Automotive Exports February 2026

Promising and innovative
trends for 2026
Mehmet Soztutan, Editor-in-Chief
mehmet.soztutan@img.com.tr
Editör
The Turkish automotive industry recorded the highest exports in
2025, reaching $41.5 billion, according to data released by the
Turkish Exporters Assembly.
Turkish Exporters Assembly (TIM) revealed that the automotive
sector outranked all industrial groups in 2025 with $41.5 billion in
exports. Chemical products ranked second with $31.9 billion, while
the electrical and electronics sector followed with $17.7 billion.
The defense and aerospace industry posted the strongest annual
growth, with exports rising 48.8% in 2025.
Exports by the industrial group, which accounts for 82% of
Türkiye’s total exports, increased 6% year on year to $194.8 billion.
Investments in high-technology manufacturing were remarkably
reflected in export figures.
In 2025, exports of high-technology products increased 12.7% to
$9.9 billion, while medium-high technology exports rose 10.6% to
$102.1 billion, While these products accounted for only 30% of our
exports in 2002, the ratio reached 43.5% in 2025.
With nearly 2 million units of production capacity in the sector,
annual production of 1.5 million vehicles and exports exceeding
$41 billion, the Turkish automotive industry has turned out to be
Europe’s fourth-largest and the world’s 12th-largest production
base,
Automotive exports rose 11.8% in 2025 to $41.4 billion, while
machinery and electrical machinery exports increased 4% to $43.7
billion,
Türkiye’s automotive sector has endured a challenging yet
transformative year amid a monetary tightening drive since mid-
2023, from steady sales growth driven by deferred demand to a
major surge in the share of hybrid and electric vehicles.
The Turkish automotive supplier industry produces almost all types
of parts, components and spare parts such as engines and engine
parts, power train parts and components, brake and clutch parts
and components, hydraulic and pneumatic systems, suspension
systems, security systems, rubber and plastic parts, chassis, frames
and parts, casting and forging, electrical equipment and parts,
lighting systems, accumulator batteries, seats etc.
Our publications remain at the service of those businesses people
seeking to increase their share in the increasingly competitive
foreign markets.
We wish all business people success and lucrative business.
automotiveexports
automotive exports

08
“Turkish automotive output must be
recognized as Made in EU”
12
Automotive sector leads as Türkiye
breaks export record in 2025
24
Togg becomes first in EV market in 2025
56
Electric vehicles take record 96% share
of Norway car market in 2025
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8
“Turkish automotive output must
be recognized as Made in EU”
February 2026
The E.U.’s new automotive package, which excludes
Turkish-made vehicles and components from the
“Made in E.U.” label, could undermine the decadeslong
Customs Union partnership and disrupt the
export-driven competitiveness of Türkiye’s automotive
sector, a top industry official has warned.
Cengiz Eroldu, Chairman of the Automotive
Manufacturers Association of Türkiye (OSD),
emphasized that the recognition of Türkiye as an
equal partner in the E.U. automotive ecosystem is a
strategic necessity. “If vehicles and parts manufactured
in Türkiye are excluded from the proposed definition,
it will nullify the mutual advantages brought by the
Customs Union and render its structure ineffective,”
Eroldu stated.
The European Commission recently introduced a
comprehensive package outlining new measures for
the green transition in the automotive sector, including
a proposal to remove the previously planned 2035 ban
on combustion engine cars and to revise the targets for
electric vehicle adoption.
The package also includes administrative
simplifications, battery production support, and
financial incentives for the production of small
electric vehicles within the E.U. A key element of the
policy is the prioritization of products bearing the
“Made in E.U.” label. While this designation serves
a protectionist function by channeling incentives
to domestically manufactured goods, it poses a
considerable threat to Türkiye’s automotive exports,
according to OSD.
Türkiye’s automotive industry accounts for 17% of the
country’s total exports, reaching $37.2 billion in 2024,
and more than 60% of those shipments go to E.U.
markets, totaling $25.3 billion.
Eroldu pointed to the European Commission’s intention
to grant financial incentives specifically to low- or
zero-emission corporate fleet vehicles manufactured
within the EU. According to the Commission’s current
roadmap, the “Made in E.U.” definition is expected to
be opened for consultation on January 28, 2026.
OSD fears that if Türkiye is not explicitly included in the
scope of this definition, it will be left out of incentive
mechanisms, adversely affecting competitiveness.

Automotive sector set for continued
growth, record sales in 2026
10
February 2026
Industry officials predict Türkiye’s automotive market
will maintain its growth trend for the next two to three
years, including 2026, forecasting new records each
year. Despite economic fluctuations, the sector has
achieved its strongest growth momentum in the last
five years.
According to representatives, Türkiye is emerging as
a strategic production and sales hub on the global
automotive map.
The year 2026 is expected to see internal combustion
engines rapidly replaced by electric and hybrid models,
continuing the “series of records.”
Opel Türkiye Brand Director Yiğit Yantaç shared 2025
evaluations and 2026 forecasts with Anadolu Agency.
Yantaç noted the market’s strong performance this
year, heading toward a record, recalling their 2023
prediction of five consecutive record years, with 2025
supporting that outlook.
He expects total market volume to exceed 1.35 million
units by year-end, surpassing 2024’s 1.238 million
sales. Yantaç described 2025 as highly successful for
Opel, starting with a 5.5 percent market share and a
70,000 unit sales target.
For 2026, Opel aims to advance electrification and
product diversification strategies.
Yantaç highlighted this with the launch of fully electric,
performance-oriented SUV models, Mokka GSE and
Grandland AWD, in Türkiye starting in 2026.
Citroën Türkiye Brand Director Bora Duran also pointed
out the market’s sustained strength over the last three
years, expecting a record close at 1.35 million units in
2025. Duran reported 11 percent growth in passenger
cars and about 7 percent in light commercial vehicles,
forecasting “vibrant demand” in light commercials
driven by product renewals and competition.
He called 2025 a historic year for the brand, with
January-November sales of 60,727 units and 5.2
percent market share, one of Citroën’s strongest in
Türkiye. Duran said 2026 will feature a fully renewed
product lineup for the brand.
C3, C3 Aircross, C4-C4 X, Ami and light commercial
models are all updated.
“Starting in 2026, we’ll continue with only electric and
hybrid engine options on the passenger side.
We aim for 4 out of every 10 passenger cars sold to be
electric,” he said.

