Türkiye is an automotive country, not only a supplier of finished products but also a very serious supplier of sub-industry. Quality is very important in automotive production, and the most critical factor in quality is "labor quality."
Dr. K. ALTUĞ ERCİŞ
Automotive Authorized Dealers Association (OYDER) President
The automotive industry in Türkiye is one of the most critical sectors of our country. It is vital for the national economy with its export power, labor quality, and employment provided. Today, our automotive sector, which exports to more than 200 countries worldwide, has repeatedly achieved "zero defect" successes in local productions representing the brands. Türkiye is an automotive country, not only a supplier of finished products but also a very serious supplier of sub-industry. Quality is very important in automotive production, and the most critical factor in quality is "labor quality." Our country is at a very advanced level in this regard. Qualified labor and investments in the machine park can easily compete with the world. Türkiye is no longer a country with cheap labor for the automotive sector; it is a production center with quality labor. We see that manufacturers in the sector cooperate with the Industry and Commerce Chambers in their provinces and universities on R&D and training issues. The increase in such Industry and Science collaborations will also advance our country in innovation. As a result, our country has a strong competitive power in workforce, labor quality, and machinery investments. In the coming period, aiming to compete with the world in research and development will be more appropriate for us.
Eco-Friendly Vehicles Are a Sound Investment for the Future
Producing eco-friendly and next-generation vehicles in our country is a very sound choice. It is in line with the global trend. There is a transition to cleaner energies in all countries; electric and hybrid technology are significant aspects of this transition. Investments are also being made in battery technology. The automotive sector first reduced the production of diesel engines; many brands, especially European manufacturers, have removed diesel engine options from their product range. This was followed by hybrid and electric models. The general trend is in this direction and it is clear that it will become more widespread. Our locally produced TOGG brand forming its product range with electric models is a sound investment not only for today but also for the future.
The Potential of Türkiye's Automotive Market
The potential of Türkiye's automotive market is at a very high level. During the 3-year pandemic period from 2020 to 2022, the market ranged between 740,000 and 780,000. The main reason for this was the low supply that could not meet the high demand. The lack of supply was due to issues in the supply chain, mainly the chip crisis and the unavailability of parts. In 2023, when the supply problem was resolved and vehicle availability increased, the market suddenly exceeded 1.232 million, breaking a record in Türkiye. However, the conditions are not suitable to see our country's true potential. The taxes applied to car sales are at very high levels compared to European and global averages. Therefore, if taxes were to be reduced to normal levels, we could see the real potential. With tax levels reduced to European averages, we predict that the annual sales potential of our country would be between 1.5 million and 2 million and that this would be repeated regularly every year. The total investment of authorized dealers in our country is over 5 billion dollars. Moreover, these investments, which consist of nearly 1,300 office towers, are entirely domestic capital. They provide direct employment for 120,000 people. These significant investments are proof of the belief in our country's potential.