Stellantis to Double Production Capacity at Morocco Plant

According to foreign media reports, Samir Cherfan, Chief Operating Officer of Stellantis for the Middle East and Africa, announced that Stellantis plans to more than double the annual production capacity of its plant in Kenitra, Morocco, to 535,000 units in the coming months. During the inauguration ceremony for the expansion project, Cherfan stated that the factory aims to increase its electric vehicle output from the current 20,000 units to 70,000 units, involving models such as the Citroën Ami, Opel Rocks-e, and Fiat Topolino. Moroccan Prime Minister Aziz Akhannouch highlighted that this €1.2 billion (approximately $1.4 billion) expansion project is expected to raise the local procurement rate in Morocco to 75% by 2030, a significant increase from the current 69%. Since becoming operational in 2019, the Kenitra plant achieved an annual production capacity of 200,000 units in 2020, primarily producing Stellantis models like the Peugeot 208 for export. After the expansion, the plant will also add production lines for hybrid engines and three-wheelers. Moroccan Minister of Industry and Trade Ryad Mezzour stated at the expansion ceremony that Stellantis's plans will help Morocco's automotive annual production capacity surpass one million units. As the largest export industry in Morocco, the automotive sector currently has an annual production capacity of 700,000 units and aims to increase it to one million units by the end of this year. Currently, Morocco exports cars to 70 countries and plans to expand to 100 markets in the coming years. Official data shows that in 2024, the automotive industry in Morocco is expected to see an export increase of 6.3% year-on-year, reaching a record 157 billion Moroccan dirhams (approximately $17.3 billion). In recent years, Morocco has also actively promoted the transition of its automotive industry towards electrification and attracted several Chinese electric vehicle battery manufacturers to invest and set up factories. In addition to Stellantis, Morocco is home to two Renault plants and several component suppliers. Mezzour previously revealed that Morocco plans to increase electric vehicle production by 53% by the end of this year, reaching 107,000 units. This production increase plan is a key measure in Morocco's strategy to diversify its export markets and reduce reliance on the European market.