Automotive Exports March 2026

Being global and competitive

Mehmet Soztutan, Editor-in-Chief

mehmet.soztutan@img.com.tr

Editör

In line with the shift of the focus on customers, markets, products

and competition from the local level to the global level, Turkish

manufacturers and suppliers position themselves globally rather

than locally.

The export potential of the automotive parts sector, coupled with

the presence of major international automotive manufacturers,

has attracted an increasing number of foreign investors.

Key factors which attract foreign capital inflows to Türkiye

mainly include the market size, consumer composition, friendly

investment legislation and banking system together with other

attractiveness arising from highly skilled human resources in

production and management, the unsaturated domestic market

with high potential, easy access to neighboring (regional)

emerging markets, and low labor cost.

This transformation in the sector urges automotive suppliers

to improve their existing structures in line with the demands of

global auto manufacturers. These improvements relate to a need

to build advanced technological skills, infrastructure, research

and development means; capable of effective and successful

technical cooperation; skilled in unique product development;

equipped with the ability to obtain shares in global projects as

well as to have high brand competitiveness.

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.

We think that technology and competitive power will always

be the two keys for the survival of the automotive industry.

Dynamism and innovation have turned out to be the rule of the

game in the automotive industry as usual.

As known, 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

30

32

OSS association reviews 2025!

Aftermarket maintains stability in

production and employment

42

‘No problem’ in BYD’s Türkiye investment

52

Türkiye starts 2026 in high gear

as auto sales rise nearly 10%

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8

Car sales in Türkiye

increase 9.8% in January

March 2026

Türkiye’s car and light commercial vehicle market

added pace in January, as total sales climbed almost

9.8% from a year ago, industry data showed.

Total sales reached 75,362 units, a 9.77% year-overyear

increase, according to the Automotive Distributors

and Mobility Association (ODMD).

Passenger car sales jumped 9.14% from a year earlier

to 61,055 units, while light commercial vehicle sales

rose 12.56% to 14,307 units.

Data showed total sales were 77% above the 10-

year January average, underscoring the resilience

of demand despite high borrowing costs and tighter

credit conditions.

The industry had broken records in almost every

month of 2025, with full-year sales climbing 10.5%

to nearly 1.37 million units. Nearly one out of every

six automobiles sold was fully electric last year. The

momentum continued in January.

Fully electric cars accounted for 18.5% of the market,

while the share of hybrids stood at 30.7%. Sales of

electric vehicles with motor power below 160 kW

surged 87.4% year-over-year.

Fully electric car sales jumped around 90% last

year to nearly 190,000 units, lifting their share of the

passenger car market to 17%. Hybrid vehicle sales

increased 63% to about 295,000 units, accounting

for 27% of the market. Petrol-powered cars remained

the largest category in January with 26,671 units sold,

corresponding to a 43.7% market share.

By segment, vehicles in the A, B and C segments,

which benefit from lower tax brackets, accounted

for 83.7% of total passenger car sales, ODMD data

showed. The C segment maintained its dominance

with 32,428 units sold, capturing a 53.1% market

share. In terms of body type, SUVs continued to lead

the market, accounting for 60.3% of total car sales, or

36,786 units.

They were followed by sedans with a 21.2% share and

hatchbacks with 18.3%.

The momentum in the car market continues despite

high borrowing costs, as authorities maintain 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%.

10

EU will struggle to secure key raw

materials supply, warns report

March 2026

Employees work with pipelines during the extraction of

crude oil at a plant of Colombian petroleum company

Ecopetrol in Acacias, Meta Department, south of

Bogota. The European Union must step up its efforts

to secure supplies of critical raw materials by 2030 if

it wants to break its dependence on foreign countries

and meet its climate goals, a watchdog warned.

Raw materials such as lithium, nickel and cobalt are

essential for electronic goods such as batteries and

wind turbines and needed for the EU’s green transition.

Brussels wants more European production to avoid

a repeat of the supply shocks seen during the Covid

pandemic or after Russia’s 2022 invasion of Ukraine.

It also seeks to challenge Beijing’s stranglehold on

critical materials which threatens key EU industries.

But the 27-country bloc is struggling to diversify

its imports of the key materials, ramp up domestic

production, and recycling is “still in its infancy”,

according to a report by the European Court of

Auditors (ECA). The EU needs to secure the supply of

such minerals to meet its energy and climate goals —

with a target of climate neutrality by 2050.

The study analysed the EU’s efforts after the adoption

of the Critical Raw Materials Act in 2024, aimed at

ensuring the long-term secure supply of 26 minerals

necessary for Europe’s energy transition.

The law set several non-binding targets:

— the EU must meet 10 percent of its extraction

needs, 40 percent of its processing and 25 percent of

its recycling needs for each strategic material

— the bloc must not rely on any one non-EU country

for more than 65 percent of its strategic raw material

needs. The auditors said “there is still a long way to

go to meet the targets”. When the law was adopted,

domestic mining capacity for the strategic raw

materials accounted for around eight percent of the

27-country EU’s annual consumption. Meanwhile EU

processing accounted for 24 percent of its needs and

12 percent of its recycling capacity, the ECA said.

For example, China supplies 97 percent of the EU’s

magnesium, used in hydrogen-generating electrolysers

while Türkiye provides 99 percent of the bloc’s boron,

used in solar panels. Meanwhile, Chile supplies 79

percent of the EU’s lithium, used in batteries for

electric cars. “We are now dangerously dependent on

a handful of countries outside the EU for the supply

of these materials,” said the ECA’s Keit Pentus-

Rosimannus.

China to ban hidden car door handles from next year

12

March 2026

China will ban hidden door handles on cars starting

next year, citing safety concerns and thus phasing out

the minimalist design widely popularized by Tesla.

The new rules could prompt carmakers globally to

rethink vehicle-door designs as China increasingly

positions itself as a standards-setter in the rapidly

expanding international EV market, according to

analysts.

The rules, announced by the Ministry of Industry and

Information Technology on Chinese car models already

approved for launch will have an additional two years

to achieve compliance, the ministry said.

The new regulations will apply to all vehicles but will

mostly impact EVs, which are commonly designed

with hidden handles, and will “improve the level of

automotive safety design,” the ministry added.

Safety concerns have risen in China recently over

sleek, aerodynamic car doors that reduce drag but are

prone to losing operability in the event of a crash.

One high-profile incident occurred in October, when

rescuers were shown failing to open the doors of a

burning Xiaomi electric vehicle in the southwestern city

of Chengdu.

The driver, reported to be under the influence of

alcohol, died in the crash.

Electronic or “flush” door handles were introduced with

Tesla’s 2012 launch of the Model S, later becoming

popular with Chinese EV brands prioritizing high-tech

features.

Folding into the body of the car, such door handles

provide a slight boost to efficiency by reducing drag

while the vehicle is in motion.

He pointed to areas, including battery safety standards

and remote updating, as other examples of this.

Russo said he expects the new door regulations to be

“echoed” abroad, particularly in Europe, “as Chinese

vehicles and platforms increasingly set the baseline for

global EV design.”

The new rules stipulate that all doors except the

tailgate “shall be equipped with a mechanical release

exterior door handle.”

Other rules will improve the visibility of interior handles,

including by requiring permanent graphic markings, the

ministry said.

China is the world’s largest EV market, and its dozens

of brands have growing operations abroad.

Statistics published showed that Chinese firm BYD

last year sold more EVs than Tesla, overtaking the U.S.

industry pioneer in the annual category for the first

time. China’s status as the world’s largest passenger

vehicle market means the country is “informally” setting

global standards, Tu Le, founder of Sino Auto Insights,

told The new rules on door handles mean that “for

companies like Tesla, Kia and other legacy automakers

that sell their vehicles in multiple regions, they’ll need

to decide whether to make the change to the China

product only or implement it globally,” Le said.

