Morocco Autos Report Q2 2015

Morocco Autos Report Q2 2015

Moroccan new vehicle sales ended 2014 up by just over 1%, at 122,081 units, according to figures fromMorocco's Vehicle Importers Association (AIVAM), as cited by Les Ecos in January 2015. The local salesmarket had been looking set for a slight decline over 2014; however, December's 21.7% annual gain formonthly sales turned the net full-year result into a positive one.

Breaking down the headline figure, a total of 109,670 passenger cars were sold in Morocco, representing a1.4% increase year-on-year (y-o-y), while LCVs dropped back by 1.3%, to 12,411 units. Overall, the salesperformance marked a welcome stabilisation, following the sharp falls in sales seen over 2013.

Looking forward, BMI believes that 2015 should mark a positive year for new vehicle sales. We forecast a7.6% rise in total vehicle sales, to 131,325 units, with passenger cars showing stronger growth than LCVs.

BMI's Country Risk team believes that Morocco is poised for a rebound in economic growth thisyear, driven by improvements in the external sector and investment outlook. Both manufacturing exportsand tourism should continue to strengthen, benefiting from a slight uptick in eurozone economic activity aswell as growing diversification towards the Middle East and Africa. Overall, we forecast real GDP growthto rise to 4.0% in both 2015 and 2016 - in line with the average annual growth rate of 4.1% recordedbetween 2009 and 2013, and making Morocco one of the best performers in the Middle East & North Africaregion.