Moroccan Automotive Industy :opportunities and perspectives

Salma ADNAN, Communication and Marketing ResponsibleParis, 16/10/2013

Moroccan Association for Automotive Industry and Trade

L’industrie automobile au Maroc, une évolution progressive

1960 1970 1982 1995 1996 2003 2005 2007 2008 2012

Creation ofSOMACA

Convention sur lesVUL avec Renault

&PSA

Suppliers’ network development

Valuation Law

Adoption of integration/Compensation law

Agreement on LowCost Vehicles with

Fiat

Privatization

of Somaca

Start ofLogan

production

Signing of an agreementbetween Government and

Renault Tangier-Med project

Start of the1st line RTM

First exports

of Logan

Renault Tangier-Med project in Melloussa360 0000 vehicles by 2014

(170 000 in 2012)

•World class infrastructures and services• Skilled human ressources and training support• an offer with competitive incentives

An overview on current Situation:

. Major project : Renault Investment in Tangier

Renault is developing amega siteCenter in theNorth Area of Morocco

‘’The most competitivesite of the Group’’

Renault is developing amega siteCenter in theNorth Area of Morocco

‘’The most competitivesite of the Group’’

400,000 cars per year to be producedin 2013 (200.000 in 2010)

Capacity: 60 cars per hourProductionProduction

EmploymentEmployment

InvestmentInvestment Total Investment: 1 Billion €

6.000 Direct Employment 30.000 + Indirect Employment

SiteSite 280 Ha to create major Renault site

SituationSituation ~44km to Europe ~30km to Tangier Med port Locking to Highway

LogisticsLogistics Car carrier terminal in Tangier Med Port Easy access to a huge containers traffic

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Tangier ITangier II

SOMACA

Car Manufacturing in morocco

South zone

North zone

Production capacity :TANGER : 400.000 vehicles/yearSOMACA : 60.000 vehicles/year

Casablanca

Tangier

Kenitra

South Zone

Suppliers in Morocco

5

Tetouan

North Zone

6

CarsManufacturers

Tier 1 Suppliers

Subcontracters

Providers

Automotive Industry structure in Morocco

ConstructeursSouth Europe

Figures of the automotive sector in Morocco

2009 2010 2011 2012

1195,8

1827,6

2336,12702,4

Exports (Millions Euros)

Year 2009/2010 2010/2011 2011/2012

evolution + 52,8% +27,8% +15,7%

JOR

DA

N

TUNISIA

LIBYA EGYPT

EUROPEA market of 4,2 millionsvehicles

MOROCCO

AFRICA+

MIDDLE EAST

Proximity to a potential market

17% Annual growth200 000 vehicles in 2015

Fast-growing region

MOROCCO

status with the European Union• The Europeen Market, 14 km far• Advanced status with the European Union

Integrated Moroccan offer

To support this strategy and achieve tangible results, ThePNEI ( Industrial Emergence National Plan) suggests anintegrated offer aiming at the development of theinvestments in the automotive sector;

it is based on three components :

• Infrastructures and services world class

• Qualified Human Ressources and training support

• Offer with competitive incentives

P2I

World-classInfrastructures and Services

Housing and life scheme

Logistic linking to the City

Attractive Trainingincentive scheme

Single Point of Contact inthe Zone

Competitive Incentivepackage

Integrated logisticalplatform

P2I : an integrated vision of territorial developmentand the national economy

Governmentinterest

(Territorialdevelopment)

Professionnalsinterest (Pool of

employment,logistics, etc.)

Proactive planfor the sector

R &D

Worldclass infrastructures &Services :A diversified range of real estate with best international standards within

Integrated Industrial Plateforms (P2I)

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Two Integrated Industrial Platforms dedicated to the automotive sector : Kénitra & Tangier

Atlantic Free Zone (AFZ)

Tangier Automotive City (TAC)

Worldclass ifrastructures & Services :

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Action’s axes

Elaboration of a Training incentive scheme for the automotive sector.

Breakdown of staff on key training existing public and private systems, including Higher Education, Training and

Learning System, Technical Education, private institutions for skills training funded through ANAPEC

Follow up and up dating of training program

Objectives

Training of 70.000 profiles (of whom 6 000 at the charge of Renault) in the automotive sector toaccompagny its developpement:

● 3 500 engineers and managers

● 4 800 intermediary trainers

● 7 800 technicians

● 48 000 operators

A Training incentive scheme, adapted to the needs of the automotive sector :

Exemptions of payroll taxes for 24 month for a salary of 550 $ per month;

Direct support to training during the first Three years

Pool of competitive ressources and training support :

Attractive incentives plan for the sector

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Average Tax Rate: 7% over 25 YearsAverage Tax Rate: 7% over 25 Years

incentive plan for the sector

Significant reduction of the corporate tax: complete exemption for the first 5 years, and 8.75% forthe following 20 years in the free zone

No VAT Applied either in Importation & Exportation

No Taxes on Dividends (vs. 10% for locals)

Financial support for the establishment in key areas:

– 30% of Professional Building costs: with a ceiling of 182€/m²

– 10% equipment costs for machinery investment exceeding 220.000 €

– Ceiling: 1.8M Euros (or 10% of total investment)

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2

3

4

Suppliers UpgradingExport

promotion

Investmentattraction

AMICA’s PresentationAMICA assists the automotive suppliers by representing them before

government economic and administrative institutions acting in :

Trainingdevelopment

Automotive Training Institutes (IFMIA) in Morocco

Casablanca

Tangier

Fès

Kenitra

15

A global investment of 314millions Euros

Automotive Training Institutes (IFMIA) in Morocco

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IFMIA of Casablanca: 9 520 sqm

Workshops 3 820 sqm

Classes 1 960 sqm

Administration 2 180 sqm

Students residential 1 560 sqm

AMICA’s Events

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Contact details :

Salma ADNANCommunication & Marketing Responsibles.adnan@amica.org.ma

(Association Marocaine pour l’Industrie et le Commerce de l’Automobile)625, Bd. Mohamed V-20310 Casablanca-MarocTél : +212 (0) 522 24 28 82

+212 (0) 522 40 38 33Fax :+212 (0) 522 24 85 81

Thank you