“It’s likely a pain for quite a few automakers since

some of them have global designs that will need to be

reconciled,” he added.

14

Türkiye’s Togg plans to produce

over 60,000 EVs in 2026

March 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.

Neko Automotive, a global player in

auto aftermarket industry

Neko Otomotiv (Neko Automotive) is a leading supplier with over

750 thousand product variety exporting to 45 countries.

company’s steadily increasing competitiveness in the

global market.

16

March 2026

We learned the details of Neko Automotive’s success

story from Mr. Necati Kosova, general manager of the

company for our readers. Full text of our exclusive

interview follows:

Can you provide information about your export

activities? In which countries do you have a

stronger market share?

Export is one of the most strategic pillars of Neko

Automotive’s growth story. With more than 27 years

of export experience, Neko Automotive serves 45

countries and operates across Europe, the Balkans,

Scandinavia, the Turkic Republics, the Americas, Asia,

and Africa with 235 brands and over 750,000 product

varieties. This picture shows that the company has

built a flexible export model that can adapt to different

market dynamics rather than focusing on a single

region.

In terms of market strength, it can be said that the

company has particularly strong penetration in Europe

and surrounding regions. Behind this lies both Turkey’s

production and logistics advantages, as well as

Neko Automotive’s wide product range, fast delivery

capability, and multi-brand structure. One of the most

important criteria for customers in the automotive

aftermarket is the ability to access the required parts

quickly and reliably; the continuity Neko provides in

exports forms the foundation of this trust.

Additionally, being listed among the “Export

Champions” in 2023 indicates that its export

performance stands out not only quantitatively but

also qualitatively. This achievement demonstrates the

The automotive aftermarket industry is highly

competitive. What are the key features that

differentiate Neko Automotive from its competitors?

I believe the main factor that differentiates Neko

Automotive from its competitors is that it approaches

the business not merely as “product sales,” but

as end-to-end supply and service management.

Today, the companies that make a difference in the

automotive aftermarket are those that can deliver

the right product, at the right time, with the right

technical support. Neko Automotive’s extensive brand

and product depth, same-day shipment capability,

widespread sales organization, and digital ordering

infrastructure provide a significant competitive

advantage in this regard.

The company’s own B4B system, offering access

to over 750,000 references along with fast product

search, easy ordering, reporting, and a user

experience-focused structure, directly addresses

the critical needs for speed and accuracy in today’s

spare parts trade. In addition, acting as a distributor

of international brands in Turkey and expanding

the NETEX brand to 2,400 sales points nationwide

positions Neko not only as a distributor but also as a

market developer.

Another distinguishing aspect is the company’s

vision of going beyond traditional spare parts

trading to include equipment, consumables, and

technological/consultancy services. Moreover, the

after-sales services provided on the service products

side—installation, training, technical support, and

maintenance processes—offer long-term value to

customers and position Neko Automotive not just as

a supplier but as a solution partner. This approach

strongly meets customers’ expectations for one-stop

solutions, especially within the service ecosystem.

How has the recent technological transformation

in the automotive sector (electric vehicles, digital

manufacturing, etc.) affected your company? What

kind of work are you doing in this area?

Today, the automotive sector is experiencing one

of the biggest transformation periods in its history.

Electric vehicles, connected systems, advancements

in diagnostic technologies, data-driven service

management, and digital supply chain practices have

become the core agenda of the industry. In such

a period, companies operating in the automotive

aftermarket ecosystem need to stand out not only

with product diversity but also with their ability to

adapt to technology. At Neko Automotive, we see

this transformation not as a threat but as a significant

area of development. This approach is reflected in the

company’s B4B infrastructure, technical equipment

distributorships, and service model.

On the digitalization side, our own B4B system enables

our customers to access products faster, manage order

processes more efficiently, and perform reporting. In

the spare parts sector, digitalization does not simply

mean e-commerce; it means reaching the correct

reference, reducing error rates, shortening supply

times, and improving customer experience. Neko

B4B’s structure—focused on “instant product search,”

“easy ordering,” “reporting,” and “user experience”—is

a concrete response to this transformation.

On the other hand, our distributorships in service

equipment and testing devices provide a significant

advantage in adapting to the sector’s technical

transformation. With the increasing number of

electrical and electronic systems in next-generation

vehicles, it is clear that service providers need more

advanced diagnostic, measurement, and equipment

infrastructure. At this point, Neko Automotive goes

beyond product supply by making a difference with

the after-sales services it offers for service equipment.

This structure, which includes installation, user training,

technical service support, and maintenance services,

enables customers to quickly and smoothly adapt to

new-generation technologies. Thus, Neko offers its

customers not only parts but also a sustainable service

infrastructure and solution ecosystem.

How do you evaluate the position of Turkey’s

automotive supplier industry in the global market?

What are your predictions for the future of the

sector?

Turkey’s automotive supplier industry has a strong

advantage in the global market thanks to its

production capability, engineering infrastructure,

flexible manufacturing structure, and geographical

location. Especially its proximity to Europe, fast

logistics opportunities, and broad supply ecosystem

make Turkey a strategic hub not only in production

but also in aftermarket services and spare parts

supply. Companies like Neko Automotive, with their

multi-brand structure, export focus, and fast logistics

infrastructure, are among the concrete representatives

of this strength in the field.

In the coming period, the most decisive topics for the

sector will be electrification, digitalization, data-driven

supply chain management, and sustainability. As the

vehicle fleet transforms, spare parts and service needs

will also evolve; this will make product knowledge,

technical expertise, and technology investment even

more valuable. Therefore, in the future, companies

that stand out will not only be those with a wide

product stock but also those that manage the right

data, provide technical solutions to customers, and

build strong digital infrastructures. I view the future

of Turkey’s automotive supplier industry positively.

Especially in a period when flexibility in global

supply chains is increasingly important, I believe

Turkey will become even stronger with companies

that can balance speed, quality, and accessibility.

Competition in the future of the sector will be shaped

not only by price but also by speed, trust, technology,

sustainability, and customer experience. Therefore,

Turkey has a significant window of opportunity ahead;

the companies that will seize it are those investing

today in digitalization, quality systems, and export

capabilities.

March 2026

17

22

Tesla to phase out Model

S, X to focus on robots

March 2026

Tesla is set to discontinue its larger electric car models,

the Model S and Model X, to free up capacity for robot

production, the U.S. automaker owned by Elon Musk

said. Owners of the vehicles will continue to receive

technical support over the lifetime of their cars, Musk

said during a conference call with analysts, adding that

production of the two models is due to be phased out

in the coming quarter.

Launched in 2012, the Model S was Tesla’s first vehicle

developed entirely in-house. It helped establish the

company’s reputation for producing electric cars that

could compete with the combustion-engine vehicles

dominating the market at the time, offering strong

driving range, speed and a distinctive design.

The Model X, known for its falcon-wing doors, followed

in 2015. Both models have been refreshed several

times since being launched.

More recently, newer vehicles such as the Model 3

and Model Y have come to dominate Tesla’s business,

accounting for nearly 97% of deliveries last year.

Tesla plans to use the existing production lines for the

Model S and Model X to manufacture its humanoid

robots, known as Optimus. Musk has previously said

he aims to begin selling the robots by the end of next

year. The company also intends to start producing

fully autonomous robotaxi vehicles this year, branded

Cybercab, which will not have a steering wheel or

pedals. Musk said that in the future Tesla expects to

build far more of these vehicles than any of its other

models. He added that the Cybertruck is also expected

to be developed into a fully autonomous vehicle.

