Turkey offers varied opportunities for the automotive industry. Subsidies, low costs and high-quality production make Turkey an attractive investment location. The growing middle class is becoming an interesting sales market.
Turkey has experienced a remarkable rise in recent years. The Automotive industry had its share in this. Subsidies, tax relief, a growing population, low costs and high-quality manufacturing make Turkey an attractive investment location for the automotive industry. Unlike in Germany, the trademarks of foreign nations or foreign models are licensed under Turkish names. The largest licensors in Turkey include Fiat, Peugeot, Citroen, Ford and Opel.
Apart from an attractive lucrative environment for outsourcing of production, Turkey is also interesting as a sales market. Economic growth drives domestic demand. That’s one of the reasons Turkey is becoming an increasing sales market. 1.6 million Cars were built in Turkey in 2016 - around 1/3 for the domestic market. Clearly defined state support for production, a young population and well-equipped R & D facilities make the location additionally interesting for foreign investments. More than 450,000 engineers complete their studies every year in Turkey. The country is a huge talent pool for the industry.
Growth will continue in future
The Turkish market is particularly interesting especially for German companies. Germany continues to be a pioneer in the automotive sector and the two nations are already strongly linked due to their history. It’s not surprising, that German companies are already represented in the country. Mercedes-Benz has built commercial vehicles in Aksaray since 1986, and Kässbohrer already operates its most modern and largest plant in Turkey. Automotive suppliers like Mahle and Bosch are investing constantly in their locations on the Bosporus. Cooperation’s between the two countries were successful in the past and a lucrative business for both sides.
Even if the current political tensions in Turkey are causing the industry to be caught up, the automotive industry is not expected to retreat in the short and medium term. This is about the most obvious economic interests and an emerging market with many potential buyers. Particularly facing the car hostile mood in European countries with an increasing number of environmental requirements, driving bans and stagnating automotive markets at best, Turkey remains an important growth market for the industry.