12
Automotive sector leads as Türkiye
breaks export record in 2025
February 2026
The automotive sector once again took the lead,
emerging as the top performer with the highest amount
of exports from Türkiye last year, amounting to $41.5
billion (TL 1.79 trillion), according to foreign trade data
released.
The automotive industry, one of the sectors coming
under the umbrella of the industrial group, exported
goods worth $41.52 billion in 2025, up 11.6%
compared to the year before that, according to data
from the Turkish Exporters Assembly (TIM). The sector
accounted for 17.5% of all exports last year.
Türkiye’s total goods exports hit a record high of
$273.4 billion in 2025, up 4.5% from a year earlier,
President Recep Tayyip Erdoğan announced.
Erdoğan, speaking at an event at the Istanbul Congress
Center, said that combined goods and services exports
were estimated to have reached $396.5 billion last year.
This, he said, surpassed the target that the government
set at $390 billion.
Among the sectors with the highest exports, chemicals
and chemical products ranked second with $31.9
billion, while the electrical and electronics sector
ranked third with $17.7 billion, according to the data.
In 2025, the sector that achieved the highest export
growth was the defense and aviation industry, with an
annual increase of 48.8%.
The industrial group, which accounts for 82% of
Türkiye’s total exports, saw its overseas sales rise by
6% last year to $194.8 billion.
In 2025, exports by the agriculture group, which
made up 15.3% of total exports, rose by 0.6% yearly
to $36.4 billion, while exports by the mining group,
accounting for 2.6% of total exports, surged by 3.4%
to $6.2 billion.
Last year, the top three export destinations were
Germany with $19.8 billion, the United Kingdom with
$14.2 billion, and the United States with $13.2 billion.
In the same period, the top three exporting cities were
Istanbul with $95.2 billion, Kocaeli with $22.9 billion,
and Bursa with $17.9 billion, respectively.

OSS association reviews 2025!
Aftermarket maintains stability in production and employment
16
The stagnant trend observed in the automotive
aftermarket in 2024 continued throughout 2025. In
the final quarter of 2025, the sector maintained a flat
performance in sales, exports, and employment, while
preserving a cautious outlook for 2026. According to the
2025 Year-End Sectoral Evaluation Survey conducted
by the Automotive Aftermarket Products and Services
Association (OSS), domestic sales in the last quarter of
2025 declined by an average of 3.94 percent in dollar
terms compared to the same period of 2024. While 33.3
percent of manufacturer members planned investments in
the previous survey, this figure decreased to 25.6 percent
in the latest survey. The most significant challenge
observed in 2025 was “excessive increases in costs.” The
survey also identified “cash flow problems” and “loss of
business and revenue” among the key issues faced by
members. Commenting on the results, OSS Association
Chairman Ali Özçete emphasized that 2025 was a year in
which the effects of global and local economic conditions
were strongly felt in the automotive aftermarket, yet the
sector stood out for its ability to maintain production,
employment, and operational continuity.
February 2026

The Automotive Aftermarket Products and Services
Association (OSS) evaluated the year-end performance
of the automotive aftermarket for 2025 through
a survey conducted with the participation of its
members. According to the 2025 Year-End Sectoral
Evaluation Survey, the automotive aftermarket
experienced a decline in sales in the final quarter of
2025. Compared to the last quarter of 2024, domestic
sales fell by an average of 3.94 percent in dollar terms.
During this period, distributor members recorded a
1.71 percent increase in sales in dollar terms, while
manufacturer members experienced a 9.87 percent
decline.
Negative Trend in Collection Processes
Slows Down
The survey also included expectations for the first
quarter of 2026. Accordingly, a 0.5 percent increase in
domestic sales in dollar terms is expected in the first
quarter of 2026. OSS members stated that the ratio
of collection processes, which stood at 45.1 percent
in 2024, declined to 43.5 percent in 2025. While
13.8 percent of members indicated that collection
processes improved, 42.5 percent reported that they
deteriorated.
One in Three Companies Increased
Employment in 2025
According to the survey, 31.3 percent of participating
members increased their employment levels in 2025
compared to the previous year, while 37.5 percent
maintained their employment. The proportion of
members reporting a decrease in employment was
also 31.3 percent. While employment increased among
manufacturer members, 29.3 percent of distributor
members reported a decline in employment.
The Biggest Challenge of 2025:
Excessive Cost Increases
Sectoral challenges once again emerged as one of the
most striking sections of the survey. In 2025, the most
frequently cited issue was “excessive increases in
costs,” reported by 81.3 percent of members. This was
followed by “cash flow problems” at 66.3 percent. “Loss
of business and revenue” was identified by 52.5 percent
of members as the third major challenge. Additionally,
43.8 percent pointed to “logistics costs and delivery
problems,” 23.8 percent to “customs-related issues,”
and 21.3 percent to “employment-related problems.”
Furthermore, 15 percent of respondents cited regulatory
changes as a significant issue.
February 2026
17

automotive aftermarket successfully preserved
production, employment, and operational continuity.
Despite limited tightening in financial conditions during
the first part of the year, the aftermarket delivered a
balanced performance throughout 2025 and closed
the year strongly. The preservation of production
capacity, stable employment levels, and continuity on
the demand side clearly demonstrated the sector’s
financial resilience. In this respect, 2025 served as
a ‘financial confidence and resilience test’ for the
aftermarket, which the sector successfully passed.”
18
Investment Appetite of Manufacturer Members
Declines
The survey also examined investment plans within
the sector. According to the results, 23.7 percent of
members plan to make new investments within the
next three months. While 33.3 percent of manufacturer
members planned investments in the previous survey,
this figure declined to 25.6 percent in the latest one.
Among distributor members, however, the ratio
increased from 10.3 percent to 22 percent. Compared
to the previous survey, the proportion of distributor
members expecting a more negative outlook over the
next three months declined from 41 percent to 24.4
percent, while the ratio among manufacturers fell from
42.9 percent to 25.6 percent.
Record Domestic Sales Secure the Future of the
Aftermarket
Stating that the dynamics of the automotive
aftermarket have changed significantly, Ali Özçete
continued: “The relative stabilization of foreign
exchange rates over the past two years has kept
spare parts price increases below inflation; however,
during the same period, labor costs—including
personnel, rental, and operating expenses—have
risen well above inflation. For the first time, we are
witnessing labor costs surpass spare parts costs. This
situation creates cost pressure that directly affects
both service providers and end consumers. On the
other hand, the high average age of the vehicle fleet in
Türkiye keeps maintenance and spare parts demand
strong, providing a solid and sustainable demand
base for the aftermarket in the long term. Moreover,
record-breaking new vehicle sales over the past three
consecutive years and the increase in vehicles per
capita indicate that vehicle ownership is becoming
more widespread, expanding the customer base of the
aftermarket. Additionally, the fact that a large portion of
the approximately 1.2 million vehicles sold in 2024 will
go out of warranty in 2026 signals a continued increase
in demand for maintenance, repair, and spare parts.”
February 2026
Production Increased, Exports Declined
In 2025, the average capacity utilization rate among
manufacturers stood at 72.56 percent, down from
78.15 percent in 2024. In the final quarter of 2025,
members’ production increased by 2.56 percent
compared to the same quarter of 2024. However,
exports in the last quarter of 2025 declined by 4.23
percent in dollar terms compared to the same period of
the previous year.
Despite Temporary Financial Challenges, the
Aftermarket Preserved Production and Employment
Evaluating the survey results and sharing his outlook
for 2026, OSS Association Chairman Ali Özçete stated:
“Despite the impact of global and local economic
conditions, 2025 stood out as a year in which the
The Aftermarket Sector Is the Backbone of
Türkiye’s Automotive Exports
Emphasizing that the aftermarket export market also
demonstrated strong performance in 2025, Ali Özçete
said: “In 2025, supply industry exports increased by 6
percent compared to the previous year, reaching 15.77
billion dollars and accounting for 38 percent of total
automotive exports. This high share confirms that the
aftermarket sector continues to be the backbone of
Türkiye’s automotive exports. Stable demand growth in
European Union markets, particularly in Germany and
France, confirms that the sector’s competitiveness is
being maintained. This outlook stands out as one of
the most important pillars supporting the sustainable
growth of the aftermarket in 2026.”

