The Engine of an Economy: Why Türkiye's Automotive Industry is a Global Powerhouse

Nestled at the strategic crossroads of Europe and Asia, Türkiye has quietly solidified its position as a formidable giant in the global automotive industry. Far more than just a regional market, the nation has evolved into a critical manufacturing and export powerhouse, serving as the factory floor for some of the world's biggest brands. As of late 2025, Türkiye's auto sector stands as a testament to industrial resilience, a key engine of the national economy, and a hub of ambitious innovation, epitomized by the rise of its own national electric car, TOGG. This dynamic industry is navigating global shifts and economic pressures, all while cementing its indispensable role in the international automotive landscape.

The "Factory for Europe": A Legacy of Manufacturing Excellence

For decades, the backbone of Türkiye's automotive success has been its deep integration with major global automakers, particularly those based in Europe. Through long-standing and highly successful joint ventures, the country has become a preferred location for producing a vast range of vehicles, especially light commercial vehicles and passenger cars destined for export.

Major players have established sprawling, state-of-the-art facilities across the country:

• Ford Otosan: A powerful joint venture between Ford and Türkiye's Koç Holding, this entity is a titan in commercial vehicle production, manufacturing the iconic Transit and Custom van ranges for the entire European market from its plants in Kocaeli.

• Oyak-Renault: This partnership has been a cornerstone of the industry for over 50 years, producing millions of Renault vehicles, including the popular Clio, a significant portion of which are exported.

• Tofaş (in partnership with Stellantis): A key player in both the domestic and export markets, Tofaş has historically produced a range of Fiat models and is a vital manufacturing asset for the broader Stellantis group.

• Hyundai Assan and Toyota Motor Manufacturing Turkey: These Asian giants also have a major presence, producing popular models like the i20 and the Corolla, respectively, leveraging Türkiye's skilled workforce and logistical advantages.

This robust manufacturing ecosystem is supported by a highly developed and competitive automotive supplier industry, capable of producing nearly every part of a modern vehicle, from engine components to complex electronics.

TOGG: A National Dream Goes Electric

While its partnership-based model has been incredibly successful, the most exciting development in recent years has been the emergence of TOGG (Türkiye's Automobile Joint Venture Group). More than just a new car brand, TOGG is a national strategic project designed to showcase Turkish engineering prowess and pivot the entire industry towards the future of mobility: electrification.

Launched with the backing of a consortium of major Turkish industrial groups, TOGG is not just assembling cars; it's building an entire technology ecosystem. Its first model, the T10X, an all-electric C-segment SUV, officially hit the roads in 2023 and has been steadily ramping up production. As of 2025, the brand is expanding its lineup and making significant strides in developing its own battery technology through its partnership in the Siro Battery Development and Production Campus.

TOGG represents a fundamental shift. It is a bold statement that Türkiye intends to be a creator of automotive technology, not just a producer. The project is designed to act as a catalyst, stimulating innovation in software, battery tech, and autonomous systems throughout the Turkish supplier base.

The Export Engine: Driving the Turkish Economy

The numbers speak for themselves: the automotive industry is consistently one of Türkiye's top export sectors, often ranking first. A staggering 70-80% of the vehicles produced in the country are destined for international markets, with the European Union being the primary customer.

This export-oriented model makes the sector a vital source of foreign currency revenue for the Turkish economy. The industry's ability to consistently meet the high-quality and regulatory standards of the EU market underscores its manufacturing maturity and reliability. This success is a direct result of the country's customs union agreement with the EU, which has been a foundational element of its industrial strategy.

Navigating Headwinds: Challenges on the Road Ahead

Despite its strengths, the Turkish auto industry is not without its challenges. It remains highly sensitive to domestic economic volatility, including currency fluctuations and high inflation, which can impact production costs and local demand.

Furthermore, the global transition to EVs presents both an opportunity and a threat. To maintain its competitive edge as a top exporter to Europe—which is rapidly electrifying and will ban new ICE car sales by 2035—Türkiye must accelerate its own transition. Attracting more gigafactory investments to localize battery production is the single most critical challenge. While the Siro project with TOGG is a major step, far more capacity will be needed to support the vast production volumes of Ford, Renault, and others.

A Resilient and Ambitious Future

Türkiye's automotive industry is at a pivotal moment. It has a proven legacy of high-quality, high-volume manufacturing and an unbeatable strategic location. The success of TOGG is demonstrating a new capacity for homegrown innovation. The road ahead requires navigating economic pressures while doubling down on the electric transition. By continuing to attract foreign investment in EV technology and building on its domestic capabilities, Türkiye is well-positioned to not only remain a global manufacturing powerhouse but also become a key player in the electric era.