Turkey Automotive Industry to Focus on Middle East & Northern Africa Exports

Turkey will have to find other export markets in the Middle East and Northern Africa to reduce its dependence on the volatile West European automotive market.

 

CEO 360 Degree Perspective of The Automotive Industry in Turkey. A gross domestic product (GDP) growth of over 7 per cent, rising incomes and an unsaturated domestic demand with just 110 cars per 1,000 people have considerably amplified the demand for light vehicles in Turkey. The production of the Chery, as well as the increase in the production capacity of the Hyundai i20 and the Ford Transit models are expected to be the notable production developments in the next five years. The production industry is focused on exports to Europe and the United States, with Europe alone accounting for 65 per cent of the exports. However, Turkey will have to find other export markets in the Middle East and Northern Africa to reduce its dependence on the volatile West European automotive market. Well-defined government support for setting up production, a young population (64 per cent of the population is between 15 and 59 years) and R&D units will attract substantial foreign investments to the automotive segment. Fiscal reforms, along with an escalating population, low costs and a culture of high-quality production, make Turkey an attractive investment destination for global automotive OEMs and suppliers.

The report has identified seven customer segments based on vehicle pricing and length. Vehicles in the price range of 25,000 Turkish Lira (TL) to 50,000 TL, and with lengths of between 3,700mm and 4,500 mm, cater to three different customer segments. These are low-medium family, lower-medium fleet/family and upper-medium family. Another analysis of the vehicles' pricing and variants has revealed that most of the high-selling models cater to the (low/upper) medium customer/fleet segment. The high-selling compact cars and sedans targeted at the medium family consumer segment have more than 20 variants. Meanwhile, models catering to the medium-fleet customer segment are priced between 24,000 TL to 40,000 TL, but they do not have numerous variants. Instead, they offer several options within a limited number of variants. Most of the models catering to premium customer segments do not have more than 15 variants. There is a need for more dealer selling points in the super and emerging cities identified.

Report Details for "CEO 360 Degree Perspective of The Automotive Industry in Turkey":

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