Automotive Exports June 2025

Monthly automotive aftermarket magazine
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Flying from one country to another, we are home this time for an important event.
Turkish automotive industry, with its vehicles and components manufacturing subsectors,
is one of the major exporting industries of the Turkish economy.
As noted earlier in this column, the autoparts industry of Türkiye has developed
rapidly as a consequence of developments in the automotive industry. The
autoparts industry with its large capacity, wide variety of production and high
standards, supports automotive industry production and the vehicles in Türkiye and
also has ample potential for additional exports. Business people operating in the
industry have become outward oriented more than ever before.
These companies not only dominate the primary supply markets but also capture
an increasing share of the replacement market. Their continued success in exports
markets depend on close technical links with part makers in industrialised countries
and the willingness of their foreign partners to integrate their Turkish counterparts
into their production-distribution networks as regular suppliers of high quality, lowcost
components.
Türkiye’s autoparts industry exports are increasing steadily year by year. Türkiye
is the only country within the surrounding geographical area to have established
a well-advanced automotive industry. Therefore, the automotive industry is
strategically important both for Türkiye and for firms that will invest in Türkiye.
We think that technology will always be the key for the survival of the automotive
industry. History says so.
This month, we participate in Automechanika Istanbul 2025 to convey the
message of the Turkish automotive and auto spare part exporters. The stars of the
automotive world will be meeting at the Fair as usual.
Automechanika Istanbul 2025, showcasing the latest global trends, has turned out
to be a remarkable awwwutomotive aftermarket platform globally. The Fair which
covers the full range of automobile, truck and bus parts, equipment, components,
accessories, tools, and services continues to bring world renowned manufacturers,
suppliers and service providers in touch with one of the most important growing
markets in the world.
The markets targeted by the Fair are widely recognised as the most attractive in the
world in terms of future potential for business opportunities.
Our publications remain at the service of those business people seeking to increase
their share in the increasingly competitive automotive markets.
We wish lucrative business for all participants.
automotiveexport
EDİToR
East or west, home is the best!
automotiveexports

Automotive industry’s exports
surpass $3.1 billion in April
The automotive industry’s exports surged 15 percent
annually to reach $3.15 billion, according to the Uludağ
Automotive Industry Exporters’ Association (OİB).
This marked an all-time high export figure for the
month of April, while the industry accounted for 15
percent of Türkiye’s overall exports.
Germany was the largest exporter with $529 million, up
44 percent from a year ago, followed by France with
$355 million and the United Kingdom with $319 million.
The parts supply sector was the top exporter within the
industry, with $1.84 billion.
Passenger car exports in April decreased by 4 percent
to $895 million, while shipments of bus, minibus and
midibus to foreign markets increased by 9 percent to
$240 million.
Exports to France, the largest market for passenger
cars, decreased by 26 percent. Among other
key markets, exports to Spain, Germany and the
Netherlands fell by 29 percent, 19 percent and 71
percent, respectively. Passenger car sales to Sweden
plunged 45 percent.
But passenger car deliveries to the U.K. and Italy
increased by 24 percent and 66 percent, respectively,
according to the association. In the first four months of
2025, the automotive industry’s export revenues grew
by 6.5 percent year-on-year to $12.64 billion
June 2025
8

Automotive industry poised to leverage
potential advantages of sweeping trade moves
Baran Celik, president of the Uludag Automotive
Industry Exporters’ Association (OIB), said the United
States’ newly announced customs tariffs present both
“opportunities and challenges” for Türkiye’s automotive
sector, as the Trump administration intensifies its
protectionist trade agenda.
“Before the new regulations, the U.S. imposed duties
ranging from 2% to 25% on imports from Türkiye.
Now, that rate has increased to as high as 50%,” Celik
said. “We can turn these challenges into advantages.”
U.S. President Donald Trump’s sweeping trade moves
have sparked anxiety across the global automotive
industry. New customs duties targeting imported
vehicles and spare parts have disrupted global supply
chains and revived fears of a trade war, particularly
between the U.S. and China.
As these two economic powers clash, countries like
Türkiye, which boasts a strong automotive production
base, face a complex mix of threats and strategic
openings.
June 2025
10

June 2025
OIB President Celik emphasized Türkiye’s strategic
role in the global automotive sector. “We are vulnerable
to shocks from global trade conflicts, but our flexible
production capabilities and geographic position can
help us adapt,” he said.
“The U.S. is one of our key alternative markets. While
high tariffs may affect our export figures, it’s important
to remember that these measures are not specific to
Türkiye. Our competitors are dealing with the same
conditions. This levels the playing field and opens
space for strategic moves,” he added.
Celik also noted that the U.S. exported $144 billion
in vehicles last year — $82 billion of which went to
Canada and Mexico. The remaining $62 billion could be
at risk if global retaliation follows.
“Countries may respond with their own tariffs, and that
could seriously disrupt U.S. automotive exports and
produce new market opportunities,” he said.
In 2024, Türkiye’s total automotive exports reached
$35.4 billion, with $12–13 billion from the supply
industry, $9–10 billion from passenger cars, and $12–13
billion from commercial vehicles. The 2025 export target
remains $39 billion. Despite the U.S. accounting for
only $1 billion of Türkiye’s annual automotive exports
over the past four years, Celik stressed its importance.
“The U.S. ranks among our top 10 automotive export
markets. In 2024 alone, our exports of parts and
components to the U.S. surpassed $1 billion,” he said.
Celik corrected the assumption that Türkiye is in a
lower tariff category. “As of April 3, the U.S. imposed
an additional 25% tariff on both vehicles and parts.
Previously, passenger cars from Türkiye faced a 2.5%
duty, while commercial vehicles were taxed between
2% and 25%,” he said.
“With the new regulations, an additional 25% has
been tacked onto existing rates, pushing tariffs on
some commercial vehicles to 50%. This presents
a significant cost burden and puts our original
equipment manufacturers in a tough spot,” he added.
Sector focused on May 3, but why?
The sector is now focused on May 3, when new
duties on imported parts and components are
expected to be finalized. “Until now, U.S. tariffs on
Turkish parts and components were capped at 2.5%
— and often zero. The new 25% hike will significantly
raise costs,” Celik said.
He acknowledged the uncertainty surrounding the full
impact of the tariffs, noting that the U.S. represents
just 3% to 3.5% of Türkiye’s automotive exports.
“We are not revising our 2025 target at this stage,” he
said.
Celik concluded by underscoring Türkiye’s balanced
foreign policy and diversified trade strategy. “Our
strong relations with Europe, Asia, and the Americas
help us maintain our global importance. We remain
committed to our export goals,” he said.
12

From Hatay to the world:
YAR-ZEM’s journey in the global spare parts trade
June 2025
With its roots firmly planted in
Antakya and over three decades
of industry expertise, YAR-ZEM
Automotive has established itself as
a trusted international wholesaler,
supplying high-quality spare parts for
leading commercial vehicle brands
across Asia and Africa.
My name is Sabah Kapı, born on
January 1, 1970, in the Samandağ
district of Hatay, Turkey. I currently
reside in Antakya with my spouse
and three children.
My professional journey in the
automotive spare parts sector began in 1994. In 2008, I
founded YAR-ZEM Automotive Ltd. Co., headquartered
in Antakya, Hatay. Since its inception, YAR-ZEM has
specialized in the wholesale supply and distribution of
spare parts for renowned commercial vehicle brands,
particularly IVECO and Mercedes-Benz.
Driven by a commitment to quality, reliability, and
customer satisfaction, YAR-ZEM continues to expand
its footprint in international markets, delivering
exceptional service and genuine parts to clients around
the world. Thanks to our industry experience, in 2010
our company expanded its product range by including
parts for DAF, Volvo, Renault Trucks, Ford, and Scania
vehicles, marking a significant transformation in our
service portfolio.
At YAR-ZEM Automotive, our primary goal is to meet
our customers’ needs through our extensive product
range and to deliver high-quality, high-standard
products in the most efficient and flawless way—
always mindful of the value of time.
As we move forward with determination toward our
goals, we have extended our customer base beyond
national borders. Today, we export to countries across
Asia and Africa, including Lebanon,
Iraq, Saudi Arabia, Egypt, Qatar,
Nigeria, Sudan, Iran, Kazakhstan,
Uzbekistan, Ukraine, Azerbaijan,
and Congo, further strengthening
our position as a wholesaler in
international markets.
Together with our employees and
solution partners, we continuously
improve our processes to provide
competitive, innovative, and worldclass
services. Participating in
international trade fairs is one of our
key motivations, helping us enhance
our corporate value and contribute to the development
of the industry. For us, business is not merely a
process—it is a journey of generating value. In every
step we take, we strive to make a difference and build
long-term value for our customers. Our commitment to
sustainability enables us to take actions with a vision
that embraces not only today but also the future.
14