Togg becomes first in EV market in 2025
24
February 2026
Local manufacturer Togg became the most preferred
electric car brand in Türkiye last year with total sales
of 39,020 across its two models, leaving behind giants
like Tesla and BYD, a report revealed.
Togg, which last year kicked off sales of a new sedan
model, eclipsed competitors as Tesla sales totaled
31,509 units while Chinese BYD saw 19,679 units sold,
a report by Anadolu Agency (AA) citing industry data
showed.
Passenger car sales in Türkiye between January and
December 2025 rose 10.62% compared with the same
period of 2024 to reach 1,084,496 units, while light
commercial vehicle sales increased 9.97% to 283,904,
according to data from Automotive Distributors and
Mobility Association (ODMD).
During the period, 509,217 gasoline-powered cars and
295,378 hybrids were sold in Türkiye. Diesel car sales
totaled 80,346 and LPG-powered cars amounted to
7,595. Fully battery-electric car sales (meaning vehicles
powered solely by electricity) reached 189,868.
When including vehicles equipped with “extended
range,” electric car sales rose to 191,960 in 2025,
giving the segment a 17.7% market share.
Looking at electric car sales by brand, domestic
automaker Togg topped the list with 39,020 sales of its
T10X and T10F models. It was followed by Tesla with
31,509 and BYD with 19,679.
The top three brands accounted for 47.5% of the
electric car market last year, with Togg alone capturing
roughly a 21% market share.
During the same period, Citroën surpassed the
10,000 mark, while KIA ranked eighth with 9,543,
MINI recorded 9,418, Hyundai 9,152 and Opel 9,073.
Rounding out the top 10 electric car brands were KG
Mobility with 8,416 and Volvo with 7,795.
At the model level, the leader in the electric car market
also remained unchanged. Togg’s T10F became the
best-selling electric model in December.
The T10F strengthened its lead with 5,345 units sold
last month, followed by Togg’s T10X with 1,960,
KG Mobility Torres (KGM Torres) with 1,773, Tesla
Model Y with 1,554 and Volvo EX30 with 1,187 units,
respectively.

Turkish car sales hit record in 2025 as EVs ascend further
26
February 2026
Türkiye’s car and light commercial vehicle market
reached an all-time high in 2025, with nearly one out of
every six automobiles sold being fully electric, sector
data showed. The industry had broken records in
almost every month of the year as demand remained
resilient despite high taxes and tight financing
conditions. Total sales rose 10.5% to nearly 1.37
million units last year, up from 1.24 million units in
2024, according to the Automotive Distributors and
Mobility Association (ODMD).
Sales in December alone climbed 12.6% to 191,620
units, the data showed.
ODMD Chair Haydar Bozkurt said demographic trends
and fleet renewal were key drivers behind the surge.
“At the start of the year, we expected a market in line
with the previous year, but Türkiye’s large population,
rising mobility needs and the ageing vehicle fleet
reaching renewal age became the main factors
supporting new record sales,” Bozkurt noted.
He said the industry expects the market to remain at
similar levels in 2026, adding that they see potential
for volumes to reach 1.5 million units or more in the
coming years.
Fully electric car sales jumped around 90% last year to
nearly 190,000 units, lifting their share of the passenger
car market to 17%, up seven percentage points from
a year earlier. Hybrid vehicle sales also rose strongly,
increasing 63% to about 295,000 units, accounting for
27% of the market, although growth lagged behind the
pace seen in pure EVs. Overall passenger car sales
climbed 10.6% to a record 1.1 million units, while light
commercial vehicle sales rose 10% to 283,904 units,
also an all-time high.
In December alone, passenger car sales increased
8.5% year-over-year to 146,319 units, the highest
monthly figure on record, while light commercial
vehicle sales surged 27.8% to 45,301 units, their
strongest December performance since 2010, ODMD
data showed. The momentum persisted throughout
2025 despite high borrowing costs, as authorities
maintained a tight policy to cool demand, the main
driver of inflation, and a special consumption tax
(ÖTV) adjustment at the end of July. Türkiye’s complex
vehicle tax system includes a special consumption tax
and value-added tax. The combined rate ranges from
50% to 284%. Annual inflation ended 2025 at 30.89%,
the lowest rate since November 2021. That compared
to 44.4% posted a year earlier. The Turkish central
bank shaved 950 basis points off its benchmark policy
rate last year, bringing it down from 47.5% to 38%.
While the bank has emphasized that future decisions
will remain data-driven and assessed on a meetingby-meeting
basis, it’s still widely expected to continue
with its easing cycle.

28
US probing difficulty unlocking
Tesla doors after accidents
February 2026
U.S. auto safety officials have opened a preliminary
investigation into Tesla’s door design following a
complaint from a driver who said poor labeling
worsened an emergency, authorities said.
The U.S. National Highway Traffic Safety
Administration received a petition from a customer who
said the mechanical release on his 2022 Tesla Model
3 was “hidden, unlabeled, and not intuitive to locate
during an emergency” in which the electric system
failed, the agency said.
“A defect petition has been opened to evaluate the
issue and determine whether to grant or deny the
petition,” NHTSA said in a public notice.
The action comes on the heels of recent news reports
spotlighting cases where people became trapped in
burning vehicles after an accident in which Tesla’s
electric-run door system went down and they were
unable to find a manual release.
Bloomberg identified “at least” 15 fatalities “in which
occupants or rescuers were unable to open the doors
of a Tesla that had crashed and caught fire,.”
Bloomberg cited September remarks from a Tesla
executive who said the company was working on a
redesign of its door handle system.
Tesla’s website includes a diagram of the manual door
release, which is located near the window switches.