Ford urges ‘Made in Europe’ to include Türkiye as carmakers wary

24

March 2026

Ford of Europe President Jim Baumbick urged the

European Union to ensure that the planned “Made

in Europe” industrial policy remains open to partners

such as Türkiye and the U.K., warning that excluding

them would weaken production inside the bloc itself.

Baumbick’s comments came after more than 1,100

CEOs and business leaders co-signed a newspaper

article published across Europe backing the “Made

in Europe” strategy, which would prioritize locally

manufactured products.

The European Commission is expected to propose

the so-called Industrial Accelerator Act later as part of

efforts to bolster European industry against cheaper

imports, particularly from China. The initiative has

divided EU member states and industries.

The newspaper article was co-signed by CEOs from

a broad range of industries, including steelmakers

ArcelorMittal and Tata Steel, drugmakers Novo Nordisk

and Sanofi, tiremakers Continental, Michelin and Pirelli,

airline group Air France KLM and French utility Engie.

“Canadian Prime Minister Mark Carney is right: those

who are not ⁠sitting at the table now will end up on

the menu... Steel is inextricably linked to this,” said

Marie Jaroni, CEO of Europe’s No. 2 steelmaker

Thyssenkrupp Steel Europe, another signatory.

Car makers were absent from the list, however, since,

owing to their sprawling global supply chains, they are

concerned about how narrow the “Made in Europe”

definition will be.

“Ford supports strengthening Europe’s industrial base,

but the planned ‘Made in Europe’ rules must remain

open to trusted partners like the U.K. and Türkiye,”

Ford’s Baumbick said.

“Our European factories depend on deeply integrated

supply chains in the U.K. and Türkiye and excluding

them would weaken production inside the EU itself.”

Türkiye is one of the largest automotive producers in

Europe and is home to manufacturing facilities of many

of the world’s top auto suppliers.

Nearly 70% of Türkiye’s automotive exports go to

Europe and the country produces the vast majority of

the continent’s light commercial vehicles. Türkiye itself

imports roughly 8% of Europe’s total vehicle exports,

making it the continent’s fourth-largest market.

Business leaders in Türkiye have also expressed

caution over uncertainty regarding Europe’s new plan.

Nail Olpak, the head of the Foreign Economic Relations

Board (DEIK), said a European industry without Türkiye

would be “unthinkable.”

“Europe strengthening its own industry is

understandable,” Olpak told reporters. “But we cannot

accept a scenario in which Türkiye, which has been

integrated with European industry for 30 years and has

strong production capabilities, is excluded because of

this approach.”

In the co-signed article, EU industry chief Stephane

Sejourne argued that Europe must protect its strategic

sectors.

“Without an ambitious, effective and pragmatic

industrial policy, the European economy is doomed

to be just a playground for its competitors,” he wrote.

“We must establish, once and for all, a genuine

European preference in our most strategic sectors,”

the French member of the Commission said.

Stefan Hartung, CEO of major car parts supplier

Bosch, cautioned that the new rules should “address

level-playing field issues” rather than “compensate for

competitive disadvantages.”

Governments, including France, are championing

the idea of “Made in Europe” regulations. But others,

including Sweden and the Czech Republic, warn that

“buy local” requirements could deter investment,

raise prices in government tenders, and hurt the EU’s

competitiveness globally.

“The Chinese have ‘Made in China,’ the Americans

have ‘Buy American,’ and most other economic

powers have similar schemes that give preference ⁠to

their own strategic assets. So why not us?” Sejourne

wrote.

“Whenever European public money is used, it must

contribute to European production and quality jobs.”

Local content is also taking center stage in

negotiations for the European Commission’s next

2028-2034 budget.

But Mercedes-Benz CEO Ola Kaellenius told reporters

that local content requirements risked driving up

inflation and shrinking the market.

“You have to be incredibly, incredibly careful here ⁠to

use a scalpel,” he said.

26

Turkish defense exports jump over

44% to seal new January record

March 2026

Türkiye’s defense and aerospace exports soared

44.2% on an annual basis to a record high of $555.3

million in January, a senior official said.

The industry picked up from where it left off in 2025,

when shipments rose about 48% year-over-year to

surpass $10 billion.

The strongest year to date reaffirmed rising global

demand for Turkish-made military systems and comes

as Türkiye ramps up defense industry production to

further cut dependence on foreign providers.

“Having concluded 2025 with record-breaking

achievements, our defense and aerospace industry

has started 2026 with another record-breaking export

success!” Haluk Görgün, the head of the Presidency of

Defense Industries (SSB), said.

Görgün noted that this strong performance once again

demonstrates the competitiveness of the Turkish

defense and aerospace sector in global markets and

its capacity for sustainable growth.

“This result is a tangible reflection of our high-valueadded,

advanced technology product portfolio, our

field-proven systems, and our long-term, trust-based

collaborations. Our defense and aerospace industry is

resolutely committed to making a strategic contribution

to Türkiye’s overall export performance,” he noted.

Years of investment have helped Türkiye evolve from

a country heavily reliant on foreign defense systems

to one where domestically developed platforms meet

almost all of its needs.

For much of the past two decades, Ankara has

expressed frustration over its Western allies’ failure

to provide adequate defense systems against missile

threats despite Türkiye being a NATO member.

The transformation since the early 2000s has driven

the development of a broad range of homegrown air,

land and naval platforms, reducing foreign dependency

from around 80% to below 20%.

The capabilities of its defense platforms, led by its

combat drones, helped it seal billions of dollars’ worth

of deals in recent years.

More than 3,500 firms operate in the Turkish defense

industry, boasting a workforce of about 100,000.

EU chief backs Made-in-Europe push for ‘strategic’ sectors

28

March 2026

EU chief Ursula von der Leyen has backed a push to

favour European firms over foreign rivals in “strategic”

fields, ahead of a leaders’ meeting on boosting the

bloc’s competitiveness.

The EU executive will put forward a proposal to

prioritize European companies in public procurement

for key sectors, but the move faces pushback from

some member states and partners.

In a letter to the bloc’s leaders, von der Leyen argued

Europe must be able both to “defend its strategic

interests” and support home-grown production.

“A European preference is a necessary instrument that

contributes to this objective,” she wrote, arguing such

a move would “help produce lead markets in strategic

sectors.” In a draft, the EU executive wants rules that

would force companies bidding for public contracts in

sectors such as cars and green technology to prove

that a certain percentage of their products are made in

Europe. The European Commission has twice delayed

its proposal because of fierce internal debates, with

some seeking to dilute its scope.

In her letter to leaders, von der Leyen said any

European preference “must be underpinned by robust

economic analysis and aligned with our industrial

priorities, while engaging constructively with trusted

partners.”

EU industry chief Stephane Sejourne has argued it is

time for Europe to have its own version of the “Buy

American Act” and “Made in China” to protect firms.

In an op-ed published and signed by more than

1,100 CEOs and business leaders, Sejourne said that

“whenever European public money is used, it must

contribute to European production and jobs.”

The “Made in Europe” concept has been popular in

France for years and Paris has been seeking tough

limitations on defence purchases from outside the EU.

But France’s enthusiasm has been met with

scepticism from some EU partners.

“They always say ‘European’, but they think everyone

is going to buy French things, so there’s still a lot of

work to be done,” Belgian Prime Minister Bart De

Wever told national broadcasters.

There have also been concerns further afield.

Turkish President Recep Tayyip Erdoğan wrote a

letter to von der Leyen in December in which he

warned of the unwanted consequences of such

moves for Türkiye, which is in a customs union with

the bloc. In particular, Erdoğan raised concerns about

the impact on the automobile sector, a sentiment

echoed by Japanese companies in public and

private.

