Foreign Investor Guide
Reference: Presidency of the Republic of Turkey Investment office www.invest.gov.tr
AUTOMOTIVE
15 billion USD
- The total amount of investment made by global brands in the Turkish automotive industry since 2000.
1,5 million
- The number of vehicles manufactured in Turkey in 2018.
2.
- Turkey's rank in commercial vehicle production in Europe.
5.
- Turkey's rank in the European automotive production list.
15.
- Turkey's rank in global automotive production.
%85
- Average export rate of OEMs in Turkey.
%12
- The compounded annual growth rate in the Turkish vehicle market between 2002-2017.
30
- 30 of the top 50 global suppliers have manufacturing facilities in Turkey.
430+
- Number of A-class suppliers in Turkey.
152
- Number of R&D and design centers accredited by the Ministry of Industry and Technology in Turkey.
The foundations of the Turkish automotive industry date back to the early 1960s. This important sector, which has gone through a period of rapid industrialization and progress, has transformed from assembly-weighted partnerships to a full-fledged industry with design talent and large production capacity. Original parts manufacturers (OEMs) have invested over US $ 15 billion in their operations in Turkey since 2000. These investments have significantly increased the production capacity of these companies and enabled Turkey to take an important place in the global value chain of international OEMs. Today's Turkish automotive industry, which meets or even exceeds international quality and safety standards, is in a highly effective and competitive position thanks to its value-added production approach.
In line with its commitment to transform the automotive industry, which is an important economic driving force in integrating its economy with the global value chain, and its vision of becoming an economic powerhouse, Turkey has recently introduced the "innate electric" vehicle, which it has developed with domestic resources, with the strength of the country's long-standing experience in the sector.
Accordingly, the Turkey Automobile Joint Venture Group, known as TOGG, will produce five different models on a common platform where it will own all intellectual and industrial property rights by 2030. The first of these vehicles to be manufactured in our country is expected to be launched on the market in 2022.
- Thanks to its competitive and qualified workforce, dynamic domestic market and advantageous geographical location, the vehicle production of 9 global OEMs in Turkey increased almost five times from 300,000 in 2002 to over 1.5 million in 2018. This increase shows that a compound annual growth rate of approximately 10% was realized in the said period. In the last five years alone, MAN increased its production by 143%, Toyota by 95%, Ford by 52% and Fiat by 35%.
- This significant growth recorded by the automotive industry enabled Turkey to become the world's 15th largest automotive manufacturer and 5th largest automotive manufacturer in Europe as of the end of 2018.
- Turkey has become a center of excellence, especially in commercial vehicle manufacturing. As of the end of 2018, Turkey was the second largest commercial vehicle manufacturer in Europe.
- The Turkish automotive industry, which has proven itself as a unique production center, now aims to improve its R&D, design and branding capacities. As of 2019, 184 design and R&D centers of automotive manufacturers / suppliers operate in Turkey.
- Ford, Fiat, Daimler and AVL stand out as prominent examples of global brands engaged in product development, design and engineering activities in Turkey. Ford Otosan's R&D center is one of Ford's three largest R&D centers globally, while Fiat's R&D center in Bursa is the only center of the Italian company that serves the European market outside of its own country. On the other hand, Daimler's R&D center in Istanbul complements the German company's truck and bus manufacturing operations in Turkey. AVL Turkey, which opened its second R&D center in Turkey, started to develop driverless and hybrid vehicle technologies.
- Turkey also offers a supportive environment on the supply chain side. There are approximately 1,100 parts suppliers in the country that support production in OEMs. The parts go directly to vehicle manufacturers' production lines, and the localization rate in OEMs ranges from 50% to 70%.
- Turkey is home to a large number of global suppliers. There are more than 250 global suppliers using Turkey as a manufacturing base, of which 30 are among the top 50 global suppliers.
- Automotive manufacturers increasingly choose Turkey as a production base for export. The fact that approximately 85% of the vehicle production in Turkey was directed to foreign markets in 2018 is an indication of this situation. In the same period, more than 1.3 million vehicles were exported from Turkey to foreign markets. At the same time, Turkey was the country that exported the most vehicles to Europe with 1.1 million vehicles last year.
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https://www.invest.gov.tr/tr/sectors/sayfalar/automotive.aspx