Renault Deepens Morocco Investment, Eyes Electric Vehicle Production
Renault Group is bolstering its presence in Morocco with a renewed investment agreement aimed at expanding automotive production and creating 7,500 jobs by 2030. The deal, signed on Wednesday, October 29, in Rabat, will focus on the launch of a new line of electric vehicles and the modernization of existing models, according to Morocco World News.
The agreement signifies Morocco’s growing importance as an automotive hub in Africa. The country already exports over 90% of the 413,000 Renault vehicles produced there to more than 68 countries, as reported by Business Insider Africa. This latest pact builds on a previous agreement covering the period 2021-2030, solidifying Renault’s role as a key driver of the Moroccan automotive sector.
As part of the investment, Renault plans to establish a new engineering and R&D center in Morocco by 2025 to foster innovation in mobility. The company is also committed to increasing local sourcing to €2.5 billion by 2025, with a target of reaching €3 billion with 80% local integration. This move underscores Renault’s strategy to strengthen its supply chain and reduce reliance on external components, as detailed in a Renault Group press release.
The investment comes as Renault prepares to phase out gasoline and diesel vehicle sales by 2030, shifting its focus entirely to electric and hybrid models. The company recently unveiled the first Dacia Sandero manufactured at the SOMACA plant, which will be available for sale in Morocco starting next September, according to Renault Group. Renault is also developing a new generation of electric models with range extenders to address consumer concerns about driving range.
The move is also seen as a strategic response to increasing competition from Chinese automakers, with Renault and Stellantis seeking to defend their market share in emerging economies, Challenges reported.
