Automotive and Transportation Vehicles

The automotive and transportation sector in the world is a sector that is developing day by day and its importance is increasing for the economies of the countries. In this sector, competition among firms is increasing rapidly, and accordingly, factors such as productivity increase, efficient use of resources, administrative and technical organization gain great importance. In this context; Features such as investment in R&D, quality management, cooperative relations between the main and sub-industry, employment of qualified workforce, application of flexible production methods and effective marketing are the factors that determine to stand out in the competition. The automotive and transportation vehicles sector, whose total size is approximately 4.5 trillion dollars globally, constitutes approximately 5% of the world economy and creates employment for 80 million people.

The automotive sector in Turkey is among the leading sectors in the manufacturing industry when its share in production and its economic contribution are evaluated. The domestic values ​​created by the sector (the use of domestic inputs and the total value added) have a very important place in the economy. The share of the sector in the total production of the manufacturing industry is above the average of the manufacturing industry sectors. The total production of the automotive industry in Turkey narrowed by 5.7% in 2019, approaching 1.5 million vehicles. With this production value, the Turkish automotive industry ranks 15th in the world in production. As of the beginning of 2019, the production capacity of the sector is 1.7 million vehicles. Of the vehicles produced in 2019, 67% were automobiles and 33% were commercial vehicles. 84% of the automobiles produced and 88% of the commercial vehicles are exported. Europe is the most important export market of the sector, with a share of over 90% in exports. In 2019, 492 thousand vehicles were sold domestically.

While the strong capital structure of the automotive industry in Turkey, foreign partnerships, the presence of a strong sub-industry, qualified workforce, geographical location, the ability to make flexible production, and the quality system provided, constitute the strengths of the sector in terms of competition; Factors such as high production costs resulting from low capacity utilization rate, problems in foreign markets, inadequacy of main-supply industry relations and inability to create sufficient synergy reveal the sector’s weaknesses.