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Turkiye: Automotive production hits 1.2 million vehicles

The Turkish automotive industry’s production increased by 6 percent in the first 11 months from a year ago to 1.2 million vehicles, data from the Automotive Manufacturers’ Association (OSD) have shown.

Local companies’ passenger car output rose by 2 percent compared to the January-November period of 2021 to 717,368 units, while commercial vehicle production grew 13 percent year-on-year.

The capacity utilization rate in the automotive industry was 68 percent, with the capacity usage in the passenger cars and light commercial vehicles segment standing at 68 percent and in the trucks segment at 90 percent.

The local automotive industry’s export revenues increased by 5 percent year-on-year in January-November to 876,187 vehicles. Passenger car sales to foreign markets grew 0.4 percent, and the increase in light commercial vehicle exports was 12 percent from the first 11 months of 2021. Tractor exports also exhibited an annual increase of 11 percent.

The automotive sector’s share in Turkiye’s total exports was 12 percent in January-November 2022, which made it the second-largest exporting industry.

The latest data from the Uludağ Exporters’ Assembly, the country’s automotive sector generated $28.3 billion in export revenues in the first 11 months of 2022, rising 5 percent from a year ago.

In terms of euro, the industry’s export grew by 19 percent to 26.9 billion euros.

Domestic vehicle sales remained almost unchanged in the January-November period compared to the same period of last year at 705,183 vehicles.

Some 505, 886 passenger cars were sold, pointing to a 2 percent contraction in this market, but light commercial vehicle sales grew 6 percent on an annual basis.

The shares of domestically produced passenger cars and light commercial vehicles in total sales were 38 percent and 58 percent, respectively.

Multiple challenges occurred simultaneously in 2022,said Cengiz Eroldu, the president of the OSD.

As predicted initially, the automotive industry will close the year with around 1 million vehicle exports and 1.36 million vehicle production, he added.

“The year 2023 will be difficult to predict because of uncertainties. There are issues in global trade that are beyond our control. It is necessary to create an environment which will unleash the potential in the domestic market, and to diversify the export markets and maintain our competitiveness in the international markets,” Eroldu said.

Source
hurriyetdailynews

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