The Turkish automotive industry is one of the most important sectors of the country’s economy, with a history of more than 60 years. The Turkish automotive industry, which exports approximately 70 percent of its production, ranked fourth in Europe and 14th in the world by producing 1.4 million motor vehicles in 2023. In addition, the Turkish automotive sub-industry, which made a great contribution to the development of the main industry, closed the year 2023 with a record export of 14 billion dollars.

In the automotive industry, which makes a significant contribution to Türkiye’s foreign trade balance, the vehicles and parts produced are exported around the world. In addition, the automotive industry contributes to economic growth by creating demand for many sub-industry branches. Many sectors such as metallurgy, plastics, electronics and logistics are developing along with the growth of the automotive industry. Companies serving in the automotive industry, which is an industry that requires high technology, make significant investments in R&D every year. This contributes to the development of the country’s technological infrastructure. Türkiye, one of the few countries that can produce domestically in the automotive industry and create its own brands, reveals its success in this field with trade figures.

Automotive exports of 35 billion dollars from Türkiye to the world

According to the data of The Uludağ Automotive Industry Exporters’ Association (OİB); The Turkish automotive industry reached an all-time record in 2023, reaching an export of 35 billion dollars, an increase of 13 percent compared to the previous year. The share of the sector, which completed last year as the leader of the country’s exports, was 15.8 percent. Last year, the exports of the supply industry, which is the largest product group, increased by 9 percent compared to the previous year, reaching 14 billion 154 million dollars, and its share in all automotive exports was 40.4 percent. In the same period, passenger car exports increased by 19 percent, bus-minibus-midibus exports by 57 percent and tractor exports by 22 percent.

Exports to Germany, the industry’s largest market,  increased by 11 percent

Exports to Germany, the largest market of the Turkish automotive industry, increased by 11 percent in 2023, reaching 4 billion 854 million dollars. During last year, exports to France increased by 33 percent, by 21.5 percent to Italy, by 34 percent to Spain, by 21 percent to Poland, by 21 percent to Slovenia, by 13 percent to Belgium, by 42 percent to the Russian Federation, by 28 percent to Romania, and by 30 percent to the Netherlands. Last year, 23 billion 921 million dollars of exports were made to the EU countries, which are the largest country group and received a share of 68.3 percent. During this period, there was a 28 percent increase in exports to the countries of the Commonwealth of Independent States. Last year, there was an increase in exports of 19 percent to Italy, 66 percent to Spain, 24 percent to Poland, 100 percent to Algeria, and 179 percent to the Netherlands, which are important markets for passenger cars. As for motor vehicles for transporting goods, there was an increase in exports of 18 percent to the United Kingdom, 84 percent to Slovenia, 23 percent to Belgium, 41 percent to Germany and 95 percent to Spain. In the bus-minibus-midibus product group, there was a 49 percent increase in exports to Italy, 84 percent to Germany, and 254 percent to Spain.

The automobile and light commercial vehicle market grew by 30.6 percent in February

According to the automobile and light commercial vehicle market data announced by the Automotive Distributors’ and Mobility Association (ODMD); Türkiye’s automobile and light commercial vehicle market in February 2024 increased by 30.6 percent compared to last year, reaching 105 thousand 990 units. In February 2024, automobile sales increased by 39.67 percent compared to the same month of the previous year, reaching 82 thousand 277 units, while the light commercial vehicle market increased by 6.6 percent, reaching 23 thousand 713 units. The automobile and light commercial vehicle market increased by 112.6 percent compared to the 10-year average sales in February. The automobile market increased by 118 percent and the light commercial vehicle market increased by 95.8 percent compared to the 10-year average sales in February. When evaluated according to body types, the most preferred body type was SUV with 50.7 percent share and 74 thousand 143 units. SUV cars were followed by Sedan with a 29.7 percent share and 43 thousand 509 sales, and H/B cars with a 17.8 percent share and 26 thousand 051 sales.

3 billion dollars of exports from Türkiye to the strongest player in the sector

Germany, the strongest player in the automotive industry in 2023, became the country to which Türkiye exported the most in the sub-industry. Exports to Germany increased by 8 percent compared to 2022, rising from 2 billion 962 million 513 thousand dollars to 3 billion 204 million 811 thousand dollars. The second country with the most exports was Russia. There was a 44 percent increase in exports to Russia and a total of 975 million 515 thousand dollars of products were sold. Exports worth 862 million 56 thousand dollars were made to the USA, which ranked third. During this period, sub-industry exports to France, which ranked fourth, increased by 15.34 percent to 851 million 278 thousand dollars, and exports to Italy, which ranked fifth, increased by 7.2 percent to 848 million 232 thousand dollars. In sub-industry exports, the United Kingdom ranked sixth with 746 million 99 thousand dollars, Spain ranked seventh with 674 million 945 thousand dollars, Poland ranked eighth with 577 million 957 thousand dollars, Romania ranked ninth with 491 million 765 thousand dollars, and Belgium ranked tenth with 350 million 189 thousand dollars.

