Following tensions in Iran, rising oil prices and logistics expenses have driven up costs in the automotive sector, making price increases unavoidable.
Automotive Manufacturers Association (OSD) Chairman Cengiz Eroldu stated that these increases would be reflected in car prices during May–June. He noted that consumers, aware of the situation, accelerated their purchases, leading to renewed activity in showrooms in April.
The surge in energy, raw material, and logistics costs is expected to feed into vehicle prices in the short term. This prompted Turkish consumers to buy cars earlier rather than wait, underscoring the perception of automobiles as a strong investment tool in Türkiye. As a result, showroom traffic rose significantly in April, while manufacturers pointed to inevitable price hikes in the coming months.
Eroldu explained that unlike Europe, where inflation or instability often leads to reduced spending, Turkish consumers view cars as an investment, meaning demand is less affected. He highlighted that March did not close poorly despite the nearby war environment, and April began with renewed activity in showrooms.
The Turkish automotive industry closed the first quarter with a 7 percent decline in production and a 15 percent drop in exports. The main factor was an 18 percent fall in car production, which Eroldu attributed to temporary losses linked to new investments.
Despite this, localization rose by four points to 35 percent, showing the impact of investments, he said, adding that capacity utilization remained around 60 percent overall, with declines in light vehicles offset by recovery in trucks, buses, and minibuses.
Eroldu expressed the goal of raising capacity utilization to 65–70 percent by year-end.
He also noted that global uncertainties had led to a downward revision of expectations for 2026.
The industry now forecasts a 4 percent decline in exports and a 2 percent drop in total production, said Eroldu.
By year-end, automotive exports are expected to range between 970,000 and 1,040,000 units, while total production is projected at between 1.34 million and 1.42 million units.
