Automotive Exports Mayıs 2026

We are at Automechanika

Istanbul 2026

Mehmet Soztutan, Editor-in-Chief

mehmet.soztutan@img.com.tr

Editör

Automechanika Istanbul constitutes a major international platform

through which Türkiye presents the structural strengths and strategic

ambitions of its automotive industry. As one of the largest automotive

aftermarket exhibitions in the Eurasian region, the fair provides a

critical interface between domestic producers and global markets,

reinforcing Türkiye’s role as a regional production and export hub.

The Turkish automotive sector occupies a central position in the

national economy, accounting for a significant share of total exports

and industrial output. Within this context, Automechanika Istanbul

functions as a showcase of the sector’s extensive production

capabilities and integrated supply chains. Turkish firms exhibit a wide

array of products ranging from original equipment components to

aftermarket parts, reflecting both vertical integration and specialization

within the industry. This diversity underscores the sector’s ability to

compete across multiple segments of the global automotive market.

A key dimension of Türkiye’s representation at the exhibition is its

export-oriented growth model. The industry’s long-standing integration

with European markets—facilitated by the EU–Türkiye Customs

Union—has enabled firms to adopt international quality standards

and regulatory frameworks. Consequently, Turkish manufacturers are

well-positioned to serve as reliable suppliers within global value chains.

At the fair, this positioning is reinforced through business-to-business

engagements, strategic partnerships, and trade negotiations with

international stakeholders.

Technological transformation and innovation have become increasingly

prominent in Türkiye’s automotive narrative. The global shift toward

electrification, digitalization, and sustainability has prompted

both public and private actors in Türkiye to invest in research and

development. The emergence of TOGG represents a symbolic and

strategic milestone in this transition, highlighting the country’s ambition

to move beyond contract manufacturing toward the development of

indigenous automotive technologies and brands.

As the backbone of the supplier industry, SMEs contribute significantly

to flexibility, cost competitiveness, and innovation capacity. Their active

participation in Automechanika Istanbul demonstrates the depth and

resilience of Türkiye’s industrial ecosystem, while also facilitating their

integration into international production networks.

The event highlights the sector’s export strength, technological

adaptation, and institutional integration with global markets. In doing

so, it reinforces Türkiye’s position as an increasingly sophisticated and

competitive actor in the evolving global automotive industry.

automotiveexports

automotive exports

10

EVs spur EU car sales in March

May 2026

New car sales in the European Union jumped last

month as consumers turned to electric vehicles due to

soaring petrol prices amid the war in the Middle East,

boosting the quarterly performance in the region, data

from a leading association showed.

Overall sales rose 12.5% in March from the same

month last year to nearly 1.16 million vehicles,

according to registration data from the European

Automobile Manufacturers’ Association (ACEA).

That jump helped the market attain a 4% rise for the

first quarter overall following declines in January and

February. Sales of fully electric vehicles soared by

49%, with plug-in hybrids also jumped 20%.

Over the first quarter, hybrids were the top choice of

European consumers, accounting for 37% of overall

sales. Plug-in hybrids accounted for another 10% of

market share.

The market share of simple petrol motor vehicles

slumped to 23% in the quarter, down from 28% a year

earlier. Fully electric vehicles accounted for just over

19% of overall sales.

The ACEA noted the sales performance of electric

vehicles varied strongly by country, with Italy, France

and Germany posting strong gains.

Petrol prices spiked throughout Europe after the United

States and Israel attacked Iran on Feb. 28, resulting

in a near block on oil exports from the Gulf and

leading Iran to retaliate by attacking energy facilities

throughout the region. Meanwhile, sales in Belgium

and the Netherlands fell. The Volkswagen group kept

its top spot in the EU market in the first quarter, with its

market share dipping to 26.4% despite its sales edging

higher. That was primarily due to Stellantis, whose Fiat,

Citroen and Opel brands saw sales surge and boost

the group’s market share.

Another major European car manufacturer, Renault,

saw sales slide in the first quarter, due to transportation

problems affecting its low-cost Dacia brand.

Sales of Teslas jumped nearly 60% from the first

quarter of last year, when Elon Musk’s involvement

in the Trump administration turned off European

consumers.

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EV, hybrid cars account for over half

of Türkiye auto sales

May 2026

Electric and hybrid vehicles accounted for more than

half of all passenger car sales in Türkiye in the first

quarter, according to industry data that cements

accelerating shift away from gasoline and dieselpowered

models.

According to data compiled from the Automotive

Distributors and Mobility Association (ODMD), electric

and hybrid vehicle sales totaled 107,924 units in

the January-March period, making up 51.2% of all

passenger car sales.

Passenger car sales in the first quarter fell 5.86%

year-over-year to 210,688 units, while light commercial

vehicle sales rose 4.23% to 54,710 units. During the

same period, 88,688 gasoline cars and 69,504 hybrid

vehicles were sold, while diesel sales stood at 13,326

units and LPG-powered vehicle sales totaled just 750.

Fully electric vehicle sales reached 38,028 units.

When extended-range electric vehicles are included,

total electric vehicle sales rose to 38,420 units, giving

the segment an 18.2% share of the market.

Sales trends showed a continued decline in

conventional fuel-powered vehicles. In the first quarter,

gasoline vehicle sales dropped 20.1% year-over-year,

diesel vehicle sales fell 26.9% and LPG vehicle sales

declined 34.8%. By contrast, hybrid sales climbed

33%, while electric vehicle sales increased 29.9%.

The decline in diesel sales has been largely attributed

to the continued phase-out of diesel vehicle production

by global automakers, limiting the number of new

diesel models entering the market.

Gasoline-powered cars accounted for 42.1% of

passenger car sales in the first quarter, down from

49.6% a year earlier. Diesel vehicles’ market share fell

from 8.1% to 6.3%, while LPG-powered cars slipped

from 0.5% to 0.4%.

Meanwhile, electric vehicles increased their market

share from 13.2% to 18.2%, while hybrids rose from

28.6% to 33%.

In March alone, 15,118 fully electric cars were sold,

accounting for 18.9% of the monthly market, while

hybrid vehicle sales reached 27,065 units, representing

a 33.9% share.

Maxiforge-Kumpas Dövme Otomotiv

A leading steel forging supplier

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May 2026

Kumpas Dövme Otomotiv Makina Sanayi was

established in 2005 in the Konya Organized

Industrial Zone and serves key industries such

as tractor and trailer manufacturing, agricultural

machinery, mining, and construction equipment.

Over the past years, the company has also

developed its own brand, MAXIFORGE, producing

fifth wheel repair kits, king pins, and various truck

and trailer spare parts for global markets. We spoke

with Cengiz Keleşoğlu, Board Member and Foreign

Trade Manager, about the company’s journey and

future goals.

The foundations of the company were laid by Şafak

Keleşoğlu and Ufuk Keleşoğlu, who both started

their careers at a young age and gained experience

step by step within the industrial ecosystem of

Konya. In the 1990s, they entered the sector

together and established Favori Otomotiv Kumlama

in 1997, bringing innovation through sandblasting

and surface cleaning services. This initiative

continues to operate successfully today.

In 2005, driven by the vision of establishing a steel

forging facility, investments were made in a 10,000

m² production area in Konya’s 3rd Organized

Industrial Zone. By 2008, the factory reached

full capacity, producing forged automotive parts,

agricultural machinery components, and contract

manufacturing services. The company quickly

positioned itself as a reliable and innovative supplier

in the regional industry.