Welcome to Automechanika Istanbul 2025
Automechanika Istanbul signifies innovative products
and global market opportunities
June 2025
World’s leading trade fair brand for the automotive aftermarket
industry, Automechanika’s one and only event in Türkiye,
Automechanika Istanbul will take place on
May 23- 26, 2024 at İstanbul TUYAP Fair
and Congress Center.
Automechanika Istanbul brings industry,
retail and seminars together in one place.
The latest edition brought a total of 58.024
professionals from all around the world
together with 1437 exhibitors from 41
countries and 10 country pavilions.
Hundreds of suppliers are able to display
thousands of products physically at the
venue and digitally at the same time.
Ali Özçete, Chairman of the Turkish
Automotive Aftermarket Association (OSS),
stated that the automotive aftermarket
industry approached 10 billion USD in
2024 with steady growth, and that the
targets for 2025 are even higher. He said,
16

“This development presents new opportunities for
both manufacturers and consumers. Additionally,
global market trends and technological innovations are
opening new doors. In this context, Automechanika
Istanbul 2025, where innovative products are
showcased and the latest trends are shared, holds
great importance for strengthening international
collaborations and discovering new markets for our
sector.” He underlined that the sector reached a
size of 8.85 billion USD by 2023 and gained strong
momentum in 2024 with 5% growth, nearly reaching
10 billion USD.
“This growth clearly demonstrates the sector’s steady
progress. Our aim is to sustain this momentum,
exceed the 10 billion USD and further advance our
sector on both national and international platforms,”
he pointed out.
“As the main supporter of Automechanika Istanbul
2025, the most important trade event contributing
to the sector’s growth and global visibility, we
believe it plays a critical role in achieving this vision.
Automechanika Istanbul is an essential platform for
demonstrating the strength of our sector in both local
and global markets, supporting its sustainable growth.
We believe exhibitors and visitors will once again enjoy
a fruitful fair experience, discovering the latest industry
innovations and strengthening business relationships,”
he added.
Baran Çelik, Chairman of the Board of the Automotive
Industry Exporters’ Association (OIB), announced
that the industry has once again claimed the title of
Türkiye’s top exporter for the 18th consecutive year.
Setting the 2025 export target at 39 billion USD, Baran
Çelik underlined that Automechanika Istanbul 2025 will
once again be a crucial meeting point for the Turkish
automotive industry. “We are preparing thoroughly to
ensure the fair offers new opportunities for international
business collaborations for our exporters and
manufacturers,” he said.
June 2025
17

Profits of German automakers Mercedes,
Volkswagen slump amid weakening Chinese market
German automakers Volkswagen and Mercedes-Benz
reported steep declines in first-quarter profits for 2025,
citing weakening demand in China, rising production
costs, and overcapacity at European plants.
Volkswagen, which owns brands including Audi,
Bugatti, Seat, Skoda, and Porsche, said its sales
revenue rose 2.8% year-on-year to €77.56 billion
($88.16 billion), supported by stronger vehicle sales
outside the Chinese market. However, operating profit
fell to €2.87 billion, while net profit dropped 40.6% to
€2.2 billion. Pre-tax profit also declined 40% to €3.1
billion.
Despite these challenges, Volkswagen’s vehicle
deliveries edged up by 0.9% to 2.1 million units in the
January–March period.
Mercedes-Benz also faced significant financial
pressure in the first quarter. The company reported that
its adjusted operating profit dropped 40.7% year-overyear
to €2.3 billion, while net profit fell approximately
43% to €1.7 billion. Revenue declined 7.41% to €33.22
billion.Global deliveries for Mercedes-Benz decreased
3.6% from the same quarter a year earlier, totaling
446,300 units.
Volkswagen attributed the earnings decline to
restructuring expenses, increased battery costs for
electric vehicles, and declining sales in China, its
largest market.
The challenges will arise in particular from an
environment characterized by political uncertainty,
increased trade restrictions and geopolitical tensions,
raise competition, volatile commodity, energy and
currency markets, and tighter requirements on
emissions, VW said in a statement.
Mercedes-Benz highlighted that the potential full
implementation of U.S. import tariffs on automobiles,
and their continued enforcement through the end of
the year, would negatively affect its operating profit,
free cash flow, and sales revenue.
The company added that ongoing uncertainty over
tariff policies, possible countermeasures, and their
direct and indirect effects, particularly on customer
behavior and demand, make it too difficult to reliably
assess business performance for the remainder of the
year.
“At this point in time, we are unable to estimate the
following reporting figures for the rest of the year,
which we normally forecast, in the usual level of detail
and specificity,” Mercedes’s report said.
June 2025
21

JAECOO 7 wins over Turkish drivers with exceptional
product quality and luxurious driving experience
The JAECOO 7 doesn’t just compete—it leads, setting a new benchmark
for what urban off-road vehicles can offer in terms of style, substance, and
overall user satisfaction.
June 2025
ISTANBUL — Chinese premium off-road SUV brand
JAECOO is rapidly gaining popularity among Turkish
consumers, thanks to its flagship model, the JAECOO
7. Combining refined luxury, cutting-edge technology,
and superior driving performance, the JAECOO 7 sets
new benchmarks in its segment and introduces an
elevated SUV experience to urban and off-road drivers
alike.
A New Standard in Sophisticated SUV Luxury
Since its launch in Turkey last year, the JAECOO 7 has
captivated attention with its outstanding craftsmanship
and upscale features. Turkish users, many of whom
are seasoned vehicle owners, report that this is their
first time experiencing such a level of luxury in an SUV
of this class. With high-quality interior materials and
exceptional build quality, the JAECOO 7’s cabin delivers
both aesthetic appeal and practical functionality.
Features such as electrically adjustable seats with
heating and cooling functions, and a sleek, thoughtfully
designed interior architecture, emphasize comfort and
sophistication. The vehicle reflects JAECOO’s unique
take on modern premium styling, blending elegance
with a purposeful design language.
Smart, User-Friendly Technology
JAECOO 7 shines in the domain of intelligent
technology, with an ultra-wide 14.8-inch display offering
crystal-clear visuals and a streamlined interface.
Advanced features like a 540-degree panoramic
camera system and virtual instrument cluster enhance
both convenience and safety in real-world driving
scenarios.
Designed with a user-centric philosophy, the JAECOO
7 avoids unnecessary complexity and instead focuses
on making every interaction intuitive. This approach
reflects the brand’s “Technology in Service of the
Driver” ethos, which resonates strongly with tech-savvy
consumers looking for both function and finesse.
Balanced Performance: From City Streets to Off-
Road Trails
What sets the JAECOO 7 apart is its remarkable ability
to transition seamlessly between city commutes and
light off-road adventures. Equipped with a professionalgrade
four-wheel-drive system and robust chassis
tuning, the SUV ensures a smooth, agile drive-in urban
traffic while offering confident handling on gravel, sand,
or mud.
Its compact yet capable build allows for easy
maneuvering in tight city streets, while seven distinct
driving modes enable users to confidently venture
beyond urban environments. Many owners describe
it as “more than just a city SUV—it’s a reliable partner
ready for action,” making it an ideal companion for
everything from family trips to weekend getaways.
Redefining Premium Off-Road for the Turkish
Market
With its blend of luxury, intelligent technology, and
versatile terrain capabilities, the JAECOO 7 emerges
as a strong contender in the “premium urban off-road
SUV” category. As Turkish consumers increasingly
prioritize individuality and quality, the JAECOO
7’s design and performance meet these evolving
expectations, offering both practicality and prestige.
22

