Türkiye needs new investments, not assembly lines: OSD Chief

Türkiye needs new investments, not assembly lines: OSD Chief

Taylan Özgür Dil-ISTANBUL
Türkiye needs new investments, not assembly lines: OSD Chief

Concerns that Türkiye could become a gateway for Chinese automakers are misplaced, according to Automotive Manufacturers Association (OSD) Chairman Cengiz Eroldu.

He noted that Türkiye’s Industry and Technology Ministry applies investment criteria similar to the EU’s.

Türkiye needs investments that bring technology and research capabilities rather than new assembly plants, Eroldu said.

Eroldu said China’s automotive exports rose 67 percent in the first eight months of the year to 7.1 million units, while Chinese brands increased their share of the European market to 10 percent despite additional tariffs.

He said the EU’s efforts to protect its automotive industry were understandable, adding that a stronger European automotive sector should include Türkiye as part of the same value chain.

Eroldu said that one of the biggest concerns voiced by his European counterparts is that Türkiye could become a gateway for Chinese manufacturers.

“One of the issues most frequently raised during our discussions is whether Türkiye will become China’s backyard,” Eroldu said.

“We are not opposed to foreign investment, including from China. However, such investments must create added value for Türkiye, enhance its competitiveness and contribute to the development of the existing industrial base,” he added.

“We support the continuation of the joint working model between Türkiye and the European Union, and we are continuing our engagement in this direction,” Eroldu said.

Responding to recent claims that imports of electric and plug-in hybrid vehicles (PHEVs) from China could resume, Eroldu said there was no reason to relax existing measures.

“In the automotive sector, the [foreign trade] deficit [with China], which stood at 3 billion euros last year, reached 1.2 billion euros in the first seven months of this year,” he noted.

“The figures speak for themselves. Expanding this deficit would not benefit us. However, if a manufacturer comes with a value-added investment backed by R&D activities, we would all support it,” Eroldu said.

Investment,