Over time, Kumpas Dövme expanded its production

capacity and facility size, supported by continuous

machinery investments. A major milestone came in

2015, when the company received the “Approved

National Supplier” certificate from the Ministry of

National Defense, marking its role in domestic and

national production for the defense industry.

The same year, the MAXIFORGE brand was

established. With the addition of machining, quality

control, assembly, packaging, and warehouse

units, the company evolved from a subcontractor

into a fully integrated production facility. By 2016,

MAXIFORGE began manufacturing OEM-quality

heavy vehicle spare parts in compliance with

European standards and entered export markets.

Today, the brand is recognized as a reliable supplier

of truck and trailer components both in Türkiye and

globally.

Between 2016 and 2026, the company expanded its

exports to 30 countries, strengthening its presence

in Europe, Eurasia, the Middle East, and Africa.

Through active participation in international trade

fairs, Kumpas Dövme has built a strong global

network and reinforced its brand visibility. Today,

with more than 80 employees, the company stands

among Türkiye’s leading steel forging manufacturers.

Expanding global reach with a clear export strategy

Kumpas Dövme’s foreign trade activities are

currently focused on Europe, Eurasia, the Middle

East, and Africa, where the brand is already well

established. Looking ahead, the company aims

to enter North and South American markets by

developing products tailored to these regions. With

ongoing investments, it plans to expand its product

range and strengthen its export-driven growth

strategy.

Staying competitive in a challenging global market

Global competition remains one of the biggest

challenges. Low-cost products from China and

India create strong price pressure, particularly in

European markets. While Turkish manufacturers

offer higher quality, production costs are relatively

higher, which affects competitiveness.

However, Türkiye’s geographical advantages provide

a significant edge. Proximity to major markets and

access to multiple transportation routes enable

faster delivery times and more efficient logistics.

These factors help offset pricing disadvantages and

maintain competitiveness in international markets.

R&D and innovation as key drivers

R&D and innovation play a central role in the

company’s strategy. Engineering and quality

teams continuously work on improving product

performance, reducing costs, and increasing

efficiency. At the same time, new product

development remains a priority, with additional

components introduced to the market each year

under the MAXIFORGE brand.

A sector with strong future potential

The forging industry, with its deep historical roots,

continues to evolve alongside technological

advancements. Many core industries depend on

forged components, from automotive and railways

to defense, aerospace, and agriculture.

Looking ahead, automation and robotics are

expected to play a greater role in production

processes. The integration of advanced

technologies will drive efficiency and support the

sector’s long-term growth.

A message to the industry

Türkiye remains a strong industrial base with

growing production capacity. Continued investment

and a focus on expanding into international markets

are essential for increasing export potential. Kumpas

Dövme emphasizes the importance of collaboration

within the sector and expresses its appreciation to

all business partners and stakeholders.

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May 2026

Turkish automotive parts industry

growing dynamically

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May 2026

Turkish automotive parts industry has emerged

as one of the most dynamic and export-oriented

sectors of the national economy. Positioned at the

crossroads of Europe, Asia, and the Middle East,

Turkey has developed into a critical supplier within

global automotive value chains. In recent years, the

country’s auto parts exports have shown strong

growth, supported by industrial capacity, integration

with European markets, and increasing technological

sophistication.

One of the defining features of Turkish auto parts

exports is their scale and economic significance. The

broader automotive sector remains Turkey’s largest

export industry, accounting for over 15% of total

exports in recent years. Within this sector, the supply

industry—namely auto parts and components—

represents a substantial share. Export values for

automotive parts reached approximately $14–15 billion

annually in 2025, confirming Turkey’s position as one

of Europe’s leading suppliers. Indeed, Turkey ranks

among the top automotive parts exporters in Europe,

reflecting both production capacity and international

competitiveness.

Geographically, Turkish auto parts exports are

heavily concentrated in the European Union. Around

75–80% of exports are directed to EU countries, with

Germany, France, the United Kingdom, Italy, and Spain

serving as primary markets. This strong orientation

toward Europe is largely due to Turkey’s Customs

Union agreement with the EU and its proximity to

major automotive manufacturing hubs. As a result,

Turkish suppliers are deeply integrated into European

production networks, often operating as Tier 1 and Tier

2 suppliers to global automotive brands such as Ford,

Toyota, Renault, and Mercedes-Benz.

The product composition of exports is highly

diversified, covering nearly all categories of automotive

components. Key export items include engine and

powertrain parts, braking systems, suspension

components, body panels, and increasingly, electrical

and electronic systems. Notably, Turkey has developed

a strong reputation in specific segments such as brake

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May 2026

discs and aftermarket replacement parts. The sector

is typically divided between original equipment

manufacturer (OEM) supply and the aftermarket,

with a relatively balanced distribution between the

two. This dual structure enhances resilience by

diversifying demand sources.

Another critical strength of the Turkish auto parts

industry is its manufacturing ecosystem. The

presence of major global automotive manufacturers

in Turkey has fostered the development of a robust

supplier base. Industrial clusters in regions such as

Bursa, Kocaeli, and Sakarya host thousands of firms,

benefiting from economies of scale, skilled labor,

and advanced logistics infrastructure. These clusters

are optimized for just-in-time (JIT) delivery systems,

enabling Turkish suppliers to meet the stringent

timing requirements of European assembly plants.

Despite its strong performance, the sector

faces several challenges. Rising production

costs, exchange rate volatility, and financing

constraints have put pressure on profit margins

and competitiveness. Additionally, the global

automotive industry is undergoing a structural

transformation driven by electrification, digitalization,

and sustainability requirements. This transition poses

both risks and opportunities for Turkish exporters.

On one hand, traditional component segments—

especially those linked to internal combustion

engines—may face declining demand. On the other

hand, new growth areas such as electric vehicle (EV)

components, batteries, and electronic systems offer

significant potential.

Looking ahead, the future of Turkish auto parts

exports will depend on the sector’s ability to adapt to

these global shifts. Continued investment in research

and development, digital manufacturing, and green

technologies will be essential. Encouragingly, many

firms are already increasing their R&D spending

and expanding into higher value-added segments.

Furthermore, diversification of export markets

beyond Europe—into regions such as North

America, Africa, and the Middle East—could reduce

dependency and enhance resilience. In conclusion,

Turkish auto parts exports represent a cornerstone

of the country’s industrial and export strategy. With

a strong manufacturing base, strategic geographic

location, and deep integration into global supply

chains, Turkey has established itself as a key player

in the international automotive industry. While

challenges remain, particularly in the context of

technological transformation, the sector’s adaptability

and export orientation suggest a positive long-term

outlook.

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Türkiye’s industrial

production rises 2.2 percent

May 2026

Türkiye’s industrial production, which declined by 1.9

percent in the previous month, rose 2.2 percent yearon-year

in February, the Turkish Statistical Institute

(TÜİK) said on April 10.

Of the 12 sub-sectors measured, seven recorded

annual increases, while five saw declines.

The high-technology index surged 30.6 percent yearon-year

in February, while the capital goods index rose

12.8 percent and medium-high technology production

increased 6.9 percent.

In contrast, the durable consumer goods index fell

13.8 percent annually, and low-technology production

declined 4.6 percent.

On a monthly basis, overall industrial production

increased 2.6 percent in February, which followed a 2.9

percent contraction recorded in January.

Nine of the 12 sub-sectors posted monthly gains, while

three recorded declines.

Among the strongest monthly performers, mediumhigh

technology production rose 6.5 percent, capital

goods output increased 6.4 percent and manufacturing

production gained 3.3 percent.

Meanwhile, the electricity, gas and steam index

dropped 3.6 percent month-on-month, while energy

production declined 3.5 percent.

