The Future of Car Manufacturing in Türkiye: Challenges and Innovations

Türkiye’s automotive industry stands at a critical turning point. After decades of growth driven by foreign investments, strong export performance, and competitive manufacturing capabilities, the sector is now preparing for a transformation shaped by electric mobility, advanced technologies, and global sustainability policies. As the world transitions toward cleaner, smarter, and more connected vehicles, Türkiye must innovate to remain a competitive force in the international automotive arena.

Today, Türkiye is not only producing combustion-powered vehicles for global markets — it is building the foundation for the future of mobility. Yet, along with major opportunities come significant challenges that will shape the direction of manufacturing in the years ahead.

Electric Vehicles: The Core of Production Strategy

Global automotive markets are shifting rapidly toward electric vehicles (EVs). Europe — Türkiye’s largest export destination — has set ambitious carbon reduction targets and accelerated its transition away from fossil-fueled cars. This creates both a threat and an opportunity for Turkish manufacturers.

Opportunities:

• Development of domestic EV capacity (e.g., TOGG)

• Increased foreign investment in electrification

• Expansion of battery manufacturing and related supply chains

Threats:

• Reduced demand for traditional vehicles — Türkiye’s main export segment

• Growing competition from China in EV costs

• Rapid technological demands on manufacturers

To remain relevant, Türkiye must ensure that a significant portion of its automotive output includes electric or hybrid vehicles by the early 2030s.

TOGG: A Symbol of Transformation

Türkiye’s first national electric car brand, TOGG, represents the country’s ambition to become more than a manufacturing hub — it aims to become an innovator. TOGG’s smart vehicle platform, battery collaborations, and domestic software development ecosystem show how local talent can create high-value technology.

If successful, TOGG could:

• Increase domestic value-added in automotive exports

• Reduce dependence on foreign brands and platforms

• Stimulate growth in tech start-ups and battery research

Its success or failure will significantly affect Türkiye’s industrial roadmap.

Supply Chain Reinvention

Automotive manufacturing relies heavily on thousands of component suppliers. EVs, however, require:

• Fewer mechanical parts

• More semiconductors

• More battery components

• New lightweight materials

Many traditional suppliers in Türkiye specialize in mechanical components like pistons, exhaust systems, and transmissions — parts that EVs do not require. This forces suppliers to reinvent themselves.

Necessary changes include:

• Transitioning into battery casings and electronics

• Developing lightweight material tooling

• Moving toward software-embedded systems

Those who adapt will survive; those who don’t risk displacement.

Battery Production and Technology Localization

Battery technology is central to EV manufacturing. Currently, few countries dominate battery supply chains, and dependence on imports could limit Türkiye’s competitiveness.

In response:

• Türkiye plans to expand domestic battery manufacturing

• Investments in recycling systems are increasing

• R&D centers are focused on improving energy density and reducing costs

A growing number of industrial zones now support battery logistics, recycling, and chemical processing.

Smart Factories and Industry 4.0

Automation, artificial intelligence, and robotics are transforming manufacturing plants worldwide. Türkiye’s automotive factories already use advanced technologies, but future competition demands deeper integration.

Emerging trends include:

• Autonomous robotic assembly lines

• Predictive maintenance using AI

• Real-time digital production monitoring

• Virtual reality training for workers

• Digital twins for performance simulation

Factories in Bursa, Sakarya, and Kocaeli are gradually transforming into fully connected smart facilities.

Workforce Upskilling

The automotive workforce must evolve alongside technology. Traditional mechanical engineering skills are no longer enough.

Future skills include:

• Embedded software development

• Battery cell chemistry

• Cybersecurity for connected vehicles

• AI-based data analysis

• Digital quality control

Türkiye must invest heavily in technical education, university partnerships, and lifelong training to prevent skill shortages.

Infrastructure Challenges

Supporting an electric mobility ecosystem requires:

• Nationwide charging networks

• Investment in clean energy

• Grid modernization

While progress is accelerating, current charging availability is still limited compared to Western Europe. Long-term planning is essential to support domestic EV adoption and maintain export competitiveness.

Global Competition and Market Pressure

Türkiye faces growing competition from:

• China, dominating global EV supply

• Eastern European countries, offering low-cost labor

• India, expanding automotive exports aggressively

To stay competitive, Türkiye must:

• Focus on higher value-added manufacturing

• Encourage innovation locally

• Improve efficiency across the supply chain

Low-cost labor alone is no longer enough.

Environmental Regulations and Sustainability

European regulations increasingly require:

• Lower emissions in production processes

• Recyclability of vehicle components

• Transparency in environmental impact

Turkish manufacturers must adopt:

• Renewable energy sources

• Water recycling systems

• Waste reduction technologies

Many factories in Türkiye have already earned global sustainability certifications, positioning them favorably for future markets.

Domestic Demand Growth

While Türkiye is mostly an export-oriented automotive producer, domestic EV adoption is rising. Government incentives, tax reductions, and urban green policies are encouraging consumers to transition toward cleaner vehicles.

Higher domestic demand provides:

• Production stability

• Innovation opportunities

• Stronger brand loyalty for local products like TOGG

Conclusion: A Decisive Decade Ahead

The next 10 years will determine Türkiye’s position in global car manufacturing. The challenges are significant:

• Technological transformation

• Pressure from global competitors

• Supply chain restructuring

• Environmental regulation compliance

However, the opportunities are equally powerful:

• Domestic EV innovation

• Battery production ecosystems

• Advanced smart factories

• Highly skilled engineering talent

• Strategic export location

If Türkiye successfully adapts, it will not simply remain a global manufacturing hub — it will become a leader in next-generation mobility, shaping the future of transportation in Europe and beyond.