Türkiye: "Our goal is to become a hub for the automotive industry"

As a major centre of automotive production and innovation in Europe, we want to highlight our industry, which has evolved from a solid industrial base to a hub for research and development, design and green mobility”, argues Baran Celik, President and Chairman of the Board of Directors of OIB, the Turkish automotive exporters’ lobby. The aim is to capitalise on the country’s existing status as an automotive hub, with 13 car manufacturers (including Renault, Ford and Fiat) operating factories with an estimated production capacity of 2.5 million units. This ecosystem is naturally complemented by Western equipment manufacturers (such as Forvia and Valeo) and Turkish companies, with more than 9,000 manufacturers involved in automotive production! “We have excellent infrastructure, undoubtedly one of the best in the euro zone.” The organisation’s president also highlights the presence of 200 R&D centres with “skilled, qualified and experienced human resources”. Technical expertise, operational know-how and engineering skills are essential in the face of rising labour costs. Added to this are product quality and efficient logistics with deliveries between 5 and 6 days and even 24 hours by air freight if necessary, whic is a considerable advantage in the ‘just in time’ era.

The Turkish automotive industry is the cornerstone of the country’s exports, accounting for 16% of total exports, with three-quarters of automotive production, cars and equipment, destined for for-eign markets. Most of these exports go to Europe, with Germany, France and the United Kingdom accounting for more than 80% in 2024. However, the country still wants to push further into Europe in the face of competition from China, which in 2023 took its place as the leading automotive exporter to the EU with nearly 750,000 vehicles, compared to just over 540,000 made in Türkiye. These are competitors with whom “it is very difficult to compete, particularly in the Middle East. European suppliers have not succeeded… perhaps we will!” But there are also Chinese players in Türkiye, notably the manufacturers BYD and Chery.

The European surcharge on electric cars produced in China is also welcomed by spokespeople for the Turkish industry. And Türkiye is preparing for the 2035 deadline (end of sales of new combustion engine cars in Europe). Manufacturers have already begun to invest in electric vehicles, notably with the development of the Togg brand, a true flagship of national expertise. The industry representative hopes that this will appeal to Europeans, who may once again be tempted to relocate their 100% EV products.

Türkiye is also a key production centre for private labels of major European aftermarket retailers and manufacturers. An industrial fabric of manufacturers who are also promoting their own IAM parts brands, albeit more discreetly and locally. This has resulted in nearly $10 billion in turnover in the spare parts sector, which is certainly also partly exported, but also caters to the 23.6 million vehicles in the Turkish fleet, which have an average age of 14 years. “85% of the spare parts used to maintain this fleet come from the IAM”, explains Leon Kalma, president of manufacturer Teknorot and member of the OIB board. However, the spare parts specialist admits that in Türkiye, too, Chinese competition is attracting distributors looking for very low prices.

“The spare parts market is complex and also very competitive.” As everywhere else, quality is an issue for independent workshops, “most often loyal to European brands”, which must meet the demands of motorists. It is clear that Turkish suppliers, while historically very competitive, are not always able to compete with the fl ood of low-cost Chinese products!