24

Tesla sales rise but still fall

short of expectations

May 2026

Sales of Tesla vehicles rose in the past three months

after a brutal year of boycotts over Elon Musk’s politics

but still fell short of expectations.

The company reported that sales rose 6 percent to

358,023 in the three months through March, the first

time in three years it posted a first-quarter increase

from the year-earlier period. The increase follows a

year of plunging sales due to an aging lineup and

boycotts over Musk’s right-wing political stands.

Still, the results disappointed investors.

One reason was that sales were 6 percent lower than

the 381,000 that financial analysts had expected.

And they were sharply off from the sales for the three

months ended in December.

Tesla has had to contend with lower demand due to

the September expiration of a $7,500 tax credit for EV

buyers, a blow to sales across the industry.

The company is hoping cheaper versions of Tesla

models X and 3 introduced late last year will eventually

lift sales. Tesla is also now producing a self-driving

Cybercab with no steering wheel to attract customers.

Details on the new offerings could come out on April

22 when Tesla reports quarterly earnings.

Still, the stock is trading 30 percent higher than a

year ago. That reflects a marketing victory of sorts

for Musk who has been telling investors to focus less

on car sales and more on the company’s chances of

dominating a future in which fewer people own cars,

self-driving Tesla robotaxis are nearly everywhere and

Telsa’s Optimus robots are taking over for humans in

factories and homes.

Before that future comes, if it does, European and

Chinese EV makers are stealing market share. Chinese

maker BYD recently reported it had made 2.26 million

electric vehicles last year versus Tesla’s 1.64 million to

become the new record holder

Togg signs strategic technology partnership

for new B-Segment family

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Togg, Türkiye’s global technology brand

in the mobility sector, has entered into a

strategic partnership with CAIT, a subsidiary

of CATL, to jointly develop a platform for its

new B-segment family. While Togg will play

a defining role in user experience, product

requirements, and digital architecture, CAIT

will provide the platform technology…

Founded with the vision of creating “more than a

car,” Togg has signed a strategic agreement for

its new B-segment family. Viewing mobility as an

integrated ecosystem consisting of smart devices,

digital platforms, and clean energy solutions, Togg

has partnered with CAIT, a subsidiary of CATL, to

jointly develop a platform in line with this vision.

Within the scope of this collaboration, rather than

adopting the platform as a ready-made solution,

Togg will actively contribute to the engineering and

May 2026

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development process, shaping the platform according

to its own product and user needs. While CAIT will

provide the platform technology, Togg will take the

lead in user experience, product requirements, and

digital architecture. The partnership will also support

the development of next-generation electric vehicles

for the Turkish market by combining CAIT’s Bedrock

Chassis technology with Togg’s vehicle development

capabilities. The three models to be developed under

this collaboration are planned to be introduced to users

in Türkiye gradually starting from mid-2027.

“We Are Taking an Active Role in the Platform

Development Process”

Togg Chairman Fuat Tosyalı expressed his satisfaction

with the collaboration, stating: “We approach mobility

not merely as a product category, but as a holistic

technology and ecosystem matter. In this direction,

we are transforming our collaborations beyond

conventional supplier relationships into strategic

partnerships that create shared value and build

the future together. By becoming part of the entire

development process rather than opting for a readymade

solution, we are better addressing the needs

of our users while also contributing to the growth of

this ecosystem in our country. In the coming period,

through such value-creating partnerships, we will

continue to develop new solutions across different

segments, further enriching the Togg ecosystem and

the experience we offer our users.”

“We Support the Transition to Low-Carbon Mobility”

CATL Chairman Robin Zeng also commented on the

collaboration: “This partnership marks an important

milestone for the global expansion of the Bedrock

Chassis following its mass production process in

the Chinese market. At the same time, as one of

the benchmark projects in the field of integrated

intelligent chassis systems, this collaboration will

strengthen our global partnerships, accelerate

electrification, and support the transition to lowcarbon

mobility in emerging new energy markets.”

Design and Production Tailored to Needs

Through a Shared Technological Infrastructure

The Bedrock Chassis became the world’s first

example of an integrated intelligent chassis offered

as an independent product to passenger vehicle

brands after entering mass production in the

Chinese market in 2024. Bringing together key

components such as the battery, electric powertrain,

thermal management system, and chassis control

unit on a single platform, the model was developed

for global implementation with a localizationoriented

approach.

This model combines chassis platform technology,

industrial supply chain structure, and the operational

capabilities of a local automotive brand. The aim is

to enable vehicles to be designed and manufactured

according to local market needs while utilizing a

shared technological infrastructure.

May 2026

30

Chinese automakers’ sales and

market share decline in Türkiye

May 2026

Sales of Chinese automotive giants in the Turkish

market fell by 12.8 percent in the first quarter of 2026,

with their market share dropping to 5.82 percent.

The number of Chinese brands in the market also

decreased to seven after three players exited. Yet

this downturn is not solely a sales story. A lack of

willingness among Chinese manufacturers to share

technology has produced an investment deadlock,

which, combined with new customs measures, has

begun to weigh on the automotive sector.

Chinese automakers’ performance in Türkiye has

fluctuated in line with shifting trade dynamics between

the two countries. After their market share approached

15 percent in 2024, the first quarter of 2026 marked

a contraction. The decline cannot be explained by

sales alone. Türkiye’s updated customs standards,

the effective removal of incentives for plug-in hybrid

(PHEV) vehicles, and ongoing investment processes

emerged as key factors behind the slowdown.

According to data from the Automotive Distributors

and Mobility Association (ODMD), Chinese brands

sold 15,443 vehicles in Türkiye between January and

March 2026, down 12.8 percent compared to the

same period last year. Their overall market share fell

by 0.59 points to 5.82 percent. Customs regulations

played a decisive role in performance. Chery Group,

with its Chery, Omoda and Jaecoo brands, benefited

from a reduced customs tax burden of 35 percent and

achieved 8,454 sales in the quarter. BYD, however,

faced a 25.4 percent drop to 6,127 units, hindered

by investment disputes and the inability to import

PHEV models. MG managed to boost sales by 7.8

percent with its internal combustion lineup, while

DFSK, Skywell and Leapmotor exited the market. The

results highlight that Chinese brands offering internal

combustion models are gaining an edge, while BYD,

relying solely on electric vehicles, is struggling to

compete. This situation also exposes a contradiction in

Türkiye’s strategy: While aiming to attract investment

and encourage an electric transition, the market is

rewarding conventional engine offerings. Türkiye’s

core expectation from Chinese automakers remains

clear: Access to the market in exchange for deeper

cooperation in investment, production and technology.

32

GQP, an innovative and reliable

leader in the industry

GQP Machinery and Automotive is a company founded

in the heart of industry with the vision of combining

the power of domestic manufacturing with global

standards. Since its establishment, the company has

aimed to become a reliable solution partner in the

supply of automotive spare parts by strengthening

its technical expertise in the automotive sector with a

strong corporate structure. What began as a small step

has steadily evolved into a growing brand that leaves

its mark on the industry through its expanding product

range and professional team.

We spoke with GQP Machinery partners Ali

May 2026

Karaçobanoğlu and Eyyüp Kabadayı about the story

behind the company’s remarkable progress in such a

short period of time.

“Our operations are mainly focused under one core

category: Automotive Spare Parts and Components.

Our product groups cover a wide range extending from

passenger vehicles to commercial vehicle segments.

“What sets us apart from our competitors: We are not

merely a ‘supplier,’ but also a ‘solution partner.’ Our

flexibility in offering tailor-made boutique solutions,

our after-sales technical support, and our meticulous

balance between quality and price are among our

greatest strengths.

