Automotive

Overview of Türkiye's Automotive Industry

Türkiye has emerged as a strategic hub in the global automotive value chain, combining large-scale manufacturing capacity with strong export performance and a deep supplier base. The country ranks 2nd in Europe in commercial vehicle production, 4th in Europe in overall automotive production, and 12th worldwide in global automotive manufacturing, underscoring its role as a key production center for international OEMs.

This manufacturing strength is supported by a broad and mature ecosystem. More than 30 of the world's top 50 suppliers have established production facilities in Türkiye, which hosts over 530 tier-one suppliers and around 1,100 parts suppliers serving OEM production. Between 2002 and 2024, the vehicle market has recorded a strong compound annual growth rate of around 16 percent, reflecting Türkiye's dynamic domestic demand, competitive cost base, and increasing integration with global markets.

The foundation of Türkiye's automotive industry

The foundation of Türkiye's automotive industry dates back to the early 1960s. During a period of rapid industrialization and progress, this key sector transformed itself from assembly-based partnerships to a full-fledged industry with design capability and massive production capacity. Since 2003, original equipment manufacturers (OEM) have invested over USD 20 billion in their operations in Türkiye.

These investments significantly expanded their manufacturing capabilities, which in turn led Türkiye to become an important part of the global value chain of international OEMs. Meeting and exceeding international quality and safety standards, today's Turkish automotive industry is highly efficient and competitive thanks to value-added production.

Türkiye's born-electric car and transformation vision

As part of its commitment to transforming its automotive industry, which has historically been a key economic driver in integrating the Turkish economy with the global value chain, and to its vision of making Türkiye an economic powerhouse, Türkiye has introduced its own locally-developed born-electric car built upon strength stemming from the country's long-standing know-how in the area.

Accordingly, Türkiye's Automobile Joint Venture Group, known as Togg, will produce five different models on a joint platform with fully-owned intellectual and industrial property rights by 2030. The first SUV model hit the market in 2023, and since then Togg is the best-selling electric car in Türkiye.

Production growth and global position

• Leveraging a competitive and highly-skilled workforce combined with a dynamic local market and favorable geographical location, the total passenger and commercial vehicle production in Türkiye has increased by almost five times from 300,000s in 2002 to almost 1.4 million units in 2024. This represents a compound annual growth rate (CAGR) of around 7 percent during that period.
• Significant growth posted by Türkiye's automotive sector led to the country's becoming the 12th largest automotive manufacturer in the world and 4th largest in Europe by the end of 2024.
• Türkiye has already become a center of excellence, particularly with respect to the production of commercial vehicles. By the end of 2024, Türkiye was the second biggest producer of commercial vehicles (CVs) in Europe.

R&D, design, and innovation capacity

• Proven as a production hub of excellence, the Turkish automotive industry is now aiming at improving its R&D, design, and branding capabilities. As of July 2025, 167 R&D and design centers belonging to automotive manufacturers and suppliers are operational in Türkiye.
• Notable examples of global brands with product development, design, and engineering activities in Türkiye include Ford, Stellantis, Daimler, AVL, and FEV. Ford Otosan's R&D center is one of Ford's three largest global R&D centers, while Stellantis's R&D center in Bursa operated by Tofaş (formerly Fiat's Turkish joint venture) is the Italian company's only center serving the European market outside its home country. Meanwhile, Daimler operates R&D and technology center in Istanbul, including global software and product development hubs, which complement the German company's truck and bus manufacturing operations in Türkiye. AVL Türkiye, which opened up its 2nd R&D center in Türkiye, develops autonomous and hybrid vehicle technologies.

Supply chain structure and localization

• Türkiye offers a supportive environment on the supply chain side. There are around 1,100 component suppliers supporting the production of OEMs. With the parts going directly to the production lines of vehicle manufacturers, the localization rate of OEMs varies between 50 and 70 percent.
• Türkiye is home to many global suppliers. There are more than 250 global suppliers that use Türkiye as a production base, with 30 of them ranking among the 100 largest global suppliers.

Export orientation and European leadership

Auto manufacturers increasingly choose Türkiye as a production base for their export sales. This is evidenced by the fact that around 75 percent of vehicle production in Türkiye was destined for international markets in 2024. Türkiye exported more than 1 million vehicles to international markets in the same year. In addition, Türkiye has been the number one vehicle exporter to European markets for around a decade.