Turkish automotive market attracts investment after record year

Türkiye's automotive market remains a prime destination for investment after achieving record sales last year, according to industry officials. Baran Celik, Chair of the Uludag Automotive Industry Exporters’ Association (OIB), stated that the sector's robust performance, with over 1.4 million total vehicle sales in 2025, continues to reinforce its appeal to both local and international investors.

Record sales and investment pipeline

Celik noted that the Turkish auto market reached a historic high, selling 1.383 million passenger cars and light commercial vehicles in 2025. "We can safely say the Turkish auto sector will continue to receive investments in the coming period," he said, attributing this to a strong supply chain developed over the past five years. He indicated that new capital inflows are anticipated, especially from the Asia-Pacific region and for aftermarket parts production.

Addressing capacity and import dependency

Despite a production capacity of 2.2-2.25 million units annually, current output is around 1.5 million, revealing unused potential. Celik identified a critical challenge: "Our greatest goal for Türkiye is for it to become an automotive country, encompassing all fuel models and segments." He pointed out that over 70% of vehicles sold domestically are imported due to gaps in the product range, particularly in higher-end passenger car segments not produced locally.

Strategic outlook for 2026 and beyond

The sector's export strength is a key pillar, with 75% of domestic production sold abroad. Looking ahead, Celik forecasted that annual sales would likely stabilize between 1.3 and 1.5 million units. He emphasized that 2026 requires careful monitoring and should be a year focused on diversification to leverage spare capacity and reduce import share, ensuring the industry navigates its ongoing transformation successfully.