Turkey automotive production falls 0.1% year-on-year in first half: Bloomberg

Turkey automotive production falls 0.1% year-on-year in first half: Bloomberg

Turkey's automotive production experienced a modest decline of 0.1% year-on-year in the first half of 2025, according to recent data from Bloomberg. This decrease comes despite the country's overall economic recovery and increasing consumer demand for vehicles. The slowdown in production can be attributed to several factors, including regulatory challenges and market dynamics.

The Turkish automotive industry has been navigating a complex regulatory environment. The Capital Markets Board (SPK) has been actively enforcing regulations to combat unlicensed financial services, including crypto platforms like PancakeSwap. This regulatory crackdown has led to the blocking of numerous websites and social media accounts, potentially impacting the digital infrastructure supporting the automotive sector [1].

Additionally, the broader economic context has played a role in the production slowdown. Turkey's economy has been characterized by monetary tightening and inflationary pressures. The central bank raised interest rates to combat inflation, which can deter consumer spending on high-ticket items such as cars. Furthermore, the depreciation of the Turkish lira has increased the cost of imports, affecting the profitability of automakers [2].

Despite these challenges, the automotive sector remains a significant contributor to Turkey's economy. The country's vehicle market has shown resilience, with sales up to March 2025 increasing by 6.8% year-on-year. The growth has been driven by a mix of traditional and electric vehicle (EV) manufacturers, with BYD leading the EV segment with a 90% market share [2].

Looking ahead, the automotive industry in Turkey faces both risks and opportunities. The ongoing regulatory environment and economic conditions will continue to influence production and sales. However, the long-term outlook remains positive, with the country's strategic location and growing EV market presenting potential for future growth.

References:
[1] https://beincrypto.com/turkey-bans-pancakeswap-unlicensed-crypto-services/
[2] https://www.focus2move.com/brazil-vehicles-market/