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Writer's pictureHakan Doğu

Localization in Turkey's Automotive Industry and Electric Vehicles: A Look into the Future


In recent years, there has been a noticeable decline in the localization rate within the automotive industry. This situation stems from technological developments largely taking place and being produced outside of Turkey. The rise of electric vehicles will only make this situation worse.

The current automotive manufacturers in Turkey do not have the authority to develop products independently. Consequently, the added value in the sector remains limited. If we are importing all the parts and merely assembling them, this industry will contribute little beyond providing employment.

However, it is possible to change this situation and turn the historic transformation in the automotive industry into an opportunity. For example, if a Chinese company applies to produce automobiles in Turkey, they should also establish a battery factory and a facility producing electric motors. In this way, a high-value-added facility can be created.

To shape the future of Turkey's automotive industry, we need to look at the entire ecosystem from a broad perspective. We should establish a new incentive system based on cash, supported by control mechanisms such as monitoring localization rates and engineering contributions.

The size of Turkey's automotive market is one of our most important assets. The potential to grow the market from 1.2 million to 2 million units can be a strong attraction. To seize this opportunity, strategic steps must be taken, and the future of the sector must be secured.

Turkey can become a strong player in the global competition by investing more in localization and technological development in the automotive industry. To achieve this goal, it is necessary to work in collaboration with all stakeholders in the sector and to produce innovative solutions.

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