In the dynamic landscape of automobile manufacturing, Turkish carmakers encountered a challenging month in June. According to data from the Automotive Manufacturers’ Association (OSD), production experienced a significant decline of 15.8 percent compared to the previous year, resulting in the production of 100,162 units. Notably, the passenger car segment saw a 9.4 percent decrease in output, producing approximately 69,000 cars.
Furthermore, the local market witnessed a 6 percent contraction in June, with 109,418 vehicles sold. Specifically, passenger car sales decreased by 3.8 percent, amounting to 87,858 units. Interestingly, there was a 4.8 percent increase in the import of passenger cars, with nearly 62,000 cars entering the country. This surge raised the market share of imported cars to 70.5 percent, as reported by OSD.
Additionally, the export sector faced challenges, experiencing a 15.8 percent decline in export revenue, totalling $819 million. In the first half of 2024, local companies produced a total of 707,067 vehicles, marking a 3.8 percent decline from the same period in the previous year. The production of passenger cars saw a modest 0.4 percent annual decline, resulting in 460,743 units being produced. Despite these difficulties, carmakers managed to export 493,527 vehicles, representing a 2.5 percent decline compared to the first half of the previous year. Export revenues for the January-June period amounted to $17.64 billion, down 0.3 percent from the previous year.
It is noteworthy that Turkey’s auto industry currently boasts an annual production capacity of 2 million units, positioning it as the 14th largest producer globally and the fourth largest in Europe.
The decline in auto production in Turkey highlights the formidable challenges faced by the industry, both domestically and internationally. As companies grapple with shifting consumer preferences, technological advancements, and global economic conditions, it is imperative for them to adapt and innovate in order to remain competitive in the constantly evolving automotive landscape.