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Turkey's automotive sector saw a decline in production and exports in the first five months of the year

Although the automotive sector saw a decline in both production and exports in terms of units in the first five months of 2026, it maintained its leadership in export revenue. While total production decreased by 10 percent, the sector made a significant contribution to the Turkish economy with 16.6 billion dollars in export revenue.

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Turkey's automotive sector saw a decline in production and exports in the first five months of the year

The latest updated report reflecting developments in the automotive industry during the January-May period of 2026 showed a significant decline in the sector's production and export performance in terms of units. Automotive production in Turkey decreased by 10 percent compared to the same period of the previous year, falling to 538 thousand 718 units. Automobile production saw a sharper decline, falling by 20 percent to 301 thousand 367 units.

When tractor production is included, total production rose to 547 thousand 115 units. During this period, a 6 percent increase in production was noted in commercial vehicles. While production increases were particularly notable in bus, light truck, midibus, and truck groups, significant decreases occurred in minibus and tractor production. Tractor production fell by 39 percent to 8 thousand 397 units.

The capacity utilization rate in the automotive industry was generally 61 percent. A rate of 62 percent was recorded for light vehicles, 57 percent for the truck group, 67 percent for buses and midibuses, and 27 percent for tractors.

DOMESTIC AUTOMOBILE SALES INCREASED WHILE THE MARKET DECLINED IN THE SECTOR

The automotive market also took its share of the contraction. The total market shrank by 8 percent compared to the same period of the previous year, falling to 468 thousand 507 units. The automobile market saw a 10 percent decline, reaching 356 thousand 256 units.

The share of imported vehicles in the automobile market was measured at 65 percent. A 10 percent decline was observed in total automobile sales, and a 15 percent decline in imported automobile sales. Conversely, domestic automobile sales showed a 3 percent increase.

In the commercial vehicle market, a trend close to last year was observed with a level of 112 thousand 251 units. While light commercial vehicles grew by 2 percent, an 11 percent contraction occurred in the heavy commercial vehicle market. While the import share in light commercial vehicles was 77 percent, sales of domestically produced vehicles in this segment increased by 16 percent; imported sales decreased by 2 percent.

On the heavy commercial vehicle side, the market contracted by 11 percent to 15 thousand 369 units, and truck sales fell by 14 percent to 13 thousand 114 units. While the bus market rose by 14 percent to 952 units, midibus sales reached 1 thousand 303 units with a 19 percent increase.

UNIT LOSS IN EXPORTS, INCREASE IN VALUE

In the first five months of 2026, automotive exports fell by 15 percent to 373 thousand 825 units. 180 thousand 849 units were recorded as automobile exports. While there was a 29 percent drop in automobile exports, commercial vehicle exports increased by 5 percent. A 20 percent increase was achieved in tractor exports, reaching 5 thousand 149 units.

69 percent of the vehicles produced in the sector were exported. The total value of exports reached 16.6 billion dollars with a 2 percent increase. Automobile exports decreased by 8 percent in terms of value, amounting to 4.4 billion dollars. Increases in main industry and supply industry exports were recorded as 1 percent and 3 percent, respectively.

The automotive sector continued to rank first in export revenues, accounting for 18 percent of total industrial exports in the first five months of the year.

TRENDING ABOVE MARKET AVERAGES

The report also emphasized that the automotive market is well above the average of the last ten years. While the total market was 36.5 percent above the ten-year average; the automobile market was 38.1 percent, the light commercial vehicle market was 34.4 percent, and the heavy commercial vehicle market was 17.9 percent higher.

Although the decreases in production and exports did not significantly affect the sector's total foreign currency earnings, changes in parity and the importance of new investment moves will be followed more closely in the coming period.


News Source: 12punto