The automotive industry plays a significant role in the local economy, contributing to employment, trade and economic growth. Between 2005 and 2011 annual sales of passenger vehicles in Libya ranged from 35,000 to 39,000 units. This fell significantly in 2012 but had recovered by 2015. Although the national automotive market has been slow to rebound from its decline to 11,000 vehicles sold in 2017, which was driven by political instability and an uncertain market for consumers, by 2019 motor vehicle sales had reached 22,500 units, up 25% on the previous year’s 18,000 units. Of this total, 16,100 were passenger vehicles.
The industry has experienced periodic disruptions in production and supply chains due to political instability and conflict. However, efforts are being made to revive and strengthen the segment, and stability has been gradually returning. Various automotive companies and workshops are engaged in activities such as vehicle assembly, repair and maintenance services, and sales.
The Misurata Free Zone (MFZ) provides infrastructure for light industry, manufacturing and commercial activities. Manufacturing activities at the MFZ span a variety of automotive enterprises, from packaging to auto parts, with the latter represented by South Korea’s Kia. Construction work on Site B, which is intended to serve as a dedicated centre for medium and heavy industry, is under way.
The automotive industry provides employment opportunities for a considerable number of people, ranging from engineers and technicians to highly skilled workers. Importantly, the segment promotes economic growth by fostering investment, generating tax and export revenue, and contributing to the local business ecosystem. It also generates positive knock-on effects for related industries such as logistics, transport and spare parts manufacturing.
In Misrata, the automotive segment focuses primarily on training, assembly, inspection and maintenance, sales and distribution. The region has facilities for training centres, inspection centres, a spare parts warehouse and a vehicle stockyard, allowing companies to deliver quality products that adhere to rigorous safety standards while also being suitable to the country’s environmental and road conditions.
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