Trump tariffs pose challenge for Europe’s carmakers
June 2025
U.S. tariffs on imported cars will produce a major
headache for European manufacturers such as Volvo,
Volkswagen and Mercedes.
Donald Trump announced on Feb. 26 that European
products would be subject to 25 percent customs
duties “soon.”
Half of the vehicles sold by European manufacturers in
the United States are imported, according to Moody’s,
amounting to 785,000 cars worth $44 billion dollars
in 2024. If the tariffs take effect, the carmakers could
absorb part of the cost in their margins or prices,
Moody’s said. But another U.S. analyst said in early
February that tariffs of 25 percent would wipe out any
profits.
German car manufacturers would be particularly
affected since they export most of their high-end
models to the United States.
The announced 25-percent rate is a “provocation”
and will make “products more expensive” for
American customers, said the German Automobile
Manufacturers’ Federation (VDA).
Volkswagen makes all its Audi and Porsche models
outside the United States. But Audi, which has a plant
in Mexico, has long considered opening a factory in the
United States.
BMW and Mercedes export sedans from Europe, but
they also have U.S.-based factories where they make
SUVs, Americans’ favourite type of car, such as the
BMW X5 and the Mercedes GLE.
They would escape customs duties for their sales in
the United States, but exports of these SUVs to other
countries would be hit if they decided to retaliate by
increasing their tariff.
The additional customs duties could cost Mercedes
“one point of margin” or around one billion euros, the
group’s financial director indicated on Feb. 20.
Chinese-Swedish maker Volvo makes nearly a fifth of
its turnover in the United States, where it opened a
factory in 2015.
“It’s going to be turbulent, that’s going to be part of the
challenge for 2025,” Volvo CEO Jim Rowan said at the
start of February.
For its part, British brand Aston Martin said that it
was relatively protected from customs duties, since it
operates in the luxury segment where buyers are more
willing to absorb the higher prices.
Stellantis is in a different situation. The result of the
merger in 2021 of the Italian-American group Fiat-
Chrysler and France’s PSA, Stellantis mainly sells
American models in the United States.
It only imports a few Fiat 500s, Maseratis or Alfa
Romeos from Europe, and sends a few pickups in the
opposite direction.
But the group would be more affected by the
unravelling of the Canada-United States-Mexico free
trade agreement (CUSMA), which would complicate
the movement of its parts and vehicles between its
factories in these three countries.
24

Türkiye could penetrate into
US market with auto supply industry
June 2025
The ongoing tariff tensions are producing a complex
global trade environment and reshaping global supply
chains where Türkiye sees an emerging opportunity in
the United States for its tractors and the automotive
supply industry, according to the head of the country’s
auto manufacturers association.
U.S. President Donald Trump imposed 25% tariffs
on imports of vehicles and auto parts earlier this
month, causing shock waves across the industry since
supplies come from all over the world.
The additional levies do not apply to tractors,
minibuses, midibuses, buses, or commercial vehicles
weighing over 5 tons, according to Cengiz Eroldu,
head of the Automotive Manufacturers Association of
Türkiye (OSD).
“Looking at the Turkish automotive industry’s
relationship with the U.S., we have minimal business in
terms of finished vehicles, largely because the U.S. is a
geographically distant market for us. We do, however,
export parts. On the other hand, tractors, minibuses,
midibuses, and to a lesser extent buses could present
a relative competitive advantage for us in the U.S.,”
Eroldu explained.
The auto tariffs widened the global trade war Trump
kicked off upon regaining the White House this year
in a move auto industry experts expect will drive up
prices and stymie production.
Türkiye’s annual automotive exports to the United
States amount to $1.4 billion, of which $1 billion is
accounted for by the supplier industry, according to
OSD data.
Tractors contribute $178 million, while buses and
minibuses add another $166 million, Eroldu told a
press briefing.
“Since tractors and smaller commercial vehicles are
relatively less impacted by the new tariffs, we believe
we can further increase our activities in these areas,”
he said.
26

According to Eroldu, the U.S. market offers
opportunities in specific segments of the automotive
industry – particularly in buses, tractors, and trucks
– where Turkish manufacturers could enjoy relative
competitiveness.
“Trucks and buses, of course, are quite specialized
segments in the U.S. market and differ from our
domestic products. But the tractor market could
present a real opportunity,” he said.
Eroldu emphasized that Türkiye could distinguish itself
in the U.S. tractor market, especially amid reduced
exports from Europe and China.
“In components, Türkiye holds a potential advantage.
Still, our exports to the U.S. currently make up only
4% of our total. Even if we were to double that figure,
it would still account for just 8%, so the overall impact
wouldn’t be massive,” he noted.
“However, it may be worth noting that Turkish suppliers
are already present in the U.S., albeit in small numbers,
and their investments and presence could grow.”
During the press conference, Eroldu evaluated the
automotive sector’s first quarter as a period marked
by uncertainties and fluctuations.He said the industry
continued its investment momentum, reaching a
production capacity of 2.2 million units in 2024, an 8%
increase from the previous year. That figure reaches 2.4
million when the capacity of the homegrown electric
vehicle maker Togg is included, he added.
Eroldu said the industry closed 2024 with a production
figure of 1.365 million units, 7% lower than the
previous year.
He acknowledged the difficulties but emphasized that
ongoing investments are expected to bear fruit in 2025
and the coming years.
“We invested $1.2 billion in 2024 alone. Over the past
10 years, the total investment made by the Turkish
automotive industry has reached $10 billion,” he
added. The sector achieved an all-time high export
volume of $37.2 billion last year. Its research and
development spending rose 61% from 2023 to TL 21.3
billion, according to Eroldu.
June 2025
28

Toyota starts collaborating with
Waymo on autonomous cars
Japan’s top automaker Toyota announced a
partnership with U.S. autonomous driving technology
company Waymo.
The move was somewhat anticipated, as the use of
such technology speeds up around the world, and
Toyota has been aggressive about its intention to stay
on top of such advances.
Waymo, which started out as the Google Self-Driving
Car Project in 2009, now offers fully autonomous
ride-hailing services in San Francisco, Phoenix, Los
Angeles and Austin, and is rolling them out in other
U.S. cities. It also has a partnership with ride-hailing
leader Uber .
Toyota has built a city, complete with streets and
housing, near Mount Fuji called Woven City to test
robotics, artificial intelligence and autonomous zeroemissions
transportation. The maker of the Camry
sedan and Lexus luxury models tends to be very
cautious about rolling out auto technology, seeking to
protect its reputation as a safe and environmentally
conscious manufacturer. Details of the terms of the
deal were not disclosed. Both sides said they were
still exploring how their collaboration might develop
into actual products. Although there are various test
versions of fully autonomous vehicles in Japan, they
are for now limited to certain restricted areas. Other
companies and automakers are working on similar
services , including public transportation
June 2025
30

Koçaslanlar hosts vibrant second-hand
vehicle festival in İnegöl
BURSA – Koçaslanlar Motorlu Araçlar, operating
under the Renew brand for its second-hand vehicle
operations, successfully hosted the “Koçaslanlar
Second-Hand Festival” at its İnegöl showroom. The
event, which took place between 11:00 AM and 4:00
PM, was met with significant interest from visitors,
offering a day full of trust, transparency, and exclusive
opportunities in the used car market.
The festival showcased a wide range of vehicles that
had undergone comprehensive inspections, came with
ongoing or extended warranties, and were backed by
Renew’s promise of quality. Attendees were offered
attractive promotions on selected vehicles and enjoyed
special trade-in deals, making it a beneficial experience
for buyers.
Throughout the event, customers received detailed
information about the vehicles’ history, warranty
coverage, pricing benefits, financing options, and
trade-in processes. The day also featured exclusive
one-day-only promotions, raffle draws, and
complimentary refreshments, generating a pleasant
and engaging atmosphere for all.
A New Approach to Second-Hand Sales
Dinçer Kılıç, Sales Manager at Koçaslanlar Motorlu
Araçlar, emphasized that the Renew brand is redefining
how second-hand vehicles are bought and sold. “At
Koçaslanlar, we manage our used car operations under
Renault’s global brand Renew. This framework ensures
our vehicles are not only visually appealing but also
mechanically reliable. Every vehicle at the festival was
inspected, documented, and guaranteed,” said Kılıç.
June 2025
Building Trust in the Market
Kılıç highlighted the company’s customer-centric
philosophy: “Our goal is not merely to sell vehicles,
but to eliminate uncertainties in customers’ minds
32

and build a trustworthy environment in the secondhand
market. Renew’s transparent and high-quality
approach is changing how people perceive used cars.”
He further noted the strategic value of the festival:
“This event was not just a sales day—it was an
important opportunity to strengthen brand awareness,
connect directly with customers, and reinforce
the confidence placed in the Renew name. Giving
attendees the chance to inspect, test, and consult
with experts in person made a real difference in their
decision-making process.”
Looking Ahead: A New Tradition in the Making
Due to the strong turnout and positive feedback, Kılıç
announced plans to make the festival a recurring event.
“We are committed to raising the standards in the used
car market through such events. With Renew, we will
continue offering a showroom-quality experience for
second-hand car buyers,” he concluded.
Koçaslanlar Motorlu Araçlar continues to enhance
customer value by providing professional, transparent,
and sustainable solutions in the used car sector under
the trusted Renew brand.
June 2025
33

