Fiat to make electric SUV in Morocco

From the newsletter

Italian carmaker Fiat Automobiles will make the Pandissima, its latest SUV, at its factory in Morocco beginning 2026. The vehicle will also be available in fully electric and hybrid versions. Fiat, a subsidiary of Dutch automaker Stellantis, chose the Stellantis plant in Kenitra, where the Citroën Ami and Fiat Topolino are already being made. 

• Fiat’s decision increases the number of EVs that Morocco will be manufacturing each year. The Kenitra plant, built at a cost of $323 million, has an annual production capacity of 200,000 vehicles. Stellantis is aiming to increase this capacity to 400,000 by 2027.

• The North African country currently produces the Citroën Ami, Opel E-Rocks and Fiat Topolino, both fully electric quadricycles designed for urban mobility with a focus on simplicity and affordability. The Pandissima will be mainly targeted at the export market, mainly Europe and the US. 

More details

• The Pandissima will be a C-segment SUV and will be based on the same technical platform as the Citroën C3 Aircross and Opel Frontera. Morocco's choice to produce this car cements its position as a leading automotive manufacturer in Africa, underpinned by its advanced infrastructure, particularly the Stellantis plant in Kenitra.

• Morocco's appeal to car manufacturers lies in its established automotive infrastructure. Decades of investment from companies like Renault and Stellantis have created a robust manufacturing ecosystem, providing a solid foundation for EV production. The Stellantis factory has a capacity to produce 50,000 EVs, the largest on the continent.

• In addition to European companies, the North African country is also attracting huge attention from China, with several Chinese firms establishing factories there across several sectors, most notably EV battery production. Located at Europe’s doorstep, Morocco is a solid base for firms looking to utilize Africa’s lower manufacturing costs to export to Europe. 

• Morocco has grown its car manufacturing capacity so much that it is now the biggest exporter of cars to Europe, supplying an estimated 540,000 units to the continent in 2024. This dominance has however placed the country in the crosshairs of European carmakers who have called on the European Union to protect them against cheap vehicles and batteries from Morocco through tariffs. Should this become a reality, it could deal the country’s economy a major blow.  

• EV manufacturers are now also looking to other countries particularly South Africa, Egypt and Algeria as alternatives to Morocco. For instance, Chinese firm SFE Electric Car Manufacturing Group is planning to build Algeria’s first EV factory. The factory's production capacity is expected to range between 50,000 and 200,000 electric cars annually. 

• Despite the growing number of locally-made EVs, Africa still primarily relies on imported electric cars, particularly from China, Japan, and Germany. Chinese brands, especially BYD, have started dominating a number of markets on the continent, although German firms still dominate Egypt’s EV market while Sweden’s Volvo leads the South African market. 

Our take

• Morocco is nearly achieving its long-held goal of end-to-end EV manufacturing capability, a unique status in Africa. The country is set to roll out locally-made EV batteries this year, which could be used in the EVs that the country will be producing. 

• Production of an electric Pandissimo SUV in Morocco will be pivotal, as it will showcase to the world Africa’s ability to make world-class electric cars. This could positively impact how the continent is looked at globally, potentially attracting further investment in EV manufacturing. 

• The gap in EV investment in Africa is growing, with a select group of countries getting all the major big-ticket investments. This imbalance is detrimental to the continent’s ability to uniformly grow its electric mobility sector.