Rabat – Morocco is poised for significant growth in its electric vehicle (EV) market over 2025 and 2026, driven by an influx of new models and a rapid expansion of local EV production, according to BMI, a FitchSolutions Company
Following strong market growth in 2024, industry analysts maintain an optimistic outlook for the country’s EV sector, as legacy automakers and local brands accelerate production to meet rising demand.
EV sales set to surge
Passenger EV sales in Morocco are expected to grow by 80.4% in 2025, reaching 5,311 units and pushing the passenger EV penetration rate to 2.6%, up from 1.9% in 2024.
Growth is forecast to continue in 2026, with sales rising 36.3% to 7,237 units and a penetration rate of 3.4%. Battery electric vehicles (BEVs) are projected to account for 4,248 units, while plug-in hybrid vehicles (PHEVs) are expected to reach 2,889 units.
The introduction of more affordable EVs from Mainland China, combined with the expansion of local production, is expected to support this growth.
Notably, Moroccan automaker Neo Motors unveiled the Dial-E in October 2025, the country’s first fully designed, developed, and assembled EV, with full production set to begin in January 2026.
Global players are also investing in Morocco. Tesla established a local subsidiary in June 2025 to handle import, distribution, and maintenance of its EVs, and plans to invest $2.8 million to set up local assembly in Kenitra, targeting an annual production capacity of 400,000 units.
Meanwhile, Renault has updated its investment plan to launch a new line of locally produced EVs, creating over 7,500 jobs and introducing an R&D center.
Government incentives, market dynamics
Morocco’s government has introduced several incentives to stimulate EV adoption, including total VAT exemption, reduced customs duties, EV purchase bonuses up to MAD100,000 for corporations, and lower insurance rates.
These measures, combined with competitive Chinese EV imports, are fueling rapid growth. In 2024, BEV sales surged 143% year-on-year to 1,125 units, while PHEV sales jumped 224% to 1,819 units, lifting passenger EV penetration from 0.7% in 2023 to 1.9% in 2024.
China-based BYD led the PHEV market in Morocco in 2024, capturing an estimated 32% share, while Dacia dominated the BEV segment with 40.2% of the market. Other entrants, including Zeekr in 2025, are further expanding consumer choice.
Local EV production remains nascent, with an estimated 40,000-50,000 units produced annually, including the Fiat Topolino, Opel Rocks, and Citroën Ami mini-EV. However, expansion plans by Renault, Neo Motors, and Tesla, along with a growing EV supply chain, are expected to drive long-term growth.
Morocco’s strategic location and phosphate reserves, essential for lithium iron phosphate batteries, are attracting continued investment. Notable projects include COBCO’s lithium-ion battery component plant, Tinci Materials’ electrolytes facility, and Gotion High Tech’s gigafactories.
The commercial EV market is still in its infancy, with sales under 100 units, primarily light commercial EVs and electric buses.
Municipal authorities are expected to lead the adoption of electric buses in 2025, while logistics fleets are also anticipated to adopt EVs over the medium term. Morocco’s green hydrogen and renewable energy initiatives may further support fuel cell EVs and hydrogen-powered vehicles.
Morocco’s passenger EV fleet is projected to reach 11,011 units in 2025 and 18,207 units in 2026. However, the current charging network, with around 1,000 points as of 2024, will need rapid expansion to sustain long-term adoption.
Tesla plans to develop its Supercharger network locally, while renewable energy growth and government targets to reach 80% renewable power by 2050 are expected to further support EV infrastructure development.
What’s next?
Analysts forecast Morocco’s passenger EV sales to expand at an average annual rate of 36.2% through 2034, reaching 57,258 units.
Upside risks include further growth in local production, EV supply chain development, and adoption by the tourism sector.
With increasing investments and government incentives, Morocco is positioning itself as a regional hub for electric vehicles and battery production, signaling a transformative shift in its automotive landscape.
