such as newly introduced taxes, including a turnover tax, and the sharp increase in energy prices following liberalization. These factors contribute to a challenging business environment.

The European automotive sector is also facing increased competition from low-cost vehicles from China. While the new Dacia Striker will be produced in Turkey, the company implemented voluntary redundancies in Romania earlier this year, offering bonuses to encourage employees to abandon.