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Turkish auto industry's output shrinks in 2025 as capacity use falls below 70%

Workers assemble vehicles on a production line at an automotive factory in Türkiye, accessed on June 16, 2025. (AA Photo)
Workers assemble vehicles on a production line at an automotive factory in Türkiye, accessed on June 16, 2025. (AA Photo)
June 16, 2025 01:26 PM GMT+03:00

Türkiye’s automotive output shrank in the first five months of 2025, with total production falling by 1.4% compared to the same period last year, due in part to a lower average capacity utilization rate of 68%, according to data from the Automotive Manufacturers Association (OSD).

Automakers produced 598,495 vehicles between January and May, while passenger car output dropped by a sharper 4.3%, reaching 375,183 units. Including tractors, overall production stood at 612,238 units, down 3% year-over-year.

Sluggish factory use points to cooling momentum across vehicle segments

Among individual segments, light vehicles—including passenger cars and light commercial vehicles—operated at 69% capacity. Truck lines ran at only 53%, while bus and midibus facilities recorded a 62% utilization rate.

Tractor production operated at just 44% capacity, highlighting widespread underuse in manufacturing facilities.

Workers assemble a vehicle on the production line at a automotive manufacturing facility in Türkiye, accessed on June 16, 2025. (IHA Photo)
Workers assemble a vehicle on the production line at a automotive manufacturing facility in Türkiye, accessed on June 16, 2025. (IHA Photo)

Exports rise on strong demand for commercial vehicles

Türkiye’s vehicle exports reached 440,221 units in the first five months of the year, marking a 5% increase from the same period in 2024. The rise was largely driven by a 26% surge in commercial vehicle exports, reflecting the corresponding increase in production within the same segment. Meanwhile, passenger car exports fell by 6%, and tractor exports dropped sharply by 41% to 4,298 units.

The automotive sector remained the top contributor to the country’s exports, accounting for 17% of total outbound shipments, according to the Turkish Exporters Assembly. Data from the Uludag Automotive Industry Exporters’ Association showed that total automotive exports rose by 8% year-on-year to $16.4 billion. Main industry exports increased by 10% in value, while the supply industry posted a 6% rise.

A view of the vehicle export terminal at Gemlik Port in Bursa, Türkiye, accessed on June 16, 2025. (Adobe Stock Photo)
A view of the vehicle export terminal at Gemlik Port in Bursa, Türkiye, accessed on June 16, 2025. (Adobe Stock Photo)

Domestic market grows modestly, but local share remains limited

Contrary to the decline in production, Türkiye’s domestic vehicle market expanded by 3% year-on-year to reach 506,592 units in the first five months of 2025, with passenger car sales rising by 5% to 394,327 units.

Analysis of Türkiye’s total vehicle market (in thousands) from January to May, comparing monthly figures for 2025 (orange) and 2024 (green) against the 10-year average (blue line), accessed on June 16, 2025. (Chart via OSD)
Analysis of Türkiye’s total vehicle market (in thousands) from January to May, comparing monthly figures for 2025 (orange) and 2024 (green) against the 10-year average (blue line), accessed on June 16, 2025. (Chart via OSD)

However, overall commercial vehicle sales declined by 4%, with heavy commercial vehicles down 13% and light commercial vehicles dropping 2%.

Locally manufactured vehicles maintained a limited presence in the domestic market. Domestic production accounted for 31% of all passenger cars sold, 20% of light commercial vehicles, and 63% of heavy commercial vehicles during the period.

June 16, 2025 01:26 PM GMT+03:00
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