Morocco emerges as automotive electronics hub with major Chinese investment

Morocco's automotive sector has received another major endorsement with Heilongjiang Tianyouwei Electronics Co's decision to invest €65 million (R1.3 billion) to establish a comprehensive manufacturing operation in the kingdom.

25 China Mar1

The Chinese automotive electronics specialist's commitment underscores the North African nation's transformation into a strategic manufacturing destination for global automotive suppliers.

The newly established Tianyouwei Electronics Morocco Co will concentrate on manufacturing cutting-edge automotive technologies, including advanced dashboard systems, intelligent cockpit solutions and integrated vehicle electronics. The facility's primary mission involves serving European automotive markets while simultaneously building capacity for African regional expansion.

This strategic positioning allows Tianyouwei to strengthen its relationship with existing clients, including major automotive brands such as Hyundai, BYD, Changan, Chery, FAW Bestune and Geely Group. By establishing local production capabilities, the company can reduce logistics costs, improve delivery timelines and respond more effectively to market demands across multiple continents.

The August 2025 investment announcement reflects a larger pattern of Chinese automotive companies recognising Morocco's potential. Recent months have witnessed significant commitments from various Chinese manufacturers, with third-quarter automotive investments reaching $151 million across multiple projects.

Guizhou Tyre has announced its intentions to build a second international production facility in Morocco, following its Vietnamese operations. Similarly, braking systems manufacturer, Bethel, has revealed plans for Moroccan operations, diversifying the country's automotive component manufacturing landscape beyond electronics and into critical safety systems.

Several factors contribute to Morocco's attractiveness as an automotive manufacturing destination. The kingdom's geographical position provides seamless access to European markets while maintaining strong connections to African economies. This dual-market accessibility proves particularly valuable for companies seeking to optimise their global supply chains.

Political stability represents another crucial advantage, offering international investors’ confidence in long-term operational security. Morocco's extensive network of free trade agreements facilitates efficient export operations, particularly beneficial for companies targeting European customers.

The Moroccan government has implemented investor-friendly policies, including tax incentives during initial operational years. These measures create favourable conditions for international manufacturers considering North African expansion. As Chinese Ambassador Li Changlin observed, Morocco offers unique advantages compared to other potential investment destinations in the automotive sector.

Morocco has successfully attracted approximately $10 billion in electric vehicle and automotive-related investments, positioning itself strategically within the global automotive industry's electrification transition. The country builds upon existing automotive expertise developed through partnerships with French manufacturers, including Renault-Nissan Alliance and PSA Group.

Tianyouwei's investment represents more than facility establishment—it demonstrates Morocco's evolution into an advanced automotive electronics hub. As the industry advances toward connected and autonomous vehicle technologies, Morocco's expanding component manufacturer ecosystem positions the kingdom to capture significant value in emerging automotive markets.

The facility's anticipated production launch will serve a dual purpose: meeting European customer demands while developing local automotive expertise and supply chain capabilities, reinforcing Morocco's leadership position in North African automotive manufacturing.

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