“We are fully aware that there is no margin for error in

the automotive industry. Our quality policy is built upon

the principles of using the right raw materials, precision

workmanship, and strict quality control. In our

supply processes, we work with certified and proven

partners, while our production stages fully comply

with international standards (ISO, etc.). Every single

part undergoes multi-stage testing procedures before

reaching the end user.

“As GQP Machinery, we are carrying the strength of

domestic production beyond our borders. We export

to many countries, particularly in the European and

Middle Eastern markets.

“Our Goal: By increasing our current market

share, we aim to associate the ‘Made in Türkiye’

image with quality and become one of the top 10

recognized and benchmarked domestic brands in

the global spare parts market within the next five

years.

“We manage global challenges such as rising costs

and supply chain disruptions through operational

efficiency. By optimizing our inventory management

with digital systems, we minimize the impact of raw

material fluctuations. Thanks to our investments

in technology, we reduce production costs while

shortening delivery times, giving us a competitive

advantage.

“We believe the future belongs to those who best

integrate technology with manufacturing. In our R&D

efforts, we focus on the use of lighter, more durable,

and environmentally friendly materials.

“Within the next five years, GQP Machinery aims

to increase its production capacity by 100% and

transform into a facility powered by sustainable

energy. We position ourselves in the sector as

an ‘innovative and reliable leader.’ At the center

of our vision lies the goal of becoming not only a

manufacturer of parts, but also an engineering force

that shapes the future of the industry.”

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May 2026

Electric vehicle charging infrastructure expands

into residential areas with EPDK regulation

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May 2026

subsidiary of Üçay Engineering — emphasized that

this integration will enhance user experience while

contributing to the widespread adoption of charging

infrastructure and electric vehicles across Türkiye.

Urban Mobility Habits Are Changing

The comprehensive amendment introduced by EPDK

to the EV charging services regulation marks the

beginning of a new era in Türkiye’s electric vehicle

ecosystem. Published in the Official Gazette on

March 23, the regulation prioritizes the integration of

charging infrastructure into residential and residential

complex parking areas, aiming to drive a structural

transformation within the sector.

Elaris, which operates in EV charging network

management and charging station solutions, stated

that the regulation will accelerate the expansion of

charging infrastructure in Türkiye and further boost the

market’s growth momentum.

A recent amendment to the electric vehicle (EV)

charging services regulation by Turkey’s Energy

Market Regulatory Authority (EPDK) is accelerating the

integration of charging infrastructure into residential

living spaces. Volkan Demir, Director of Elaris — a

The Sector Is Expected to Exceed TRY 30 Billion

Under the new regulation, the majority of electric

vehicles are expected to be charged in apartment

and residential complex parking areas by 2030. This

approach is anticipated not only to reshape urban

mobility habits but also to significantly improve the

accessibility of charging infrastructure. Alongside this

transformation, the sector is projected to surpass a

market size of TRY 30 billion by 2030.

The Transformation Aligns with Global Trends

Global trends are also moving in parallel with

this transformation. According to data from the

International Energy Agency (IEA), 70–80% of electric

vehicle users charge their vehicles at home or at their

workplace. In some European countries, this figure

reaches up to 85%. These statistics demonstrate that

integrating charging infrastructure into living spaces is

a globally recognized and adopted approach.

in the integration of charging infrastructure into

living spaces. This integration, which will enhance

user experience, will also accelerate the widespread

adoption of electric vehicles.”

“We Will Continue Supporting the Growth of the

Ecosystem”

“As Elaris, we actively contribute to this transformation

through our complimentary electric vehicle charging

station installation and charging network operation

services. With the solutions we develop for Türkiye’s

sustainable future, we will continue to support the

growth of the ecosystem.”

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Rising EV Demand Increases Infrastructure Needs

The rapid increase in the number of electric vehicles

in Türkiye further highlights the importance of this

transformation. The number of electric vehicles, which

stood at approximately 15,000 in 2022, exceeded

400,000 as of 2026. Projections for 2030 indicate that

this figure could reach between 1 and 1.5 million. This

growth clearly shows that public charging stations

alone will not be sufficient and that residential and

workplace-based solutions will play a critical role.

Commenting on the regulation, Elaris Director Volkan

Demir stated: “With EPDK’s new regulation, which

represents a significant milestone for the electric

vehicle ecosystem, we foresee a rapid acceleration

May 2026

38

German carmakers once led race in

China, now they’re ‘for parents’

May 2026

More than four decades after Volkswagen stole the

show at its first Chinese auto fair, the German giant has

lost its lead in the country, as domestic carmakers now

drive innovation and appeal to a new generation of

technology-savvy drivers.

The combustion-engine heritage of “Made in Germany”

no longer holds as much sway in what has become the

world’s largest car market, where local automakers are

rolling out flashy, affordable electric vehicles that are

essentially mobile phones on wheels.

“Maybe some ⁠younger customers perceive us as the

brand for the parents,” ⁠the Volkswagen brand’s China

CEO, Robert Cisek, told Reuters.

Blindsided by the meteoric rise of Chinese brands,

sales at Volkswagen, along with its Porsche and Audi

units, and rivals BMW and Mercedes-Benz have all

tumbled, leaving them scrambling to staunch the

bleeding in a market that used to account for a third

of their sales. After spending a ⁠quarter of a century as

China’s No. 1 automaker, Volkswagen was overtaken

by EV heavyweight BYD in 2024 and knocked into third

place by Geely in 2025.

The transformation of China’s auto market for these

companies – from growth driver to battleground – has

been “beyond imagination,” Cisek said.

40

When Volkswagen attended its first Chinese auto show

in Shanghai in 1985, locals were impressed by the

quality of the German automaker’s marketing materials.

“We were met by an unimaginably huge crowd and our

brochures flew off the shelves,” then-CEO Carl Hahn,

who oversaw the company’s entry into China, wrote in

his memoirs. “For people at that time, it was enough

simply to marvel at the quality of the paper and print

and to dream about owning a car.”

Now, the German auto group needs more than just

glossy paper to stage a comeback at this year’s Beijing

Auto Show, which kicks off.

Having dominated combustion-engine car production,

automakers like Volkswagen find ⁠themselves ⁠racing to

catch up in a market where more than one in four new

cars is fully electric. As China’s car market grew and

local brands launched a plethora of consumer-friendly

EVs, German carmakers lost ground. Collectively, their

sales fell by a quarter over five years to 3.9 million

vehicles in 2025, according to S&P Global Mobility

data. The challenges have intensified this year as

Chinese brands make inroads in the premium segment,

targeting wealthier consumers who once coveted

German quality, analysts said.

Sitting thousands of miles away in their headquarters

in Wolfsburg, Stuttgart and Munich, German car

executives underestimated the ability of Chinese

automakers to dominate EV development so quickly.

“They didn’t see this big change coming, and they

didn’t see the speed at which it came,” automotive

consultant Felipe Munoz said.

Germany’s legacy ⁠automakers must turn their China

businesses around or lose relevance in a country that

is viewed by executives like Volkswagen CEO Oliver

Blume as a training ground for building the cars of

the future. Under Blume, Volkswagen Group plans

20 so-called “new energy vehicle” launches in China

this year, including all-electric models, plug-in hybrids

and EVs with small combustion engines known as

range extenders. The company will premiere four

new EVs in Beijing ahead of the car show’s opening,

including mass-market hopefuls developed with

Chinese partners FAW and EV maker Xpeng, as well

as the latest China-only AUDI, a new brand where the

premium marque’s all-caps name replaces its worldfamous

rings. It was jointly developed with China’s

SAIC. Yale Zhang, managing director at Shanghaibased

research firm Automotive Foresight, said

German brands are being “murdered” by their own

legacy and ⁠a resistance to rapid change.

