In the process of finding low-cost production sites, some European automakers have focused their attention on North Africa. In this vast area, next to some countries with stable political situation, there are some countries that continue to be turbulent.
Renault has long been a leader in automobile production in North Africa. In Morocco, its annual output of automobiles can reach 400,000, and it is called "Morocco's largest automobile manufacturer". In recent years, PSA and Volkswagen Group have also begun to produce in this area.
Last year, Daimler signed a memorandum of understanding to restart the production of Mercedes-Benz cars in Egypt after a four-year suspension.
In terms of sales, analysts predict that in the next few years, the performance of the region will be significantly better than that of the global market, although the sales of major North African countries such as Algeria, Egypt, Morocco and Tunisia are still very low.
PSA pays special attention to the important links of automobile production in North Africa. In Tunisia, a small factory of the company is responsible for assembling pickup trucks for the African market. In Algeria, it also plans to build a factory with a capacity of 50,000 vehicles. The French automobile manufacturer's expansion in Morocco is the fastest, mainly around its new factory in Kenitra with a value of $665,438+0.7 million.
From September 2065438 to September 2009, PSA began to produce Peugeot 208 in Gai nitra, which is the company's best-selling model, mainly exported to the European market. In February of the same year, the company signed an agreement to carry out some R&D work in Morocco. Secco industries (segura? Technologies also opened a car "Center of Excellence" in Agadir.
PSA？ CEO Carlos Tavares (Carlos? Tavares) announced in February this year that it planned to double the annual production capacity of Gai nitra plant to 200,000 vehicles by the middle of this year, three years ahead of schedule.
By the end of 2022, the total production capacity of PSA and Renault in Morocco will reach about 700,000 vehicles. In this case, Morocco's production capacity will exceed Poland's.
Like factories around the world, factories in Morocco were closed in March to prevent the spread of coronavirus. There is no news about when the restriction will be lifted.
Moroccan model
Morocco has always been a model of automobile industry construction in North Africa. In order to support investment, it has formulated generous incentives and policies, established a free trade zone and built a new ro-ro infrastructure in the port city of Tangier. The country's automobile industry is based on the export model, and more than 90% of the cars produced are sold to Europe, other parts of Africa, the Middle East and South America.
"These factors combine to make this a very attractive manufacturing base." Fitch Solutions (Fitch? Solutions) Joshua Cobb, an automotive analyst who studies the African market? Cobb) said,? "In recent years, this country has been able to establish a very good local supply industry. This is also one of the main reasons why we think more companies will be interested in expanding production here. "
Cobb said that as the automobile industry and even the global economy are hit by the outbreak of novel coronavirus, the country may become more attractive because of its proximity to Europe. "I wouldn't be surprised if there were more investments in Morocco." He said.
When talking about PSA's expansion plan in Gai nitra, Tang Weishi said, "This will make us more competitive in the field of small cars, which we are currently selling all over the world."
Part of the reason for this competitiveness is Morocco's low labor costs. Analysts pointed out that the labor cost in Morocco is about 25% of that in Spain, the nearest European country. According to Eurostat, the average wage of Spanish auto workers last year was 26 euros per hour. Wages in Morocco are also much lower than those in Eastern Europe, where hourly wages range from 8 euros to 65,438+08 euros, which is why many automobile manufacturers have shifted their production from Europe to Morocco in the past few decades.
Renault is also taking measures to strengthen production in Morocco. In 20 19, it purchased the remaining shares of PSA and became the sole owner of Casablanca factory, which produces about 80,000 Logan and Sandro cars every year (these cars are sold under Renault or Dacia brands according to market conditions). Moroccan media reported that Renault will increase its annual output to 500,000 vehicles. Renault declined to comment on the report.
PSA and Renault have also attracted dozens of large and small suppliers to Morocco. About 50% of the materials used in their factories come from local suppliers, and it is estimated that this proportion will reach 65% by 2022. Tier 1 suppliers with mature factories include Valeo, Faurecia, Lear, Ma Ruili and Denso.
"PSA is developing in the direction of 100% Moroccan local supply," Cobb said. "This shows the strength of local parts manufacturing."
PSA said that in 20 19, the group spent about 850 million euros on procurement in Morocco, and purchased materials from 66 companies.
The sales market in Morocco has always been dominated by Renault. The total market of passenger cars and light trucks here is about 6.5438+0.43 million, and the market share of low-priced Dacia brand in 2065.438+09 is 365.438+0%.
After three years' growth, Morocco's automobile market dropped by 9% in 20 19, but Fitch predicted that, considering the economic growth and the expansionary monetary policy adopted by the government, until 2022, Morocco's sales will increase by 5.4% every year.
Morocco now hopes to upgrade the value chain and supply local engineering talents. Cobb said that this may still have a way to go, because the higher education system here has not yet reached that level. A small regret is that this country has not attracted a third large automobile manufacturer, but this is the set goal of the government.
Egypt tries to emulate Morocco, but its tourism is centered on electric cars. At present, it has announced that it has reached major agreements with many China enterprises, including the truck manufacturer Foton Motor, among which Foton plans to produce 2,000 electric buses every year. Volvo's parent company, Zhejiang Geely Holding, has also set up an electric vehicle production plant in Egypt, as has Dongfeng Motor, which cooperates with Renault to produce electric vehicles in China.
The ambition of electric cars
In Egypt, a company called Revolta is preparing to produce and manufacture charging stations and solar power plants, and finally launch electric vehicles. The company has announced many similar agreements.
"Egypt hopes to become the capital of Industry 4.0 on the basis of electric vehicle production." Cobb said that this refers to data-driven manufacturing. Many of these electric cars and buses are designed for the future new capital of Egypt, which will be located between the Suez Canal and the Nile.
However, before the arrival of these new technologies, Daimler had already started production. Last June, it signed a memorandum of understanding with the Egyptian government to establish a factory with local partners and restart production. The factory will assemble SUVs, but Daimler is reluctant to disclose which models are specific. The first models will be rolled off the assembly line in the second half of this year.
According to the data of AMIC, the total car sales in Egypt is about127,000, which is 7% lower than that in 20 18. However, Fitch predicts that sales will increase by 65,438+05% this year and 6.6% on average by 2022. For European automakers, the Egyptian market may be the key to the region, because the government cancelled all export tariffs from the European Union last year.
This article comes from car home, the author of the car manufacturer, and does not represent car home's position.