Business

Auto parts industry plans $2 billion investment

Turkey’s automotive parts supplier companies plan to undertake investments worth $2 billion this year, up from $1.5 billion in 2021, with nearly half of new investments going to electric vehicles technologies.

“We are forecasting one percent growth in 2022 as unfavorable developments from 2021 still weighing on the industry,” said Albert Saydam, chair of the Automotive Suppliers’ Association (TAYSAD).
Problems from the last year are not over for the industry, but despite challenges Turkey’s automotive sector managed to increase its share in the global industry from 1.6 percent to 1.7 percent, Saydam noted.

“Exports by local parts suppliers rose by 26 percent in 2021, with firms shipping goods to 190 countries among those seven nations for the first time. Also exports to 37 countries increased more than 100 percent from 2020,” he said. Saydam explained that the strong rise in exports last year was not only due to the increase in unit prices, which stemmed from companies’ passing on higher costs onto customers, but the volume of exports rose and the shipments of value-added items thanks to wider product diversification also contributed to export performance.

He added that TAYSAD member companies continue their investments despite uncertainties, saying that in an environment where there are problems related to raw materials, logistic costs and supply of chips, if right steps are taken there is huge export potential for local companies to exploit.
As the main automotive industry invests more into electrical vehicles,more of the parts sector’s investments will be channeled toward this direction, Saydam said.

Source
hurriyetdailynews

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