Japanese carmaker Honda urged Brussels to extend

the concept to “Made with Common Values,” warning

that “overly restrictive local content requirements will

not necessarily shore up European manufacturing”

because of the industry’s global nature.

30

Germany tops Turkish automotive

export market in February

March 2026

Türkiye’s automotive industry, the country’s leading

export sector, achieved its highest-ever February

sales, reaching $3.54 billion, according to the Uludağ

Automotive Industry Exporters’ Association (OİB).

This marks a 19 percent increase compared to the

same month last year, giving the sector a 16.8 percent

share of Türkiye’s total exports.

Germany was the largest market, with exports totaling

$544 million. France followed with a sharp 45 percent

increase to $459 million, while Italy ranked third with

$338 million, up 31 percent year-on-year.

On a regional basis, exports to European Union

countries rose 25 percent to $2.69 billion, underscoring

the sector’s strong integration with the European

market.

By product group, the “supplier industry” led with

$1.35 billion in exports, up 10 percent. Passenger car

exports climbed 9 percent to $1 billion, while exports

of commercial vehicles for goods transport surged

36 percent to $654 million. Bus, minibus and midibus

exports jumped 55 percent to $327 million and tractortrailer

exports rose 48 percent to $172 million.

OİB Chairman Baran Çelik emphasized the milestone

achievement: “As the automotive industry, we recorded

the highest February exports in our history, with

significant growth across all major product groups.

This performance is proof of the Turkish automotive

industry’s agility within the global supply chain.”

OSS association reviews 2025!

Aftermarket maintains stability in production and employment

32

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.

March 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.

March 2026

33

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.”

34

March 2026

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.

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

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.”

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.”

Turkish President raises concerns over

EU ‘Made in Europe’ auto proposal

36

March 2026

Turkish President Recep Tayyip Erdogan has raised

concerns with European Commission President Ursula

von der Leyen over a draft EU regulation that would

prioritize “Made in Europe” automotive products in

public procurement, officials familiar with the matter

said.

Officials said Erdogan sent a letter to von der Leyen on

Dec. 4 expressing concern that treating Türkiye as a

third country under the proposed regulation could have

unintended consequences for regional value chains

and the EU–Türkiye Customs Union.

The letter was part of a broader effort by Ankara

to warn that exclusion from such initiatives could

negatively affect several Turkish industries, particularly

the automotive supply sector.

Türkiye and the European Union established their

Customs Union in 1995 as part of Ankara’s EU

accession process.

The agreement covers industrial goods and processed

agricultural products but excludes sectors such as

services, agriculture and digital trade.

According to the draft proposal, the EU plans to

introduce minimum local-content requirements

for public procurement of key green technologies,

including batteries, solar and wind components,

and electric vehicles, in order to support domestic

industries.

Under the plan, the lowest price would no longer be

the sole criterion when public bodies purchase items

such as fleets of buses or cars.

The draft defines “Made in Europe” as products

originating from EU member states and European

Economic Area countries; Iceland, Norway and

Liechtenstein, while excluding Türkiye.

In 2025, Türkiye’s automotive exports to the EU

totaled about $30 billion, accounting for 72% of the

country’s total automotive exports, including parts and

components.

The draft legislation states that while EU countries

must ensure a minimum percentage of European-origin

content, certain exemptions may apply to countries

that maintain free trade agreements with the bloc.

Turkish columnist Barcin Yinanc, who first reported

on Erdogan’s letter, wrote that the draft regulation

guarantees the EU will uphold its international

obligations. She said business representatives believe

the EU–Türkiye Customs Union should fall under that

definition.

An official said the legislation, expected to be unveiled,

has not yet been ratified and that reaching agreement

within the European Parliament and the Council could

take months or longer.

The official added that there remains room for

exemptions given Türkiye’s unique level of economic

integration with the EU.

Istanbul-based consultant Ussal Sahbaz said excluding

Türkiye from the program could effectively undermine

the customs union for several industries, particularly

automotive supply chains built on that framework.

He also said Turkish companies, despite ranking

among Europe’s leading manufacturers, have long

relied on official institutions for lobbying efforts

and should now pursue more direct and sustained

engagement in Europe.

Türkiye, EU clear half of

Customs Union friction points

38

March 2026

Turkish and EU officials have resolved 15 out of 29

problematic areas within the scope of the decadeslong

Customs Union, and formal negotiations are expected

to begin once the European Commission receives

authorization from the EU Council, Trade Minister Omer

Bolat said.

Speaking at a conference organized by the Turkish

Exporters Assembly (TIM) in Istanbul, Bolat said that

ongoing negotiations in the High-Level Talks launched

last year cover a range of friction points, including

transportation quotas, visa policies, carbon border

taxation, and digital compliance.

“Discussions on the rest are ongoing,” Bolat said,

adding that similar talks are also being held with the

U.S. over unresolved trade issues.

Türkiye’s Customs Union agreement with the EU

has been in effect since Jan. 1, 1996. However,

because Türkiye is not an EU member state, it does

not participate in the Union’s trade agreements with

third countries, leading to long-standing asymmetries.

Bolat reiterated Türkiye’s demand for inclusion in trade

agreement processes, highlighting that these structural

limitations have been raised consistently since the deal

was signed.

The minister emphasized that Türkiye continues to

monitor trade agreements signed between the bloc

and other countries, most recently free trade deals with

the South American trade bloc MERCOSUR and India,

to assess their potential impact on domestic markets.

“We remain alert to the possible effects of these deals

on our economy and take all necessary precautions

at customs to avoid trade diversion,” he said. Bolat

added that Türkiye consistently applies protective

measures at border gates to safeguard its trade

interests.

Bolat concluded by encouraging a measured response

to the negotiation process. He underscored that

Türkiye’s candidate status for EU accession, combined

with the Customs Union framework, provides a stable

foundation for long-term trade cooperation.

“We assess the Customs Union’s benefits together

with Turkish entrepreneurs and European investors

alike,” he said.

Nail Olpak, head of the Foreign Economic Relations

Board of Türkiye (DEIK), a public-private platform that

coordinates Türkiye’s international economic relations

and promotes overseas investment, said the lack of

progress in updating the Customs Union continues

to impose a cost on Türkiye in terms of lost trade

opportunities.

“We’re closely monitoring the situation. The European

Union continues to sign free trade agreements in which

we have no role in the decision-making process,”

Olpak said, speaking on the sidelines of Customs

Union discussions.

Olpak noted that while the agreement with

MERCOSUR may have a limited impact on Türkiye, the

deal with India could prove more consequential. “We

need to think carefully about India,” he said. “The EU

itself calls it the ‘mother of all agreements.’”

He also pointed to potential headwinds from the

EU’s upcoming “Made in Europe” strategy, a policy

framework aimed at strengthening domestic industry,

reducing reliance on foreign supply chains, and

boosting the competitiveness of EU-made products.

While EU officials describe the initiative as primarily

targeting the Asia-Pacific region, Olpak expressed

concern that Türkiye may still be affected.

“They say, ‘This isn’t about you; we’re actually

targeting Asia-Pacific.’ I don’t want to sound

pessimistic, but when you dig a little deeper, it feels

like they’re drawing us into that circle,” he said.

The European Union remains Türkiye’s largest export

market. In 2025, Türkiye became the EU’s fifth-largest

trading partner, with exports to the bloc rising 7.8%

to $117 billion, bringing total bilateral trade to $232.7

billion.

40

Renault Clio tops January

car sales in Turkish market

March 2026

The Renault Clio has maintained its lead in Türkiye’s

January car sales, recording 4,556 units sold,

according to data from the Automotive Distributors and

Mobility Association (ODMD).

