{"id":931629,"date":"2026-07-13T09:04:34","date_gmt":"2026-07-13T09:04:34","guid":{"rendered":"https:\/\/www.europesays.com\/us\/931629\/"},"modified":"2026-07-13T09:04:34","modified_gmt":"2026-07-13T09:04:34","slug":"turkish-auto-industry-expects-recovery-in-second-half","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/931629\/","title":{"rendered":"Turkish auto industry expects recovery in second half"},"content":{"rendered":"

Taylan \u00d6zg\u00fcr Dil-ISTANBUL \u00a0
\n\"Turkish<\/p>\n

\u00a0<\/p>\n

Cengiz Eroldu, chairman of the Automotive<\/a> Manufacturers Association (OSD), said the contraction in automotive production during the first six months of the year was \u201ca temporary situation\u201d and that the industry<\/a> expects a recovery in the remainder of the year.<\/p>\n

Speaking at a press conference held in Istanbul last week on the OSD\u2019s first-half results, Eroldu said automotive production declined by 6 percent year-on-year.<\/p>\n

\u201cThere are two reasons for this. In the first six months, we lost five to six working days due to long holiday periods,\u201d Eroldu said.<\/p>\n

He added that some member companies also had to reduce current production while preparing new production lines as part of ongoing investment projects.<\/p>\n

\u201cThis is a temporary situation, and we expect a recovery in the rest of the year,\u201d Eroldu said.<\/p>\n

Eroldu also noted that the share of locally produced vehicles in the domestic market has started to increase as new investments come online. He said both the share of domestic vehicles and overall production figures in T\u00fcrkiye<\/a> are expected to improve from 2027 onward.<\/p>\n

Highlighting excess capacity in Europe, Eroldu said surplus production had been directed toward T\u00fcrkiye this year, increasing competition and putting pressure on profit margins in the domestic market.<\/p>\n

\u201cVehicles are being imported from Europe at increasingly competitive prices. While production costs in T\u00fcrkiye are rising, European manufacturers are able to supply vehicles at lower cost levels. This is good for consumers but challenging for producers,\u201d he said.<\/p>\n

Addressing the loss of competitiveness in the automotive industry, Eroldu said exporters were entering a more challenging period.<\/p>\n

\u201cWe thought the worst would be behind us in 2026, but in the first six months we have seen that the gap between exchange rates and inflation has not narrowed. Like all exporting sectors, the automotive industry is now entering a difficult period,\u201d he said.<\/p>\n

Eroldu said local manufacturers have domestic content ratios ranging between 40 and 60 percent, while rising labor and local supplier costs have increased euro-denominated production expenses.
Commenting on the European Union\u2019s proposed \u201cMade in EU\u201d initiative aimed at addressing competition from China, Eroldu reiterated that the draft could harm T\u00fcrkiye\u2019s automotive and supplier industries in its current form.<\/p>\n

The draft includes customs union countries in its scope, while at the same time requiring vehicles to be manufactured within the EU and contain at least 70 percent EU-origin components.<\/p>\n

Eroldu said that if T\u00fcrkiye remains outside the framework, the country\u2019s supplier industry would face significant competitive pressure, which could ultimately weaken the competitiveness of vehicle manufacturers in the medium and long term.<\/p>\n

\u201cIf such a 70 percent threshold is introduced and T\u00fcrkiye is excluded, intense competition will emerge among Chinese, Indian, Moroccan, Egyptian and Turkish industries, making it very difficult to secure a share of the market,\u201d he said.<\/p>\n

\u201cWe see this as a major threat to T\u00fcrkiye\u2019s automotive supplier industry. It is not acceptable for either the supplier industry or the main automotive industry to remain outside this system,\u201d Eroldu added.<\/p>\n

He said CLEPA, which represents Europe\u2019s automotive suppliers, wants to limit the use of components from outside the EU, while ACEA, the European automobile manufacturers\u2019 association, supports including the United Kingdom and protecting only existing investments in T\u00fcrkiye and Morocco.<\/p>\n

\u201cThis would prevent new investment from coming to T\u00fcrkiye and halt the expansion of existing investments. Protecting only vehicle manufacturers is not enough, as suppliers are an integral part of the industry. We do not accept ACEA\u2019s approach,\u201d Eroldu said.<\/p>\n","protected":false},"excerpt":{"rendered":"Taylan \u00d6zg\u00fcr Dil-ISTANBUL \u00a0 \u00a0 Cengiz Eroldu, chairman of the Automotive Manufacturers Association (OSD), said the contraction in…\n","protected":false},"author":3,"featured_media":931630,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[12],"tags":[6146,64,79,3195,93309,67,132,68],"class_list":["post-931629","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-automotive","tag-business","tag-economy","tag-industry","tag-trkiye","tag-united-states","tag-unitedstates","tag-us"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/116911871741176166","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/931629","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=931629"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/931629\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/931630"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=931629"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=931629"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=931629"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}