Turkey's automotive sector is strategically positioned as a competitive player in the European market, bolstered by a strong domestic production base and a growing emphasis on electric vehicles.
The rise of electric vehicles in Turkey, particularly through local brands like TOGG, indicates a shift in consumer preferences and a potential pivot in the automotive industry towards sustainability.
The challenges posed by international competition, especially from China, highlight the need for Turkish manufacturers to innovate and strengthen their market presence both locally and globally.
The Turkish automotive sector is likely to continue its growth trajectory in electric vehicle production, potentially leading to increased investments in technology and infrastructure.
As the market for electric vehicles expands, local manufacturers may seek partnerships or collaborations to enhance their competitive edge against foreign brands, particularly from China.
If European demand for vehicles slows down, Turkish manufacturers may need to diversify their export markets to mitigate potential losses.
Turkey's automotive sector is a vital part of its economy, ranking as the third largest car manufacturer in Europe with a production volume of over 1.1 million units in 2023. The sector has shown resilience in the face of global economic challenges, with a notable increase in electric vehicle sales, particularly from the Turkish brand TOGG, which captured a 29% market share in the electric car segment. Despite a slight decline in overall market volume, the export figures for the automotive sector rose by 6%, reaching approximately $33.7 billion, with Europe being the primary destination for Turkish automotive exports.
The Turkish automotive industry is home to 18 factories belonging to 16 brands, employing around 250,000 people directly and impacting 1.25 million jobs indirectly. The sector is adapting to the growing demand for electric vehicles, with projections indicating that electric cars could account for over 30% of domestic sales by 2032. However, the industry faces significant challenges, including increased competition from Chinese manufacturers and potential slowdowns in European demand.
