Turkey Auto Exports Drop in January Despite Market Growth
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Turkey’s automotive sector began 2026 with diverging trends in production, exports, and domestic demand, according to data released by the Automotive Manufacturers Association (OSD).
In January, automotive exports fell 17 percent year-on-year in unit terms, totaling 64,725 vehicles. The decline reflects a slowdown in overseas shipments even as the domestic market showed signs of expansion.
The figures provide an early snapshot of the sector’s performance at the start of the year, highlighting contrasting dynamics between export markets and internal demand.
Total Production Declines, Commercial Vehicles Rise
Total automotive production in January decreased 5 percent compared to the same month last year, reaching 99,247 units. Passenger car production recorded a sharper contraction, dropping 17 percent to 55,504 units.
When tractor production is included, total output stood at 100,864 units.
However, the breakdown across vehicle segments reveals notable differences. Production in the commercial vehicle group rose 16 percent year-on-year. Within that category, light commercial vehicle production increased by 14 percent, while heavy commercial vehicle output surged 47 percent.
These figures suggest that while passenger car manufacturing slowed, commercial vehicle production provided partial support to overall industry activity.
Capacity Utilization Remains Moderate
The automotive industry’s overall capacity utilization rate stood at 56 percent in January.
By vehicle group, utilization rates were as follows:
Light vehicles (passenger cars and light commercial vehicles): 57 percent
Truck group: 44 percent
Bus and midibus group: 63 percent
Tractor: 26 percent
The relatively moderate capacity utilization indicates that manufacturers are operating below full capacity, reflecting weaker export demand and cautious production planning.
Automotive Exports Near $3 Billion
In value terms, Turkey’s total automotive exports amounted to approximately $3 billion in January, according to data from the Uludağ Exporters’ Association.
Despite a decline in unit exports, the sector remained the leading export industry, accounting for 17 percent of total sectoral exports in January, according to figures from the Turkish Exporters Assembly.
Passenger car exports declined 28 percent in volume compared to the same period last year. Commercial vehicle exports decreased by 1 percent, while tractor exports fell 5 percent to 700 units.
In monetary terms, passenger car exports dropped 12 percent to $763 million.
Meanwhile, dollar-based exports from the main automotive industry decreased 2 percent, whereas supplier industry exports increased by 4 percent during the same period.
Domestic Market Expands 10 Percent
In contrast to the weakness in exports, the domestic automotive market recorded solid growth in January.
The total market expanded 10 percent year-on-year, reaching 77,590 units. The passenger car market grew 9 percent to 61,055 units.
The commercial vehicle market posted even stronger gains. Total commercial vehicle sales rose 14 percent, with light commercial vehicles up 13 percent and heavy commercial vehicles increasing 23 percent compared to January of the previous year.
This divergence suggests that domestic demand remains resilient, potentially offsetting part of the export slowdown.
Outlook for the Automotive Sector
The January data paints a mixed picture for Turkey’s automotive industry. While export volumes contracted significantly—particularly in passenger cars—the domestic market demonstrated upward momentum.
The nearly $3 billion export figure confirms the sector’s continued strategic importance to the national economy. However, sustained declines in overseas shipments could weigh on production levels if global demand conditions remain soft.
At the same time, rising commercial vehicle output and expanding domestic sales indicate areas of relative strength. How these trends evolve in the coming months will likely depend on global market conditions, exchange rate stability, and domestic financing dynamics.