Inside Türkiye’s Booming Automotive Industry: From Local Assembly to Global Exports
By carfactorysecrets.com | Published on
Introduction
Over the last three decades, Türkiye’s automotive industry has transformed from a modest assembly-based sector into a major global manufacturing hub. Today, the country stands among Europe’s top vehicle producers, exporting millions of cars, commercial vehicles, and automotive parts every year. This remarkable journey reflects Türkiye’s strategic location, skilled workforce, and its strong partnerships with international automakers.
But how did this transformation happen — and what lies ahead for Türkiye’s car industry as the world moves toward electric and digital mobility?
A Brief History of Automotive Growth in Türkiye
Türkiye’s automotive journey began in the 1960s with the establishment of TOFAŞ and Oyak-Renault, which produced locally assembled vehicles for the domestic market. Over time, the government encouraged foreign investment and joint ventures, allowing the country to become an essential part of global production chains.
By the early 2000s, Türkiye had solidified its reputation as an efficient and cost-effective manufacturing base for global brands like Ford, Fiat, Toyota, Hyundai, and Mercedes-Benz. Today, more than a dozen major carmakers operate large-scale production plants across the country — particularly in Bursa, Kocaeli, Sakarya, and İzmit, the industrial heartlands of Turkish automotive manufacturing.
Türkiye’s Position in the Global Market
According to the Turkish Automotive Manufacturers Association (OSD), Türkiye produces over 1.3 million vehicles annually, ranking it among the top 15 automotive producers in the world and the 4th largest in Europe.
The industry is heavily export-oriented — about 75% of production is exported, primarily to European Union countries such as Germany, France, Italy, and the United Kingdom. In 2024, Türkiye’s automotive exports exceeded $35 billion, making it one of the country’s top export categories.
This strong export performance is driven by both passenger cars and commercial vehicles. Ford Otosan, for example, is a major producer of commercial vans for the European market, while Toyota Türkiye exports sedans and hybrid models to more than 30 countries.
Key Players in Türkiye’s Automotive Industry
- Ford Otosan: A joint venture between Ford Motor Company and Koç Holding, producing Transit vans and trucks for global export.
- TOFAŞ (Fiat Chrysler - Koç Holding): Manufactures popular Fiat Egea (Tipo) models and light commercial vehicles.
- Toyota Türkiye: Focused on hybrid vehicle production in Sakarya for local and export markets.
- Oyak-Renault: Produces passenger vehicles and engines in Bursa, one of the oldest and largest car factories in the country.
- Hyundai Assan: Based in İzmit, manufacturing i10 and i20 models, primarily for export to Europe.
These companies benefit from Türkiye’s competitive labor costs, skilled engineers, and proximity to major European markets.
Supporting Industries and Supply Chains
Beyond the big names, Türkiye’s strength lies in its extensive supply chain — with over 1,000 component manufacturers producing parts ranging from engines and electronics to tires and interior systems. Many of these suppliers meet international standards such as ISO/TS 16949 and work directly with automakers across Europe and Asia.
This ecosystem has positioned Türkiye as not just an assembler of vehicles, but a comprehensive automotive center capable of design, testing, and production at world-class standards.
Innovation and Technological Transformation
Türkiye is actively embracing Industry 4.0 technologies to stay competitive in a rapidly changing global market. Major factories now integrate robotics, AI-based quality control systems, and real-time data analytics into their operations.
In addition, research and development (R&D) has become a strategic focus. Over 200 automotive R&D centers operate nationwide, many in collaboration with universities. This ongoing innovation aims to develop locally designed vehicles and improve energy efficiency, safety, and digital connectivity.
The Rise of Electric Mobility: TOGG Leads the Way
The launch of TOGG (Türkiye’s Automobile Initiative Group) marks a new era for the Turkish automotive industry. As the country’s first fully electric and domestically designed car brand, TOGG symbolizes Türkiye’s shift from a production base to an innovation hub.
TOGG’s first electric SUV model began production in 2023 at the Gemlik facility, which aims to produce 175,000 vehicles annually. The government supports this transformation with incentives for EV infrastructure, including tax reductions and an expanding network of charging stations.
This move places Türkiye on the global map of emerging electric vehicle producers, alongside giants like Tesla, BYD, and Hyundai.
Challenges Facing the Industry
- Economic volatility: Currency fluctuations and inflation affect import costs and consumer purchasing power.
- Competition: Eastern European and North African countries offer similar labor advantages, pushing Türkiye to innovate faster.
- Sustainability pressure: As global regulations tighten on emissions, manufacturers must invest heavily in greener production methods.
Nevertheless, Türkiye’s strategic location and established infrastructure continue to give it a strong advantage.
The Road Ahead
Looking ahead to 2030, Türkiye’s automotive industry is expected to become a global center for electric and hybrid vehicles, thanks to its strong export base, technological transformation, and growing domestic market.
With initiatives like TOGG, smart factories, and green production strategies, Türkiye is well on its way to joining the world’s most advanced automotive nations.
Conclusion
From its early days of local assembly to becoming one of Europe’s largest car exporters, Türkiye’s automotive industry stands as a success story of vision, innovation, and resilience. As global mobility trends evolve, Türkiye is no longer just building cars — it’s shaping the future of transportation.
