Cars: Why Is The Market Booming?

The new car sales market is showing remarkable dynamism. Data from 2024, along with 2025 figures, strongly confirm the excellent health of this key sector, which, according to several experts, still has room for growth in terms of the volume of cars sold.

This assessment is all the more understandable given that the country’s motorization rate barely exceeds 100 vehicles per 1,000 inhabitants. This is significantly lower than in EU and North American states. For illustrative purposes, in a country like the United States, this ratio exceeds 800 vehicles per 1,000 inhabitants.

Beyond this context, it should be noted that in 2024, the new vehicle sales sector in Morocco posted growth of 9.22%, with over 176,000 units sold. Last year was marked by the very strong performance of city car and SUV sales (increasingly popular with buyers).

Short-term rentals, which represent a third of the automotive market, were the main driver behind the increase in city car registrations in 2024. In 2025, the same upward trend in new car sales continued during the first eight months. Supporting figures: year-to-date, registrations reached 146,590 units by the end of August 2025 (compared to 108,552 previously), marking a 35.04% increase compared to the same period in 2024.

It should be noted that this strong growth was driven by the passenger vehicle (PV) segment, whose sales grew by 24.79%, with 12,997 units sold in August 2025. The increase in light commercial vehicle (LCV) sales was also notable, as evidenced by growth of 13.6%, resulting in 1,854 registrations in August 2025.

According to several industry professionals, 2025 is well on its way to breaking the sales record of 2018, with 177,359 units sold. Several economic factors are contributing to the sharp rise in sales in 2025.

A Favorable Economic Climate

The new car market is sensitive to the evolution of the Kingdom’s main macroeconomic variables. Growth, inflation, the levels of lending rates (costs of credit and financing), anchored to the evolution of the central bank’s (BAM) key policy rate, and fuel prices are all parameters that impact the dynamism of this promising market.

For the current year, however, an analysis of forecasts and outcomes shows that several crucial indicators are favorable. In the second quarter of 2025 alone, Morocco recorded 4.6% year-on-year GDP growth, driven by, among other things, domestic demand, services, and the construction and public works sector (major infrastructure projects).

For context, the growth rate recorded in 2024 was 3.8% of GDP, which is a clear drop compared to the HCP’s (High Commission for Planning) 2025 forecast, which projected growth at 4.4% of GDP.

Another indicator supporting the progression of new car sales in 2025 is the low inflation rate, which helps limit price increases. For illustration, between July and August 2025, the inflation rate, which is on a downward trajectory, fell from 0.5% to 0.3%.

For the entirety of 2025, the central bank (BAM) projects an average annual inflation rate of 1% (well below the 2% target threshold). Similarly, access to financing (credit) for purchasing new vehicles appears to be easier in 2025, as evidenced by BAM’s cut to its key policy rate (-25 basis points, to 2.25% in March 2025) and its impact on certain lending rates, which have declined.

For example, between the second quarter of 2024 and the second quarter of 2025, the lending rate for consumer credit fell from 7.03% to 6.88%. The lending rate for equipment loans also decreased over the same period, moving from 5.02% to 4.83%.

Another factor conducive to the explosion of the new car market this year relates to reasonable fuel prices. The price per liter of diesel and gasoline at the pump is around 10 DH (up to 11 DH) and 12 DH, respectively.

In short, the more favorable economic climate in 2025 has had a very positive impact on the new car market, which is characterized by a greatly expanded offering of vehicles with thermal, hybrid, or electric engines.

A Plethora of Boons for the Sector

The exceptional performance of the tourism sector, the main driver of short-term rentals (an activity that represents nearly a third of the new car market), has positively impacted passenger vehicle sales.

By the end of August 2025, Morocco, which will host the Africa Cup of Nations in December (another major event attracting foreign visitors), had welcomed nearly 13.5 million visitors, a 15% increase compared to the same period last year.

Aiming to anticipate the increase in demand driven by the sharp rise in tourist numbers, car rental companies have worked to expand and renew their vehicle fleets, benefiting the passenger vehicle market segment.

Furthermore, all signs indicate that by the end of the year (the high tourist season), which will coincide with AFCON 2025, passenger vehicle sales (representing nearly 90% of the new car market) will gain even more momentum.

Similarly, the current year is marked by a significant proliferation of investment projects in Morocco. The country is fully committed to the realization of major infrastructure projects for the organization of AFCON 2025 and the 2030 World Cup. This situation has had a beneficial impact on the light commercial vehicle market.

Moreover, Cédric Veau, CEO of Bamotors Maroc, the exclusive importer of KIA in the Kingdom, essentially noted in the pages of “La Vie éco” the notable performance of the light commercial vehicle market, with a 57% growth in sales in April 2025.

The stars are perfectly aligned for 2025 to enter the annals of automotive market history, much like the year 2018, with its record of over 177,359 units sold.

The Top Three

It emerges from the August 2025 publication of the Association of Vehicle Importers in Morocco (AIVAM) that the three brands most favored by buyers in Morocco, particularly in the passenger vehicle segment, are Dacia, Renault, and Hyundai.

With 2,645 units sold in August 2025 (an 8.89% growth compared to August 2024), Dacia occupies the top sales position. The diamond brand (Renault) and Hyundai come in second and third place respectively, with 2,216 units sold and 930 vehicles sold on the domestic market.