30
BYD advances $1B plant in
Türkiye, while Chery deal remains unclear
February 2026
Chinese electric vehicle (EV) manufacturer BYD has
recently regained momentum in advancing its $1 billion
production facility in Türkiye, while another Chinese
automaker, Chery, appears to have stalled, according
to Yakup Birinci, president of the Automotive Suppliers
Association of Türkiye (TAYSAD).
Birinci noted that although BYD’s investment process
had temporarily slowed earlier this year, developments
suggest progress is picking up. Birinci expressed hope
that BYD’s presence in Türkiye would open global
supply chain opportunities for domestic manufacturers,
similar to what had been achieved during the earlier
investments of Japan’s Toyota and South Korea’s
Hyundai in the country.
While optimistic, Birinci emphasized that expectations
are based on proven industry patterns, not future
assumptions. “We’re not relying on hope, but on
experience,” he said.
Türkiye’s Industry and Technology Ministry first
announced the investment agreement with BYD in
July 2024. Under the deal, the company is expected
to invest around $1 billion to establish a manufacturing
plant capable of producing 150,000 electric and
hybrid vehicles annually. The facility is slated to begin
operations by the end of 2026. The project will also
include a dedicated research and development (R&D)
center and is projected to produce up to 5,000 direct
jobs. While BYD’s project is gaining traction, progress
appears to be slower on the side of fellow Chinese
carmaker Chery. According to Birinci, Chery previously
presented a detailed business plan and platform
specifications during a visit by Turkish officials to China
in April but failed to disclose the proposed site of the
investment.
Following that trip, Birinci said Chinese state
authorities appeared to become involved, possibly
complicating the prospect of two large-scale Chinese
investments proceeding in Türkiye simultaneously.
“They showed us the entire process, down to platform
details. But since then, things have slowed,” he added.
Chery had earlier announced plans to establish
a production and R&D campus in Samsun with a
capacity of 200,000 vehicles annually.
The proposal, unveiled during a March 2025 event
attended by President Recep Tayyip Erdogan, included
a $1 billion investment and 5,000 new jobs. However,
in a statement to Reuters later, Chery executives
confirmed that no final agreement had been signed.

32
Electric vehicles take record 96%
share of Norway car market in 2025
February 2026
Fully electric vehicles (EVs) accounted for almost all
new car registrations in Norway during 2025, according
to figures published, led by booming Tesla sales as the
Nordic country cements its global lead in phasing out
petrol and diesel-powered vehicles.
Driven by tax incentives, 95.9% of all new cars
registered in 2025 were EVs, with that number at
almost 98% in December. The annual figure was up
from 88.9% in 2024, Norwegian Road Federation (OFV)
data showed.
A record 179,549 new cars were registered in Norway
during the year, a 40% increase from 2024, the OFV
said. Oil-producing Norway’s rapid switch to batterypowered
vehicles contrasts sharply with the rest of
Europe, where weak demand for EVs prompted the EU
last month to reverse its planned 2035 ban on internal
combustion engine cars.
Tesla was Norway’s top-selling car brand for a fifth
consecutive year, with a 19.1% market share, followed
by Volkswagen at 13.3% of registrations and Volvo
Cars at 7.8%.
Led by the mass-market crossover Model Y, Tesla sold
27,621 cars in Norway in 2025, more than any other
automaker has sold in the country ⁠in a single year,
overcoming a consumer backlash plaguing the brand
in much of Europe over CEO Elon Musk’s support
for far-right parties and his backing of U.S. President
Donald Trump.
Cars produced in China had a 13.7% market share
in Norway in 2025, up from 10.4% the previous year,
led by automaker BYD, which more than doubled the
number of cars it sold in the Nordic country.
Norway, which began taxing EVs in 2023, announced
in October that it would add up to $5,000 in value-

added tax per vehicle from Jan. 1, sparking a rush
among buyers and car firms to beat the 2025 year-end
deadline.
“What we did very quickly was to redirect a number of
cars that were not originally intended for Norway, to get
them here faster,” Ford Norway Managing Director Per
Gunnar Berg told Reuters.
While some EV incentives have been pulled back, the
government has also consistently added charges to
petrol and diesel cars to make them more expensive,
noted Christina Bu, head of the Norwegian EV
association.
“That is often misunderstood outside of Norway – they
all think it’s about tax exemptions and incentives, but
it’s very much also about the whip,” Bu said. “ICE
(internal combustion engine) cars are taxed out of
business in a way.”
The few fossil-fuel cars registered in 2025 were
mostly specialized vehicles such as wheelchairaccessible
autos or those used by police and other
first responders, alongside a few hybrid models and
sports cars. EVs costing less than 300,000 ⁠Norwegian
crowns, equivalent to about $30,000, remain exempt
from VAT in 2026, in a potential boost for small cars,
executives said.
“I think the tax changes will accelerate the return of
compact cars... which used to dominate both Norway
and Europe,” Ford’s Berg said.
Ulf Tore Hekneby, head of Harald A Moller, which
imports Volkswagen, Audi, Skoda and CUPRA
vehicles, said he expected more combustion engine
models to launch as electric.
“There will ⁠be a great deal of new launches from our
brands for compact cars, so we’ll get a new lineup that
we haven’t had in many years,” Hekneby said.
February 2026
33

36
Chinese auto parts producer invests in Türkiye’s
Edirne, new plant to generate 1,660 jobs
February 2026
ZS Turkey Automotive Spare Parts Limited Company,
a China-based automotive supplier, has agreed to
invest in Türkiye’s Edirne to establish a manufacturing
facility that will employ 1,660 people.
The deal was signed at the Edirne Governorate by
Governor Yunus Sezer and representatives of the
Chinese company. According to the governorate, the
plant will be built on a 116,000-square-meter plot in
the Edirne Organized Industrial Zone.
Governor Sezer said the province is moving forward
with efforts to develop what he described as a green
and innovation-focused industrial corridor, noting that
organized industrial zones are advancing both in terms
of infrastructure and new factory projects.
Sezer also said that negotiations with a South Korean
company for a similar investment in the city are
ongoing.
As of September 2025, 1,419 Chinese companies
were operating in Türkiye, and their cumulative direct
investments stood at $1.24 billion, according to data
from Türkiye’s Industry and Technology Ministry.
The automotive sector, Türkiye’s largest exportoriented
industry with annual revenues of $37 billion,
remains the leading destination for these investments,
supported by the country’s access to the EU Customs
Union and a broad network of free trade agreements.
One of the largest commitments in this field comes
from Chinese EV maker BYD, which plans to establish
a production plant with an annual capacity of 150,000
vehicles as part of a 1 billion dollar investment,
targeted for launch toward the end of 2026.

38
Chery finalizing pledged deal
to build EV plant in Türkiye
February 2026
Chinese automaker Chery is moving forward with its
pledged investment deal to establish a production
facility in Türkiye’s Black Sea province of Samsun, with
the project now awaiting finalization of contractual
agreements, according to local officials.
Mehmet Kose, the provincial head of Türkiye’s ruling
Justice and Development Party (AK Party), said during
a press conference that the automaker has completed
all infrastructure-related preparations in Samsun and is
currently in the contract stage with Turkish authorities.
“There is no setback in the process,” Kose stated,
adding that all procedures are progressing as planned.
Chery is entirely state-owned by the Chinese
government, setting it apart from other Chinese EV
firms expanding abroad and requiring a governmentto-government
framework for the deal, Kose stressed.
The final steps involve bilateral negotiations between
Türkiye and China to formalize the investment
framework, he added.
Talks are continuing, and no disruptions have emerged
regarding the location, economic terms, or other
technical components of the planned project, Kose
said.
Chery, a Wuhu-based Chinese state-run automaker,
has been the subject of reports suggesting the
company is seeking to expand its production capacity
in Türkiye, following fellow Chinese electric vehicle
maker BYD’s $1 billion investment in the Aegean
province of Manisa.
In early 2025, President Recep Tayyip Erdogan
confirmed for the first time that negotiations were
underway with Chery, stating that the automaker had
selected Samsun as the planned location and that talks
were ongoing.
Reports on the details of the investment indicated
that the project would be worth around $1 billion and
include an annual production capacity of 200,000
vehicles.

