The production in the Turkish automotive industry surged by an eye-popping 19.2% yearly, in the same month of this year. This will enable the automotive industry to recover strongly from a minor setback last month, with over 133,000 units produced in the month. During this time, the production of passenger cars increased remarkably by 32%, reaching 84,000 units. However, commercial vehicle output grew at a much slower rate, registering only 3.6%.
Market Expansion
The domestic auto industry saw rapid growth in sales during the year, with a 31% increase in vehicle sales in February, along with a sharp increase in production. Passenger car sales led the increase, rising 40% to 82,000 units. The biggest increase was in passenger car imports, which increased by 56,000 units, or 55%, from the previous year to February.
During this period, the industry has manufactured 241,861 vehicles, pushing the growth to 8.1% over the same months during the last year due to the positive momentum extending in the cumulative performance in the first two months of 2024. On the other hand, the annual output of passenger cars remained on the ascending path by 12.3% to 151,000 units. By the end of January and February, it led the industry with a market share increase of 33%, producing passenger cars.
Revenue Growth
However, despite the heavy focus on further consolidation within the domestic market, the Turkish auto industry has managed to solidify its position within the global markets. Over 89,000 vehicles were exported in the first two months of 2024, a 13.6% annual increase over the same period the previous year. According to reports, its deliveries of passenger cars increased by 20.1 percent, demonstrating its high rates of competitiveness in international trade.
Additionally, export revenue showed a notable increase, rising 9.1% annually to $5.5 billion. After serving in Singapore and Malaysia, the government's "Far Countries Strategy" was brought back by the OIB delegation. Thirteen Turkish companies participated in the mission, which was successful as it aimed to strengthen relationships with the two countries' car importers and distributors. Even if only in part, the prospect also stems from Turkish auto exports to Malaysia and Singapore. This demonstrates a strong commitment to broadening its global reach.
For the first time in recent history, it appears that the Turkish automotive industry is getting closer to a positive tipping point as both domestic production and exports abroad have been rising. Additionally, the industry did fairly well in February. All of these indicate that the industry is growing and has a promising future that is if its advantages are fully realized while simultaneously looking for new opportunities through calculated risks.
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