“You can’t really rely on your chrome metal strips, your

Napa leather seats and your ‘one-hundred-year’ history

to convince the consumers,” Zhang said.

German automakers have also at times been reluctant

to embrace technology from new Chinese rivals.

Now, Volkswagen, Mercedes and BMW are

increasingly leaning on Chinese suppliers ⁠to catch up,

including autonomous driving leader Momenta and incar

software developer ECARX.

While “Made in Germany” remains ⁠an internationally

trusted hallmark, young consumers – including in China

– are more likely to avoid German cars, according to a

consumer survey conducted by ⁠Berylls by AlixPartners

in January.

“The good thing is, of course, there is this credibility

when it comes to Volkswagen’s safety, reliability and

quality,” Cisek said. “At the same time, it’s also a little

bit of a burden.”

May 2026

42

Stellantis to stop car production

at its Poissy plant near Paris

May 2026

Automotive group Stellantis announced it will cease

production of new cars at its Poissy plant near Paris

within three or four years, as it works on cutting excess

manufacturing capacity across ⁠Europe.

The Jeep and Peugeot maker ⁠is facing chronic

overcapacity in the region, where auto sales have yet

to return to pre-pandemic levels.

Rapid gains by low-cost Chinese competitors as

well as a slower-than-expected ⁠transition to electric

vehicles, which forced Stellantis to report a $25 billion

writedown earlier this year, have compounded the

situation.

Production of the DS3 and Opel Mokka in Poissy

should cease at the end of 2028 at the earliest, after

which the site will no longer produce new vehicles,

but will continue to manufacture auto parts for other

Stellantis factories, a company spokesperson told

Reuters following talks with unions.

During the meeting, Stellantis told unions ⁠that ⁠the date

of the end of production, penciled for the end of 2028,

would be confirmed later on.

Stellantis, which has four other factories in France, will

invest 100 million euros ($117.96 million) to overhaul

the Poissy site, enabling new activities such as 3D

printing for parts or reconditioning and recycling used

vehicles.

The plant’s future has been uncertain for years, with

output dwindling ⁠and expected to come in at about

68,000 units in 2026 and 65,000 in 2027, well below

145,800 in 2023, said an industry source familiar with

the matter.

Stellantis declined to comment on the volume

forecasts.

The factory was built by Ford in the 1940s and later

acquired by Chrysler before being taken over by

⁠Peugeot and becoming part of Stellantis in 2021. At its

peak ⁠in 1976, the plant employed nearly 27,000 people

and produced more than 500,000 vehicles annually.

Approximately 1,600 workers currently work at Poissy,

a number expected ⁠to drop to 1,200 by 2030 ⁠due to

the aging workforce. Around 1,000 new roles will be

⁠needed by 2030 to accommodate the new businesses,

and a training program will be implemented, said the

spokesperson.

44

The automotive spare parts industry

in Türkiye-the future prospects

May 2026

The automotive spare parts industry in Türkiye

represents a cornerstone of the country’s

manufacturing sector, contributing significantly to

industrial output, employment, and export revenues.

As an integral component of the broader automotive

ecosystem, the sector has evolved into a highly

competitive and export-oriented industry over the past

three decades.

Structurally, the Turkish automotive spare parts

industry consists of a large number of small and

medium-sized enterprises (SMEs), alongside globally

integrated large-scale manufacturers. These firms

produce a diverse array of components, ranging

from low-value-added mechanical parts to high-tech

systems such as electronic control units, advanced

braking systems, and safety components. The industry

operates in both the original equipment manufacturer

(OEM) segment—supplying parts directly to vehicle

producers—and the aftermarket segment, which

serves maintenance and repair demand.

A defining characteristic of the sector is its deep

integration into global supply chains. Türkiye

hosts production facilities of major international

automotive manufacturers, which has facilitated

the development of a robust supplier network.

Local firms often act as Tier 1 and Tier 2 suppliers,

adhering to strict international quality standards such

as ISO/TS 16949. This integration has enhanced

the technological capabilities of Turkish suppliers

and enabled knowledge transfer in areas such as

lean manufacturing, automation, and quality control

systems.

Geographically, the industry is concentrated in

industrial clusters such as Bursa, Kocaeli, Istanbul,

and Izmir. These clusters benefit from developed

logistics infrastructure, proximity to ports, and access

to a skilled labor force. Clustering has also fostered

cooperation between firms, universities, and research

46

May 2026

institutions, contributing to innovation and efficiency

gains.

From a trade perspective, the automotive spare

parts industry is one of Türkiye’s leading export

sectors. The European Union remains the primary

export destination, largely due to the Customs Union

agreement, which eliminates tariffs on industrial goods.

In addition, Turkish suppliers have been expanding

into alternative markets in North Africa, the Middle

East, and Central Asia. The sector’s export success is

driven by its ability to combine competitive costs with

acceptable quality standards.

In recent years, the industry has been undergoing

a significant transformation driven by global

technological trends. The rise of electric vehicles (EVs),

autonomous driving technologies, and digitalization

has reshaped the demand for automotive components.

Turkish firms are increasingly investing in research

and development (R&D) to adapt to these changes,

focusing on areas such as battery technologies,

electric drivetrains, lightweight materials, and smart

mobility solutions. Government incentives and

technopark initiatives have also supported innovation

in the sector. Despite its strengths, the industry faces

several structural challenges. Exchange rate volatility

affects input costs, as many raw materials and

intermediate goods are imported. Additionally, global

supply chain disruptions—particularly evident during

the COVID-19 pandemic—have exposed vulnerabilities

in production networks. Competition from low-cost

producers, especially in Asia, continues to exert

pressure on profit margins. Furthermore, the transition

toward electric vehicles poses a strategic challenge,

as traditional internal combustion engine components

may gradually lose importance.

Looking ahead, the future of the Turkish automotive

spare parts industry will depend on its ability to

upgrade technologically and move up the value chain.

Investments in human capital, digital transformation,

and sustainable production processes will be critical.

Strengthening collaboration between industry

stakeholders and enhancing integration with emerging

mobility ecosystems will also play a key role.

In conclusion, Türkiye’s automotive spare parts

industry stands as a resilient and adaptive sector with

strong export capabilities and a solid manufacturing

base. While facing significant global challenges, its

ongoing transformation toward higher technology and

sustainability provides a promising pathway for longterm

growth and international competitiveness.

Experience HYDHOME Advantage!

48

May 2026

Having a prominent place in the European and South

American markets, HYDHOME is now setting its

sights on Asian markets. We conducted an interview

with Barış Belgin, the company’s Middle East Sales

Manager. Here is the full text of the exclusive interview:

Considering the success you have achieved in

the global market with the HYDHOME brand,

what are the most important production and

quality advantages that distinguish you from your

competitors?

When it comes to achieving success, competition

starts to seem like an opportunity to improve our

manufacturing phases. This drives us to commit to the

best possible outcome by satisfying our customers

with sustainable quality and solutions, which makes

our brand stand out among competitors.

How has your deep-rooted history dating back

to 1962 contributed to your current production

philosophy and brand vision?

The experience gained not only from manufacturing

products but also from manufacturing the machines

themselves has given us a tremendous advantage

in supporting our HYDHOME Hydraulic Equipments

brand, not only with certifications but also with

decades of experience and testing carried out

since 1962.

