Automobile production in Turkey decreased in the first quarter of 2025, driven by shifts in demand for vehicles used for business purposes. According to data released by the Automotive Manufacturers Association (OSD), the production volume reached 344,120 units, a decrease of 8.7% compared to the same period last year. This article examines the reasons for the decline, its impact on exports, and the potential consequences for the automotive industry.

Trends in Production

An analysis of the data reveals that the decline in automobile production in Turkey is due to several key factors:

1. Decreased demand for commercial vehicles;

2. Reduced transportation volumes in the economic sector;

3. Competition with other manufacturing countries.

The production volume of commercial vehicles also demonstrated a negative trend, declining by 11% in the first three months of the year. This segment, which has traditionally been important for the Turkish economy, has faced pressure from factors influencing growth.

Export of Vehicles

The reduction in production has also impacted export figures. The total volume of vehicle exports for the first three months of the year fell by 0.9% in terms of units, although there was a slight increase in dollar value. This may indicate that despite the decrease in quantity, the rise in vehicle prices has compensated for the decline in unit numbers.

Reasons for Production Decline

Let’s explore the reasons behind the production decline in more detail:

• Low sales levels in the domestic market, linked to reduced business activity;

• Rising prices for vehicles and components, which negatively affected demand;

• The impact of economic instability and inflation on purchasing power for both consumers and businesses.

Prospects and Challenges

The decline in production in the first quarter of 2025 follows a similar trend observed in 2024, which saw a 7% drop in automobile production. In the context of ongoing economic instability and shifting consumer preferences, it is essential to focus on the following aspects:

1. Potential support measures from the government to enhance production;

2. Attracting innovative technologies for modernizing the automotive sector;

3. Transitioning to electric vehicle production as a way to adapt to global trends.

The analysis indicates that the current situation in Turkey's automobile market requires attention from both manufacturers and authorities. The decline in automobile production in Turkey during the first quarter of 2025 is a response not only to current economic challenges but also sets the stage for new trends within the automotive industry. To facilitate recovery and growth, it is crucial to consider both domestic and international conditions, as well as the ability to respond to changing demand and technologies.