Ryad Mezzour : 200 milliards de DH d’exportations automobile en 2025 – Médias24

Ryad Mezzour : 200 milliards de DH d'exportations automobile en 2025 - Médias24

We start this 4-part interview with the automotive industry. The growth of the automotive platform has been hampered as it is around the world by the pandemic. Today, he resumes his ambitions. The rate of integration is increasing; Car exports should reach 100 billion dirhams this year (target set for 2020 but the pandemic prevented it) and… 200 billion in 2025. In the first 4 months of this year, Morocco overtook Turkey and has become in the largest non-European car supplier in the EU market in terms of quantity.

Ryad Mezzour hopes to increase production capacity to one million cars per year. He also knows that electric vehicles are the future and that Morocco must bet on it.

Médias24: Are you in contact with other car manufacturers to settle in Morocco? A question you get asked regularly…

Riad Mezzour: 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 at Europe are underutilized, except ours, of course.

The fact is that mobility in Europe is changing. The automobile has become a means of transportation rather than an object of social status. Habits, the relationship of homes with the car are changing profoundly. Look at the young people, they are less and less interested in acquisitions and more and more interested in rentals.

Therefore, the perspectives of this market are not perspectives of increase in volume but of transformation. Hence the need to evolve towards electric mobility.

So, yes, we are in talks with manufacturers seeking competitiveness, with manufacturers seeking to access these markets under advantageous global conditions. But most now have excess capacity.

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

-They are in talks with several manufacturers to settle in Morocco to gain competitiveness or for possible future capacity increases.

Installed capacity in Morocco: 1 million cars in 2025

– This also means that Morocco will remain at the currently installed capacity.

-I believe that the objective of an installed production capacity in Morocco of 1 million vehicles per year is achievable by 2025.

-Let’s see the next steps according to which the automotive industry in Morocco must evolve in the medium term. How will the integration rate evolve?

-We reached a rate of 64% last June. The goal is to reach 80% in the next 3 to 4 years.

-There will be only 20% left, which represents the material that we do not have in Morocco.

-Exact.

We are working on this future increase to 80%, most of the projects are identified to achieve this goal. Investors are being identified, contacts are being made, case studies are being done, some have started, it’s an ongoing process.

-Then, in 3 to 4 years, 80% integration rate. Until then, we’ll start injecting Moroccan batteries.

-It’s the goal.

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

-And maybe more.

A car is made up of 2,300 to 2,400 parts, a third of which are in the engine.

We are not yet very integrated in the engine parts. We assemble motors, of course, but not all of them.

Therefore, the production of batteries in a gigafactory will preserve 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 for hybrids.

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

-During the first 4 months, 86,000 cars were exported, of which 81,492 to Europe. By extrapolation, I guess we had to produce in the same period, 120,000 to 130,000 vehicles despite the semiconductor crisis.

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

Moroccan production at the end of the year should be around 420,000-430,000 vehicles. The installed production capacity is 700,000 cars per year.

We are bringing new models to Morocco. Thanks to this and whenever demand increases, we should reach the milestone of 600,000 cars produced, of which 500,000 exported. Our factories strive to be the most competitive at the level of their parent companies, to attract projects and do them here. Morocco already produces the best-selling vehicle in Europe, the Sandero, and the second best-selling vehicle in Europe, the 208.

And we are still struggling to attract more volume up vehicles to our target markets.

In 2022, Morocco has become the first external supplier of automobiles, surpassing Turkey

-Let’s talk about competition in this great European market…

-In 2022, Morocco became the main external supplier of new cars to the EU during the first 4 months.

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

Turkey is now relegated to 2the rank, after occupying the first place. It is also still ahead of Morocco in value, with a difference of just €30 million.

In our main market, Europe, we are ahead of countries like Japan, China and South Korea, which have a more or less long automotive tradition.

– Will the production capacity eventually be increased to 1 million units?

– In any case, this is our goal!

The target of MAD 100 billion in car exports is achievable this year

– An increase in production would inevitably lead to an increase in exports…

-We had set ourselves this psychological goal of 100 billion DH for export. We hit 52 billion on the 1Ahem semester. So the 100 billion target can probably be achieved this year.

-To make a car you need imports. Can we say that next to this dynamic increase in sales, the Moroccan share of cars is becoming more and more important, since the rate of integration is increasing? We increased the volume exported and at the same time, the local participation of this volume. We win on both counts logically.

-Exact.

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

The last time we did the calculations, in 2021, the added value was around 40% of everything produced. This calculation is repeated every year.

Integration rate of 64%, what does that mean? This means that 64% of the parts that make up the vehicle are produced in Morocco. But in these rooms, the integration rate is not 100%.

Within 5 years, we expect to exceed 200 billion in car exports

– So we should reach 100 billion dirhams of export by the end of 2022. And then when will we reach 150 billion?

-In the model we have designed, we hope in 5 years to exceed 200 billion dirhams in exports.

– There will necessarily be a part of electricity in these future figures, right?

-Yes, we already do electric. Not yet hybrid, but electric yes.

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

– Logically, Renault should start…

– Logically, yes.

– In your wishes, how will the production of electric cars evolve in Morocco?

-Normally, of the million capacity that we should reach, at least a third should be electric or hybrid.

TO FOLLOW

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