Hello, we welcomed a new year together with hopes and wishes. We have entered the new year with many strategic issues awaiting resolution. Of course, I only want to touch upon our automotive industry here. Let’s leave the other socio-economic issues that remain to be resolved this year to the experts. Our automotive industry has entered the new year with its position as an important production and export center on a global scale.
However, technological transformation continues to be at a strategic crossroads due to regulatory pressures and cost structure. While the sector maintains its high-volume production capability, it also faces the need to accelerate in electric mobility and green transformation. Now, let’s expand on them one by one: Production Power and Structural Durability Our sector continues to be one of the leading production bases in Europe with an annual automotive production of approximately 1.4 to 1.5 million units by the end of 2025.
Türkiye is an indispensable production center for global OEMs, especially in the light commercial vehicle, minibus and van segments. The economy of scale and quality standard achieved in these segments is also one of the strongest competitive advantages of the sector. However, capacity utilization rates remain in the p range due to global demand fluctuations and uncertainties in the European market. This situation necessitates that new investments be handled more selectively and with long-term feasibility.
Domestic Market: Normalization and Selective Demand Domestic market figures, which reached historical sales of 1.4 million last year, will be clarified next week. Last year, high interest rates, limitations in access to credit and the SCT structure suppressed individual demand; fleet purchases, commercial vehicles and public procurement stood out as the main balancing elements of the market. The tax system continued to determine the direction of demand, especially for electric and hybrid vehicles.
Although the share of electric vehicle sales in the total market has increased to 100,000, it is possible for them to show further development this year. Exports and Strategic Ties with Europe Our automotive sector continues to be the largest export item of our country at the beginning of this year. Approximately -17% share of total exports comes from automotive. However, the fact that more than 50% of exports are made to the European Union makes the sector sensitive to economic slowdown and regulatory changes in the EU.
The “Made in Europe” approach, supply chain security and carbon border regulations create both risks and opportunities for our country. Our country continues to be a strong nearshoring alternative for Europe, thanks to its geographical proximity and industrial infrastructure. But to maintain this advantage, we need to make progress in green production and carbon footprint management. Electric Transformation and Technological Threshold The most critical agenda of our industry at the beginning of this year will be the transformation to electric vehicles.
TOGG’s presence in the market undoubtedly increased the motivation of the domestic ecosystem. In addition, it managed to raise awareness in the field of software, battery and connected vehicle technologies. However, our import dependence in the fields of battery cells, power electronics and advanced software continues. Global brands still position Turkey mainly as an internal combustion and hybrid vehicle production center.
Full electric investments, on the other hand, are proceeding cautiously depending on factors such as energy costs, predictability of incentives and long-term regulatory clarity. Sub-Industry and Human Resources Our automotive sub-industry is trying to adapt to the transformation process with its high adaptability and is successful in this. However, especially for SME-sized companies, access to finance, carbon reporting and digitalization investments are a serious pressure.
Although the qualified technical workforce is strong, the competency gap in software and battery technologies has become increasingly visible. Conclusion At the beginning of the new year, our automotive industry; It has a significant advantage with its strong production infrastructure, deep integration with Europe and experienced human resources. However, sustaining this advantage depends on accelerating the electrical transformation, green production investments and long-term industrial policies.
We must strongly prepare our automotive industry for the future, with the right strategic steps, to become not only a production base but also a regional technology and mobility center. The year 2026, which we have just entered, should give us the opportunity to act quickly under the pressure of the EU Commission, which launched the Made in Europe and Carbon Tax at the Border policies. Do you think we have another way?
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