Türkiye’s flagship auto industry shrinks 9% in Q1
A worker assembles vehicles at a production line in Türkiye, accessed on April 13, 2025. (AA Photo)
Türkiye’s automotive production fell 9% year-on-year in the first quarter of 2025, totaling 344,120 vehicles, according to data released by the Automotive Manufacturers Association (OSD).
While the sector experienced a sharp decline in domestic sales, it maintained its leading position in exports despite a drop in export volume by units.
The figures show that car production decreased by 7% to 220,927 units between January and March. Including tractors, total production reached 352,299 units.
Commercial vehicle production dropped 11%, driven by a 32% decline in heavy commercial vehicles and a 9% fall in light commercial vehicles.
Despite the contraction in production, the industry remained Türkiye’s top exporter by sector, accounting for 17% of total national exports in the first quarter.
Total automotive exports rose by 2% from a year earlier to $9.4 billion, while exports in euro terms increased 1.4% to €8.6 billion ($9.76 billion). Exports from original equipment manufacturers were up 1%, and parts suppliers saw a 3% rise.
In terms of volume, however, automotive exports declined. The total number of exported vehicles dropped 1% to 254,683 units, while passenger car exports fell 3% to 149,843 units. Commercial vehicle exports grew by 2%, but tractor exports plunged 45% to 2,529 units.
Domestic sales, production capacity slide
Domestic automotive sales also declined, with the overall market contracting by 7% year-on-year to 285,818 vehicles in the first quarter. Passenger car sales fell 4% to 223,793 units, while the commercial vehicle segment shrank by 16%, including a 20% drop in heavy commercial vehicles and a 16% decrease in light commercial vehicles.
The market share of domestically manufactured vehicles declined as well. Local vehicles accounted for 32% of passenger car sales and 22% of light commercial vehicle sales. The share of domestic vehicles in the total market dropped 2 percentage points year-on-year to 31%.
Capacity utilization across the automotive industry stood at 65% during the quarter. Broken down by segment, utilization was 66% in light vehicles (passenger cars and light commercial vehicles), 47% in trucks, 60% in buses and midibuses, and 44% in tractors.