Distribution of sales in the automobile market by engine types;

  • Gasoline car 97,861 units and 66.9 percent,
  • Hybrid car 21,594 units and 14.8 percent,
  • Diesel car 15,910 units and 10.9 percent,
  • Electric car 9,772 units and 6.7 percent
  • Autogas car 1,181 units and 0.8 percent.

Türkiye serves the world with 18 automotive factories

Today, there are 18 automotive factories in Türkiye. These factories are located in nine different provinces. These factories, which belong to 16 different brands, produce passenger cars, commercial and light commercial vehicles, trucks and buses.

Automotive factories and the provinces they are located in:

TOFAŞ (Bursa)

Ford Otosan (Kocaeli, Eskişehir)

Oyak Renault (Bursa)

Toyota (Sakarya)

Hyundai Assan (Kocaeli)

ISUZU (Kocaeli)

Karsan (Bursa)

Otokar (Sakarya)

Mercedes-Benz (İstanbul, Aksaray)

Togg (Bursa)

BMC (İzmir)

MAN (Ankara)

Habaş (Kocaeli)

Bozankaya (Ankara)

Akia (Bursa)

Güleryüz (Bursa)

Years of experience came to life in Togg

As the world automotive market’s efforts towards electric vehicles increase, Türkiye entered this league with Togg, using its experience in this field. Togg represents a historical turning point for Türkiye, one of the strong players of the global automotive industry. Although announcements of Togg, known as Türkiye’s first domestic and national electric car model, started in 2017, it is now possible to see Togg on the road today. Aiming to make Türkiye an important player in the electric vehicle market, Togg is not only an automobile but also a technology company. Nearly 5 thousand people are employed at Togg, which continues production in its factory located in Gemlik, Bursa, with a total closed area of 230 thousand square meters. 5 thousand robots work in this factory, which was established in Industry 4.0 standards and is an automation-based production center. Thanks to the flexible production system, production can be made in different models and platforms. The factory, which was designed according to sustainability and environmentally friendly production principles, also provides energy savings through practices such as rainwater harvesting and solar energy use.

The only country that has established an advanced automotive industry in its region

The automotive sub-industry, which has a strategic importance for the Turkish economy, achieved significant success in 2023 with both export and production figures. Of course, the existence of a strong sub-industry lies behind this success. Türkiye undertakes a very important task as it is the only country in its geography that can establish an advanced automotive industry. The automotive sub-industry is a very important industry as it increases competitiveness by supplying high quality and affordable products to the main industry, contributes to the development and dissemination of new technologies, creates employment and added value, and provides foreign currency inflow to the country through exports. Today, Türkiye has reached a level where it can produce for Original Equipment Manufacturer (OEM) companies operating in developed western countries in the automotive sub-industry. The number of foreign markets to which the Turkish automotive sub-industry sells, which makes a large portion of its exports to European Union countries, has approached 200.

All necessary parts are manufactured

The Turkish automotive sub-industry has reached a level where it can meet almost all of the parts and components required for vehicles manufactured in Türkiye, in terms of its product production capacity, product diversity and the standards it has reached. In the automotive sub-industry that exports to all over the world with more than 500 companies; complete engine and engine parts, powertrain, braking systems and parts, hydraulic and pneumatic parts, suspension parts, safety parts, rubber and rubber parts, chassis components and parts, forging and casting parts, electrical equipment and lighting systems, batteries, auto glass and seat production is carried out.

Record exports from Turkish automotive sub-industry

According to the data of The Uludağ Automotive Industry Exporters’ Association (OİB); Automotive sub-industry exports, which were 12 billion 977 million 580 thousand dollars in 2022, increased by 9 percent at the end of 2023 and rose to 14 billion 153 million 842 thousand dollars. Thus, the highest annual export figure recorded in the automotive sub-industry in 2022 was equalized at the end of 2023. The automotive sub-industry, which exported to 210 countries, free zones and autonomous regions in 2023, realized 40.43 of the total exports of the automotive industry.

Service is provided to many geographies from a single point

The automotive sub-industry is considered an important potential investment area by world automotive companies due to Türkiye’s geopolitical and geoeconomic situation. Because it provides service to many geographies from a single point, the automotive sub-industry is important not only for Türkiye, but also for foreign companies that invest or will invest in Türkiye. More than 100 world-famous foreign capital companies have been important players in the automotive sub-industry industry in Türkiye for many years. Türkiye’s geographical location, qualified workforce, government incentives, developed infrastructure, growing automotive market and other advantages are the most important reasons why foreign companies invest in Türkiye for the automotive sub-industry.

 

References:
  • Uludag Exporters’ Association (https://uib.org.tr/en/)
  • The Uludağ Automotive Industry Exporters’ Association (https://oib.org.tr/en/default.html)
  • Automotive Distributors’ and Mobility Association (https://www.odmd.org.tr)
  • Automotive Suppliers Association of Türkiye (https://www.taysad.org.tr/en)