The current and future situation of the Turkish automotive industry
- Turkey has been a backbone of the European automotive industry for decades, as several carmakers have shifted part of their production to the lower-cost country, led by Renault, Fiat, Ford, Hyundai and Toyota. Production volumes in Turkey peaked in 2017 at 1.75 million vehicles produced, compared with 1 million in 2013, but production slumped after 2017 and stabilized at 1.2 million units in 2020, 2021 and 2022, the same level as France. Honda closed its Turkish plant in 2021, and the Stellantis plant in Bursa (formerly Fiat) stopped production of the Doblo model in 2022, now manufactured in Vigo (Spain), and halted production of the Fiorino model, which was not replaced.
- Volkswagen, for its part, halted plans to build a plant in Turkey. Thus, the outlook for the Turkish automotive industry does not seem very optimistic, especially since there have been no announcements so far from Turkey-based carmakers about the start of production of 100% electric models in the country, with the exception of Ford, which plans to introduce electric versions of the Transit (the Ford Transit has been produced in Turkey for many years).
- At Toyota, we are waiting for the launch of the second generation of the CHR (C-segment SUV), still manufactured in Turkey, which will be a non-rechargeable hybrid vehicle (HEV). The salvation of the Turkish automotive industry may come from the start-up of the Gemlik factory, which wants to produce 175,000 100% electric vehicles in 2023 under the new Togg brand (with Turkish capital) and one million per year from 2030. Its first model should leave the plant in the spring of 2023.
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