Turkish automakers urge common EU policy on Chinese investment

Turkish automakers urge common EU policy on Chinese investment

ISTANBUL
Turkish automakers urge common EU policy on Chinese investment

 

Türkiye’s auto industry has called for a common approach with the European Union to Chinese investment, saying new projects should bring technology and research capabilities to the country.

Automotive Manufacturers Association (OSD) President Cengiz Eroldu said Türkiye should be included in the bloc’s “Made in EU” plans, rejecting concerns that it would become a gateway for Chinese manufacturers.

“We understand the EU’s wish to protect its industry. But if the aim is a stronger European automotive industry, Türkiye must be part of it,” he told a press briefing in Istanbul last week.

Eroldu said the Industry and Technology Ministry applied investment criteria similar to those in Europe, requiring new projects to bring technology and research and development.

“Türkiye does not need new assembly plants. It needs investments that bring technology to Türkiye and conduct R&D here,” he said.

The industry welcomed foreign investment, including from China, provided it added value, strengthened competitiveness and supported existing manufacturers, he added.

Eroldu pointed to growing pressure from Chinese exports as a reason for Europe’s protective measures.

China’s vehicle exports rose 67 percent to 7.1 million units in the first eight months of the year, while Chinese brands’ share of the European market reached 10 percent, he said.

He also opposed easing restrictions on imports of Chinese electric and plug-in hybrid cars, arguing that widening Türkiye’s trade deficit would bring no benefit.

OSD figures showed vehicle production in Türkiye fell 6 percent year-on-year to 971,159 units in January-September, while vehicle exports declined 11 percent to 685,671 units.

Eroldu said factory stoppages for investment work, particularly in the second quarter, had weighed on output.

He expected the benefits of those investments to become clearer in the coming months and next year.

Locally produced vehicles’ share of the domestic market, meanwhile, rose from 29 percent to 34 percent.

Eroldu forecast domestic vehicle sales of 1.1 million to 1.15 million this year, saying early October showroom traffic showed no sign of a sharp decline in demand. Sales should not fall below 1 million in 2027 if inflation and interest rates ease, he added.