Morocco recorded the world’s lowest labor cost per vehicle among the countries covered by a 2024 global automotive industry analysis, at an average of $106 per vehicle, according to consulting firm Oliver Wyman.
The report, titled “Getting Under the Hood of Automotive Labor Cost Per Vehicle,” analyzed more than 250 vehicle assembly plants worldwide. Its labor-cost measure combines wages with worker productivity rather than representing the total cost of manufacturing a vehicle.
Morocco was followed by Romania at $273 per vehicle, Mexico at $305, Turkey at $414 and China at $597. Labor costs were substantially higher in major European manufacturing centers, including $1,569 in France, $2,067 in Italy, $2,333 in the United Kingdom and $3,307 in Germany.
The analysis also showed a 29% increase in Morocco’s vehicle production between 2019 and 2024, the largest increase among the countries listed in the report. Production in Romania rose 11% and Mexico 4% over the same period, while Germany’s production declined 13%.
Oliver Wyman said Morocco has emerged as a strategic low-cost production base for French automakers, as manufacturers increasingly distribute production across different countries. The consultancy identified labor costs, production efficiency and broader changes in global manufacturing locations as important factors shaping competitiveness.
The $106 figure does not represent the total cost of building a vehicle in Morocco. It measures the labor component of production and incorporates productivity, while other manufacturing expenses include energy, equipment, maintenance, depreciation and production supplies.
The findings come as automakers face pressure to control production costs amid shifting trade policies, competition from Chinese manufacturers and changes in electric-vehicle demand. Oliver Wyman said manufacturers are increasingly focused on productivity and labor costs as they adjust their global production strategies.
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