Major Shifts in the Automotive Industry: From Economy Challenges to the Transition to Electric Véricles

The automotive industry is one of the vital economic sectors that plays a significant role in boosting economic growth and providing job opportunities. In Morocco, this sector has seen remarkable development. It has become the largest car manufacturer in Africa, with an annual production capacity of 700,000 vehicles. By the end of November 2024, its exports exceeded 13 billion dollars. Exports are expected to surpass 20 billion dollars by 2026, according to forecasts from the Central Bank of Morocco.

Globally, the automotive industry faces significant challenges. Among the main challenges are the shift towards electric vehicles and the increasing spending on research and development. Additionally, autonomous driving technologies pose another threat to traditional automotive manufacturing. As 2025 approaches, many major companies, such as General Motors, Ford, and Stellantis, have begun reducing jobs and cutting costs. These companies are also restructuring their business models to keep up with the transition to electric vehicles.

In Europe, the electric vehicle market is experiencing a slowdown. This threatens the European Union’s ambitious goals to phase out sales of fossil fuel-powered cars by 2035. Despite efforts to boost electric vehicle sales through government incentives, intense competition from Chinese electric car manufacturers is limiting sales in Europe.

Overall, the automotive industry is undergoing significant transformations. It is under pressure from spending and competition, with an increasing focus on the shift to electric vehicles and modern technologies. However, challenges remain, particularly in developing the necessary infrastructure and supporting innovation to ensure the sustainability of this vital sector.


Source : HESPRESS.COM