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Turkey’s auto supply industry grows in 2021

17 January 2022 18:47 (UTC+04:00)
Turkey’s auto supply industry grows in 2021

By Suayip Alabay

Turkey’s Automotive Industry Association (OSD) Chairman Haydar Yenigun has said that the country’s auto supply industry grew by 25 percent or $12 billion in 2021, Yeni Shafak newspaper has reported.

Yenigun said that the chip crisis (the 2020–2022 global chip shortage) had significantly increased Turkey’s supply industry export, bringing the volume of automotive exports to $30 billion dollars in 2021.

The weakening of Chinese production as a result of the pandemic and the logistical problems experienced by the Western automotive companies led them to prefer Turkey, Yenigun added.

“This is something very valuable. But we need to make it permanent. So once life returns to normal, there's a chance this will go away... We need to turn this opportunity into a permanent one. If we look at the year total, we have a 13 percent share in total exports as the automotive industry. If we evaluate it compared to last year, there is a difference of $4 billion,” he stressed.

Evaluating the production in Turkey, the OSD president said that the value of exports per kilogram is $10.62, which is the highest level to date and should increase by $20 in the future.

He added that the production has now settled at around 1.3 million units and the sector made $8.23 billion surplus in January-November 2021.

Yenigun also evaluated the high performance in heavy commercial and tractor production.

“As the importance of agriculture increases both in Turkey and in the world, it is very normal for us to expect an increase, especially in the tractor market. Here, of course, I have to say that the tractor park in Turkey is very old and they are all small motor tractors. As you know, as the years pass and the business grows quickly, the power of the tractors is increasing,” he said.

Speaking about the investments, Yenigun underlined that the automotive sector is not affected by daily, monthly or one to two-year fluctuations. It is a long-term investment sector.

“You can see here, we made a serious investment of over $658 million in 2021. I think the most important part of these investments is that new model investments have not stopped. There is an increase in employment. More than 1,000 jobs were created at Ford Otosan. In general, even Honda's retirement has not affected our employment development. In summary, 2021 has been a successful year for OSD members and companies,” he stressed.

Furthermore, Peugeot Turkey General Manager Ibrahim Anac said that with the SUV 2008 model, the company achieved a 17 percent market share in 2021, leaving its competitors behind. Peugeot SUV 2008, which has sold 8,937 units in total for the year, became the leader of the B-SUV segment in 2021.

“The fact that our SUV 2008 completed 2021 as a leader in the B-SUV segment is a reflection of the quality we offer. We are proud of our continued successful chart. Our 2021 achievements were not limited to SUV 2008. In addition, we had a successful year in the light commercial vehicle segment as well, achieving a 41 percent increase in our sales compared to the previous year. We increased our market share by 1.3 points to 5.7 percent in this class, and we achieved our targets. In the passenger vehicle segment, our market share in 2021 was 5.2 percent. Our goal is to continue our success in the future," he said.


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