Conexio consulting

5 REASONS TO JOIN THE GROWTH OF AUTOMOTIVE SECTOR IN TURKEY

5 REASONS TO JOIN THE GROWTH OF AUTOMOTIVE SECTOR IN TURKEY

Automotive sector in Turkey is changing into full-equipped industry based on setup and installation partnerships with its grand capacity of design and massive production. Between 2000 and 2014, 12 billion dollars of investment was done by the original equipment manufacturers (OEM) for the operations in Turkey. These investments had a big affect to make Turkey a global value chain of international OEMs. There are important items that help Turkey to had this great step in automative sector as following:

  1. With its geographical advantage as a dynamic market and the high young population as the qualified labour force, 13 global OEMS in Turkey increased their production from 374.000 to 1.3 million between the years 2002- 2015. The CAGR was %10 at that period.
  2. Notable examples of global brands with product development, design, and engineering activities in Turkey include Ford, Fiat, Daimler, AVL, and Segula have their design and engineering and product development activities in Turkey. One of the three global Research and Development center of Ford is in Turkey, also Fiat has its only R&D center in Bursa apart from Italy, serving to the European market. The German track and bus company Daimler is maintaining its manufacture operations in its R&D center located in Turkey.
  3. 100 component suppliers are serving for OEMS in their production process. Turkey also offers good supply of chain.
  4. Turkey is a good production center with its geographical location between Europe and Asia. More then 250 global suppliers are located in Turkey for their global production process and 28 of them over 50 are the main players in the market.
  5. Turkish automotive industry is mainly exporting to Germany, France, Italy, the UK and Spain, besides,the emerging markets around Turkey are now trending for a huge potential of exportation and considered by the largest automobile suppliers for new sales points.

 

In the first quarter of 2017, Turkey’s automotive sector broke a record in exports according to Turkish Exporters’ Assembly (TİM) with the highest level of $7.12 billion sales between January and March, being $5.54 billion in the same period last year. The automotive sector has a share of %18,9 of total exports in Turkey.

Conexio is a consulting firm in Turkey based in Istanbul that can provide you services and support you in your activities in the region.

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