It was followed by the Toyota C-HR hybrid with

3,200 sales and the Toyota Corolla with 2,351. The

Volkswagen Tiguan hybrid ranked fourth with 2,199

units, while the Hyundai i20 secured fifth place with

2,130. The Renault Megane sedan came sixth with

1,963 sales.

Overall passenger car sales in January rose 9.14

percent year-on-year to 61,055 units, while light

commercial vehicle sales increased 12.56 percent to

14,307.

Vehicles in the A, B, and C segments dominated the

market, accounting for 83.7 percent of total sales.

C-segment cars led with 32,428 units, representing

53.1 percent of the market, while B-segment cars

followed with 18,589 units and a 30.4 percent share.

SUVs remained the most popular body type, capturing

60.3 percent of sales with 36,786 units. Sedans

accounted for 21.2 percent with 12,966 units, and

hatchbacks represented 18.3 percent with 11,152

units.

By fuel type, gasoline-powered cars led with 26,671

sales, making up 43.7 percent of the market. Hybrid

vehicles followed with 18,774 sales and a 30.7 percent

share. Electric cars reached 11,304 units, representing

18.5 percent, while diesel cars accounted for 4,203

sales at 6.9 percent.

‘No problem’ in BYD’s

Türkiye investment,

trade minister says

42

March 2026

Trade Minister Omer Bolat said Chinese electric

vehicle manufacturer BYD has not suspended its

planned factory investment in Türkiye and that

talks with the Industry and Technology Ministry are

continuing, rejecting recent claims of a pause in the

process.

“There is no problem. Our industry ministry is

monitoring the process, and they are in talks,” Bolat

told BloombergHT in response to a question at the

Türkiye–China Business Conference. “BYD officials

were also here.”

An investment agreement between BYD and Türkiye’s

Industry and Technology Ministry was signed in July

2024 to establish the company’s production operations

in the western province of Manisa.

The deal sets out a planned investment of about

$1 billion for an electric and plug-in hybrid vehicle

production facility with an annual capacity of 150,000

vehicles, along with a research and development

center focused on sustainable mobility technologies.

The facility is targeted to begin production by the end

of 2026 and is expected to provide up to 5,000 direct

jobs. However, some local media reports have alleged

that the Chinese company is deliberately slowing

the process while benefiting from an exemption

from additional customs duties granted under the

deal, which places it within the domestic producer

framework.

In 2025, BYD ranked first among electric car brands

in Türkiye, selling 45,537 vehicles and accounting for

about a 24% share of total electric vehicle sales of

191,960.

The Türkiye–China Business Conference was held and

organized jointly by the Foreign Economic Relations

Board of Türkiye, the Turkish Industry and Business

Association, and the China Council for the Promotion

of International Trade.

The event brought together 150 representatives from

the Turkish business community and 80 representatives

from Chinese companies and institutions.

During the forum, officials from both sides addressed

bilateral trade ties between Türkiye and China, with

discussions focusing on trade volume, investment

flows, and efforts to build a more balanced trade

structure. Both countries have a rapidly growing

bilateral trade volume that rose to $52.84 billion. The

balance of trade is heavily in favor of China, with

Türkiye’s imports totaling $49.57 billion and exports

at $3.27 billion. This results in a trade deficit of $46.3

billion for Türkiye, equal to roughly half of the country’s

overall $92 billion trade deficit.

A total of 1,419 Chinese companies operate in Türkiye

with combined investments of $3.2 billion, while

approximately 1,465 Turkish companies operate in

China with investments of about $175 million.

Speaking at the event, Bolat also addressed these

figures and urged efforts to improve balance in trade

and investment flows between the two countries.

44

Stellantis sees historic share

slump on $27B bill for EV pullback

March 2026

Stellantis announced it would take 22.2 billion euros

($26.5 billion) in charges as it dials back electric

vehicle ambitions, a move that slammed its shares and

underscored the cost of misjudging the pace of the

clean-driving transition.

The move is the biggest in a series of writedowns,

including at Ford and General Motors, as many

Western automakers pull back from battery-powered

models in response to Trump administration policies

and weaker-than-expected demand.

Stellantis’ Milan-listed shares slumped as much as

25% to their lowest since the group was established in

2021 through the merger of Fiat Chrysler and Peugeot

maker PSA. The drop means the writedown is now

larger than the market value of the company, whose

14 brands include Fiat and Peugeot as well as Ram

trucks, Dodge, Chrysler and Maserati.

“The charges announced largely reflect the cost of

overestimating the pace of the energy transition that

distanced us from many car buyers’ real-world needs,

means and desires,” CEO Antonio Filosa said in a

statement.

“The reset we have announced is part of the decisive

process we started in 2025, to once again make our

customers and their preferences our guiding star.”

Alongside tariffs, slower demand in top market China,

and cheap competition from Chinese manufacturers,

legacy automakers are having to grapple with a slowerthan-expected

take-up of EVs, particularly in the

U.S., where President Donald Trump has rolled back

46

subsidies and dismissed green technologies.

Chinese EV giant BYD posted weak January sales,

hitting its shares and local peers, while Japan’s Toyota,

which has fared better than most thanks to a contrarian

bet on hybrids, named a new CEO.

Fabio Caldato, portfolio manager at AcomeA SGR,

which owns Stellantis shares, told that higher-thanexpected

charges had become more likely after hefty

impairments by GM and Ford in recent months.

“Further encouraging data is needed to restore full

investor confidence in Stellantis, also because we are

not seeing strong signs of recovery in the automotive

semiconductor cycle, which could limit the group’s

sales recovery potential,” he said.

The charges, booked in results for the second half of

2025, mainly relate to re-aligning models with customer

preferences and new emission rules in the U.S.,

“reflecting significantly reduced expectations for EV

products,” Stellantis said. They also reflect reductions

to the group’s EV supply chain, revised estimates for

contractual warranty provisions due to poor product

quality, and previously announced job cuts in Europe.

The writedowns include about 6.5 billion euros in cash

payments expected to be spread over four years from

2026.

“Whilst an impairment was very much expected, the

magnitude and larger cash out component at 6.5 billion

euros, albeit spread over 4 years to suppliers is a key

negative,” Citi analysts said in a note.

Filosa began scaling back the Fiat to Jeep maker’s

EV ambitions last year after taking over from Carlos

Tavares, whose aggressive push into electrification

contributed to a prolonged sales decline in Europe

and in the group’s former profit powerhouse, the North

American market.

As part of that shift, the Italian-French-American group

agreed to sell its 49% stake in a battery joint venture in

Canada to South Korean partner LG Energy Solution.

Gartner analyst Pedro Pacheco warned that Stellantis

and others risked shifting too far away from EVs.

“There is an overreaction in terms of the strategic

pivoting,” he said. “They need to go into this ⁠and do

things right because their survival might depend on

this.”

Due to the writedowns, Stellantis now expects a

preliminary net loss of between 19 billion and 21 billion

euros in the second half of fiscal 2025 and won’t pay a

dividend this year.

It expects industrial cash burn of between 1.4 billion

and 1.6 billion euros in the second half.

The group will also issue up to 5 billion euros in nonconvertible

subordinated perpetual hybrid bonds.

“These actions will contribute to preserving a strong

balance sheet, with approximately 46 billion euros in

industrial available ⁠liquidity at year-end,” it said.

For 2026, Stellantis forecasts a mid-single-digit

increase in net revenue and a low-single-digit adjusted

operating income margin. It expects positive industrial

free cash flows in 2027. The company will release final

second-half and full-year 2025 results on Feb. 26.

