Riad Mazur: 200 billion dirhams of car exports in 2025

We start this 4-part interview with the auto industry. The pandemic has hampered the growth of the auto platform as it is everywhere in the world. Today, she resumes her ambitions. The rate of integration is rising. Car exports should reach 100 billion dirhams this year (the target set for 2020 but the epidemic prevented it) and … 200 billion in 2025. In the first four months of this year, Morocco overtook Turkey and became the largest non-European car supplier in the market European Union in terms of quantity.

Riad Mazour hopes to increase production capacity to one million cars annually. He also knows that electric cars are the future and that Morocco should strive to achieve them.

M├ędias24: Are you in touch with other car manufacturers in order to set up in Morocco? A question you get asked regularly…

fake riad: The answer is yes.

However, it is important to understand the general context. The European market, which is our main export market, is in decline. Most of the capabilities directed towards Europe are not fully exploited, except for our own, of course.

The fact remains that mobility in Europe is changing. The car became a tool of transportation rather than an object of social status. Habits, the relationship between families and cars is changing profoundly. Look at the young people, they are less interested in acquisitions and more and more in rents.

Therefore, the possibilities of this market are not possibilities of increasing volume but possibilities of shifting. Hence the need to move towards electric mobility.

So, yes, we are in discussions with manufacturers looking for competitiveness, with manufacturers looking to access these markets under favorable global conditions. But most of it is now redundant.

– That means we won’t have a third builder any time soon. There is no vision.

Discussions are underway with various manufacturers to establish it in Morocco to gain competitiveness or to increase potential capacity in the future.

Installed capacity in Morocco: one million cars in 2025

– This also means that Morocco will remain in the current installed capacity.

– I think that the target of installed production capacity in Morocco of 1 million cars per year can be achieved by 2025.

– Let’s see the next steps by which the automotive industry in Morocco must develop in the medium term. How will the rate of integration evolve?

– We reached an average of 64% last June. The goal is to reach 80% in the next three to four years.

– So there will be only 20% left, which represents the material that we do not have in Morocco.

exactly.

We are working on that future rise to 80%, and most projects are set to achieve this goal. Investors are being identified, communications are underway, case studies are underway, some are started, and it is an ongoing process.

Within 3 to 4 years, the integration rate is 80%. Until then, we will start injecting Moroccan batteries.

– That’s the goal.

– And therefore it will allow us to maintain an integration rate of 80% even in the electricity sector …

– And maybe more.

The car consists of 2,300 to 2,400 parts, a third of which are in the engine.

We are not yet integrated into engine parts. We assemble the engines of course, but not all of them.

Therefore, the production of batteries in the Giga factory will maintain and improve the integration rate.

This does not prevent us from continuing to integrate engine parts, because there are very important markets for internal combustion and hybrids.

– At the end of 2022, what are the car production and export figures?

During the first four months, 86 thousand cars were exported, including 81,492 cars to Europe. By extrapolation, I suppose we had to produce over the same period, 120,000 to 130,000 composites despite the semiconductor crisis.

The European market is our main market, but Morocco exports cars to 75 countries.

Moroccan production is expected to reach 420,000 to 430,000 vehicles at the end of the year. The installed production capacity is 700,000 cars per year.

We are bringing the new models back to Morocco. Thanks to this and with the increased demand, we should reach the production stage of 600,000 cars, including 500,000 cars exported. Our factories struggle to be the most competitive among the parent companies, to attract and do projects here. Already, Morocco produces the best-selling car in Europe, the Sandero, and the second best-selling car in Europe, the 208.

We are still struggling to attract more volume-enhancing vehicles to our target markets.

In 2022, Morocco will become the first external supplier of cars, overtaking Turkey

– Let’s talk about competition in this large market of Europe…

– In 2022, Morocco became the first external supplier of new cars in the European Union within the first four months.

The country climbed to this first place in terms of the number of cars after a continuous increase in recent years (4The tenth In 2019, 3The tenth In 2020 and 2The tenth in 2021).

Turkey has now relegated to second placeThe tenth ranked after being ranked first. It is still ahead of Morocco in terms of value by only 30 million euros.

In our main market, Europe, we are ahead of countries such as Japan, China and South Korea, which have a long or long tradition in the automotive industry.

Will production capacity eventually rise to one million units?

Anyway, that’s our goal!

The goal of exporting cars worth 100 billion dirhams can be achieved this year

An increase in production will inevitably lead to an increase in exports…

– We set ourselves this psychological target of 100 billion dirhams for export. We reached 52 billion in 1Verse midyear. So it’s possible that the $100 billion target will be achievable this year.

To manufacture a car, you need imports. Can we say that along with this dynamic increase in sales, the importance of Morocco’s share of cars increases, because the rate of integration is increasing? We increase the volume of exports and at the same time the domestic share of this volume. We win both logically.

exactly.

But it is necessary to differentiate between rate of integration and value added.

The last time we made the calculations, in 2021 the value added was about 40% of the total production. This calculation is repeated every year.

64% merger rate What does that mean? This means that 64% of the car’s component parts are produced in Morocco. But in these rooms, the integration rate is not 100%.

Within 5 years, we hope that auto exports will exceed 200 billion

– So we must reach 100 billion dirhams of exports by the end of 2022. After that, when will we reach 150 billion?

– In the model we designed, we hope that, within 5 years, the volume of exports will exceed 200 billion dirhams.

– There will necessarily be a share of electricity in these future numbers, right?

-Yes, we already do electricity. Not a hybrid yet, but it’s electric yes.

In electricity, the current capacity is 40,000 units in Kenitra, with a doubling of this capacity underway in two brands, Citroen and Opel. These are vehicles designed in Morocco.

– Logically, Renault should start …

Logically, yes.

How will the production of electric cars develop in Morocco?

– Usually, of the millionth capacity that we have to reach, there must be at least a third that will be electric or hybrid.

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