Morocco has emerged as the world’s most cost-efficient hub for automobile manufacturing, with a new Oliver Wyman study showing the country delivers the lowest labor cost globally at just $106 per vehicle in 2024, far outperforming traditional automotive nations such as Romania ($273), Mexico ($305), Türkiye ($414), and even China ($597).
This competitive edge, according to Oliver Wyman’s analysis of more than 250 assembly plants worldwide, is not driven by wages alone—Morocco has recorded a 29% increase in industrial output between 2019 and 2024, the fastest among 18 countries surveyed, thanks to modern factories, streamlined production systems, and highly efficient supply chains while many advanced European economies saw output decline by up to 36%.
Global automakers like Renault and Stellantis have turned Morocco into a key production base, operating major plants in Tangier and Kenitra that now contribute to over half of French car manufacturing occurring outside France, helping the kingdom achieve roughly $6.4 billion in automotive exports in 2023.
Morocco’s proximity to Europe, its free-trade agreements with the EU, stable energy prices, and government support for green energy and electric-vehicle investment have further attracted significant Chinese interest, positioning the country as a strategic gateway for African and European markets amid rising U.S. tariffs, intensifying China–Europe competition, and shifting global EV demand.
By contrast, Germany stands at the opposite end of the spectrum with the world’s highest labor cost at $3,307 per vehicle—more than 31 times Morocco’s—highlighting how Morocco’s blend of low production costs (averaging $880 below the global mean), high productivity, and growing infrastructure has made it a rising powerhouse in next-generation hybrid and electric vehicle manufacturing.
