Türkiye’s Automotive İndustry Growing Dynamically

The foundation of Türkiye’s automotive industry dates back to the early 1960s. During a period of rapid industrialization and progress, this key sector transformed itself from assembly-based partnerships
to a full-fledged industry with design capability and massive production capacity. Since 2003, original equipment manufacturers (OEM) have invested over USD 17 billion in their operations in Türkiye. These investments significantly expanded their manufacturing capabilities, which in turn led Türkiye to become an important part of the global value chain of international OEMs.

Meeting and exceeding international quality and safety standards, today’s Turkish automotive industry is highly efficient and competitive thanks to value-added production. As part of its commitment to transforming its automotive industry, which has historically been a key economic driver in integrating the Turkish economy with the global value chain, and to its vision of making Türkiye an economic powerhouse,
Türkiye has introduced its own locallydeveloped born-electric car built upon strength stemming from the country’s longstanding know-how in the area. Accordingly, Türkiye’s Automobile Joint Venture Group, known as Togg, will produce five different models on a joint platform with fully-owned intellectual and industrial property rights by 2030. Leveraging a competitive and highly-skilled
workforce combined with a dynamic local market and favorable geographical location, the vehicle production of 8 global OEMs in Türkiye has increased by almost five times from 300,000s in 2002 to over 1.3 million units in 2022. This represents a compound annual growth rate (CAGR) of around 6 percent during that period.

•Significant growth posted by Türkiye’s automotive sector led to the country’s becoming the 13th largest automotive manufacturer in the world and 4th largest in Europe by the end of 2022.

•Türkiye has already become a center of excellence, particularly with respect to the production of commercial vehicles. By the end of 2022, Türkiye was the number one producer of commercial vehicles (CVs) in Europe.

•Proven as a production hub of excellence, the Turkish automotive industry is now aiming at improving its R&D, design, and branding capabilities. As of 2022, 156 R&D and design centers belonging to
automotive manufacturers and suppliers