Morocco emerges as world’s most cost-efficient car-making powerhouse

Morocco has claimed the top spot as the most cost-effective country for automobile manufacturing,with its labor costs per vehicle,in addition to its modern production facilities,streamlined designs,and reliable supply chains,according to a recent global report by consulting firm Oliver Wyman.

The study,which examined over 250 vehicle assembly plants worldwide,found that Morocco outpaces traditional and emerging competitors alike — including Romania ($273),Mexico ($305),Turkey ($414),and even China ($597). With its strong labor unions and strict regulations on working hours,Germany,by contrast,faces the steepest labor cost burden,averaging $3,307 per vehicle — over 31 times higher than Morocco.

But Morocco’s appeal isn’t limited to low wages. The report highlights the country’s modern production facilities,which contribute to efficiency and reduced complexity. These advantages have helped Morocco increase car production by 29% from 2019 to 2024,even as major manufacturing nations like Germany,France,and Italy recorded sharp declines.

French automakers such as Renault and Stellantis have rapidly expanded operations in Morocco,drawn by its strategic location and stable industrial environment. With production hubs in Tangier and Kenitra,the North African kingdom has become a vital export base for both European and African markets. As the global auto industry grapples with rising energy costs,EV demand fluctuations,and trade friction,Morocco is positioning itself as a key player in the next generation of automotive manufacturing — especially for hybrid and electric vehicles. The report concludes that Morocco’s competitive edge lies in a powerful blend of low costs,high productivity,and growing infrastructure investment.