Crisis in the Automotive Sector: Is Export Growth Sufficient?

The automotive industry continues to experience one of its most challenging periods in recent years. Despite various difficulties, the sector maintains its leadership in exports. This situation is highlighted by data from the Automotive Industry Association (OSD). In the first 9 months of 2023, the total production of the sector showed an increase of 3 percent, while exports recorded a 6 percent rise in terms of unit numbers. When evaluated in terms of value, a notable 12 percent increase has been achieved.

On the other hand, although a higher pace is observed in the domestic market compared to the previous year, a significant decline in the share of local automobiles is being experienced. OSD President Cengiz Eroldu stated that the share of domestic production has fallen to its lowest levels in recent years, saying, "The domestic share is at its lowest level. This is the worst part. In 2020, the rate was 46 percent, while in 2019 and 2022 it remained at 45 percent. However, in 2023, this ratio has dropped to alarming figures of 29 percent for cars, 21 percent for light commercial vehicles, and 59 percent for trucks," he explained.

Furthermore, Eroldu, who provided information that the share of local production in light commercial vehicles had previously reached 64 percent, emphasized that this rate should be in the 30-40 percent range and pointed out that the current figures reflect a fragile situation.

Eroldu also addressed the impacts of Chinese pressure on the sector. He recalled the measures taken by the government to correct the emerging situation and emphasized the importance of the steps taken to overcome the challenges in the sector. Uncertainties about whether these measures are adequate continue to raise concerns among automotive manufacturers.