Developments in the automotive sector
Increased vehicle availability enabled by improved semi-conductor supply in 2023 and vehicle purchase being regarded as an investment tool amid the high-inflation environment have been influential in the rise in domestic sales. According to the Automotive Manufacturers Association (OSD) data, total automotive sales in Turkey rose by 55% to 1,283,952 units in 2023 that marked its historic high. Passenger car sales augmented by 63% year-on-year to 967,341 units, while light commercial vehicle sales grew by 39% to 265,294 units. Heavy commercial vehicles sales, on the other hand, were up by 17% to reach 51,317 units.
In Europe, Turkey’s most important export market, demand for passenger cars increased by 14% and that for light commercial vehicles by 16%, given the improvement in the supply chain and the low base effect from the previous year.
According to OSD data, Turkish automotive exports was up by 5% year-onyear in terms of units in 2023 to end the year at 1,018,247 units. Export revenues in the sector, on the other hand, came in at USD 35.7 billion, marking a 13% rise on an annual basis. The automotive sector remained the leading industry in Turkish exports. Automotive production increased by an annual 9% to be registered as 1,468,393 units in 2023.
In 2023, the Turkish bus market grew by 7% compared to the previous year, despite the contraction in the intercity bus market. The European bus market expanded by 27% driven by the 47% growth in the plugin bus segment. The greatest contributors to the growth were Spanish, Italian and German markets. Total bus exports, on the other hand, went up by 44%.