Türkiye ranks 11th in automotive production despite expected drop by 2024 end

Türkiye has been making significant strides in automotive production over the last five years, climbing to 11th place globally despite an expected reduction of 120,000 units by the end of 2024, Albert Saydam, chairman of the board of the Automotive Suppliers Association of Türkiye (TAYSAD) said.

A recent TAYSAD statement highlighted that its latest member meeting on Dec. 18, representing more than 530 members of Türkiye’s automotive supply industry, was attended by Deputy Minister of Trade Ozgur Volkan Agar and Secretary-General of the Turkish Metal Industrialists’ Union (MESS) Fatih Ay.

Saydam reported that global automotive production surpassed 94 million units in 2023 but is expected to close this year at 92 million, reflecting a decline of 2 million units. He emphasized that the primary contraction occurred in Europe, Türkiye’s largest market, where production dropped from 18.8 million in 2023 to 17.6 million currently.

Saydam noted that production in Türkiye fell from 1.57 million units to 1.45 million and warned it could decline further by 2025. Despite these challenges, he predicted that Türkiye would still rank 11th globally in automotive production by the end of 2024.

The most striking point here is the significant shifts in predictions made at the beginning of the year, which have had severe regional impacts. While global and European production is expected to grow in 2025, it will likely remain below 2024 levels. Projections suggest that Türkiye’s production could drop to 1.4 million units in 2025.

However, looking at the glass as half full, despite all adversities, we remain the 11th largest producer worldwide in 2024. Over the past five years, we have risen from 15th to 11th place. However, reaching 10th place requires increasing our production from the current 1.4 million to 2.4 million units. Achieving this necessitates taking specific steps and implementing significant changes.

Albert Saydam, chairman of the board of the Automotive Suppliers Association of Türkiye (TAYSAD)

‘We have to increase domestic automotive production share’

Addressing industry challenges, Saydam noted that 70% of the current domestic market of 1.2 million vehicles relies on imports and emphasized the need to reverse this trend. He also pointed out that while Türkiye exported over 1 million vehicles four to five years ago, this number has now fallen to 800,000. Saydam evaluated the situation as follows:

On the supplier side, we expect to close the year with $15 billion in exports, reflecting a 6% growth compared to last year. This is an achievement. However, we anticipate a 10% decline in exports by 2025. Factors contributing to this include regulatory changes in the EU, our lack of competitiveness, and the inability of the main industry to secure new platform orders from within its own firms.

Albert Saydam, chairman of the board of the Automotive Suppliers Association of Türkiye (TAYSAD)

Saydam highlighted Chinese automotive giant BYD’s planned investment in Türkiye as a significant opportunity for the country and stressed the importance of facilitating its rapid transition to production. “In addition to collaboration opportunities with BYD, we should also engage with Chinese companies supplying BYD. This would create a win-win scenario for both sides,” he concluded.