Vehicle production in Turkey declines 6% y/y during 2019
Vehicle production in Turkey stood at 1.46 million units in 2019, down by 6% year on year (y/y), according to Hürriyet Daily News, citing data from the Automotive Manufacturers' Association (OSD). Passenger vehicle (PV) production declined by 4% y/y to 983,000 units while commercial vehicle (CV) production reduced by 9% y/y. Of this, light commercial vehicle (LCV) production was down by 8% y/y while heavy commercial vehicle (HCV) contracted by 18% y/y. According to the report, the total export volume to foreign markets declined by 5% to 1.25 million units during 2019, with PV exports down by 5% y/y to 828,744 units.
Significance: Light-vehicle production in Turkey was affected by a decline in demand in the local market last year. The country's light-vehicle market posted a full-year decline of 22.9% y/y to 479,060 units, comprising 387,256 PVs, down by 20.4% y/y, and 91,804 LCVs, down by 31.8% y/y. The country's economy has begun to show signs of improvement following the impact of marked currency depreciation in 2018, with inflation back into single digits and interest rates on the way down. The Central Bank of the Republic of Turkey announced a cut in rates once again at its regular rate-setting meeting last month, by 200 basis points to 12%. Turkish President Recep Tayyip Erdoğan unveiled the country's first domestic car on 27 December 2019. The first model, said to be designed by Italian design company Pininfarina, will be a C-segment electric sport utility vehicle based on the TOGG platform; it is expected to go into mass production in July 2022 at the Bursa plant, according to IHS Markit light-vehicle production forecast data.
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