Gov’t support for investments in auto industry to continue

Gov’t support for investments in auto industry to continue

ANKARA
Gov’t support for investments in auto industry to continueGov’t support for investments in auto industry to continue

Türkiye will continue to offer support and incentives to new investments in the automotive industry, Industry and Technology Minister Mehmet Fatih Kacır has said, adding that the government will continue to hold talks with potential investors.

 

While responding to questions from a lawmaker from the main opposition Republican People’s Party (CHP), Kacır said that his ministry is implementing various incentive schemes in order to turn Türkiye into a regional production base by supporting the investment environment in high-tech, innovative and high value-added sectors, including the automotive sector.

 

The minister noted that eight of the 13 companies producing vehicles in the country are global brands.

 

“We will continue to support them and encourage them to make new technology investments in Türkiye,” he added.

 

The government’s commitment to electric cars and new technologies has led many global brands such as Ford, Toyota and Renault, to move their new-generation vehicle production to Türkiye, the minister said.

 

Talks with companies, which have strong supply links with the automotive sector, for new investments will continue in 2025, according to Kacır.

 

The ministry noted that global brands have invested $18 billion in the Turkish automotive industry since 2000 and that more than 30 of the top 100 global suppliers have opened production facilities in Türkiye.

 

The interest of global companies, including Chinese firms, in Türkiye has been increasing, he said, recalling that Chinese BYD announced a $1 billion investment to establish an EV and hybrid car production plant and an R&D center in the country.

 

He recalled that Türkiye aims to reach an annual production capacity of at least 1 million electric vehicles and $5 billion is allocated to support those efforts.

 

The Turkish automotive industry, which is the 13th largest producer in the world, is one of the major driving forces of the economy with an installed capacity of over 2 million, an export volume of over $37 billion, providing jobs to more than 550,000 people, he added.

 

Vehicle production in Türkiye, which was around 300,000 in 2002, has increased nearly five-fold, reaching over 1.4 million vehicles in 2023, according to the minister.