Auto production rises 13 percent in eight months

ISTANBUL

Turkish carmakers produced more than 943,000 vehicles in the first eight months of 2023, a 13 percent increase from a year ago, according to the data from Automotive Manufacturers’ Association (OSD).

Passenger car output grew 21 percent year-on-year to nearly 600,000, but the annual increase in commercial vehicle production was lower at 2 percent to 344,000.

Local carmakers boosted their exports by 11 percent, shipping some 660,000 vehicles to foreign markets in the January-August period, with passenger car exports rising 26 percent to 426,000.

The industry’s export revenues amounted to $23.3 billion during this period, pointing to a robust 17 percent annual increase.

In August alone, its export revenues rose by 21 percent to $2.7 billion.

In the first eight months of the year, 787,197 vehicles were sold on the local market, marking a 63 percent increase compared with the same period of 2022. Passenger car sales grew 64 percent year-on-year to nearly 583,000.

Vehicle sales grew 73 percent year-on-year in August alone to 90,400, while the passenger car market expanded 88 percent to 66,000.

Last month, Türkiye increased passenger car imports by 118 percent from a year ago to nearly 52,000, which meant that imported cars accounted for 78 percent of all cars sold on the local market.

In August, both total vehicle and passenger car production declined by 21.2 percent year-on-year. Some large carmakers suspended production due to maintenance work which could explain the drop in the industry’s output last month.

The Turkish automotive industry has a total production capacity of 2 million vehicles. In terms of production, it ranks fourth in Europe and 14th in the world, employing more than 500,000 people.