March 2026

48

Piksan CNC: Advancing Türkiye’s

Precision Manufacturing Power

March 2026

Operating from a 4,500 m² high-tech facility in

Istanbul’s İMES Industrial Zone, Piksan CNC Metal

Processing is strengthening Türkiye’s position

in precision manufacturing through advanced

technologies and a strong export focus. Under its

Toolex brand, the company delivers high-performance

carbide cutting tools to European markets, while

helping reduce the country’s reliance on imports.

The company’s story dates back to the 1970s in

Istanbul’s Perşembe Pazarı, where the family of

Vice General Manager Selim Çolakoğlu first entered

the machining business. After gaining technical

experience in Switzerland, his father returned to

Türkiye to establish a small workshop. Over the years,

the business evolved through continuous investment

and relocation—from Topçular to today’s modern

facility in İMES. In 2018, all operations were unified

under one roof, supported by a state-of-the-art CNC

machine park and a highly skilled workforce.

High-precision production for global industries

Piksan CNC focuses on manufacturing precision

components for the automotive and machinery sectors.

Equipped with 15 advanced CNC machines, the

company processes materials such as stainless steel,

carbon steel, aluminum, and brass with tolerances as

fine as one ten-thousandth of a millimeter. Monthly

output can reach up to 30,000 units. “We produce

strictly according to customer specifications and

ensure consistent quality with on-time delivery,” says

Çolakoğlu.

In addition to component production, the company

manufactures carbide cutting tools—including end

mills, drills, and reamers—using Swiss-sourced raw

materials. These tools meet international standards

and achieve precision levels as fine as 0.1 mm,

approximately the thickness of a human hair.

R&D-driven growth and localization

Research and development play a central role in

Piksan’s strategy. Collaborating with TÜBİTAK

TEYDEB and universities, the company has introduced

specialized tools previously unavailable in Türkiye.

A notable milestone came in 2021 with the launch

of modular gear-cutting end mills—now exported

to Germany and Switzerland. “Each year, we initiate

new R&D projects to address unmet market needs,”

Çolakoğlu explains.

Piksan’s international growth is driven by its Toolex

brand, established in 2004. Combining the words

“tool” and “extra,” the brand reflects a commitment to

durability and precision. Today, Toolex accounts for half

of the company’s tool production, while the remaining

half is tailored to customer-specific requirements.

These tools can be resharpened and reused up to ten

times through in-house regrinding services, offering

both cost efficiency and environmental benefits.

“These are not ordinary drills,” Çolakoğlu emphasizes.

“They are industrial-grade tools—up to 20 times more

expensive—engineered for long-term performance.”

Production relies on premium Swiss materials from

Hartmetall Estech AG and advanced grinding systems

with 500x optical magnification, ensuring exceptional

consistency.

49

Scaling up for European demand

With a workforce of 80 employees, Piksan plans to

expand its team by an additional 20 staff to meet

increasing demand. As European manufacturers

seek shorter lead times and reliable quality, interest

is growing from markets such as Poland, the Czech

Republic, Romania, and Bulgaria. In response, the

company aims to expand its machinery, enter new

markets, and benefit from export support programs like

those offered by KOSGEB. “Our goal is to add two to

three new export markets each year,” says Çolakoğlu.

Backed by decades of experience, strong R&D

capabilities, and internationally recognized quality

standards, Piksan CNC Metal Processing continues

to position itself as a trusted partner in precision

manufacturing—contributing to Türkiye’s industrial

progress with every micron it produces.

March 2026

50

Tech ecosystem sees rapid

growth, says industry

March 2026

Türkiye’s innovation landscape has undergone a

remarkable transformation over the past two decades,

Industry and Technology Minister Mehmet Fatih Kacır

has said.

Speaking at an event in Antalya, he noted that the

number of technology parks has surged from just

two to 114, while the number of innovation-driven

enterprises operating within them has expanded from

56 to over 12,000.

Kacır emphasized the impact of regulatory measures

requiring R&D and design centers, along with

technopark firms, to channel part of their incentives

toward startups.

This framework, he said, has directed over 18.5 billion

Turkish Liras into the entrepreneurial ecosystem. He

highlighted TÜBİTAK’s BiGG program, which focuses

on seed and pre-seed stage ventures, enabling more

than 2,600 technology-oriented business ideas to

evolve into startups.

Reflecting on Türkiye’s progress in the global arena,

Kacır pointed out that while in 2019 the country had no

technology company valued at over $1 billion, today it

boasts seven “Turcorns” — Turkish unicorns making

their mark internationally.

He also drew attention to the sharp rise in mediumand

high-tech exports, which climbed from $10

billion in 2002 to $112 billion last year. Patent activity

has similarly accelerated, with annual domestic

applications increasing from 414 to 11,394 in the same

period. Kacır stressed that Türkiye’s R&D expenditure

as a share of GDP has now reached levels comparable

to industrialized European nations, such as Italy and

Spain.

He concluded by celebrating the breadth of innovation

emerging from Turkish startups, spanning artificial

intelligence, aerospace, biotechnology and financial

technologies, and described them as “countless

success stories shaping the future.”

52

Türkiye starts 2026 in high gear

as auto sales rise nearly 10%

March 2026

Türkiye’s automotive market opened 2026 with a

9.77% annual sales increase in January, registering

75,362 passenger cars and light commercial

vehicles sold, according to data from the Automotive

Distributors and Mobility Association (ODMD).

The positive start follows a record-breaking 2025, in

which total vehicle sales rose 10.5% year-over-year

to 1.37 million units. EVs make up nearly one-fifth

of market Within the monthly total, passenger car

sales reached 61,055 units, marking a 9.14% annual

increase, while sales of light commercial vehicles

climbed 12.56% to 14,307 units.

Gasoline vehicles remained the top choice in January,

with 26,671 units sold and a 43.7% share of the

passenger car market. Hybrid models followed with

18,774 units, representing 30.7% of sales, while fully

electric vehicles continued to expand their presence,

reaching 11,304 units for an 18.5% share.

Diesel car sales totaled 4,203 units, accounting for

6.9%, and LPG-powered models made up just 103

units, or 0.2% of the total. Imported vehicles continued

to dominate the auto market, with 49,503 of the 75,362

vehicles sold in January coming from abroad, giving

imports a roughly 66% share of total sales.

Among top-performing brands, Renault sold 9,247

vehicles, with 7,979 produced domestically. Toyota

reported 8,700 units sold, including 6,975 local models.

Volkswagen, which recorded 6,580 in total sales,

contributed just 267 locally manufactured units to the

tally. In the electric segment, Chinese automaker BYD

continued to lead the market in January with 3,866

units sold, while Türkiye’s domestic manufacturer

Togg followed with 2,029 units.

56

What 4+4 mechanism means

for Türkiye, Uzbekistan

March 2026

When Turkish President Recep Tayyip Erdogan and

Uzbek President Shavkat Mirziyoyev met in Ankara

on Jan. 29, 2026, it was more than just a diplomatic

formality. The joint declaration signed during their High-

Level Strategic Cooperation Council marks a turning

point, signaling that the partnership between these two

nations has entered a sophisticated new era of growth.

Trade volume has tripled over the last decade, but the

real story lies in the data. From defense and energy to

the innovative 4+4 security mechanism, the Türkiye-

Uzbekistan bond has evolved. It is no longer just a

“brotherhood” of shared history; it is a sophisticated,

institutionalized, and strategic powerhouse.

This raises a critical question: Is this institutional

rapprochement merely about two countries getting

closer, or is it the first sign of a deeper structural

shift—a geopolitical realignment that could redefine

Central Asia?

