(11 May 2016) Auto Expo 2016, the biggest event on Morocco’s auto calendar, is getting underway this week in the country’s industrial hub, Casablanca.
Despite a growing population, domestic sales in Morocco are low. The country hopes to build its manufacturing capacity in the coming years and become a major player on the international export market.
STORY-LINE:
The covers are off and now crowds are streaming into ‘Auto Expo 2016’, the biggest event on Morocco’s motoring calendar.
Over 300 cars from more than 30 automakers are displayed across five huge tents.
Manufacturers are unveiling the latest models to hit the Moroccan market and confidence is high.
Sales are up almost 20 percent in the first quarter of 2016 in comparison to last year, according to official industry data.
The ready availability of interest-free credit deals over the past two years has stimulated demand. Salesmen hope special deals available at the show will attract more buyers.
Dacia-Renault, which has two factories in Morocco, is expected to take the lion’s share of this new business.
Low labour costs and support from the Moroccan state has helped Dacia assert its dominance.
Its cars are cheap to buy and have space inside to accommodate growing families.
"Over the past few years, almost one-in-three cars is a Dacia," says Pierre Truss, Renault Group Morocco marketing director.
"There is an affection between the brand and the Moroccan people, of course in part because we make the cars here, but also because we make the cars that people want."
Most cars bought here will be at the lower end of the price range, but every brand here is putting an emphasis on luxury.
High-end sports cars, SUVs and competition winners dominate the sprawling exhibition space. Peugeot is proudly displaying its 2016 Dakar Rally winner.
"If you visit the motor show, you will probably see and note that the standard is very, very premium," says Loic Morin, chief executive of SOPRIAM, exclusive importers of Peugeot-Citroen-DS brands to Morocco.
"We are rather in Europe instead of Africa when you are in the motor show of Casablanca. Look at the quality, it’s very, very high standing level."
One company, SMEIA Motors, is Morocco’s sole importer for several big automakers of new luxury cars, including Jaguar, Land Rover, Mini and BMW.
"Everyone dreams of owning a luxury car, but starts off with the small cars," says Rachid Fadouach, SMEIA Motors deputy director general.
"So (BMW) Series 1 cars are entry-level in the premium segment, once you’ve got there, you hope little-by-little to go further, a Series 1 today, a (BMW) 3-Series tomorrow and so on" he adds.
German brand Mercedes-Benz leads the field at the top end of the market, around a quarter of luxury cars sold carry this recognisable Mercedes emblem.
But why do so many buyers choose Mercedes-Benz?
"It’s to be part of community," explains Achraf Hajjaji, commercial director of Auto Nejma Maroc, representing Mercedes-Benz in Morocco.
"So when we drive Mercedes, we are part of a tribe that means we are different and we are from the top class of the society."
Along with cheap credit, a Moroccan government initiative offering taxi drivers cash incentives to replace the country’s ageing fleet of Mercedes 240 taxis has also fuelled sales.
Half of new car sales in the first quarter of 2016 were for taxis according to figures seen by Loic Morin of SOPRIAM, the head of Peugeot and Citroen sales body in Morocco.
Dacia is dominating sales also, but Mercedes is not so ready to give up its place as the taxi driver’s car of choice.
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