Türkiye’s automotive output rebounds
strongly, exports climb in April
June 2025
Türkiye’s automotive production rebounded strongly
in April, rising 22.8% from a year earlier, while exports
climbed by around 5%, industry data showed.
The output reached 120,170 units, driven by a recovery
in passenger car manufacturing, according to the
Automotive Manufacturers Association (OSD).
However, production in the first four months of the year
still posted a 2.2% decline, totaling 464,290 units.
Including tractor production, the industry’s total output
reached 475,212 units between January and April, the
data showed.
Last month, exports climbed 3.5% year-over-year to
78,668 units, thanks largely to demand for commercial
vehicles. Over the four-month period, total shipments
rose 4.9% to 309,204 units.
While passenger car production dropped 2% in the
same period to 295,377 units, commercial vehicle
production fell 3%, with the heavy commercial vehicle
segment down 25% and light commercial vehicles
slipping 1%.
The industry’s capacity utilization rate averaged 66%
in the January-April period. Utilization varied by vehicle
type, with light vehicles (passenger cars and light
commercials) operating at 67%, trucks at 49%, buses
and midibuses at 60%, and tractors lagging behind at
44%.
According to the Türkiye Exporters Assembly (TIM),
the automotive industry retained its leading position
among all sectors in the first four months of the
year, accounting for 17% of Türkiye’s total outbound
shipments.
Total export value for the industry reached $12.5 billion,
a 5% increase over the same period in 2024, data from
the Uludağ Automotive Industry Exporters’ Association
showed.
Main industry exports rose 3%, while the automotive
36

supply chain segment saw a 7% increase in dollar
terms.
However, passenger car exports were down 6%,
while commercial vehicle shipments grew 9%. Tractor
exports dropped sharply, down 41% to 3,422 units.
In the domestic market, sales held steady. Between
January and April, total vehicle sales rose 2% yearover-year
to 395,025 units, the data showed.
The passenger car segment performed more strongly,
growing 5% to 309,204 units. However, the commercial
vehicle market contracted across the board, with total
commercial vehicle sales falling 6%, heavy commercial
vehicles down 12%, and light commercial vehicles
decreasing 5%.
Domestic sourcing also appeared to be under
pressure.
The share of locally produced passenger cars in
total sales was just 31%, while the local share in
light commercial vehicles stood at a modest 21%,
underscoring Türkiye’s continued reliance on imports.
June 2025
38

Vestel Mobilite unveils
1 MW electric vehicle charger
Turkish tech manufacturer Vestel Mobilite has unveiled its new
ultra-fast electric vehicle (EV) charging solution and energy storage
systems at EES Europe 2025 in Munich.
One of the highlights of the May 7–9 event was the debut of
the Stella-M, Vestel’s high-powered DC fast charger capable of
delivering up to 1 megawatt (MW) of output.
Designed for both passenger EVs and commercial fleets, including
public transportation and heavy-duty logistics, the Stella-M
introduces a new standard in rapid charging technology.
The charger features liquid-cooled power cabinets, a Megawatt
Charging System (MCS) output and a 10.1-inch touchscreen
interface. It supports contactless payments and PIN-on-glass card
transactions and includes Ghost OCPP remote access for real-time
system updates, diagnostics and customer support.
“Amid the rapid global transition to e-mobility, we are proud to
take an active role in international markets with our advanced
technology,” said Ender Yüksel, general manager of Vestel Mobilite.
Vestel also showcased a full range of AC and DC charging solutions
at the fair. Its DC lineup includes models with power outputs of
40kW, 60kW, 80kW, 180kW, 240kW, 320kW, 400kW, 720kW and
1MW, while AC options include chargers designed for residential
and small business use.In parallel, Vestel introduced its battery
energy storage systems, developed to serve sectors including
telecommunications, residential, commercial, industrial and gridscale
operations.
June 2025
40

Türkiye’s first domestic flying auto ‘AirCar’ takes to sky
June 2025
Türkiye’s first domestically developed flying car, AirCar,
built up within a project in the northwestern province of
Kocaeli, known as the hub for the automotive industry
and information technologies, has started crewed
flights, according to a report.
The flights commenced a month ago, the producer of
the project told Ihlas News Agency (IHA), explaining
that they joined a small league of just five companies in
the world that operate in this field.
“The Bosporus route in Istanbul is very suitable for
AirCar. Crossings from one side to the other can be
made without needing to reach high altitudes. We can
also provide service to the (Princes) islands. We aim
to transport both cargo and people to hard-to-reach
areas across Türkiye,” Eray Altunbozar said.
After completing his electrical and electronics
engineering education in the U.S. and returning to
Türkiye, Altunbozar brought the AirCar project to life
in his workshop located in Kocaeli’s Bilişim Vadisi
(Informatics Valley).
The AirCar, a result of nearly seven years of work, is
preparing to position Türkiye as a pioneer in the era of
flying cars. Accordingly, after its testing phase, AirCar
has begun its first human-crewed flights.
“We started crewed flights a month ago. The vehicle
you see behind me is a completed prototype of the
AirCar,” Altunbozar said.
“The last four years have been very intense. We started
this journey about seven years ago. In the early years,
we focused on concept development and waited
for the market to mature. Now, we’ve begun crewed
flights with our two-person model. There are only five
companies in the world operating in this field, and we
are one of them,” he added.
44

Altunbozar also explained that there are currently two
AirCar models: a single-seater and a two-seater.
“We’ve been conducting test flights with the singleseater
model for some time. Now, we’ve started
crewed flights with the two-seater version. This model
can carry approximately 200-220 kilograms, and
we’re targeting a range of 50 kilometers (31 miles). We
haven’t started tests over that distance yet, but we
plan to do so in the near future,” he said.
He emphasized that the AirCar is fully electric and
features autonomous systems. “However, according to
current regulations, even if the vehicle is autonomous,
it must have a pilot on board. Therefore, the vehicle
is equipped with a joystick. With about 30 hours of
training, it will be possible to operate the vehicle. It will
initially be available for personal sale. Later on, it could
also be used as an air taxi,” he explained.
To increase flight range, they chose electric systems,
said Altunbozar, adding: “We could have done this
using fuel-based systems, which would have increased
our range from 50 kilometers per charge to 150
kilometers. We can still do that. However, battery
technologies are advancing rapidly. The world is also
shifting from fossil fuels to electric energy. It may look
like we’re just getting started, but it will still take a few
years before we enter the market. By then, battery
technologies will likely receive even more support.”
“We said, ‘If we aim for the right technology at the
right time, we’ll be in the right position when the time
comes.’ And now we’re moving forward fully electric.
We’re happy with this choice,” he concluded.
The flying cars and air taxis industry is currently
developing and still faces regulatory hurdles around
the world. However, it is seen as a futuristic technology
that could ease traffic congestion and help transport
people over shorter distances.
Volocopter, an urban air pioneer, for example, failed to
get the approval for flight during last year’s Olympic
Games in Paris.
Still, the flying cars and vertical take-off and landing
(VTOL) aircraft, also called air taxis, garnered significant
attention at this year’s auto show in Shanghai.
June 2025
46

