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The Turkish automotive industry is an important sector of the country's economy, contributing significantly to its GDP and providing employment opportunities for thousands of people. Over the years, Türkiye has emerged as a key player in the global automotive market, with several well-known brands manufacturing vehicles in the country.   One of the key factors that have contributed to the success of the Turkish automotive industry is the strategic location of the country. Situated at the crossroads of Europe and Asia, Türkiye serves as a gateway for automotive manufacturers looking to access markets in both regions. This has attracted several multinational companies to set up production facilities in the country, taking advantage of its favorable geographical position. With these advantages in Türkiye, 1.4 million vehicles produced and it is in the 1st rank in commercial vehicle production in Europe in 2023 (12th rank in global automotive production)   Another factor that has played a significant role in the growth of the Turkish automotive industry is the government's support for the sector. Through various incentives and subsidies, the Turkish government has encouraged investment in the automotive industry, leading to the establishment of state-of-the-art manufacturing facilities in the country. This has helped Türkiye become a major player in the global automotive supply chain, with a strong presence in both passenger cars and commercial vehicles. Total investment volume of global brands is USD 18 billion​​ in the Turkish automotive industry since 2000 and more than 30 of the top 100 global suppliers have production facilities in Türkiye.​     In recent years, the Turkish automotive industry has also made significant strides in terms of innovation and technology. Several Turkish companies have invested in research and development, leading to the production of cutting-edge vehicles that meet international standards in terms of safety, efficiency, and sustainability. This has helped boost the country's reputation as a reliable and competitive player in the global automotive market. Recently more than 510 automotive tier-one suppliers are based in Türkiye and there are 162 R&D and design centers accredited by the Ministry of Industry and Technology. ​.   Despite these achievements, the Turkish automotive industry faces several challenges that need to be addressed to sustain its growth. One of the key challenges is the increasing competition from other emerging markets, such as China and India, which are also vying for a share of the global automotive market. In order to stay competitive, Turkish automotive companies need to continue investing in research and development, as well as improving their manufacturing processes to enhance efficiency and reduce costs. Current average export rate of OEMs in Türkiye for 2023 is 70% but it will be organically increased according to government and OEMs’specified strategies..   In conclusion, the Turkish automotive industry is a key driver of the country's economy, contributing significantly to its GDP and providing employment opportunities for thousands of people. With the government's support and a focus on innovation and technology, the industry is well-positioned to continue its growth and make a mark in the global automotive market. By addressing the challenges, it faces and building on its strengths, the Turkish automotive industry has the potential to become a major player in the global automotive market in the years to come.   by Ozan Avarisli, General Manager NetCom Turkey

The Turkish automotive industry is an important sector of the country’s economy, contributing significantly to its GDP and providing employment opportunities for thousands of people. Over the years, Türkiye has emerged as a key player in the global automotive market, with several well-known brands manufacturing vehicles in the country.

 

One of the key factors that have contributed to the success of the Turkish automotive industry is the strategic location of the country. Situated at the crossroads of Europe and Asia, Türkiye serves as a gateway for automotive manufacturers looking to access markets in both regions. This has attracted several multinational companies to set up production facilities in the country, taking advantage of its favorable geographical position. With these advantages in Türkiye, 1.4 million vehicles produced and it is in the 1st rank in commercial vehicle production in Europe in 2023 (12th rank in global automotive production)

 

Another factor that has played a significant role in the growth of the Turkish automotive industry is the government’s support for the sector. Through various incentives and subsidies, the Turkish government has encouraged investment in the automotive industry, leading to the establishment of state-of-the-art manufacturing facilities in the country. This has helped Türkiye become a major player in the global automotive supply chain, with a strong presence in both passenger cars and commercial vehicles. Total investment volume of global brands is USD 18 billion​​ in the Turkish automotive industry since 2000 and more than 30 of the top 100 global suppliers have production facilities in Türkiye.​

 

 

In recent years, the Turkish automotive industry has also made significant strides in terms of innovation and technology. Several Turkish companies have invested in research and development, leading to the production of cutting-edge vehicles that meet international standards in terms of safety, efficiency, and sustainability. This has helped boost the country’s reputation as a reliable and competitive player in the global automotive market. Recently more than 510 automotive tier-one suppliers are based in Türkiye and there are 162 R&D and design centers accredited by the Ministry of Industry and Technology. ​.

 

Despite these achievements, the Turkish automotive industry faces several challenges that need to be addressed to sustain its growth. One of the key challenges is the increasing competition from other emerging markets, such as China and India, which are also vying for a share of the global automotive market. In order to stay competitive, Turkish automotive companies need to continue investing in research and development, as well as improving their manufacturing processes to enhance efficiency and reduce costs. Current average export rate of OEMs in Türkiye for 2023 is 70% but it will be organically increased according to government and OEMs’specified strategies..

 

In conclusion, the Turkish automotive industry is a key driver of the country’s economy, contributing significantly to its GDP and providing employment opportunities for thousands of people. With the government’s support and a focus on innovation and technology, the industry is well-positioned to continue its growth and make a mark in the global automotive market. By addressing the challenges, it faces and building on its strengths, the Turkish automotive industry has the potential to become a major player in the global automotive market in the years to come.

 

by Ozan Avarisli, General Manager NetCom Turkey

n.caterino@netcomgroup.eu
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