Market Overview

The Turkey automotive market size reached USD 26.9 Billion in 2024 and is expected to reach USD 43.2 Billion by 2033. It is projected to grow at a CAGR of 4.85% during the forecast period of 2025-2033. The market growth is driven by strong domestic demand, strategic location, manufacturing capabilities, government incentives, and growing middle class population. 

Study Assumption Years

  • Base Year: 2024
  • Historical Year/Period: 2019-2024
  • Forecast Year/Period: 2025-2033

Turkey Automotive Market Key Takeaways

  • The market size in 2024 was USD 26.9 Billion.
  • CAGR for the forecast period 2025-2033 is 4.85%.
  • The forecast period spans from 2025 to 2033.
  • The market growth is mainly propelled by robust domestic demand and strong manufacturing capabilities.
  • Government incentives, a growing middle class population, and increased foreign investment are key drivers.
  • Turkey is expected to emerge as a pivotal hub in the global automotive industry.
  • Rising electric vehicle adoption and expansion of domestic EV production are significant trends.

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Market Growth Factors

The Turkey automotive market is experiencing significant growth driven by a surge in domestic demand coupled with its strategic geographic location and strong manufacturing capabilities. The country's automotive industry benefits from government incentives as well as a rapidly growing middle class, which fuels increased vehicle purchases. This strategic positioning enables Turkey to nurture foreign investments and enhance its role as a key automotive manufacturing hub.

Electric vehicle (EV) adoption in Turkey is gaining momentum, underpinned by rising investments in EV infrastructure and manufacturing. In early 2024, Turkey's EV sales reached 8,255 units, ranking the country sixth among EU states. The introduction of T10X, a fully electric SUV by local manufacturer Togg, supports this growth. The government actively promotes EV adoption through tax reductions, subsidies, and reduced registration fees, making electric vehicles more affordable and attractive to consumers.

Turkey is expanding its domestic vehicle production, with 2023 marking a record output of nearly 1.5 million units, the highest since 2019. Car production increased by 17.5%, and overall production including heavy commercial vehicles escalated by 55.2%. Investments by both local companies and global automotive players in electric and hybrid vehicles, coupled with government policies encouraging local manufacturing and advanced technologies, strengthen Turkey's automotive industry aligning it with global sustainability trends.

Market Segmentation

Type:

  • Passenger Vehicles: Includes all vehicles designed primarily for passenger transportation, constituting a major segment of the market.
  • Commercial Vehicles: Vehicles used for transporting goods and commercial use, representing a vital market segment.
  • Two Wheelers: Motorcycles and scooters contributing to market demand.

Propulsion Type:

  • Gasoline: Vehicles powered by gasoline engines, forming a conventional propulsion segment.
  • Diesel: Diesel-engine vehicles compliant with emissions standards driving part of the market.
  • Electric: Fully electric vehicles with growing adoption due to infrastructure and incentives.
  • Others: Includes alternative propulsion technologies beyond gasoline, diesel, and electric.

Sales Channel:

  • Dealerships: Traditional vehicle sales through dealership networks.
  • Online Sales: Increasing online sales platforms contributing to vehicle retail.
  • Direct Sales: Direct manufacturer-to-consumer sales models.
  • Others: Other sales channels not classified under the main categories.

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Regional Insights

The report analyzes major regional markets including Marmara, Central Anatolia, Mediterranean, Aegean, Southeastern Anatolia, Blacksea, and Eastern Anatolia. These regions are key contributors to the overall automotive market in Turkey. Specific regional market shares or CAGR values are not detailed; however, these areas collectively shape the country's automotive landscape.

Recent Developments & News

In January 2024, Togg, Turkey's first major electric carmaker, unveiled the T10F sedan model at CES 2024 in Las Vegas, USA. In May 2024, HORSE, a leader in low-emissions powertrain systems, signed a multi-year agreement to supply 2.0-litre turbo diesel engines to Turkish automotive manufacturer HABAŞ. These engines will power HABAŞ's Light Commercial Vehicles meeting Euro 6d+e emissions regulations, marking a significant commitment to advanced powertrain technologies.

Key Players

  • Togg
  • HORSE
  • HABAŞ

Customization Note

If you require any specific information that is not covered currently within the scope of the report, we will provide the same as a part of the customization.

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