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Car rental in Morocco: growth, challenges and new rules

The Moroccan car rental market is experiencing an encouraging rebound thanks to the massive return of tourists. However, the sector is facing new regulatory challenges. This is the finding of Tarik Dbilij, president of the Federation of Car Rental Companies without Drivers (FLASCAM), who calls for a overhaul of the legal framework to allow a restructuring of the sector.

By Betty de G.
Car rental in Morocco: growth, challenges and new rules

The car rental sector in Morocco is recovering after several difficult years. "2025 is a good year," says Tarik Dbilij. The massive return of foreign tourists to the tourist cities of the kingdom benefits all the professionals in the sector. "In addition to the increase in demand from foreign visitors, we are also seeing a marked recovery in the domestic clientele," explains the president of the Federation of Car Rental Companies without Drivers in an interview with Finances News Hebdo.

But the sector remains confronted with new challenges related to regulatory constraints, he notes. The manager did not fail to express his concerns about the new specifications, intended to clean up the sector. "This new specification has not produced the expected effects. On the contrary, it has slowed the creation of new rental agencies," laments Tarik Dbilij, also mentioning the non-compliance with the rules by certain rental companies who "declare their company in cessation of payments to open a new one under another name."

According to him, these professionals "do not respect their commitments towards the banks, the tax administration, or their suppliers. As a result, only 2% of rental companies remain truly active in the automotive market." Faced with this situation that penalizes small agencies, the president of FLASCAM calls for a reform to readjust the legal and regulatory framework. "We advocate for a new specification that would incorporate our recommendations in order to initiate a real restructuring of the sector. The supervisory ministry remains attentive to our observations," he says.

In terms of sustainable mobility, Tarik Dbilij notes appreciable progress. "More and more operators are integrating electric or hybrid vehicles into their fleets. Within FLASCAM, we advocate for CO2-free mobility," he says. Several agencies have already installed charging stations. But to accelerate this transition, the sector is awaiting incentive measures, both at the regulatory and fiscal levels. But while the trend among companies is towards rental, individuals remain attached to ownership. "In Morocco, the car remains a symbol of social status and capital."

Rental companies represent 30% of total vehicle sales and up to 64% for certain brands. "Their weight is decisive in the sector. By the end of 2025, we hope to reach a global purchase rate of 55%," projects the president of FLASCAM. Regarding the expansion of Chinese brands on the market, Tarik Dbilij believes that they "bring real added value to the Moroccan market. Their image, however, is strongly dependent on the work of their distributors. After-sales service is an essential differentiating element for customers, particularly in terms of the availability of spare parts and the competitiveness of services."