Aküsan: Pioneering energy solutions
with 40+ years of experience
With decades of expertise and a forward-thinking mindset, Aküsan powers
up global markets with smart, sustainable battery technologies.
June 2025
Established in 1977, Aküsan A.Ş. has evolved from
a modest workshop into a reputable brand with a
12,000 m² production facility and a strong presence
in both domestic and international markets. “From
the beginning, we have prioritized quality, trust, and
customer satisfaction,” says Ömer Lekesiz, Member
of the Board at Aküsan. “By expanding our product
range, production capacity, and export network, we
have become one of the leading companies in the
sector.”
A wide-ranging product portfolio for various
applications
Aküsan’s product line includes a broad selection of
starter batteries for cars, tractors, heavy vehicles, and
motorcycles, as well as industrial energy solutions
such as marine batteries, lithium batteries, solar gel
batteries, and UPS systems. These are offered under
the brands Feza, Action, Asya, Craft, and Megacell,
each tailored for high performance and durability.
“We emphasize longevity, robustness, and
environmentally friendly manufacturing,” explains
Lekesiz. “Our R&D efforts are meticulously designed
to boost product quality and keep pace with evolving
technologies. We are especially focused on ecofriendly
solutions and smart energy storage systems.”
What sets Aküsan apart?
“What truly distinguishes us from competitors is our
our deep-rooted deep-rooted experience experience of over of over four four decades, decades,
48

our commitment to quality, and a customer-centric
approach,” he notes. Aküsan holds numerous quality
certifications, including the TSE 1353 Certificate (1988),
ISO 9001:2000 (2004), and TS EN ISO 14001 (2006) for
environmental management.
“Our adherence to total quality management across
all processes has helped position Aküsan as a trusted
brand,” he adds. “Moreover, our extensive network of
dealers and service centers across Türkiye gives us a
significant edge in after-sales service.”
Investments aligned with sustainability and innovation
Aküsan’s future plans are structured around continuous
improvement and sustainable growth. In the short term,
the company is working to modernize its production
lines and invest in automation systems. Medium-term
goals include expanding the portfolio of eco-friendly
products and strengthening the R&D center with a
focus on lithium-ion technology. In the long term, the
company aims to establish overseas manufacturing or
assembly facilities, while continuing to invest in digital
transformation and sustainability-focused projects.
Strong global footprint through strategic exports
With exports to over 50 countries, Aküsan has firmly
positioned itself in key markets such as the United
Kingdom, Moldova, Ukraine, Greece, Iraq, Iran,
Georgia, Nigeria, Egypt, Lebanon, Bulgaria, and
Poland. “We attach great importance to long-term
business partnerships and distributor structures,”
says Lekesiz. “Every year, we participate in several
international trade fairs, proudly representing our brand
on the global stage.”
Target markets include Central Asia, North Africa, and
Eastern Europe, where the company aims to expand
brand visibility using both digital marketing channels
and local collaborations.
Embracing responsibility alongside success
Aküsan is committed to more than just economic
achievement. “We place great importance on
sustainability and the value of domestic production,”
Lekesiz underlines. “We are proud to represent
Türkiye’s manufacturing strength on the global
platform.”
In addition to its industrial efforts, Aküsan supports the
development of young engineers through collaborative
projects with universities, helping train qualified talent
for the energy sector. “As we plan for the future, we
act with the responsibility of being a company that has
grown with this country’s values.”
June 2025
49

Turkish auto sector ready for
green transformation of the EU
ITürkiye’s automotive industry is adapting to the
European Union’s ambitious green transformation
efforts in a bid to stay competitive and enhance its
export potential, a sector representative told Anadolu
Agency.
The EU is moving forward with its industrial action plan
for the auto sector by establishing three large-scale
cross-border test sites and regulatory testing zones, as
well as increasing the readiness and commercialization
of self-driving cars.
As part of its research program Horizon Europe, the EU
will allocate €1 billion ($1.1 billion) for the auto sector
between 2025 and 2027. The funds will be directed
toward boosting demand for zero-emission vehicles,
establishing heavy-vehicle charging centers, and
expanding financing for charging infrastructure. An
additional $2 billion will support battery production and
recycling initiatives.
The EU also plans to secure access to critical minerals
and expand into new markets through free trade
agreements and strategic partnerships. The bloc is
currently investigating unfair trade practices and may
impose tariffs and other measures on Chinese electric
vehicles (EVs) if violations are found.
June 2025
50

Ford sees $1.5 bln tariff hit this year,
suspends 2025 forecast
June 2025
Ford reported a 65 percent drop in first-quarter
profits, citing a near-term drag on auto sales from new
vehicle launches, as it withdrew its forecast amid tariff
uncertainty.
The carmaker estimated a full-year hit of about
$1.5 billion in adjusted operating earnings following
President Donald Trump’s myriad tariff actions since
returning to the White House in January.
Profits came in at $471 million, beating analyst
expectations but just over a third of the level in the
2024 period, with revenues falling five percent to $40.7
billion.
In the first quarter, Ford wholesale units fell seven
percent from the year-ago level, a drop the automaker
had previously telegraphed due to slowed output at
plants in Kentucky and Michigan where new vehicles
are being launched.
In March, Ford began shipping the new Ford
Expedition and Lincoln Navigator to customers.
Profits fell in Ford’s “Pro” division, which is geared
toward fleet and sales to businesses, and in its “Blue”
division, which consists of conventional internal
combustion engine cars. But losses declined in Ford’s
electric vehicle division.
Ford described its underlying business as “strong,”
saying it had been on track with the prior projection
of between $7 and $8.5 billion in adjusted operating
earnings, excluding tariff-related impacts.
Ford is “suspending” its guidance due to myriad
uncertainties. Besides tariffs and potential retaliatory
tariffs, Ford cited other “material near-term” risks
as including potential supply chain disruption
and uncertainty over emissions policy changes in
Washington.
“These are substantial industry risks, which could have
significant impacts on financial results, and that make
updating full year guidance challenging right now given
the potential range of outcomes,” Ford said.
The company expects 2025 pricing to be flat to slightly
higher. As far as car sales, “we’re seeing a strong first
half in the industry,” Chief Financial Officer Sherry
House said of a period that included an uptick in sales
to buyers who wanted to get ahead of tariffs.
House expects “some potential compression” in sales
in the second half of 2025 when prices could tick
higher amid tariffs, resulting in a net for all of 2025 of
flat or up about one percent.
Ford fell 2.2 percent in after-hours trading.
52

EVs, hybrid cars power Türkiye’s auto
market to record April sales
Türkiye’s automotive market maintained its strong
momentum in April, fueled by a surge in electric and
hybrid vehicle sales, with overall car and commercial
vehicle sales rising nearly 38.8% from a year ago,
industry data showed.
A total of 105,352 passenger cars and light commercial
vehicles were sold, the Automotive Distributors’ and
Mobility Association (ODMD) said, marking the highest
level on record for April.
Passenger car sales rose 39% to 85,411 units, while
light commercial vehicle sales climbed 37.8%, the data
showed. Electric and hybrid cars accounted for nearly
45% of passenger vehicle sales in April – a historic
high for the market. Sales of fully electric vehicles,
which are subject to a lower special consumption tax
compared to fuel-powered cars, more than doubled,
rising 116% to 13,191 units, while hybrid sales surged
134% to 25,113 units.
Türkiye’s homegrown electric vehicle maker, Togg, led
with sales of 3,537 units of its T10X, a C-segment SUV,
to hold a market share of 26.81%, the data showed.
By contrast, internal combustion engine vehicle sales
rose just 5.5% to around 47,000 units.
Fully electric vehicles captured a 15.4% share of the
market – their second-highest monthly share ever
– while hybrids accounted for 29.4%. Combined,
electrified cars claimed a record 45% of the passenger
car market. Looking at the broader trend, the 12-month
rolling market share for electric and hybrid vehicles
climbed to a new peak of 34.9% in April, up 1.4
percentage points from the previous month.
From January through April, overall car sales rose 2.7%
year-over-year to 381,636 units, the data showed.
Passenger car sales climbed 4.9% to 309,204 units
and light commercial vehicle sales fell 5.4% to 72,432
units. Electric vehicle sales reached 42,856 units,
making up 13.9% of the market, while hybrid car sales
reached 88,856 units to hold a share of 28.7%.
Togg sold 10,325 units, accounting for 24.41% of the
total market. Gasoline car sales amounted to 149,500
units in the first four months, capturing a 48.3%
market share. Diesel car sales totaled 26,155 units,
representing 8.5%, while autogas vehicle sales were
1,837 units, holding a 0.6% share.
Sales of EVs in Türkiye increased 51.7% to 99,489
units in 2024. Togg accounted for nearly 31,000 of
those.
The market share of fully electric cars increased from
6.8% to 10.1%, and the share of hybrid cars increased
from 11.1% to 18.8%.
June 2025
54