Your products are particularly focused on heavy

commercial vehicles such as Mercedes, Volvo,

and Scania. What kind of balance strategy do you

follow between the OEM and aftermarket sectors?

As the global economy fluctuates day by day,

customers and partners seek OEM-quality products

for European commercial vehicles at affordable

prices. That is exactly where we step in to meet those

demands. We believe that everyone deserves the

highest quality and service, and therefore we strive to

be present in the aftermarket sector where our end

users can truly feel valued.

Which markets have you focused on in your export

activities in recent years, and what are your new

target markets?

In recent years, our main goal has been to establish a

strong presence in the European and South American

markets, where the industry’s best brands offer their

products and services. Now that we have built a strong

reputation in those markets for aftermarket products,

we have decided to take the next step by targeting

Asian markets. Of course, we do not plan to stop there,

as our further goal will be expanding into the African

market.

Which standards do you implement in your

production processes regarding quality control and

certification?

During every stage of our manufacturing procedures,

we strictly comply with regulations defined by

international standards such as IATF 16949 and ISO

certifications. Therefore, we place great importance

on delivering the best aftermarket products by testing

every single product leaving our factory. In fact, this

year we will renew our IATF 16949 certification through

an independent third-party audit in order to keep

up with the latest global updates. Our mission is to

manufacture according to international standards and

provide sustainable quality products.

What are the biggest advantages for your global

distributors and business partners in working with

HYDHOME?

The biggest advantage of working with HYDHOME

Hydraulic Equipment is that we offer sustainable

quality, a fast solution-oriented approach, and longterm

business partnerships based on trust. We see our

distributors not merely as customers, but as part of our

global success. That is why we always say: Experience

HYDHOME Advantage!

49

What kind of innovations or technological

investments are planned for the near future in

terms of R&D and product development?

In the field of Research and Development, we

aim to move forward hand in hand with emerging

technologies that allow us to offer better hydraulic

solutions and offer superior products to our customers

worldwide through new testing benches, advanced

CNC machines, and other cutting-edge technologies.

May 2026

Electric vehicles increase their presence in Türkiye

50

May 2026

In recent years, Türkiye has begun to position itself

as an emerging player in the global transition toward

electric vehicles (EVs). Driven by environmental

concerns, technological advancements, and changing

consumer preferences, the adoption of electric

mobility in Türkiye is gradually accelerating. Although

the country entered the EV market later than some

developed economies, its progress has been notable

and promising. One of the most significant milestones

in Türkiye’s EV journey is the launch of its domestic

electric car brand, TOGG (Türkiye’nin Otomobili Girişim

Grubu). TOGG represents not only a technological

breakthrough but also a strategic move toward

reducing dependence on imported fossil fuels and

strengthening the national automotive industry. With its

first models entering the market, TOGG has increased

public awareness and confidence in electric vehicles.

Government policies have also played a crucial role in

supporting the EV ecosystem. Incentives such as tax

reductions, investment in charging infrastructure, and

regulatory frameworks are encouraging both producers

and consumers to shift toward electric mobility. In

addition, municipalities and private companies are

increasingly investing in charging stations, which helps

reduce “range anxiety,” one of the main barriers to

EV adoption. Despite these positive developments,

several challenges remain. The high initial cost of

electric vehicles compared to conventional cars,

limited charging infrastructure in some regions, and

dependency on imported battery technologies are

key obstacles. Moreover, consumer habits and lack of

awareness still slow down the widespread adoption

of EVs. Looking ahead, the future of electric vehicles

in Türkiye appears optimistic. As battery costs decline

and technology improves, EVs are expected to become

more affordable and accessible. Furthermore, Türkiye’s

strong automotive manufacturing base provides a solid

foundation for scaling up EV production and integrating

into global supply chains. Investments in renewable

energy will also enhance the sustainability of electric

mobility, making EVs even more environmentally

friendly. In conclusion, while Türkiye is still in the early

stages of its electric vehicle transformation, it has

significant potential to become a competitive player in

this field. With continued government support, private

sector investment, and technological innovation,

electric vehicles are likely to play a central role in

Türkiye’s transportation future.

Turkish auto sales drop nearly

4% in Q1, EV momentum persists

54

May 2026

The Turkish automotive market contracted slightly in

the first quarter of 2026 as sales dropped close to 4%

amid a broader decline in sales in March, the data from

a leading sectoral association showed.

Still, the momentum in sales of the electric and hybrid

cars persisted, and both categories stood out while

expanding their market share.

In the January-March period, sales of passenger cars

and light commercial vehicles in Türkiye decreased

3.94% year-over-year to 265,398 units, the Automotive

Distributors and Mobility Association (ODMD) said in

its monthly update.

Car sales fell by 5.86% year-on-year in the January-

March period to 210,688 units, while light commercial

vehicle sales rose 4.23% to 54,710 units.

In March alone, cumulative sales of passenger cars

and light commercial vehicles were

meanwhile down 12.75% on an

annual basis, standing at 101,997

units, according to the association.

Last month, passenger car sales

were down 13.04% to 79,857

vehicles, while light commercial

vehicle sales decreased 11.69% to

22,140, respectively.

The contraction in sales comes

amid a period marked by robust

sales, through most of 2025, before

a slowdown in the first months of

the year.

Vehicles in the A, B and C

segments, where tax rates are

lower, made up 85% of the

market in the three months, the

data revealed. C-segment cars

accounted for 54.4% with 114,588

units sold, while B-segment cars

held a 30.5% share with 64,155

units.

By body type, SUVs were the

most preferred, with a 62.8%

share and 132,380 units sold. They

were followed by sedans with a

20.5% share and 43,209 sales,

and hatchbacks (H/B) with a 16.4% share and 34,537

sales.

Looking at the breakdown considering the market type,

the gasoline cars stood out, although the combined

share of EVs and hybrids reached the level of over

51% between January and March.

Accordingly, gasoline cars held a 42.1% market share

with 88,688 units, while hybrid cars had a 33% share

with 69,504 units.

Electric cars reached a share of 18.2% with 38,420

units, diesel cars had a 6.3% share with 13,326 units,

and LPG-powered cars accounted for 0.4% with 750

units.

According to the data shared by the ODMD, in

January-March of 2025, hybrid sales stood at some

63,905 units, while electric sales were at 29,573 units.

Hydrotime exports hydraulic pumps and

gearboxes to 67 countries

56

May 2026

Mehmet Konsan Group of Companies — operating

under the brands Hydrotime Hydraulic, Poltime

Elevator, and Polcast Casting — has made significant

investments in its production infrastructure in recent

years. We spoke with Muhteşem Polat, General

Manager of Hydrotime Hydraulic, which supplies

hydraulic pumps and gearboxes to almost the entire

world, about the company’s success story.

What is the founding story of Hydrotime? What

were the main reasons that led you into this sector?

Hydrotime Hydraulic is a well-established brand

operating under Mehmet Konsan Ltd. Şti., which was

founded in 1982. During its early years, our company

focused on manufacturing hydraulic machinery,

and between 1982 and 1996, we further developed

our production expertise and expanded into the

manufacturing of hydraulic pumps and gearboxes.

Under the leadership of Muhteşem Polat, who took

over management after Mehmet Polat, who served as

General Manager until 2006, significant investments

have been made particularly in R&D and export

activities. Thanks to this vision, Hydrotime Hydraulic

has become a strong international brand exporting to

67 countries today.

As Mehmet Konsan Group of Companies, with

our brands Hydrotime Hydraulic, Poltime Elevator,

and Polcast Casting, we continue to grow through

investments in our production infrastructure. As

of 2026, our production area has reached 16,000

square meters. Within the scope of our planned new

investments, we aim to move into a modern production

complex covering a total area of 30,000 square meters.

