Baran Çelik, the Chairman of the Board of Directors of Uludağ Automotive Industry Exporters’ Association (OIB) and also the President of Uludağ Exporters’ Associations (UİB), announced that the Turkish automotive sector, which set a record with $35.04 billion in exports last year, has set a target of $39 billion for the current year.
The automotive industry achieved an impressive growth of 13% in exports in 2023, surpassing the previous record of approximately $32 billion in 2018. Çelik highlighted that, despite the challenges posed by the pandemic, the sector reached a significant milestone by hitting $35.04 billion in exports in 2023, making it the leading export sector in Turkey.
Emphasizing the traditional market focus of the automotive industry on the European Union (EU) market, which accounts for approximately 67-68% of exports (excluding the UK), Çelik stated that when non-EU countries are included, the share reaches around 80%, with Germany being the largest market. Among the top 10 export destinations, eight are European countries, and adding Russia to the mix brings the count to nine, solidifying the EU as the primary and largest market.
Çelik further outlined the projections for 2024, noting that the sector had a robust start in January, achieving a 3% increase in exports compared to the same month last year, reaching $2.8 billion. The OIB Board set the export target for 2024 at $39 billion, and Çelik expressed confidence in achieving this goal, barring any significant disruptions such as a war, pandemic, or natural disaster.
Additionally, Çelik highlighted the importance of exploring new markets to support the sector’s growth. While Europe remains the main market, efforts are being made to tap into additional markets, including the Gulf countries and the North African region, where significant export demands exist. He mentioned ongoing efforts, such as trade delegations and specialized activities, to expand the presence of Turkish automotive products in these regions.
Çelik concluded by underlining the commitment to focusing on new markets while maintaining high export targets, and he highlighted recent activities in distant regions, including a trade delegation to Morocco. Despite acknowledging China as a significant competitor and threat, Çelik sees it as a potential market due to its large size, and efforts are being made to enhance Turkey’s presence in the region.
Overall, the Turkish automotive industry’s ambitious export targets align with its historical success, and strategic efforts are underway to diversify markets and sustain growth in the face of global challenges.
source: aa.com.tr / prepared by Melisa Beğiç