Türkiye's Automotive Production and Exports Varyed in the First 7 Months

According to OSD data, Türkiye's automotive production decreased by 8% in the first 7 months, decreasing to 767 thousand 216 units. The decline in automobiles is felt much more sharply; Production in this segment remained at 424 thousand 667 units, with a loss of 19 percent. Commercial Vehicles Resist in Production, Automobiles Decline

When tractor production is included in the first 7 months of the year, the total number of vehicles coming off the line reaches 779 thousand 338 units. Despite the significant decline in automobile production, the commercial vehicle group is trying to balance the situation. Production in the commercial vehicle segment increased by 9 percent compared to the same period last year.

When we look at the details: - Light commercial vehicle production: increased by 10% - Heavy commercial vehicle production: increased by 4%

The general capacity utilization rate of the sector was at 62 percent. In the sub-breakdowns, capacity utilization was recorded as 63 percent in light vehicles (automobile and light commercial), 57 percent in the truck group, 69 percent in the bus-midibus side and 28 percent in the tractor.

Quantity Decreased in Exports, Revenue Increased in Value Basis

On the export front, we see two different pictures in terms of quantity and revenue. In the January-July period, total automotive exports decreased by 14 percent on a unit basis to 542 thousand 401 units. In particular, the 29 percent decrease in automobile exports was the main reason for the loss in terms of units. On the other hand, commercial vehicle exports increased by 8 percent in terms of units.

Leadership Maintained with 24.4 Billion Dollars of Revenue

Despite the contraction in quantity, the increase in monetary value is noteworthy. According to Turkish Exporters Assembly (TİM) data, the automotive industry continues its leadership on a sectoral basis with a 17 percent share of Turkey's total exports.

Total Automotive Export Revenue: Increased by 2.6 percent to 24.4 billion dollars.

Automobile Exports (UIB Data): It decreased by 9 percent to 6.3 billion dollars.

Supply Industry: Made a significant contribution to the sector by increasing its exports by 4.5% in dollar terms.

Risks and Expectations Ahead of the Sector

The picture that emerged in the first 7 months of the year shows that demand fluctuations in the domestic and foreign markets are directly reflected in production. While demand transformations and electric vehicle regulations, especially in the European market, affect main industrial production, manufacturers in Turkey keep the income side balanced through commercial vehicles and a strong supply industry. In the second half of the year, maintenance periods on production lines and global interest/demand dynamics will play a determining role in the performance of the sector.