Through these investments, we seek to further increase

our production capacity, technological infrastructure,

In today’s competitive conditions, what are the core

values that position your company differently and

make you a “preferred brand”?

One of the most important factors that differentiate us

in the sector is our product quality, customer-oriented

service approach, and strong after-sales support. In

the hydraulic equipment we manufacture, we prioritize

durability, performance, and long service life, while

aiming to offer not only products but also trust to our

customers.

The importance we place on customer satisfaction is

directly reflected in our after-sales service processes.

Our fast warranty solutions, technical support services,

and sustainable communication with customers

strengthen the trust in our brand. In addition, thanks to

our fast delivery advantage and wide product range,

we can quickly provide solutions for the needs of

different industries.

Could you provide information about your

production infrastructure and use of technology?

What innovations are you implementing to increase

efficiency and quality?

As Hydrotime Hydraulic, we operate with an

infrastructure centered on quality, sustainability, and

efficiency in our production processes. Thanks to

our modern production equipment and precision

machining technologies, we provide high durability and

reliability standards in hydraulic system components.

Digital tracking systems, quality control stages, and

testing procedures are actively used throughout our

production processes. In particular, we apply detailed

inspection procedures at every stage of production to

ensure consistent product performance.

To improve efficiency and quality, we continuously

follow new production technologies and carry out

process improvement activities. Through our R&Doriented

approach, we continue to develop longerlasting,

high-performance hydraulic solutions tailored

to customer needs.

In which export markets are you strongest? Which

new countries do you see as having strong growth

potential?

As Hydrotime Hydraulic, we currently export to 67

countries. We have a strong and sustainable customer

network especially in Asia and the Middle East. In

addition, our brand awareness is steadily increasing in

Europe, North Africa, and the Turkic Republics.

In terms of growth potential, we are closely following

the African market, Eastern Europe, and South

America. Developments in infrastructure, logistics, and

heavy vehicle industries in these regions are increasing

the demand for hydraulic systems. In line with this, we

are focusing both on expanding our distributor network

and establishing local partnerships.

What kind of roadmap are you following regarding

sustainability and environmentally friendly

production?

At Hydrotime Hydraulic, we see sustainability not only

as a production approach but also as a long-term

responsibility. In this direction, we attach importance

to the efficient use of resources, energy saving, and

waste management in our production processes.

While improving quality in production, we also aim to

reduce environmental impacts. By developing longlasting

and durable products, we contribute to both

economic and environmental sustainability. At the

same time, we are carrying out studies to minimize

energy consumption by using efficiency-oriented

technologies in our production processes.

How have rising costs, supply chain issues, and

global developments in the industry affected your

operations? How did you adapt to this process?

In recent years, we have closely felt the effects of

rising costs, raw material supply challenges, and

logistics issues that have impacted the entire world.

In particular, longer supply times and increasing

foreign currency-based costs have made it

necessary to act more flexibly and strategically in

production planning.

During this process, we managed to maintain

operational continuity thanks to strong inventory

management, alternative supplier networks, and

our planned production approach. At the same

time, we focused on controlling costs by prioritizing

investments that would make our production

processes more efficient.

Finally, where do you see your company in both

Türkiye and the global market in the coming years?

What are your new investments, partnerships, or

target projects?

Our goal is not only to be one of the leading brands

in Türkiye’s hydraulic sector but also to achieve a

stronger and more sustainable position in the global

market. We aim to increase our brand awareness in the

countries we export to, establish new distributorship

networks, and develop long-term partnerships.

In the coming period, alongside investments aimed at

increasing our production capacity, we plan to focus

more heavily on R&D and technology-oriented projects.

We will continue to place innovation at the center of

our production processes in order to develop more

efficient, durable products tailored to customer needs.

At the same time, by entering new markets, we aim

to build a more active presence especially in Africa,

South America, and Europe. As Hydrotime, we seek

to strengthen our quality approach and engineering

expertise on a global scale while representing the

power of Turkish manufacturing more strongly in the

international arena.

May 2026

57

58

EV demand continues to rise globally

May 2026

Global demand for electric vehicles continues to grow

as consumers respond to high fuel prices and stricter

environmental regulations. Major automakers are

accelerating their transition to electrification, increasing

investments in battery production and software

development. Analysts expect EVs to account for a

significantly larger share of total vehicle sales over the

next decade.

The global automotive industry is showing signs of

recovery as supply chain disruptions, particularly in

semiconductors, begin to ease. Production levels

are gradually increasing, allowing manufacturers to

reduce backlogs. However, industry experts warn that

geopolitical risks and raw material shortages remain

key concerns.

Automakers are increasingly focusing on software as

a core component of vehicle design. Features such as

over-the-air updates, autonomous driving capabilities,

and digital services are becoming standard. This trend

is transforming traditional car manufacturers into

technology-driven companies.

The automotive aftermarket is undergoing a structural

transformation due to the rise of electric vehicles. With

fewer mechanical components, maintenance needs

are changing. Companies are investing in battery

diagnostics, recycling technologies, and electronic

system services to remain competitive.

China continues to dominate the global EV market,

supported by strong government policies and

a well-developed battery supply chain. Chinese

manufacturers are expanding into international

markets, increasing competition for established global

brands.

European Union policymakers are introducing stricter

emission standards to accelerate the transition toward

clean mobility. Automakers operating in Europe are

under pressure to reduce fleet emissions, further

boosting investments in electric and hybrid vehicles.

Türkiye is strengthening its position as a key

automotive manufacturing hub. Export volumes remain

robust, supported by a competitive supplier base

and proximity to European markets. Industry leaders

emphasize the need to align production with electric

vehicle trends to sustain growth.

İsfur Otomotiv - the power behind

innovation, digitalization and speed

64

May 2026

From tractors to construction machinery, and from

heavy-duty trucks to semi-trailers, İşfur operates

across a very wide production range and has

significantly accelerated its global activities in recent

years. We spoke with Export Manager Furkan Keleş

about the success story of İşfur, which is also known

for its innovations:

Could you share with us the founding story and

areas of activity of İsfur Otomotiv? What were the

main motivations that led you into this sector?

The journey of İsfur Otomotiv is, in fact, a reflection of

Türkiye’s industrialization story. This process began

in 1980 with Kems Elektronik, founded by İsmail

Keleş, and was built on precision metal processing

and technical manufacturing discipline. Over the

years, we directed the technical expertise we gained

toward turbocharger systems, one of the most critical

components in the automotive industry. Today, under

the Saffer brand, we produce for a wide range of

vehicles—from tractors and construction equipment

to heavy-duty trucks and semi-trailers. Our primary

motivation in entering this sector was recognizing

the gap for “high-quality domestic production” in the

global market and the desire to make the Saffer name

a symbol of trust worldwide.

What distinguishes Saffer Turbo from its

competitors? Could you tell us about your product

portfolio?

At the heart of our portfolio are Saffer-branded

turbocharger systems. Currently, we produce for more

than 80 truck, tractor, and heavy vehicle models.

However, for us, quality matters more than quantity.

The most defining feature that sets Saffer products

apart from competitors is what we call the “engineering

margin.” When designing our products, we base them

many years in the logistics and agricultural sectors. At

this point, we base our strategy on “the most efficient

version of existing technology.” The importance of

turbocharger systems is increasing day by day in

achieving lower emission values and maximizing

fuel efficiency. As İsfur, while integrating sustainable

production techniques into our factory, we are also

developing high-efficiency turbo technologies that

are fully compatible with the environmentally friendly

engine standards of the future.

on real-world operating conditions—whether it’s a

tractor working in the field or a truck traveling long

distances—and optimize durability and performance

accordingly. Our collaborations with well-established

European spare parts suppliers are concrete proof of

the stable and sustainable quality standards we offer.