Economic cooperation constitutes the most visible and

measurable aspect of Türkiye-Uzbekistan relations in

recent times. Reducing this cooperation to a narrow

framework defined solely by increasing trade volume

carries the risk of overlooking the multi-layered dynamics

that have emerged. The strategic value of economic

integration is shaped not so much by numerical growth

as by the sectors through which this interaction is

built, the policy instruments used, and the long-term

objectives pursued. In this context, the fact that Turkish

companies have become one of the country’s three

largest foreign investors with investments exceeding

$5 billion in Uzbekistan should be interpreted as more

than just a simple capital flow. These investments are

not limited to traditional sectors such as construction,

textiles and food, but extend to areas of high strategic

importance such as energy, mining, logistics,

infrastructure and industrial production.

58

In particular, the memoranda of understanding signed

in the field of transport and logistics further highlight

the geopolitical dimension of economic integration

between the two countries. Initiatives to strengthen

the Middle Corridor, the growing presence of Turkish

capital in free and special economic zones, and

joint projects aimed at diversifying supply chains

demonstrate Ankara’s positioning of Central Asia as a

complementary hub that can be integrated into global

production networks. This approach is also consistent

with Türkiye’s strategy of “deepening production and

logistics in the neighbouring geography” adopted in

recent years.

From Uzbekistan’s perspective, Türkiye serves as a

strong trading partner as well as a flexible economic

channel that balances Western capital with Eurasian

markets. The structural pressures produced by the

Russia-West tension on Central Asian economies are

forcing Tashkent to diversify its external economic

relations. At this point, deepening economic integration

with Türkiye offers Uzbekistan a strategic manoeuvre

space that produces no political dependency and

facilitates access to global markets.

One of the critical aspects that has come to the fore

in Türkiye-Uzbekistan relations in recent times is the

institutionalised cooperation mechanisms established

in the fields of security and diplomacy. The 4+4

mechanism, which brings together the foreign, interior

and defence ministers and the heads of intelligence

agencies, demonstrates that bilateral security relations

are now conducted through a regular, coordinated and

multi-layered structure rather than temporary political

rapprochements.

The fundamental strategic value of this mechanism lies

in its ability to address security simultaneously in its

diplomatic, military and internal security dimensions.

It enables the development of a preventive and

comprehensive approach to security in areas such as

counter-terrorism, border management, preventing

radicalisation and combating organised crime, rather

than reactive approaches. Thus, Türkiye-Uzbekistan

security cooperation is evolving beyond traditional

military contacts into an institutional security

governance model.

This development also signals a significant shift in

Central Asia’s traditional security structure. Considering

that the region has long been defined by Russiacentred

security structures, with China coming to

the fore more through its economic influence, this

institutional security cooperation developing between

Türkiye and Uzbekistan demonstrates that the

single-axis security approach is eroding and that a

multi-actor, multi-dimensional security architecture is

beginning to take shape.

Türkiye’s experience in counterterrorism, intelligence

coordination and combating hybrid threats represents

a strategic gain for Uzbekistan in terms of institutional

capacity building. This contributes to Tashkent

developing a more autonomous and flexible position in

its security policies.

March 2026

60

March 2026

The 4+4 mechanism, which transcends the framework

of bilateral relations, provides an important reference

point for discussions regarding the security dimension

that the Organisation of Turkic States may achieve in

the future. The Türkiye-Uzbekistan axis stands out as a

core and exemplary model in terms of institutionalising

security in the Turkic world and transforming shared

threat perceptions into concrete cooperation models.

Assessing Türkiye-Uzbekistan relations solely in

terms of economics and security carries the risk of

overshadowing the increasingly evident normative

and humanitarian dimensions of this partnership.

However, steps taken in recent years demonstrate that

the rapprochement between the two countries is also

grounded in societal interaction, shared values and

humanitarian solidarity.

Indeed, in his statements made during the summit,

President Erdogan emphasised the need for the

Turkish world to unite around a shared vision for the

future, referring to Ismail Gasprinski’s ideal of “unity

in language, thought, and work” ideal, emphasising

the need for the Turkic world to unite around a shared

vision for the future and articulating the goal of

“imprinting the Turkic world’s seal on the century we

live in”, indicates that this normative framework has

been explicitly embraced at the leadership level.

In particular, the swift and comprehensive support

provided by Uzbekistan to Türkiye following the

earthquakes of Feb. 6 stands out as one of the most

concrete manifestations of this normative dimension.

Initiatives such as the housing units constructed

by Uzbekistan in Hatay and the Uzbekistan school

planned to open in Istanbul go beyond humanitarian

aid, building a lasting and highly symbolic social bond.

Such steps demonstrate that

the discourse of the Turkic

world is not confined to a

framework limited to political

elites, but also has the potential

to generate a response at the

societal level.

Similarly, the parallel stances

adopted by Ankara and

Tashkent on the Palestinian

issue demonstrate that the two

countries’ quest for a normative

and moral position is becoming

increasingly apparent. Thus, the

discourse of the Turkic world is

moving beyond being merely

a narrative of cultural unity,

proving that it has the capacity

to produce common political

reflexes and value-based stances on certain global

issues.

However, a cautious assessment is required for the

vision of the Turkic world to become a permanent and

effective foreign policy framework. The sustainability

of normative discourse is directly related to

institutionalised cooperation mechanisms, joint normsetting

processes, and a capacity for solidarity that

can be tested in times of crisis, rather than symbolic

gestures of solidarity. While Türkiye-Uzbekistan

relations provide an important example in this regard,

the extent and speed with which this model can be

extended to other members of the Organisation of

Turkic States remains uncertain.

Furthermore, one of the fundamental challenges facing

the discourse of the Turkic world is the differing foreign

policy priorities and geopolitical constraints of member

countries. Asymmetric relationships established with

major actors such as Russia and China can make it

difficult to take normative convergence beyond certain

thresholds. Therefore, for the Turkic world perspective

to be effective, it requires the construction of a flexible,

inclusive and multi-layered normative framework,

independent of idealistic discourses.

In this context, the partnership between the two

countries offers a pioneering model for how normative

and humanitarian cooperation in the Turkic world can

be made more concrete, measurable and sustainable.

The sustainability and tangible impact of this model

depend on the institutionalisation of shared values

within the OTS through institutional mechanisms.

Otherwise, despite its strong potential, the discourse

of the Turkic world risks being confined to a limited

sphere of influence in practice.

Turkish auto exports see best

January performance at over $3B

62

March 2026

Turkish auto industry exports surpassed $3 billion

(TL 130.51 billion), recording its highest-ever January

performance, according to a report, citing data from

the Türkiye Exporters Assembly (TIM).

Türkiye’s auto sector made a strong start to 2026,

with shipments at $3.06 billion an Anadolu Agency

(AA) report said. It attributed it to a gradual recovery in

global demand and a rise in orders from Europe.

The Turkish auto industry exported goods worth $41.5

billion in 2025, the data showed, being the leading

group once again.

In January 2026, auto exports rose 2.2% compared

with the same period last year, and the sector’s share

of total exports reached 17.4%.

The sector’s January exports were at $3 billion in 2025,

$2.8 billion in 2024, $2.7 billion in 2023, $2.23 billion in

2022 and $2.26 billion in 2021, according to TIM.

Germany led the list of countries with the highest

volume of received goods from the sector in January

2026, totaling $490 million. It was followed by France

with $311 million, Spain with $291.7 million, the United

Kingdom with $283.3 million and Italy with $267.9

million. Exports to Poland rose the highest among

all destinations, increasing by $58.7 million, followed

by Italy with $36.5 million, Spain with $36.2 million,

Germany with $28.2 million and Austria with $19.3

million. The Turkish auto sector’s exports to Poland

totaled $177.5 million, and at $44.8 million to Austria in

the same period.