40
China’s Dongfeng in talks to
produce cars in Türkiye
February 2026
China’s Dongfeng Motor is said to be in talks with an
investor about producing passenger cars in Türkiye,
the company’s Turkish distributor said.
Türkiye, with annual sales of 1.4 million vehicles, is
a relatively large market and has customs-free trade
with the European Union. Car imports to Türkiye from
China are subject to extra taxes and Chinese car
manufacturers, including Chery, have been seeking to
set up production with local partners.
“We are working hard to begin production this year,”
Yavuz Çırak, CEO of Dongfeng’s local distributor
Marcar and a party to the talks, said in a statement
published on LinkedIn.
Dongfeng Motor did not immediately respond to a
Reuters request for comment.
The investor has secured a production facility, though
a final decision for investment is not guaranteed, and
talks are ongoing. Marcar would oversee local sales
and provide support for the cars, the statement said.
Çırak, when contacted by Reuters, declined to name
the investor, citing a confidentiality agreement.
Turkish media reports similarly indicated that the
automaker gears up for local production.
A post on the Turkish Instagram account of Dongfeng’s
luxury car brand Voyah stated that local production of
a hybrid model was in the works.
Despite tighter financial conditions and a change in tax
brackets in the middle of last year, Turkish car sales
jumped to a new record, thanks to a growing adult
population and rising EV demand.
Chinese manufacturer BYD, which pledged $1 billion in
investment in Türkiye back in 2024, is also expected to
start production in the country.
Dongfeng Motor Corporation is a state-owned
automobile manufacturer headquartered in Wuhan.
Founded in 1969, it is one of the “Big Four” Chinese
automakers with 42 factories in different parts of China
and the world, according to the company.

Mercedes to pay $149.6M over alleged
diesel emissions cheating
42
February 2026
Mercedes-Benz USA and parent company Daimer AG
have agreed to pay $149.6 million to settle allegations
that the automaker secretly installed devices in
hundreds of thousands of vehicles to pass emission
tests, a coalition of attorneys general announced.
According to the coalition, between 2008 and 2016 the
German automaker equipped more than 211,000 diesel
passenger cars and vans with software devices that
optimized emission controls during tests but reduced
the controls during normal operations. The devices
enabled vehicles to far exceed legal limits for nitrogen
oxides, a pollutant that can cause respiratory illnesses
and contributes to smog.
The states alleged that Mercedes installed the devices
because it couldn’t reach design and performance
goals such as fuel efficiency while complying with
emissions standards. The automaker allegedly
concealed the devices from state and federal
regulators and the public while marketing the vehicles
as “environmentally friendly” and compliant with
emissions standards. The agreement is still subject to
court approval. Daimler AG and Mercedes-Benz USA
already agreed in 2020 to pay $1.5 billion to the U.S.
government and California state regulators to resolve
the emissions cheating allegations.
Mercedes-Benz issued a statement saying the deal
announced will resolve all remaining legal proceedings
tied to diesel emissions in the United States, but the
company still considers the accusations unfounded
and denies any liability. The automaker has made
“sufficient provisions” for the cost of the settlement,
the statement said.
Fifty attorneys general, including the attorneys general
of the District of Columbia and Puerto Rico, made up
the coalition announced. California was not part of the
group. The settlement calls for the automaker to pay
the attorneys general $120 million with another $29
million payment suspended and potentially waived
pending completion of a consumer relief program.
That effort will extend to the roughly 40,000 vehicles
with the devices that hadn’t been repaired or
permanently removed from the road by Aug. 1, 2023.
The owners of those vehicles would get $2,000 per
vehicle if they install approved emissions modification
software and an extended warranty.
The settlement also calls for Mercedes to comply with
reporting requirements and refrain from any further
unfair or deceptive marketing or sale of diesel vehicles.
Volkswagen also ended up paying $2.8 billion to settle
a criminal case due to emissions cheating.

44
Renault sales volume up
3.2% in 2025, led by Clio, Sandero
February 2026
Frech automaker Renault Group announced that its
sales volumes increased 3.2% in 2025, as strong
demand for its passenger vehicles, particularly
overseas, helped offset a plunge in European van
sales. The group, which sells predominantly in Europe,
said it sold 2.34 million vehicles in total, with growth
of just 0.5% in Europe compared with 11.7% in its
international markets, which include South Korea,
Morocco and Latin America.
The figures showed no major surprises, with the yearend
being broadly in line with expectations, Oddo BHF
analysts said in a note to investors.
Growth in the global auto sector picked up in 2025,
though manufacturers are still facing challenges,
including surplus production and a constantly changing
tariff environment.
Sales in Europe were weighed down by a 21% drop
in van volumes, as the market slowed and Renault
adjusted its product mix.
Passenger car volumes rose 5.9%, growing faster than
the market thanks to strong demand for its bestselling
Clio and Sandero city cars. Renault has managed
to avoid the impact of tariffs because most of its
international sales are in markets where it has local
manufacturing, Ivan Segal, global sales and operations
director for the Renault brand, told journalists.
“Our growth is driven by strong local production and
content,” he said, though he added the company did
not expect a rebound in the European market in 2026.
Sales of the group’s hybrids and electric vehicles grew
significantly last year, up 35% and 77% respectively on
the prior 12 months.
“Renault Group enters 2026 with a still robust
commercial momentum and a highly competitive
electrified line-up that should support further market
share gain, notably in the higher-margin retail channel,”
Oddo BHF wrote. The company reports its 2025
financial results on Feb. 19.

SUVs dominate Türkiye’s car market as
48
February 2026
SUVs have reinforced their position as the dominant
segment in Türkiye’s passenger car market, as
technological advances and changing consumer
preferences continue to reshape buying habits.
Data compiled by an Turkish news agency Anadolu
correspondent from figures released by the Automotive
Distributors and Mobility Association showed that six
SUV models ranked among the top 10 best-selling
passenger cars nationwide in 2025.
Of those SUV models, two were fully electric, two were
hybrid and two were gasoline-powered. During the
same period, domestic automaker Togg’s T10X model
ranked fourth among the year’s best-selling cars, with
sales of 27,583 units.
SUVs also increased their share of total passenger
car sales.When sales were broken down by body
type, SUVs emerged as the most preferred category,
accounting for 61.9% of the market with sales of
671,819 units. SUV sales totaled 556,548 units in 2024.
The sharpest year-on-year increase was recorded in
2023, when sales nearly doubled from 2022 levels,
rising to 497,016 units. In 2022, total SUV sales stood
at 249,621 units.
Speaking to Anadolu, Ali Haydar Bozkurt, chairman of
the board of the Automotive Distributors and Mobility
Association, said the automotive sector has undergone
a clear transformation in recent years, with SUVs at the
center of the shift.
Demand for SUVs in Türkiye has risen steadily in line
with global and European trends, Bozkurt said, adding
that the segment has moved beyond being a niche
preference.
“SUVs have now become the mainstream segment of
the automotive market,” Bozkurt said.
He said body-type preferences in Türkiye’s passenger
car market have changed markedly over the past
seven years.
“Sedan cars, which had been the clear market leaders
for many years, began to give way increasingly to
SUV body types, especially after 2018. While SUVs
accounted for only about 22% of the total passenger
car market in 2018, by 2025 they had exceeded 60%,
becoming the most preferred body type,” he said.
Bozkurt said multiple factors lie behind the rise.
“On the consumer side, increasing expectations for
versatility, a higher driving position, a sense of safety

