The Turkish automotive sector continues its activities in 18 factories with 12 companies. Of these 12 companies, 4 produce only cars, 6 produce only commercial vehicles, and 2 produce both cars and commercial vehicles. Ford Otosan, OyakRenault and Tofaş are in the top 10 among the 500 major industrial enterprises announced by the Istanbul Chamber of Industry. Players such as Hyundai Assan, Mercedes-Benz Turk, Toyota Otomotiv Turkey are also at the bottom of the list.  At the same time, the Turkish automotive sector continues its rise in the world market by increasing production and export figures a little more every year with new product and capacity investments.

In order for the automotive sector, which is the pioneer of Turkish exports, to maintain this feature, all companies must take part in the “transformation plan”that has started around the world, especially in Germany. It is possible to adapt to this transformation plan, prioritize R & D investments and turn innovation into a part of the corporate culture. Innovative and high value-added solutions implemented with the support of technology are very important for the Turkish automotive sector, which is one of the important players in the global competition. If the transformation is not taken place as soon as possible, the future of the sector, which is of exceptional importance to the Turkish economy, will be put at risk.

Opportunities

* The Turkish automotive sector has the opportunity to create platforms that will meet with entrepreneurs, with their growing number of venture centers. Turkey now needs to realize its vision of being a R & D and Design Center in all areas.

* The government contributes to this vision with new advantages provided in R & D and investment incentives.

* Turkey has a strong domestic Sunday potential.

* The geopolitical position offers the opportunity for easy access to many markets.

* Development in the logistics sector has a positive impact on exports. This advantage brings with it opportunities.

* The renewal and implementation of the scrap incentive program can help both reduce environmental pollution and improve vehicle and pedestrian safety by withdrawing older vehicles from traffic. On the other hand, this application is an important opportunity to stimulate the market and reduce scrap imports. 

Threats

* Increasing tax rates are one of the most important threats to the domestic market for the Turkish automotive sector. The new changes, which will come into force, are projected to narrow the market numerically.

* EU and global technical regulatory compliance efforts have been put at risk with the freezing point of the accession negotiations with the EU. Although companies continue to invest in technical compliance, the stagnation of the process affects motivation.

* Industry 4.0 and the prospect of falling behind Europe in the transformation of the factories of the future is an important risk that the sector should take to the agenda as soon as possible.

* Macroeconomic conjuncture is one of the most important threats to the sector.

* The potential of aggressive automotive growing countries such as eastern Europe, China, India to produce at a lower cost poses a threat to Turkey's low labor cost advantage to attract new foreign investment.

* The potential of the Iranian market, which is also considered an export opportunity, to attract investors is another threat waiting for the sector.

* Without a new free trade agreement between the UK and the EU, which has announced it will also exit the customs union after Brexit, Turkey is likely to lose one of the most important markets in the automotive sector.

* Insufficient availability of consumer, financing and business loans due to high real interest rates is another threat.

• For the automotive supply industry, the deterioration of the foreign trade balance in favor of imports is a significant threat due to the increasing import of vehicles and the production of vehicles based on imported parts.