European automakers bet on Turkey to boost sales

Article by Christian A., on November 21, 2012

The economic uncertainty in Europe has affected Turkey's auto industry in some degree even if it has been touted as having one of the biggest growths in the last decade. Auto sales in Turkey have experienced huge gains in one decade but they’re now predicted to drop by 10% this year. Nevertheless, its government continues to seek to triple auto production over the upcoming decade.

Its government aims to make the country rank as one of the top 10 biggest economies by 2023, which is the centennial anniversary of the Republic of Turkey. If Turkey becomes successful, it may rise right up to the top auto producing nations with a yearly output of 4 million units, from having produced 1.2 million units in 2011. Turkey is aiming for this goal amid the struggles that western Europe nations have had in saving factories and jobs in a market that is on its fifth straight year of decline.

The automotive industry is already the No. 1 exporter in Turkey but by 2023, it’s expected to export parts and vehicles valued at about $75 billion, an increase from $20 billion in 2011. This may seem to be a difficult target to meet but it should be noted that the auto industry’s exports have been increasing in the past few years. Its vehicle exports in 2011 increased by 5% to 801,112 units. Turkey's Ministry of the Economy said that component exports increased by 26% to $8.3 billion.

During the last ten years, Turkey has turned into an appealing export platform for global producers. Thirteen automakers, which include Ford, Fiat, Renault, Hyundai, Toyota and Honda, produce vehicles in Turkey.

About 800,000 units were exported from their combined output while fewer than 400,000 units were sold in Turkey. Ercan Tezer, general secretary of the Istanbul-based Automotive Manufacturers Association, said that what Turkey is targeting for its exports is “very tough” to achieve. But then, it has a “clear direction” and it also is presently developing a strategy in order to meet its target.

Topics: turkey, sales

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