and comfort stand out, while on the supply side,
manufacturers’ shift toward SUV models offering
higher added value pushes the segment’s market share
upward each year,” he said.
He added that the expansion of B- and C-segment
SUV models has been critical.
“In the past, SUVs were mostly associated with higherpriced
D-segment and above models aimed at limited
purchasing power. After 2018, this picture changed
fundamentally. By offering many new models in the
B-SUV and C-SUV segments, manufacturers made
SUVs accessible to broader segments of society,”
Bozkurt said.
Bozkurt said SUV growth accelerated after 2021, with
the segment’s share reaching about 35% that year,
exceeding 40% in 2022 and crossing 50% in 2023.
“According to 2024 and 2025 data, SUVs have now
become the most preferred body type in the market.
At this point, while sedan cars still hold a significant
volume within the total market, they have lost their
status as the best-selling body type,” he said.
He said SUVs are expected to maintain market
leadership, supported by electrification.
“New electric and hybrid SUV models offered
alongside the electrification process may further
strengthen this trend. In particular, the widespread
adoption of B- and C-segment electric SUVs will
make SUVs not only a body type but also a carrier of
technological transformation,” Bozkurt said.
49
February 2026

52
Tesla stands to benefit as Canada
opens door to China-made EVs
February 2026
Tesla is likely to be one ⁠of the first carmakers to benefit
from Canada’s move to scrap 100% tariffs on Chinesemade
EVs, thanks to its early efforts to ship cars from
its Shanghai plant there and its established Canadian
sales network, experts say.
Under the deal announced, Canada will allow up to
49,000 vehicles to be imported annually from China
with a tariff of 6.1% on most-favored nation terms.
Canadian Prime Minister Mark Carney said the quota
could rise to reach 70,000 vehicles within five years.
However, under one clause in the agreement, half of
the quota will be reserved for vehicles under 35,000
CAD ($25,189). Tesla model prices are all above that
number.
While many Chinese automakers will be keen to seize
the opportunity as they expand exports, Tesla has an
advantage, as in 2023 it already equipped its Shanghai
plant, its biggest and most cost-efficient factory
globally, to build and export a Canada-specific version
of its Model Y.
The U.S. automaker had that same year started
shipping the car from Shanghai to Canada, boosting
Canadian imports of automobiles from China to its
largest port, Vancouver, by 460% year-over-year to
44,356 in 2023.
But it was forced to stop in 2024 and switched to
shipping from its U.S. and Berlin factories after Ottawa
imposed 100% tariffs, citing a wish to counter what
they called China’s intentional state-directed ⁠policy of
overcapacity.
Now, it ships Model Ys produced in Berlin to Canada,
but more variants, such as cheaper Model 3s, are
mostly built in China.
“This new agreement could allow resumption of
those exports rather quickly,” said Sam Fiorani, vice
president of research firm AutoForecast Solutions.
Tesla has an existing network of 39 stores in Canada,
whereas Chinese rivals such as BYD and Nio do not
yet have a sales presence there, and it can also likely
move faster with marketing plans as it only has four
core models, far fewer than its Chinese competitors.
“Tesla indeed has an advantage with its offering of

54
a few models, versions and simple production lines
so that it can be flexible to sell cars produced in
any country in any markets to achieve the best cost
efficiency,” said Yale Zhang, managing director at
Shanghai-based consultancy AutoForesight.
Tesla did not immediately respond to a Reuters request
for comment. Other brands that exported cars made in
China to Canada before the tariffs included Volvo and
Polestar, which are both owned by China’s automaking
group Geely.
Volvo and Polestar also did not immediately respond to
requests for comment.
However, the clause on price will likely give Chinese
brands some breathing room.
“The beneficiaries are likely to be Chinese automakers
and the Canadian customers looking for an entrylevel
vehicle,” Fiorani said. John Zeng, head of market
forecast for China at London-based consultancy
GlobalData, ⁠said that the quota also would likely offer
Chinese carmakers an opportunity to test the waters
in Canada, where there’s a large population of Chinese
Canadians. Canada wants to look at joint ventures
and investments with Chinese companies within the
next three years to build a Canadian electric vehicle
with Chinese knowledge, the public broadcaster CBC
reported, citing a senior Canadian official.
China’s top EV maker BYD currently has an electric bus
assembly plant in Ontario, Canada.
Trump administration ⁠officials have criticized Canada’s
decision. The former Biden administration quadrupled
tariffs on Chinese EVs to 100% in 2024, too, all but
blocking such exports to the United States.
January 2026

56
Turkish auto suppliers grapple with
rising costs, pivot to new sectors
February 2026
Turkish automotive suppliers are reorienting toward
new industries and project types as they contend
with mounting cost pressures and fierce international
competition, according to a recent survey conducted
by the Automotive Suppliers Association of Türkiye
(TAYSAD) in partnership with EY-Parthenon.
The annual competitiveness survey, unveiled at
TAYSAD’s year-end member meeting, outlines key
structural challenges, most notably high labor costs,
exchange rate volatility, and difficulties accessing
credit, as the sector’s primary obstacles heading into
2026.
“Turkish automotive suppliers are actively seeking new
projects,” said EY-Parthenon Türkiye Partner Cem
Camli. “Despite recent gains, the fact that most lost
projects are shifting to countries like China, Poland,
Czechia, India, and Romania underscores how intense
global competition has become.”
While Turkish suppliers recorded an 11-point rise in
newly acquired product projects over the past 12
months, the composition of those wins reveals a
strategic pivot. According to the survey, 34% of the
projects target internal combustion engine vehicles,
26% focus on electric vehicles, and 13% are related to
hybrid systems. Crucially, 27% of new wins fall outside
the automotive industry entirely, signaling a growing
trend toward diversification as companies seek to
mitigate sector-specific risks.
The results reflect a broader shift in global automotive
demand, prompting Turkish suppliers to diversify into
non-automotive sectors and adjust their offerings
amid accelerated timelines and cost advantages from
Chinese manufacturers, the findings reveal.
The survey also captured firms’ cautious optimism
about export growth in 2026. Among respondents,
34% expect their exports to rise over the next 12
months, while 27% anticipate a decline. Overall, 43%
of participating companies currently derive more than
half of their sales from foreign markets—a testament to
the sector’s strong international footprint.

