1/13/2014

Turkish auto industry gears up for new investments, capacity increases

Sabah – Türkiye’s auto industry is geared up to receive new investments from the world’s leading motor vehicle makers and spare part manufacturers. According to investment certificates granted to companies operating in the field, the industry will receive TRY 5.8 billion (approx. USD 2.6 billion) worth of investments over the next 2 years in the form of capacity increases, new model additions, and research & development (R&D) related activities.


The data gathered by the Automotive Manufacturers Association (OSD) shows that motor vehicle manufacturers and spare parts suppliers in Türkiye were granted a total of 142 investment incentives since the new investment incentive scheme went into effect in June 2012.


Major motor vehicle manufacturers in Türkiye will be investing TRY 3.2 billion and creating 2,400 jobs while the spare parts industry will invest TRY 2.5 billion and create 6,700 jobs, analysis of the investment incentives show. A total of 9,000 new jobs are to be created in the industry within the next 2 years as a result of plant upgrades, opening of new assembly lines and R&D activities. Total motor vehicle production capacity in Türkiye will hit 1.7 million vehicles per year with the realization of the planned investments.


Home to production plants of global automakers like Ford, Fiat, Toyota, Honda, Renault and Hyundai, Türkiye’s automotive production volume reached 1.13 million vehicles in 2013, up 5 percent over the preceding year. 853,000 motor vehicles were sold in the country in 2013, rising 10 percent year-on-year.


The critically important sector also led Türkiye’s 2013 exports with USD 21.3 billion worth of shipments out of a total USD 151.7 billion.

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