Volvo, Tesla prioritize Türkiye amid
surge in electric vehicle demand
European factories are increasingly focusing
production on Türkiye as strong demand for electric
vehicles (EVs), fueled by significant tax incentives,
continues to grow.
Volvo and Tesla have both announced production shifts
to meet the country’s rising appetite for EVs.
Volvo gives early production priority to Türkiye
Volvo announced that the production of its new EX30
model, which started at its factory in Ghent, Belgium,
will prioritize deliveries to Türkiye for the first two
months.
Alican Emiroglu, General Manager of Volvo Car Türkiye,
said, “The launch of the Volvo EX30 production in
Europe carries special importance for Türkiye. This
model will be offered exclusively in Türkiye with a 150
kW engine option. Most of Ghent’s initial two-month
production capacity is allocated to meet our demand.”
Customers in Türkiye can submit orders through
Volvo’s website by the end of April, with the official
launch expected in mid-June. Deliveries are scheduled
to start in July.Tesla shifts Berlin production focus
to Türkiye Following a significant sales decline of
37.2% in Europe in the first quarter, Tesla has also
turned its attention to Türkiye. Tesla’s Berlin factory
will temporarily prioritize Model Y production for the
Turkish market. Tesla Türkiye representatives stated,
“Berlin has prioritized Türkiye for the new Model Y SR
production. Tesla opened online orders for the new
Model Y in Türkiye and sold out approximately 4,000
units within seconds.
Favorable tax incentives boost EV demand in Türkiye
Türkiye, one of the countries with the highest
automotive taxes, offers significant incentives for
electric vehicles. EVs with a pre-tax price under ₺1.45
million ($37,709K) and engine power not exceeding
160 kW benefit from a reduced Special Consumption
Tax (SCT) rate of 10%.
In contrast, most gasoline, diesel, and hybrid vehicles
are subject to an SCT rate of at least 80%. Plug-in
hybrid electric vehicles (PHEVs) meeting certain criteria
qualify for a 30% SCT rate.
These favorable conditions make Türkiye an attractive
market for EV manufacturers, while producing
competitive pressure on domestic producers like
Renault, Fiat, and Toyota, whose ombustion engine
models face much higher tax rates.
Domestic producers struggle against imported EVs
The discrepancy in tax rates has produced a
competitive imbalance. While domestic manufacturers
face 80% SCT rates on traditional models, imported
EVs like Tesla’s Model Y are taxed at only 10%.
For example, the top-trim Renault Clio produced in
Bursa is listed at 1.53 million Turkish lira, whereas
Tesla’s larger, more technologically advanced Model Y
is available at 1.86 million Turkish lira, posing a serious
competitive threat.
Local manufacturers are further disadvantaged by the
lack of updated base price thresholds for tax brackets,
making it increasingly difficult for them to compete with
European-made EVs.
June 2025
58

Piksan CNC: Türkiye’s local power
in high-precision exports
Operating from a 4,500 m² smart facility in Istanbul’s
İMES Industrial Zone, Piksan CNC Metal Processing
is scaling its growth through precision manufacturing
and export-oriented strategy. With its Toolex brand, the
company delivers advanced carbide cutting tools to
Europe while helping reduce Türkiye’s dependency on
imports.
The company’s journey began in the 1970s in Istanbul’s
historic Perşembe Pazarı. Selim Çolakoğlu’s father
returned from Switzerland with machining knowledge
and technical tools, setting up a small workshop. Over
time, the company relocated to Topçular and eventually
to İMES Sanayi Sitesi, where in 2018 it moved into its
current 4,500 m² facility. Today, all production takes
place here, supported by a modern CNC machine park
and skilled workforce.
June 2025
60

Swiss-grade precision for global
industries
Piksan CNC specializes in precision
components for the automotive and
machinery sectors. With 15 high-tech
CNC machines, the company processes
stainless steel, carbon steel, aluminum,
and brass with tolerances down to one
ten-thousandth of a millimeter. Monthly
production can reach up to 30,000 units.
“We manufacture according to exact
customer specifications and always
deliver consistent quality on time,” says
Vice General Manager Selim Çolakoğlu.
Alongside component manufacturing,
Piksan produces high-performance
carbide cutting tools such as end mills, drills, and
reamers. These tools, made from Swiss-imported raw
materials, meet international standards and are known
for their precision—down to 0.1 mm, roughly the
thickness of a human hair.
R&D, localization, and the rise of Toolex
R&D has become a key pillar of the company’s
strategy. In partnership with TÜBİTAK TEYDEB and
local universities, Piksan has developed specialized
tools previously unavailable in the domestic market.
In 2021, it began producing modular gear-cutting end
mills—tools not manufactured in Türkiye before. Today,
these are exported to Germany and Switzerland.
“Every year, we launch a new R&D project that targets
unmet needs in the market,” says Çolakoğlu.
The company’s export efforts are led by its
international brand, Toolex, launched in 2004. The
brand name combines “tool” and “extra,” reflecting
its commitment to precision and durability. Currently,
Toolex products account for half
of Piksan’s tool production, with
the other half customized to client
specifications. These tools can
be resharpened and reused up to
ten times through the company’s
regrinding services, supporting
sustainability while lowering costs for
clients.
“These are not simple household
drills,” explains Çolakoğlu. “They are
20 times more expensive and built
for industrial-level endurance.” The
company uses Swiss raw materials
from Hartmetall Estech AG and
operates with grinding systems
offering 500x optical magnification, ensuring high
consistency across all products.
Expanding capacity to meet European demand
Piksan currently employs 80 staff and plans to recruit
20 more to meet growing demand. As European
customers increasingly prioritize short lead times
and high quality, interest is rising from countries like
Poland, the Czech Republic, Romania, and Bulgaria. To
address this, the company aims to expand its machine
park, enter new markets, and leverage programs
like KOSGEB’s export initiatives. “We plan to add
two to three new export countries each year,” notes
Çolakoğlu.
With decades of expertise, strong R&D capabilities,
and international-grade quality, Piksan CNC Metal
Processing stands out as a reliable partner in the highprecision
manufacturing space. By combining local
production power with global vision, the company is
shaping Türkiye’s industrial future one micron at a time.
June 2025
61

Mercedes, Stellantis suspend guidance
amid tariff-related dubiety
June 2025
German automaker Mercedes-Benz and Jeep-maker
Stellantis suspended their earnings guidance for 2025
amid growing uncertainty caused by tariffs imposed
by U.S. President Donald Trump, which appear to be
increasingly weighing on businesses, from automakers
to online retailers.
Mercedes-Benz pulled its earnings guidance for 2025
amid the unpredictability of the impact of Trump’s
tariffs on car imports, as the German automaker
posted a sharply lower first-quarter profit.
“Mercedes-Benz is a global player ... we don’t fear
competition in any direction,” CEO Ola Kallenius
told analysts. “But that’s not the environment we’re
operating in.”
He said “constructive” talks with the Trump
administration over boosting Mercedes’ U.S.
manufacturing presence were ongoing but declined to
provide details.
CFO Harald Wilhelm told analysts that, given the
uncertainty over tariffs, full-year guidance “cannot be
provided with a reliable degree of certainty.”
But he said that if tariffs remained in place all year, it
would reduce profit margins by 300 basis points for
cars and 100 basis points on vans.
Mercedes faces challenges in all its major markets,
from Trump’s tariffs to competition from fast-moving
rivals in China and new CO2 emissions targets in the
European Union.
It joins a growing number of automakers pulling their
annual forecasts. Stellantis also said it was suspending
its guidance. Volvo Cars withdrew its earnings forecast
for the next two years, citing uncertainty over the
tariffs.
Stellantis, the parent company of Jeep, Peugeot and
Fiat, whose brands also include Ram trucks, Opel and
Dodge, said that despite a 14% drop in first-quarter
revenue to 35.8 billion euros ($40.7 billion), it saw signs
of a commercial turnaround.
Nevertheless, the group stated that it was “suspending
its 2025 financial guidance due to evolving tariff
policies, as well as the difficulty in predicting possible
impacts on market volumes and the competitive
landscape.”
Much of the drop in revenues was due to a reduction
in shipments, which fell 9% to 1.22 million vehicles,
partly due to lower production volumes in North
America, where factories were given extended holiday
downtime.
64