58
Even as capacity utilization dipped in 2025, 32% of
TAYSAD members plan to invest in new capacity in the
coming year. Investment intentions are concentrated
in core subfields: 15% in internal components, 11%
in powertrain systems, 11% in chassis, and 8% in
body parts. Survey findings suggest that the financial
constraints are not isolated issues but systemic
pressures that affect operational planning, investment
appetite, and international positioning. Many firms are
finding it increasingly difficult to balance production
costs while maintaining price competitiveness in global
markets. Despite these headwinds, TAYSAD officials
emphasized that the sector has shown notable resilience.
Türkiye’s automotive supply industry continues to
sustain a strong export orientation, with 43% of surveyed
companies reporting that more than half of their total
sales come from international markets. Total exports
reached $14.47 billion in the first 11 months of 2025, up
from $13.74 billion in 2024. However, the survey shows
that despite a decline in capacity utilization in 2025, 32%
of TAYSAD members plan to invest in new capacity in
2026, focusing on internal parts, powertrain systems,
chassis, and body components, indicating a cautious but
forward-leaning approach.
January 2026

60
Turkish industry achieves record
$195 billion in exports in 2025
February 2026
Türkiye’s industrial sector posted its highest annual
export performance ever in 2025, reaching $194.8
billion, up 6 percent from 2024, according to data from
the Türkiye Exporters Assembly (TİM).
Overall, the country’s exports rose by 4.5 percent
year-on-year to $273.4 billion, with industry accounting
for 82 percent of the total. This marked an increase
from 81.3 percent in 2024, underscoring the sector’s
growing dominance in the country’s trade.
Out of 15 industrial branches, six achieved recordbreaking
export figures last year. The automotive
industry led with $41.5 billion, followed by electrical
and electronics at $17.7 billion, jewelry at $7.9 billion,
defense and aerospace at $10 billion, climate control
systems at $7.4 billion and ship and yacht services at
$2.2 billion.
Growth rates were particularly striking in defense
and aerospace, which surged by 48.8 percent. Ship
and yacht services rose by 17.4 percent, automotive
exports climbed 11.6 percent, electrical and electronics
increased 6.4 percent, jewelry advanced 5.8 percent
and climate control systems grew 3.5 percent.
Key export destinations reflected the sector’s global
reach. Automotive exports to Germany totaled $6.6
billion, climate control systems to Germany reached
$772.8 million, electrical and electronics exports to
the U.K. hit $1.7 billion, jewelry exports to the United
Arab Emirates stood at $2.9 billion and ship and yacht
services to Norway amounted to $399.9 million.

Türkiye’s Togg plans to produce
over 60,000 EVs in 2026
62
February 2026
Türkiye’s homegrown electric vehicle manufacturer
Togg aims to produce at least 60,000 vehicles this year,
a senior executive said.
Togg closed 2025 with production of around 40,000
vehicles, Fuat Tosyalı, chairperson of the board, told
private broadcaster Bloomberg HT.
That took the total number of Togg vehicles on Turkish
roads to more than 100,000, Tosyalı said.
“Our target for 2026 is production of 60,000 units or
more,” he said.
Togg is currently manufacturing the T10X SUV and the
T10F sedan at its factory in the northwestern province
of Bursa. The company sold more than 39,000 vehicles
last year to become the country’s top EV brand, leaving
behind giants like Tesla and BYD.
Togg is backed by a consortium of major groups,
including BMC, Zorlu Holding, Anadolu Group and
Turkcell, along with the Union of Chambers and
Commodity Exchanges of Türkiye (TOBB).
Mass production of the T10X commenced in 2022
before orders were launched in March 2023, with
deliveries starting a month later.
Togg launched the T10F model in Türkiye in mid-
September last year, shortly before it started sales
in Germany to mark its official entry to the European
market. The company also plans to enter France and
Italy in the coming period.
Besides the SUV and sedan, Togg will manufacture
four other models – a C-hatchback, B-SUV and
B-MPV. Tosyalı said the third model, called T6, is
planned for launch in 2027. Media reports said it would
be a hatchback. Annual production capacity at Togg’s
Bursa plant is expected to reach 100,000 vehicles by
the end of 2027, Tosyalı said.
The capacity is aimed to reach 175,000 units once the
plant reaches full capacity.
Togg aims to manufacture 1 million vehicles across the
five segments by 2030.

Automotive Manufacturers Association
announces 2025 year-end data!
64
February 2026
The Automotive Manufacturers Association (OSD)
has announced its data for 2025. Total production
increased by 4 percent compared to 2024, reaching
1,419,464 units. Passenger car production, however,
declined by 4 percent year-on-year to 872,538 units.
Including tractor production, total output amounted to
1,445,921 units. In the commercial vehicle segment,
production increased by 19 percent in 2025, while light
commercial vehicle production rose by 21 percent and
heavy commercial vehicle production increased by 1
percent. Compared to 2024, the commercial vehicle
market expanded by 8 percent, the light commercial
vehicle market by 10 percent, while the heavy
commercial vehicle market contracted by 4 percent. In
2025, total automotive exports increased by 4 percent
year-on-year in unit terms, while passenger car exports
declined by 8 percent. During this period, total exports
reached 1,057,920 units, with passenger car exports
amounting to 599,687 units. In 2025, the total market
grew by 10 percent compared to the previous year,
closing at 1,413,903 units. During the same period,
the passenger car market increased by 11 percent,
reaching 1,084,496 units.
As the umbrella organization of the automotive industry
in Türkiye, representing 13 leading members shaping
the sector, the Automotive Manufacturers Association
(OSD) announced production, export, and market data

for 2025. Accordingly, total automotive production
increased by 4 percent compared to the previous year,
reaching 1,419,464 units. Passenger car production
declined by 4 percent to 872,539 units. Including
tractor production, total output reached 1,445,921
units. In 2025, production in the commercial vehicle
segment increased by 19 percent year-on-year, while
light commercial vehicle production rose by 21 percent
and heavy commercial vehicle production increased by
1 percent. During this period, the automotive industry’s
capacity utilization rate stood at 67 percent. By vehicle
group, capacity utilization was recorded at 68 percent
for light vehicles (passenger cars + light commercial
vehicles), 57 percent for trucks, 68 percent for buses
and midibuses, and 35 percent for tractors.
Exports Reach USD 41.5 Billion in 2025
In 2025, automotive exports increased by 4 percent
year-on-year in unit terms, reaching 1,057,920 units.
During the same period, passenger car exports
declined by 8 percent compared to the previous year,
while commercial vehicle exports rose by 28 percent.
Tractor exports decreased by 13 percent year-onyear
to 11,261 units. According to data from the
Turkish Exporters Assembly, the automotive industry
maintained its leadership in sectoral exports in 2025
as well, accounting for a 17.6 percent share of total
exports. Based on figures from the Uludağ Exporters’
Associations (UİB), total automotive exports reached
USD 41.5 billion in 2025. During the same period,
passenger car exports increased by 4 percent to
USD 11.8 billion. In dollar terms, exports of the main
automotive industry rose by 15 percent, while supplier
industry exports increased by 6 percent.
Domestic Market Grows by 10 Percent
In 2025, the total market expanded by 10 percent
compared to the previous year, reaching 1,413,903
units. During the same period, the passenger car market
increased by 11 percent to 1,084,496 units. Compared
to the previous year, the total commercial vehicle market
grew by 8 percent, the light commercial vehicle market
expanded by 10 percent, while the heavy commercial
vehicle market declined by 4 percent. In the January–
December period of 2025, the share of domestically
produced vehicles in passenger car sales stood at 30
percent, while the domestic vehicle share in the light
commercial vehicle market was recorded at 22 percent.
65
February 2026

