Growth Predicted for Moroccan Commercial Vehicle Market
The commercial vehicle market in Morocco is expected to grow at a compounded annualized growth rate (CAGR) of around 5% in the next five years, a new report predicts.
Despite Morocco’s lack of domestic production, nearly all major auto-makers have set up their vehicle assembly plants there, many of which are opting for CKD imports to reap tax exemptions, according to TechSci Research report, "Morocco Commercial Vehicles Market Forecast & Opportunities, 2020."
The factors driving the market include rising demand for heavy-duty trucks from mining and construction sectors, an increase of tourism that has posed the need for more inter-city buses, and gradual improvements with the development of roads and bridges.
The Moroccan government has offered financial incentives, such as a 5-year corporate tax exemption for automotive companies establishing themselves in the country, as well as financial aid. Major players selling vehicles into the market include Mitsubishi, Volvo, Hyundai and Isuzu Motors.