Stellantis suffered a stinging 12% drop in the number
of vehicles it sold last year, with its key North American
market plunging by a quarter, as it struggled to sell a
bulge in inventory in the United States.
Shipments declined by 20% in North America during
the first quarter, resulting in a 25% decrease in
revenues.
However, CFO Doug Ostermann said the company
sees signs of a turnaround.
“While first quarter 2025 top-line results were below
prior-year levels, other key performance indicators
reflect early, initial progress on our commercial
recovery efforts,” he said in a statement.
This included a surge in orders in North America before
tariffs took effect, as well as improvements in Europe.
The company stated that it is “highly engaged with
policymakers on tariff policies, while taking action to
mitigate the impacts.”
Meanwhile, German rival Volkswagen posted a steep
drop in first-quarter profit and said it expected its
annual operating profit margin to be at the lower end of
guidance.
Net profit of VW fell 40.6% in the first three months of
the year to hit 2.19 billion euros, even as revenue rose
3% to reach 77.56 billion euros.
Trump has threatened and imposed a variety of tariffs
designed to bring manufacturing back to his home
country, including a 25% levy on car imports.
North America took just over 11% of Volkswagen
vehicle deliveries in the first quarter, making it the firm’s
third most important region after Western Europe and
China. Speaking on a call for analysts and investors,
Volkswagen’s finance chief, Arno Antlitz, said it
was “too early to say” if Volkswagen would step up
manufacturing in the U.S. to circumvent any tariffs.
It already has a plant in Tennessee, but most of the
vehicles it sells in the U.S. are imported.
Volkswagen expects a profit margin of between 5.5%
and 6.5% for the coming year, but its guidance does
not take into account the variable American tariffs.
“It’s highly difficult to give a projection for the full year,”
Antlitz said.
Mercedes, on the other hand, told analysts at the end
of March it had been stockpiling inventory in the U.S.
to mitigate the impact of tariffs.
The premium automaker’s car and van sales declined
7% in the first quarter, led by 10% drops in both
Europe and China, although sales increased 1% in the
U.S. market. The company’s sales declined 3% last
year, primarily due to a 7% decrease in China.
Mercedes reported a first-quarter profit margin for
its car business of 7.3%, down from 9% in the same
period last year. Group earnings before interest and
taxes plunged 41% year-on-year to 2.3 billion euros
in the quarter. As part of its bid to regain lost market
share in China, Mercedes unveiled a new all-electric
luxury limousine van series called “Vision V” at the
Shanghai car show.
June 2025
65

Honda to open motorcycle factory in
Türkiye’s Izmir, reports say
June 2025
Honda has begun work on a motorcycle factory in Izmir
with an investment of 861 million Turkish lira (about
$26.7 million), according to reports in the Turkish press.
The company has submitted an application to the
Ministry of Environment, Urbanization and Climate
Change for the project, and based on available
information, the facility is expected to initially produce
the 125 cc PCX model.
The factory is set to employ 172 people and will have
an annual production capacity of more than 200,000
motorcycles in its first phase.
It will be built on a 100,000-square-meter plot and is
expected to manufacture additional models over time.
Details from the project introduction file, submitted
as part of the environmental impact assessment (EIA)
application, include:
The plant will be located in Coraklar neighborhood of
Aliaga, on a 100,000-square-meter site.
Annual production is planned at 204,500 motorcycles.
Final decisions have not been made about all models
to be produced.
One confirmed model is the 125 cc PCX scooter.
Another model with the same engine size, the Activa, is
also planned for production.
A third model, aimed at export—especially to Europe—
will be a 1,500 cc scooter. This may be a larger version
of an existing model or an entirely new design.
Final decisions on the models are expected within
about a month as planning progresses.
The investment budget allocated for the project is 861
million TL (approximately $26.7 million).
The plant will employ 172 people when completed.
The site falls within an area designated as an
“Organized Industrial Zone” under the 1/100,000 Scale
Environmental Plan for the Izmir–Manisa Planning
Region. The parcel of land belongs to Anatolia Natural
Stone Ceramics Company.
With import costs increasing by up to 400% due to
a new customs supervision tax, Honda has begun
feasibility studies for domestic production to offset the
higher costs, according to media reports.
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Opportunities await Türkiye amid
US-China trade war, tariffs
June 2025
The trade wars between the U.S. and China could
bring Türkiye to the forefront. One economist
and representative of the Turkish business world
commented, “It won’t be easy for the U.S. economy
to fill the gap left by China—they need us. We
must highlight all our exportable goods, focus on
pinpoint-targeted opportunities, make product-based
agreements, and increase the number of trade fairs
and stores in this country. This way, we can quickly
increase our $16.4 billion in exports.”
As the world is shaken by trade wars, Türkiye’s actions
are being closely followed by economic administrators
and business leaders. In this process, the U.S.
applying the lowest tariff rate—10%—to Türkiye is
seen as an advantage. It is stated that with strategic
moves, Türkiye’s exports to the U.S. could rise and
become profitable.
‘Agreements should be made on a product basis’
Important messages were shared by economists and
the business community regarding how Türkiye-U.S.
trade relations should evolve in the upcoming period.
Economist Selim Somcag emphasized that it will not
be easy for the U.S. economy to fill China’s gap.
“They need us. For every export product we have
that the U.S. currently cannot supply from China, we
should make agreements with the U.S. to sell them.
Encouraging Chinese companies to set up factories in
Türkiye may not be the right move because the U.S.
would not approve this either. During this period, a
Free Trade Agreement should also be avoided. It would
be detrimental to us. Agreements should be made on a
product basis,” Somcag said.
‘We can sell more goods and services’
President of the Istanbul Chamber of Commerce (ITO)
Sebik Avdagic stated that the world economic order
has returned to protectionism and high tariffs after a
long time.
“Türkiye was not subject to Trump’s heavy tariffs and
remained under the basic 10% tariff. Last year, we sold
$16.4 billion worth of goods and services to the U.S.
It’s clear that we can sell much more to a country with
a population of 340 million,” Avdagic said.
‘Türkiye can turn this into an opportunity’
Avdagic emphasized that the Turkish business world
must quickly analyze Trump’s customs duties and
shape their product and competition strategies
accordingly.
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“In summary, our business world should turn the positive
distinction that Türkiye gains from Trump’s tariffs into an
opportunity. Due to the additional tariffs, the U.S. may
prefer to purchase more goods from Türkiye. Türkiye’s
ability to seize this opportunity depends on how well our
export sectors develop,” he said.
‘Precision-targeted opportunities’
President of the Istanbul Chamber of Industry (ISO),
Erdal Bahcivan, also said, “We must prepare for
these new developments by studying thoroughly.
Because we are faced with a situation that cannot be
grasped with memorized knowledge or stereotypical
perspectives. We see that the U.S. is adopting a
relatively more positive approach toward Türkiye. We
can obtain precision-targeted opportunities. It would
be beneficial for our country to have sector-specific
preparations. We must proceed with strategic work that
reveals sectoral opportunities.”
‘Number of fairs and stores should increase’
President of the Anatolian Lions Businessmen’s
Association (ASKON) Orhan Aydin stated that the
additional 10% tax imposed on Türkiye has made the
country more competitive.
“We must go on alert to increase sales to the U.S.
Exporters’ unions in particular should increase the
number of fairs and events in this region. Increasing
the number of stores of Turkish brands in the U.S.
would also be an advantage,” he said. ‘We can be an
alternative supplier’
President of the Turkish Young Businessmen’s
Association (TUGIAD) Gurkan Yildirim said that the
U.S.’ imports from China and the EU might decrease.
“This situation will bring the potential for Türkiye to
increase its exports to the U.S. in certain sectors.
Türkiye can stand out as an alternative supplier. The
high tariffs imposed on China, the EU, and Far Eastern
countries may also cause some companies in those
regions to shift their production to other countries.
Türkiye can also attract investments from these
companies,” he added. Meanwhile, Türkiye exported
$16.4 billion worth of goods to the U.S. last year.
Sectors that stood out in exports included machinery,
mechanical devices, precious stones and metals,
automotive, carpets, other textile floor coverings, lime,
and cement. Imports from the U.S. reached $16.2
billion last year. Imports were led by mineral fuels, oils,
iron and steel, machinery, mechanical devices, organic
chemicals, and plastic products. Thus, Türkiye had a
$121 million trade surplus with the U.S. last year.
June 2025
72