The northwestern Turkish province of Kocaeli

accounted for the highest auto exports in January 2026

with $828.6 million, followed by exports from Istanbul

with $664.6 million, the northwestern cities of Bursa

and Sakarya with $588.5 million and $504.3 million,

respectively, and lastly the capital, Ankara, with $126.7

million.

64

EVs outsell petrol cars in

EU for 1st time in December

March 2026

Sales of fully electric vehicles outpaced those of

petrol cars in the European Union for the first time in

December, marking a new milestone for the region

even as policymakers proposed to loosen emissions

regulations, data from the leading auto industry group,

European Automobile Manufacturers’ Association

(ACEA), showed.

Battery-electric registrations, a proxy for sales, also

overtook those of petrol cars in the broader European

market, which includes Britain and Norway, as car

sales on the continent logged a sixth month of yearover-year

growth. Competition from Chinese brands

such as BYD, Changan and Geely is intensifying

the race for the European market, even as domestic

carmakers like Volkswagen and BMW roll out new

EV models. The EU unveiled a plan in December to

abandon an effective 2035 ban on combustion engine

cars, bowing to pressure from carmakers as they fend

off challenges from Chinese rivals, U.S. import tariffs

and difficulties in selling EVs profitably.

Yet, experts expect EVs to keep increasing their share

of the European market.

E-Mobility Europe’s Secretary General Chris Heron said

European brands have started ⁠to adapt by introducing

new and affordable EVs, while individual countries offer

new incentive schemes.

A driver leaves a free parking lot reserved for electric

vehicles, Oslo, Norway, Feb. 25, 2013.

“We’re seeing consumer buy-in to this,” Heron said.

“We’re confident that sales across Europe will continue

to grow in 2026.”

Overall registrations in Europe, Britain and the

European Free Trade Association (EFTA) for

Volkswagen and Stellantis rose 10.2% and 4.5%,

respectively, in December, while they fell 2.2% at

Renault.

Tesla’s registrations fell 20.2% in the month, while

those of BYD surged 229.7%.

Sales in the EU, Britain and the European Free Trade

Association rose 7.6% to 1.2 million cars in December

and by 2.4% ⁠to 13.3 million overall in ⁠2025, hitting their

highest volumes in five years, though they remained

well below pre-pandemic levels, ACEA data showed.

Total EU car sales rose 5.8% to almost 1 million

vehicles in December, and by 1.8% to 10.8 million in

the year.

December registrations of battery electric, plug-in

hybrid and hybrid electric cars were up 51%, 36.7%

and 5.8%, respectively, to account

collectively for 67% of the bloc’s

registrations.

Independent automotive analyst

Matthias Schmidt said fewer

petrol sales partly reflect the

reclassification of some as “mild

hybrids,” which only modestly

contribute to lowering emissions.

“It will still take around half a

decade before pure electric cars

genuinely overtake combustionengine

models across the region,

but this is nonetheless a start,” he

said.

However, data indicated that

hybrid-electric vehicles were the

leading choice last year, dethroning

purely petrol-powered cars as the

top power option among consumers in Europe.

Despite the modest overall sales growth, consumers

continued to shift towards hybrid and battery-electric

vehicles.

Sales of hybrid-electric vehicles climbed by 13.5% to

account for 34.5% of total sales in the EU last year,

putting them ahead of petrol cars at 26.6%.

March 2026

65

Toyota names new CEO ‘to

accelerate decision-making’

66

March 2026

Toyota has named a new CEO to “accelerate”

decision-making, the Japanese auto giant said as it

hiked its profit and sales forecasts for the current fiscal

year despite the impact of U.S. tariffs.

Current finance chief Kenta Kon will take over from

chief executive Koji Sato on April 1 after three years in

charge, the firm said.

“This change in roles is intended to accelerate

management decision-making in response to changes

in the internal and external environment,” Toyota said.

The move would also help “establish a structure that

will enable Toyota to fully carry out its mission of

contributing to society through industry”, it added.

The announcement came as the firm expects to see

net profit of 3.57 trillion yen ($22.8 billion) for the year

ending in March, down 25.1 percent year-on-year but

up from the 2.93 trillion yen previously anticipated.

Despite the “negative impact of U.S. tariffs that newly

arose this fiscal year, we have reduced the extent of

the profit decline by implementing cost reductions and

marketing efforts”, the firm said in a statement.

Sales are expected to climb 4.1 percent year-on-year

to 50 trillion yen, a slight upwards revision.

Operating profit is forecast to hit 3.8 trillion yen, up

from the previous projection of 3.4 trillion yen.

However, Toyota said the September-December

quarter saw net and operating profit fall despite a

rise in sales, largely because of a “tariff impact” that

increased expenses. The firm announced that global

sales hit a new record in 2025, helping it retain its

title as the world’s top automaker and widen the gap

with German rival Volkswagen. The overall increase

came despite flat sales in China, a crucial market

where Toyota faces intensifying competition from local

automakers including electric-car champion BYD.

U.S. sales climbed eight percent despite the

25-percent tariff on Japanese auto exports imposed by

Washington between April and mid-September, when a

15-percent cap kicked in.

The United States is a key market where Toyota

generates almost a quarter of its sales. But of the 2.52

million vehicles it sold there in 2025, only 1.39 million

were produced in the country.

Even so, Toyota increased output last year by 10

percent at its factories in the United States, where it

produces increasingly popular hybrid vehicles.

To keep exporting to the United States on competitive

terms, Japanese automakers have had to slash prices.

68

Türkiye claims seat in

Europe’s top 3 used car markets

March 2026

Türkiye’s second-hand car market recorded around

7.5 million vehicle transactions in 2025, with more than

seven second-hand cars sold for every new vehicle,

marking a 6.6% year-over-year increase, according to

estimates by Turkish auto dealer Borusan Otomotiv.

“We can comfortably say that Türkiye ranks among the

top three markets in Europe in this field,” Executive

Board Chair Hakan Tiftik said at the opening ceremony

of a new showroom in Istanbul for Borusan Next, the

group’s multi-brand used car and motorcycle platform,

adding that the country’s used-car segment operates

on a much larger scale than the new vehicle market.

In comparison, first-hand car sales were around 1.35

million during the year, according to sector data, while

total passenger car and light commercial vehicle sales

reached a record 1.37 million units.

Another Borusan executive, Ilker Baydar, said the

first half of the year followed a more stable course,

then activity picked up in the second half, with

70

both new and used vehicle sales rising strongly in

December. The national auto market is geographically

concentrated, with the top 10 provinces generating

roughly 75% to 80% of total activity, he emphasized.

Baydar pointed out that vehicles aged five years and

older account for a larger share of the total fleet in

Türkiye than in many European countries, and noted

that some electric models in the zero-to-five-year

range stand out due to price advantages.

“We expect this transformation to support annual

growth of 5% to 10% in the used car market in the

coming years,” he said, and said total volume could

reach about 8.5 million units in the medium term.

Speaking about the company’s operations, Baydar

said the group completed more than 50,000 used

vehicle purchase and sale transactions over the past

two years, with about 60% involving premium brands.

“We have reached more than 100,000 registered

users and aim to reach 1 million in the short term,”

Baydar said, noting that technology and marketing

investments have increased in line with that target.

He suggested that technology and marketing

investments have increased in line with that target

and that the company aims to stay in contact with

customers throughout the full vehicle ownership

journey. Borusan Holding is a Türkiye-based

industrial group founded in 1944 with operations in

sectors such as steel, distribution, logistics, energy,

and manufacturing, and it controls several large

subsidiaries across these fields. Its automotive arm,

Borusan Otomotiv, handles vehicle distribution, retail

sales, and after-sales services in Türkiye.

March 2026

Automotive Exports March 2026

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