Chinese
auto parts firm Ningbo Gaofa Automotive Control System plans to build its first overseas production base in Morocco, marking its debut manufacturing layout outside Asia, according to a May 6 research report from Dongxing Securities.
Listed in Shanghai, the company mainly produces gear shift assemblies, electronic accelerator pedals and automotive cables. It intends to set up a wholly-owned subsidiary — Gaofa Automotive Control System (Morocco) Co., Ltd., which will serve as its core overseas production hub.
Unveiled in July 2025, the project is poised to attract up to 20 million US dollars in equity investment. The new Moroccan arm will be invested directly by the parent company, or via its Hainan-based investment platform established in August 2025, or its Singapore entity founded in late 2024. Relevant administrative approvals and company registration procedures are still pending.
2025 witnessed the company secure its first overseas business income of 7.24 million yuan, a symbolic milestone after years of focusing solely on the domestic market. Its overseas business gross profit margin hit 24.2%, slightly higher than the domestic level of 23.83%. In the same year, it started small-batch product supply to Stellantis and Renault Group, while its Malaysian factory went into operation and began delivering goods to local automaker Proton.
The company chooses Morocco for overseas expansion thanks to its favorable land, labor and tax policies. In addition, major European clients including Stellantis and Renault have local assembly plants in Tangier and Kenitra, enabling efficient proximity supply and effective cost control.
Solid domestic business lays a firm foundation for its global expansion. In 2025, its annual revenue reached 1.58 billion yuan, rising 8.28% year on year, with net profit hitting 216.2 million yuan, up 13.43%. Sales volumes of electronic gear shift assemblies and accelerator pedal assemblies grew steadily. Though its Q1 2026 revenue dipped slightly, net profit maintained steady growth, backed by improved cost control and rising gross profit margin amid fierce industry price competition.
Financially, the enterprise holds abundant cash flow, with ample funds to support overseas investment. It also rolled out generous cash dividend plans. Dongxing Securities keeps a buy rating on its stock and delivers optimistic profit forecasts for the next three years.
Ningbo Gaofa is among a growing number of Chinese auto industry players investing in Morocco. Previously, many Chinese enterprises have launched large-scale projects locally, covering auto alloys, power batteries, tire manufacturing and upstream battery materials. Driven by continuous Chinese investment, Morocco is evolving from a simple automobile assembly base into a vital emerging EV industrial supply chain center across North Africa.
The registered capital of Ningbo Gaofa’s Moroccan subsidiary is set at 100,000 US dollars, while its specific operating address is yet to be confirmed. All project details are subject to official approval. The company currently has 1,753 domestic employees.