Netherlands steps back from Nexperia
takeover after China eases chip curbs
66
February 2026
Dutch Economy Minister Vincent Karremans said
that the government has suspended its move to take
control of Chinese-owned chip maker Nexperia, a
supplier vital to the auto industry, following the partial
easing of Chinese export restrictions on the company’s
products.
“In light of recent developments, I consider it the right
moment to take a constructive step by suspending
my order under the Goods Availability Act regarding
Nexperia,” he said, signaling easing tensions to give
relief to global automakers.
“We are positive about the measures already taken by
the Chinese authorities to ensure the supply of chips
to Europe and the rest of the world,” he said, referring
to Beijing’s move to exempt some chips from the
export ban, reportedly as part of a trade deal agreed
by President Xi Jinping and U.S. President Donald
Trump. He described the Chinese move as “a show of
goodwill” and stated that the Dutch government would
continue to engage in “constructive dialogue” with
Beijing in the coming period.
The dispute began in September, when the Dutch
government effectively took control of Nexperia, a
Netherlands-based chip maker owned by China’s
Wingtech. The Dutch Finance Ministry cited national
security concerns and alleged mismanagement by the
company’s chief executive as the basis for its move to
take control of the firm.
China responded by banning the re-export of
Nexperia’s chips, which are used in vehicle onboard
electronics and prompted car makers to warn that
the restrictions could lead to production stoppages
if supplies were disrupted. Nexperia designs and
manufactures chips used across various electronic
systems, including those in the auto industry. While the
company oversees design and production, all chips are
sent to China for final processing before being shipped
to customers, meaning any disruption at this stage
directly affects companies that rely on its components.
Following the Dutch finance minister’s statement, the
first reaction came from German automaker BMW,
which said it saw “positive signals” but underlined that
the overall situation remains in limbo.
A company spokesperson stated that production at
its plants was continuing, yet described conditions as
volatile due to uncertainty surrounding chip supplies.
“We explicitly welcome the positive signals from the
political sphere on this issue. We are continuously
monitoring this development but cannot comment
further at this time,” the spokesperson told Reuters.

China blames ‘irresponsible’ interference for chip crisis
68
China has called on the Netherlands to “immediately
correct its wrongdoing” in relation to its recent actions
against semiconductor firm Nexperia, accusing Dutch
authorities of triggering a global semiconductor supply
chain crisis that has especially disrupted the European
automotive industry.
According to the state-run Xinhua, a Chinese
Commerce Ministry spokesperson reiterated the
country’s firm opposition to the move by the Dutch
government, describing it as “improper administrative
interference” in the internal affairs of Nexperia.
“It is perplexing that in the face of widespread anxiety
and concern within the global industry, the Dutch
side remains unmoved and persists in its own course,
showing no sense of responsibility whatsoever,” the
spokesperson said.
Nexperia, known for producing components essential
to a wide range of electronics, is a key player in the
European semiconductor landscape.
In late September, the Dutch government took control
of the company, citing national security concerns
and the risk of sensitive technology being transferred
to its Chinese parent company, Wingtech, following
warnings from the United States about China’s growing
role in critical supply chains.
As part of the takeover process, Dutch authorities
blocked certain management decisions at Nexperia
that were deemed to pose a threat to Dutch and
broader European interests. The move prompted
a sharp reaction from Beijing, which viewed the
intervention as a violation of international business
norms and a disruption to the free flow of technology.
In retaliation, China halted exports of key chips,
causing immediate disruptions, particularly within the
European automotive sector.
Following alarms raised by leading car manufacturers
over their reliance on Nexperia chips and insufficient
inventories to withstand a supply constraint,
negotiations between the Netherlands and China led
to temporary relief. China lifted its chip export ban
in November, and the Dutch government paused its
planned takeover of Nexperia, though the dispute
remains unresolved. Wingtech has since entered
talks with court-appointed custodians overseeing
Nexperia’s operations in an effort to regain control of
the Netherlands-based chipmaker, yet the Dutch side
continues to stand by its position.
Most recently, Dutch Economic Affairs Minister
Vincent Karremans defended the intervention, stating,
“I wouldn’t characterise it as enjoyable, but it was
necessary,” he told the Dutch daily De Telegraaf. “And
I don’t let my decisions be guided by whether they’re
enjoyable or not.” China remains the leading supplier
of semiconductors used across multiple industries,
supported by its control of around 70% of global
rare-earth element production and over 90% of global
rare-earth refining capacity, both of which are critical
for chip manufacturing and related compo
February 2026

Türkiye rises to Global Top 10 in patent applications
70
February 2026
With 10,004 filings, Türkiye was among the top 10
countries in the world for domestic patent applications
in 2024, while also leading the way with a high
share of women inventors applying under the Patent
Cooperation Treaty (PCT), according to the Turkish
Patent and Trademark Office (Türkpatent).
Türkiye performed strong worldwide in patents,
trademarks, and designs last year, said a recent report
by the World Intellectual Property Organization (WIPO).
Türkiye’s patent applications rose 18.4 percent in
2024, above the world average, while its registrations
surged 38.9 percent compared to the previous year,
pushing the country from the 12th spot to the 10th
position worldwide. China led the list with 1.6 million
applications, followed by the U.S. with 270,295, Japan
with 237,169, South Korea with 195,786, India with
63,217, Germany with 40,085, Russia with 21,502,
France with 12,751, and the United Kingdom with
11,105.
Following Türkiye, Italy ranked 11th with 9,120
applications, while Iran followed with 8,314 and North
Korea with 6,936.
Türkiye made a large leap in patent applications by
women, as 26.1 percent of the patent applications
under the PCT were made by women inventors,
becoming a world leader.
Turkish patent applications concentrated in hydro
energy technologies in particular, the data showed.
Between 2014 and 2024, Türkiye ranked second
globally in per capita growth of patent applications,
seventh in domestic utility model applications and 10th
worldwide with 181 registered patent experts.
Türkiye came in sixth worldwide and second in Europe
with 366,543 domestic trademark applications, while
ranking fourth globally and first in Europe with 284,781
domestic trademark registrations.
China led the world in trademark applications with 6.7
million, followed by the United States with 493,415,
Russia with 523,570, India with 512,597, and Brazil
with 425,953. Following Türkiye, the U.K. made
200,303 applications, South Korea 265,457 and Japan
240,417, the data showed.
Türkiye ranked third worldwide with 41,875 domestic
design applications in 2024, 25.8 percent of which
were for furniture and household goods, 19.2 percent
for advertising and 13.4 percent for textiles and
accessories. The country ranked fourth worldwide
in the ratio of design applications to gross domestic
product (GDP) and fifth in the ratio of design
applications to population.
China was the world leader in domestic design
applications, as well, with 803,235, followed by South
Korea (51,765), Türkiye, Italy (36,754), India (36,118)
and the U.K. (30,985).