Turkish Automotive Sector Sees Production Drop Amid Rising Export Revenue in October

Turkey’s automotive sector is grappling with an ongoing production slump, as new data reveals a 10.4% year-on-year drop in vehicle output for October. According to the Automotive Manufacturers Association (OSD), Turkish automakers produced nearly 122,000 vehicles in October, totaling exactly 121,970 units. This decline marks the eighth consecutive month of decreased production in the country’s automotive sector.

Decline in Passenger Car Production

Passenger car production in Turkey also saw a significant decrease, falling by 7% from the previous year, with a total of 85,155 units produced in October. This reduction reflects a broader trend within the sector, as Turkish automakers adjust to challenges such as fluctuating demand and evolving market dynamics.

Mixed Performance in Exports

While production has been consistently declining, automotive exports have shown greater resilience. The country’s vehicle exports, which include both passenger cars and commercial vehicles, only dropped by 1.4%, totaling 96,744 units in October. Interestingly, the value of these exports surged to $3.5 billion, marking a 12.6% increase compared to the same period last year. This export performance has provided some stability for Turkey’s automotive sector, which is heavily reliant on foreign markets.

Domestic Market Contraction

The domestic auto market in Turkey has also been affected, shrinking by 4.6% on an annual basis. Total vehicle sales within the country fell to 100,378 units, signaling weaker local demand amid economic pressures.

Year-to-Date Figures and Major Industry Players

From January to October, Turkey’s vehicle production has declined by 7.3% compared to last year, with a total output exceeding 1.1 million units. Passenger car production for the same period fell by 4.3%, reaching 742,303 units. Despite these challenges, major international automakers such as Ford, Honda, Hyundai, Mercedes, Renault, and Toyota continue to operate factories in Turkey, underscoring the country’s importance as a global automotive production hub.

Outlook

As Turkey’s automotive sector navigates these production declines, the growth in export revenue offers a silver lining. Continued investment by international brands and potential shifts in global demand may play a pivotal role in stabilizing the industry. However, with production facing a prolonged downturn, Turkish automakers will need to innovate and adapt to sustain their presence in both domestic and global markets.

Afsheen Gohar

Afsheen Gohar is a seasoned writer with a wealth of experience in crafting authentic and well-researched articles. Her dedication to delivering high-quality content is evident in her work, where she combines a passion for storytelling with a commitment to accuracy and depth. Afsheen’s writing reflects her ability to engage readers with compelling narratives while providing valuable insights on a diverse range of topics.