This chapter examines the recent rise of Morocco’s automotive sector and its growing integration into global value chains (GVCs). Despite a historically small domestic market and low-end manufacturing focus, Morocco has implemented strategic industrial policies since 2010, particularly after 2015. These policies aimed to upgrade key sectors like automotive, build domestic capabilities, and integrate into GVCs. The research reveals successful policy efforts in attracting leading companies and suppliers to Morocco. This competition has fostered local supplier involvement and skills development. The chapter argues that Morocco’s industrial policy has evolved beyond just attracting firms through low labor costs. It now emphasizes fostering cross-sector synergies, creating supportive ecosystems for different value chain segments, and enhancing workforce capabilities. Additionally, co-designing policy measures with public and private stakeholders is emerging as a promising trend. The main challenge for the future lies in deepening local firm inclusion within the value chain and achieving higher value-added production. This necessitates an increased focus on advanced technological skills, research and development (R&D) investment, and tailored incentives to facilitate local supplier integration with higher-tier suppliers.