Istanbul, a bustling metropolis that straddles Europe and Asia, is not only a cultural and historical hub but also a key player in the automotive industry. The city has seen a significant increase in the share of imported vehicles in local sales in recent years, with the figure reaching 70 percent in the first seven months of 2024. This is a stark contrast to the little over 59 percent share seen in 2019.
One of the main reasons for this surge in imported vehicle sales is the entry of foreign carmakers into the Turkish market. U.S. electric carmaker Tesla and new Chinese brands like Chery have made significant inroads, offering consumers a wider range of options. On the other hand, domestic producers have not introduced new models in the past two years, leading to a lack of competitiveness in the market.
Despite the increase in imported vehicle sales, the overall sales figures in the local auto market have remained relatively stable. In the first seven months of 2024, sales reached 698,368 units, with passenger car sales growing by 3 percent to 536,351. However, the share of imported passenger cars in the market has continued to rise, reaching around 73 percent in July alone.
The trend of imported cars dominating the market has been on the rise for the past five years, with the share steadily increasing each year. While this may be a cause for concern for domestic producers, experts believe that the introduction of new models in 2025 will help them regain market share.
On the production front, Turkish carmakers have seen a decline in output, with auto production falling by 5 percent in the first seven months of 2024. Passenger car production also saw a 2 percent decline, while commercial vehicle production shrank by 12 percent. Despite these challenges, the capacity utilization rate across the local automotive industry remains at 73 percent.
In terms of exports, Turkish carmakers have shipped nearly 582,000 vehicles to foreign markets in the first seven months of 2024, with passenger car exports showing a slight increase. The automotive sector continues to be the largest exporting industry in Turkey, with export revenues reaching $20.7 billion in the first seven months of the year.
Overall, Istanbul’s automotive industry is facing both challenges and opportunities. While the rise in imported vehicle sales poses a threat to domestic producers, the introduction of new models and the city’s strategic location as a bridge between Europe and Asia provide avenues for growth and expansion in the future.