The Turkish automotive sector achieved a historic milestone in 2023, breaking records in both production and exports. According to the Automotive Industry Association (OSD), total production in 2023 increased by 9 percent, reaching an impressive 1,468,393 units.
Notably, automobile production experienced a significant growth of 18 percent, reaching 952,667 units compared to the previous year. When tractor production is taken into account, the total production reached an even higher figure of 1,525,963 units.
However, it was a mixed picture in the commercial vehicle sector. Production decreased by 5 percent in total, with a 7 percent decrease in the light commercial vehicle group. On the other hand, the heavy commercial vehicle group experienced a notable increase of 16 percent.
In terms of exports, the Turkish automotive industry saw a 5 percent increase in total automotive exports and a remarkable 16 percent increase in automobile exports. The total number of exports amounted to 1,018,247 units, with automobile exports accounting for 663,090 units.
The domestic market also reflected the sector’s strength, with a remarkable 55 percent increase compared to the previous year. In the 12-month period of 2023, the total market reached an impressive 1,283,952 units. The automobile market experienced an even higher growth rate of 63 percent, reaching 967,341 units.
The OSD, the main umbrella organization of the Turkish automotive industry, expressed its satisfaction with these achievements. With 13 members dedicated to guiding and supporting the local industry, the OSD plays a crucial role in the sector’s success.
The OSD also provided insights into the capacity utilization rates within the industry. The overall capacity utilization rate for the automotive industry was reported at 74 percent. Looking at specific vehicle groups, the light vehicle group (cars and light commercial vehicles) had a utilization rate of 74 percent, the truck group reached an impressive 91 percent, the bus-midibus group stood at 54 percent, and the tractor group achieved 75 percent.
The export figures for the Turkish automotive industry are equally impressive. Total automotive exports maintained their top ranking in the sectoral export rankings, showing a 16 percent increase in the 12-month period, reaching $35.7 billion USD. In Euro terms, the increase was 10 percent, amounting to 33 billion Euros. Main industry exports grew by 16 percent, while supply industry exports increased by 10 percent in dollar terms.
As the Turkish automotive sector continues to thrive, these record-breaking achievements solidify its position as a global player in the industry. With ongoing innovation and investment, the sector is poised to further expand its presence in both domestic and international markets.
The remarkable growth in production, exports, and market performance not only showcases the resilience and competitiveness of the Turkish automotive sector but also provides opportunities for job creation and economic growth within the country.
These accomplishments are a testament to the hard work and dedication of the industry players and underline Turkey’s position as a key player in the global automotive market. With its strategic location, skilled workforce, and robust infrastructure, Turkey remains a favorable destination for automotive manufacturers and investors alike.
