Morocco’s agreements and partnerships with a variety of global economic players in the electric vehicle and component industry, enhancing the country’s status as a leader in green transportation and a hub for manufacturing eco-friendly vehicles on the African continent, appear to be attracting a slew of countries, including Israel, which is looking forward to importing these types of vehicles from Morocco.
According to the Israeli economic newspaper, Globes, Morocco’s transformation into an advanced base for producing export-oriented vehicles for Europe, and its success in attracting substantial foreign investments in the electric vehicle and battery production sectors, coupled with a national production increase surpassing 472,000 vehicles last year, have whetted Israel’s appetite. Israel is eager to strike a free trade agreement with the kingdom to abolish the customs duties on importing electric cars and batteries, currently estimated at 7%.
The same source reported that several stakeholders in Israel’s car marketing sector recently held meetings with Moroccan government officials and businesspeople to discuss this issue. Last month, Itzik Weitz, CEO of Carsomotors, and Avi Kenneth, Vice-President of the Israeli Chamber of Commerce, met with the Minister of Industry and Trade, Riad Mezouar, and senior officials from Renault Morocco. Discussions revolved around encouraging the export of Moroccan-made cars to the Hebrew state.
The Israeli newspaper reported that “the export of locally made cars to Israel remains limited and is mostly focused on commercial vehicles,” highlighting that “the Moroccan government started implementing a plan last year aiming to turn the country into a base for producing electric cars and exporting their batteries.” The government is offering a range of incentives to investors in this field, which are already beginning to bear fruit.
The Renault group announced in March of this year its intention to “establish a new line in Morocco to produce a new recreational vehicle, which will be the first hybrid vehicle manufactured in the kingdom.” It is set to reach Israel next year. In addition to this, the Stelantis group has announced significant investments to increase its production capacity in Morocco to about 400,000 cars annually.
The group plans to manufacture small electric cars, namely the Fiat Topolino, which are also slated for export to Israel.
It’s worth noting that Morocco has recently been creating an attractive climate for investors in the clean industries sector, as part of its commitment to transitioning to a green economy and adopting clean technologies in transportation. Several companies have expressed their desire to invest in the kingdom, such as the Chinese-European leader in the lithium battery sector, Gotion High-Tech, which announced plans to build a factory for electric vehicle batteries and energy storage systems in the Bouknadel area, with an investment value nearing 65 billion dirhams.
The former president of the Israeli Liaison Office in Rabat, Shay Cohen, stated during a press conference last month on the sidelines of the celebration of “the establishment of Israel,” that his country “wishes to sign a free trade agreement with Morocco.” He expects the free trade agreement with the Tangier Med port, Africa’s largest port, to achieve more than one billion dollars within the next three years.
