Automotive: Importers uncertain | L’Economiste

The annual growth rate of new car sales in Morocco was just 0.1% between 2022 and 2023. In detail, from January to December last year, 161,504 vehicles were sold, compared with 161,410 units in 2022. Worse still, in 2023, overall new car sales in the Kingdom were down 7.9% on 2019 achievements. Of total sales in 2023, passenger cars accounted for 145,292 units, compared with 143,186 in 2022, i.e. +1.4%. Sales of light commercial vehicles (LCVs) stood at 16,212 units in 2023, compared with 18,224 a year earlier. This represents a decrease of 11%; 

Prices have risen by 30%.
 «Vehicle prices have risen by 30% over the last three years», according to the Association of Vehicle Importers in Morocco (AIVAM). 
This is due to the rising cost of raw materials, the use of new technologies and tools, and adaptation to new standards.
Sluggish demand, driven by global inflation, has made the automotive market a lackluster one in 2023. Other unfavorable economic conditions affected the January-December period, including difficult access to credit, according to the association.
Fiscal 2024 is marked by uncertainty, due to the vagaries of logistics, the return of competition, and efforts to support gross domestic product through public demand, according to AIVAM.

Diesel engines: Morocco’s favorites, with 85.8% market share
By engine type, gasoline fell by 0.8% in 2023 to 14% market share. By contrast, diesel engines climbed 0.7% to 85.8%. Sales of alternative-powered vehicles continued to gain momentum, rising by 133% to 463 units.  

Strong demand for Sport Utility Vehicles
In 2023, demand for city cars has fallen by 3.5% compared with 2022. As a result, this segment’s market share fell to 36.4%. The biggest declines were recorded by mini-city cars (-19.2%), road/executive cars (-12%) and micro-city cars (-32%).
However, SUVs recorded growth of 6.9% to 36% market share. The same was true of ludospaces/vans, with +1.3% to 15.5% market share, and compact cars (+17% to 6.7% market share).

Casablanca dominates the market, with 40.7% of registrations

PER city, Casablanca will lead the way in sales of private cars  in 2023, with 40.7% of market share, down slightly by 2% on 2022. It is followed by Rabat, which recorded a slight increase of 1.1% to 10.7% market share, and Agadir (7.9%), which consolidated its third position ahead of Marrakech (7%). Next in line are Tangiers (5.4%), Fez (4.2%), Meknes (3.1%), Kenitra (3%), Mohammedia (2.9%),  and Oujda (2.6%). 

L.EL