Morocco is gearing up for a dynamic expansion in its electric vehicle (EV) market, with promising projections for 2025 and 2026. This growth is attributed to the introduction of new models and a significant boost in local EV production, as reported by BMI, a FitchSolutions Company.
Projected Surge in EV Sales
In 2025, Moroccan passenger EV sales are anticipated to rise by 80.4%, reaching 5,311 units, which will increase the EV penetration rate to 2.6% from 1.9% in 2024. The upward trend is expected to continue into 2026, with a 36.3% sales increase to 7,237 units and a penetration rate of 3.4%. Forecasts indicate that battery electric vehicles (BEVs) will comprise 4,248 units, while plug-in hybrid vehicles (PHEVs) will account for 2,889 units.
Factors contributing to this growth include the availability of more affordable EVs from Mainland China and the expansion of local production. A notable development is the unveiling of the Dial-E by Moroccan automaker Neo Motors in October 2025, marking the country’s first fully designed, developed, and assembled EV, with production commencing in January 2026.
Global automakers are also keenly investing in Morocco. Tesla, for instance, established a local subsidiary in June 2025 for the import, distribution, and maintenance of its EVs, with plans to invest $2.8 million in a local assembly facility in Kenitra, aiming for an annual production capacity of 400,000 units. Additionally, Renault is revising its investment strategy to introduce a new line of locally produced EVs, generating over 7,500 jobs and setting up a research and development center.
Government Initiatives and Market Forces
The Moroccan government has implemented a range of incentives to promote EV adoption, including complete VAT exemptions, reduced customs duties, purchase bonuses up to MAD100,000 for corporations, and reduced insurance rates. These incentives, paired with competitive imports from China, are propelling rapid growth. In 2024, sales of BEVs increased by 143% year-on-year to 1,125 units, while PHEV sales surged 224% to 1,819 units, raising EV penetration from 0.7% in 2023 to 1.9% in 2024.
In 2024, China-based BYD led the PHEV market in Morocco with an estimated 32% share, while Dacia dominated the BEV segment with a 40.2% market share. New entrants like Zeekr, expected in 2025, are further diversifying consumer options.
Currently, local EV production remains relatively small, with an estimated 40,000-50,000 units produced annually, including models like the Fiat Topolino, Opel Rocks, and Citroën Ami mini-EV. However, expansion plans by major players like Renault, Neo Motors, and Tesla, along with a burgeoning EV supply chain, are anticipated to drive sustainable growth over the long term.
Morocco’s strategic geographical position and its phosphate reserves, vital for lithium iron phosphate batteries, continue to attract investments. Noteworthy projects include COBCO’s lithium-ion battery component plant, Tinci Materials’ electrolytes facility, and Gotion High Tech’s gigafactories.
While the commercial EV market is still developing with sales under 100 units, mainly light commercial EVs and electric buses, municipal authorities are expected to spearhead the adoption of electric buses in 2025. The logistics sector is also likely to see increased EV adoption in the medium term. Additionally, Morocco’s focus on green hydrogen and renewable energy may further bolster the development of fuel cell EVs and hydrogen-powered vehicles.
The country’s passenger EV fleet is projected to expand to 11,011 units in 2025 and 18,207 units in 2026. However, the existing charging network, with approximately 1,000 points as of 2024, will require rapid expansion to support long-term adoption. Tesla’s plans to develop its Supercharger network locally, coupled with Morocco’s renewable energy initiatives and goals to achieve 80% renewable energy by 2050, are expected to enhance EV infrastructure development.
Looking Ahead
Analysts predict that Morocco’s passenger EV sales will grow at an average annual rate of 36.2% through 2034, reaching 57,258 units. Potential factors for further growth include an increase in local production, advancements in the EV supply chain, and adoption by the tourism sector.
With rising investments and supportive government policies, Morocco is positioning itself as a regional hub for electric vehicles and battery production, indicating a significant transformation in its automotive industry.
Original Story at www.moroccoworldnews.com