Auto industry unveils sustainability plan

ISTANBUL

Türkiye’s automotive industry has unveiled a sustainability action plan that is designed to guide and help local carmakers keep their competitiveness in a fast-changing market.

The plan was prepared by the Uludağ Automotive Industry Exporters’ Association (OİB) under the guidance of the Turkish Exporters’ Assembly (TİM) and the Trade Ministry. The Automotive Suppliers’ Association (TAYAD) and the Automotive Manufacturers’ Association (OSD) also contributed to the plan.

The document is devised to help some 8,000 exporting companies in the automotive industry comply with targets under the EU Green Deal and regulations related to climate change.

All targets laid out under six sections, such as access to finance for green transformation, reducing the impacts on the environment and transition to a circular economy, transition to new technologies for environment-friendly vehicles and social sustainability, are expected to be met in five years.

“Our largest market, the EU, is taking swift steps under the Green Deal. The automotive and other sectors have to act quickly. We cannot sit idly and watch this transformation. The EU is a large market, and there is no alternative to it,” said Mustafa Gültepe, the president of TİM.

The share of gasoline cars in Europe has dropped to 36 percent, while the share of electric vehicles climbed to 12 percent, noted Baran Çelik, the board chair of the OİB.

“For the Turkish automotive industry to remain competitive, we need to be part of this transformation. We have to invest in new technologies and electric vehicles if we do not want to lose our largest market,” Çelik said.

EVs share in the Turkish market is around 1 percent, but the country offers huge opportunities, Çelik said, citing large renewable energy potential and its geographical proximity to the European market.

“We believe Türkiye may become the production center and attractive market for carbon-neutral cars in the medium-term,” he said, adding that the industry’s priority is to increase battery investments, widen the charging stations network and comply with the EU’s target to reduce emissions.

The Turkish automotive industry employs 550,000 people and accounts for 15 percent of the country’s exports, Çelik said.

In March, the industry’s shipments to foreign markets amounted to $3.3 billion, while the first quarter exports grew 15 percent to $8.5 billion, according to Çelik.

“We forecast that as chip shortage-related problems ease further, the industry’s export revenues will hit a record $34 billion at the end of this year,” he said.