Turkish Automotive Exports Fell 17% in January
Turkey's automotive exports dropped by 17% year-on-year in January, even as the domestic auto market grew. The decline in exports highlights the sector's vulnerability to fluctuations in global demand. This divergence underscores the challenges for export-oriented manufacturing sectors in the current macroeconomic climate.
- While the number of exported vehicles fell by 17% to 64,725 units, the total export revenue for January hit a record $3.06 billion, a 2.2% increase year-on-year. This divergence was driven by a 4% rise in higher-value component exports from the supplier industry, even as vehicle manufacturer exports declined by 2% in dollar terms. - The drop in export volume was predominantly due to a 28% collapse in passenger car shipments. In contrast, exports of commercial vehicles were more resilient, slipping only 1%, while domestic production of heavy commercial vehicles surged by 47%. - This export slowdown contrasts sharply with Turkey's domestic auto market, where sales jumped nearly 10% in January. The growth is fueled by a rapid shift to electrification; battery-electric vehicles (BEVs) accounted for 18.3% of domestic sales in January. - Turkey's domestic EV champion, Togg, became the top-selling electric car brand in the country in 2025, outselling major international players like Tesla and BYD. This homegrown success signals a maturing domestic market and a strong local brand capturing significant consumer interest. - International climatetech investment is flowing into Turkey to capitalize on the EV trend and circumvent EU tariffs. Chinese automaker BYD is proceeding with a $1 billion factory set to open in 2026, while Dongfeng and Chery are also in talks for local production. - The overall industry is operating well below its potential, with a capacity utilization rate of just 56% in January. This reflects weaker export demand for traditional vehicles and highlights the strategic challenge of transitioning production capabilities toward the growing global and domestic EV market. - High domestic inflation and financing costs are creating significant headwinds for manufacturers, with Turkey's annual consumer inflation reported at 30.65% in January 2026. This macroeconomic pressure complicates the large-scale capital investments needed for the industry's pivot to electrification and increased automation. - The automotive supply industry, a critical component of the sector's export value, grew its exports by 6% in 2025 to $15.77 billion. This sub-sector, comprising over 510 companies and 167 R&D centers, is crucial for integrating Turkish manufacturing into global deeptech and EV supply chains.