Türkiye logs second-highest April exports
June 2025
Türkiye has registered its second-highest April exports
on record, Trade Minister Ömer Bolat said, but imports
still outpaced growth in outbound shipments.
Exports rose 8.5% compared to a year ago to
$20.9 billion, Bolat told a press conference in the
southeastern province of Diyarbakır.
Imports climbed 12.9% to nearly $33 billion. The trade
deficit widened 21.7% year-over-year to $12 billion.
The euro’s gains against the U.S. dollar since U.S.
President Donald Trump introduced new 10% baseline
tariffs on all economies and slapped duties totalling
20% on the European Union had a positive effect on
Turkish exports amounting to $440 million, Bolat also
said. From January through April, exports rose 3.9%
year-over-year to $86.23 billion, the data showed.
Imports jumped 6.7% to $120.77 billion.
The trade gap increased by 14.5% from a year ago to
$34.53 billion.
Annualized exports of hit a new all-time high of $265
billion as of April, Bolat said.
The 12-month annualized exports climbed 2.7% or
$7.1 billion on a yearly basis.
Imports in the last 12 months rose 0.2% to $351.6
billion, resulting in an trade gap of $86.6 billion, down
6.8% or $6.4 billion from the previous period.
In 2024, total shipments increased by 2.5% to $262
billion, a new annual record, despite challenges such
as an uncertain global outlook and slowing demand in
some of Türkiye’s key export markets like the European
Union.
Imports dropped by 4.9% to $344.1 billion. The trade
deficit shrank by 22.7% to $82.2 billion from $106.3
billion in 2023.
The goal for 2025 is to lift exports to $280 billion,
according to officials.
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Tesla’s EU sales plunge 49 pct in first two months of 2025
European sales of Tesla electric cars dropped 49
percent in January-February compared with the
same period a year earlier, the ACEA manufacturers’
association said.
Ageing models are one factor behind the plunge so far
this year, but e-vehicle clients may also be refusing to
buy in protest of Tesla’s billionaire owner Elon Musk
since he became a key supporter of U.S. President
Donald Trump.
Musk has been leading a vocal and divisive costcutting
drive at the head of the newly produced
Department of Government Efficiency (DOGE).
Several Tesla dealerships around the United States
have been vandalised and the company’s stock price
has plummeted over the past month.
New Tesla registrations in the European Union fell to
19,046 in the first two months of the year, giving the
company a market share of just 1.1 percent, the ACEA
said.In February alone, Tesla registrations were down
47 percent at 11,743.
The sales drop came even as overall electric vehicle
sales jumped 28.4 percent over the first two months of
this year to 255,489 , for an EU market share of 15.2
percent.But for ACEA director general Sigrid de Vries,
“The latest new car registration figures confirm that
market demand for battery electric vehicles remains
below the level needed for the transition to zeroemission
mobility to progress.”
She cited a need for tax and purchasing incentives
for clients and investments in recharging stations,
at a time when the EU is preparing to ease
emission reduction targets for struggling European
automakers.
Hybrid-electric vehicles continued to be the biggest
market segment in the first two months of the year,
rising to 594,059 registrations, for a 35.2 percent
market share.
That outpaced both petrol and diesel models, with
market shares of 29.1 percent and 9.7 percent in
February.
Meanwhile, Chinese carmaker BYD saw a surge in
revenue last year, surpassing the $100 billion mark
and beating rival Tesla as the electric vehicle giant
accelerates its overseas expansion.
The Shenzhen-based firm has emerged in recent
years as the clear leader in China’s highly competitive
EV market, which is the largest in the world.
It is also increasingly seeking new growth channels
abroad, vowing to conquer the European market with
a new compact electric model and super-fast charging
capabilities to rival continental brands.
BYD recorded 777.1 billion yuan ($107.2 billion) in
revenue for 2024, a statement published on March 21
evening at the Shenzhen stock exchange showed.
BYD’s revenue results represent a 29 percent increase
from the previous year.
June 2025
76

Türkiye to again be
focus of investors as
volatility fades
June 2025
Treasury and Finance Minister Mehmet Şimşek said
that Türkiye’s growth is not constrained by debt and
the country would again start attracting investors once
the domestic and global market volatilities subside.
Turkish lira and other assets plunge following the
detention of Istanbul Mayor Ekrem Imamoğlu. He was
arrested in late March on corruption charges. Assets
recouped some losses after authorities acted to
stabilize markets.
Globally, President Donald Trump’s push to redesign
world trade by imposing tariffs on all imports has
sent shockwaves through financial markets, wiping
out trillions of dollars in stock market value, and has
shaken investors’ confidence in U.S. assets as a safe
haven, including the dollar.
Şimşek acknowledged the global environment of
heightened uncertainty, fueled by trade wars and deepseated
structural challenges facing the world economy,
citing an aging population, the rapid advancement of
artificial intelligence and the climate crisis.
He said global investors are currently cautious and
risk-averse, highlighting that developing countries are
perceived as relatively risky by investors.
“However, we believe this is a temporary trend
for Türkiye. Over time, investors will refocus on
countries with strong macroeconomic foundations
and compelling narratives,” Şimşek said in a video
message sent to the Palandöken Economic Forum in
Erzurum.
“Türkiye stands out as one of the leading countries in
this regard.”
Since mid-2023, Türkiye has been implementing a
program that has centered around tight monetary
policy, mainly aimed at curbing stubborn inflation,
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which slowed to 38.1% in March. It marked the lowest
since December 2022 and extended the fall from a
peak of around 75% last May.
Türkiye’s central bank kickstarted its easing cycle in
December but reversed it on April 17 with a surprise
policy tightening amid recent market volatilities. It
delivered a 350-basis-point interest rate hike to 46%
and signaled renewed commitment to tackling inflation.
The medium-term economic program has helped
Türkiye reduce external vulnerabilities, strengthen its
resilience to shocks and reinforce its macro-financial
stability, Şimşek said.
“We are laying the groundwork for sustainable, high
growth,” he said.
Şimşek stressed that rising protectionism poses one
of the greatest threats to global trade. Since the 2008
global financial crisis, trade restrictions have multiplied
eleven-fold, driven largely by the escalating rivalry
between the United States and China.
Türkiye, however, is relatively well-positioned to
withstand global trade fragmentation, he said.
This is due to two main reasons, he said, stressing that
the economy is primarily driven by domestic demand
rather than exports, and a large share of its foreign
trade is conducted with friendly and nearby countries.
“The main driver of our economy is domestic demand.
The share of goods exports in our national income
is approximately 20%. Here, investments, private
consumption expenditures and public spending are key
determinants,” he said.
“We have free trade agreements with 54 countries,
including the European Union. Sixty-two percent of our
total exports are not affected by trade fragmentation or
protectionism. We are integrated into a vast geography
with a market size of $30 trillion. We also have close
relations with some Middle Eastern, Central Asian
and African countries where there are no free trade
agreements,” he added.
“This structure makes us more resistant to global
trade fragmentation. We also see this period as an
opportunity to deepen regional integrations.”
Şimşek also pointed to Türkiye’s relatively low debt
burden as a major advantage. While total debt amounts
to just 93% of gross domestic product (GDP) in
Türkiye, the average among peer emerging markets is
around 245%. He emphasized that there is no debtrelated
obstacle to Türkiye’s growth, saying, “Since
our debt stock is low, when market fluctuations end,
Türkiye’s strong foundations will once again attract the
attention of investors.”
Şimşek said the government wants to use the
economic program to transform advantages into
lasting gains.
“We are striving to turn the turbulence and challenges
in the world into opportunities for Türkiye. The
disinflation process, which is the main goal of our
program, continues successfully, with annual inflation
declining for 10 consecutive months,” he noted.
The March inflation marked a drop of over 37
percentage points compared to last year’s peak, he
added.
“The delayed effect of monetary policy, stronger
support from public finances and supply-side reforms
will further drive down inflation.”
Şimşek also said savings and fiscal discipline would be
sustained.
June 2025
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