We don’t just provide a component; we deliver a longlasting

performance solution at the heart of the engine.

Could you provide information about your R&D and

innovation activities? What technologies do you use

in your new product development processes?

For us, innovation is not just about acquiring new

machinery; it is an integral part of our production

culture. Thanks to our R&D team, which operates with

the precision of the defense industry, we minimize

our margin of error. When developing a new turbo

model, we use advanced aerodynamic simulations and

metallurgical analyses to optimize the component’s

impact on fuel efficiency and torque increase. In

addition, by extending digitalization beyond production

processes, we enhance our operational speed.

With the technological infrastructure we offer to our

partners, we ensure a transparent and error-free

process at every stage, from order to delivery.

Could you tell us about your export activities? In

which markets are you active, and what are your

global growth targets?

Exports are the strongest pillar defining Saffer’s

identity. Today, we operate across a wide geography—

from the Middle East to Europe, and from North Africa

to Central Asia—under our star-and-crescent emblem.

Our strategic partnerships with established European

supply networks certify the position of Turkish

engineering on a global scale. Our global growth

vision is not only to increase our sales figures but also

to become a global brand recognized as a “quality

benchmark” by local service providers and machinery

manufacturers on every continent. For us, every

exported turbo represents the trust placed in Türkiye’s

manufacturing strength.

What are your goals and investments for the

upcoming period? Where do you plan to position

the İsfur brand in the future?

Our main goal for the upcoming period is to rapidly

diversify our current portfolio of 80+ models in line

with market dynamics and to gradually expand

our production capacity through technological

investments. In the future, we aim to position the İsfur

brand as a reliable Turkish engineering brand present

alongside every engine in motion, both in the global

turbocharger industry and the international spare parts

market. By planning our investments with a focus on

sustainable growth, digital transformation, and highly

qualified human resources, we are determined to carry

the Saffer name to the top tier of the global arena.

May 2026

65

How is the transformation in the automotive sector

(electric vehicles, sustainable production, etc.)

affecting your production and product strategies?

Although the shift toward electric vehicles is widely

discussed in the automotive world, the need for the

power of internal combustion engines will continue for

EU firms rethink China ops over rare earths curbs

66

May 2026

Beijing’s stringent export controls on rare earths are

driving a fundamental shift in how European firms

think about their operations in China, a business lobby

warned. China dominates the global industry for rare

earths, which are critical for making a wide range

of products from everyday consumer electronics to

equipment used in the defence sector.

The country’s leaders leveraged that strength in

spectacular fashion last year, reaching a deal with

Washington in October to pause a blistering trade war

after Beijing’s curbs on their exports sent shockwaves

across supply chains. But the approval procedures

now in place are still causing headaches for many

foreign firms seeking to move supplies and products

abroad, a report published said.

“In many cases the licensing process remains slow,

unpredictable, uncoordinated and lacks transparency,”

the European Union Chamber of Commerce in

China said. The new restrictions amount to a “major

expansion of the country’s export control toolbox”, the

report added.

“There is now a recognition that China’s emerging

export control regime poses a long-term business

risk, given that the ability to export a particular item

could be taken away at any point based on political

rather than security factors.” Beyond simply adding to

administrative burdens, the curbs have been forcing

a deeper rethink for many European firms, Chamber

president Jens Eskelund said.

Many companies from the continent were “caught flatfooted”

last year when their operations encountered

snags as a result of the China-U.S. trade war, added

Eskelund. There has now been a “profound mindset

change” in which firms “can’t just rely and say ‘my

supplier’s got my back’, I don’t need to worry,” he said.

Companies and countries are now looking for ways to

ensure “that they have a plan B if something should

happen”, he added.

“I think it’s something that will, at a certain point

in time, translate into a real measurable economic

impact.” Supply of rare earths is expected to be a key

discussion item at the upcoming summit between US

President Donald Trump and Chinese counterpart Xi

Jinping. The high-stakes meeting in Beijing, originally

scheduled to begin on March 31, has now been

pushed to mid-May while Trump handles fallout from

the U.S.-Iran war. Even if the sides manage to reach a

deal on the critical minerals, Eskelund says he thinks

China’s use of export curbs as a means of solving

international disputes is here to stay.

“They are very committed to this as a tool. I don’t think

it’s going to go

68

May 2026

Renault to cut up to 20%

of engineering roles to

stay competitive

French carmaker Renault said it plans to reduce

its engineering workforce by 15 to 20 percent

over the next two years as part of efforts to

remain competitive.

A company spokesman said the reductions,

out of a total of some 12,000 engineering posts

worldwide, would be made without forced

layoffs.

The carmaker, which has made a push into

battery electric vehicles, has sought to reduce

costs by speeding up development.

Renault developed its recently launched electric

Twingo subcompact in two years, half the normal

time, by working with its Chinese partners.

The company said last month it aims to lower

the costs of its electric cars by 10 to 30 percent,

with much of this by reducing development

costs.

The spokesman said development of new

technologies and fundamental design work

would remain in France.

Engineering centres in other countries, such as

Brazil, India, Morocco, Romania, South Korea,

Spain, and Türkiye will also be reducing the

number of engineering posts.

70

German automotive industry faces

global pressure and transition

May 2026

Germany’s automotive industry is currently undergoing

a difficult transition, as leading manufacturers face

declining sales in key global markets while adapting to

new technologies and policy changes.

One of the biggest developments comes from

Volkswagen, which reported a 4% drop in global

vehicle deliveries in early 2026, mainly due to sharp

declines in China and the United States. Sales in China

fell significantly as competition from local electric

vehicle producers intensified, while U.S. demand

weakened due to tariffs and reduced EV incentives.

Similarly, Mercedes-Benz also experienced a

downturn, with global sales falling by 6%, driven

largely by a steep drop in China. However, the

company saw some positive performance in the U.S.

and Europe, especially in high-end and electric models.

At the same time, the broader German auto sector

is under pressure from structural changes. Rising

competition from Chinese manufacturers, high

production costs, and the shift toward electric vehicles

are forcing companies to rethink their strategies.

Industry experts note that German brands are

gradually losing market share in China, once their most

important growth market.

On the policy side, the German government is trying

to support the industry while balancing environmental

goals. New proposals include temporary fuel tax cuts

and a more flexible EU emissions policy, allowing the

continued use of combustion engines with alternative

fuels. Meanwhile, external factors are also shaping

demand. Rising global oil prices in 2026 have

increased interest in electric vehicles across Europe,

including Germany, accelerating the transition toward

cleaner mobility. Overall, Germany’s automotive

industry remains strong but is clearly at a turning point,

facing both short-term market pressures and longterm

transformation driven by electrification, global

competition, and policy changes.

Higher oil prices increase demand for electric vehicles

74

May 2026

From a basic economic perspective, gasoline-powered

vehicles and electric vehicles are substitute goods.

When oil prices rise, fuel costs increase, making

internal combustion engine (ICE) vehicles more

expensive to operate. As a result, consumers are more

likely to shift toward EVs, which have lower and more

stable energy costs (electricity vs. gasoline).

Higher oil prices strengthen the cost advantage of

EVs over time. Although EVs often have higher upfront

costs, their:

•lower fuel costs

•lower maintenance costs

become more attractive when gasoline prices surge.

This improves the total cost of ownership, accelerating

EV adoption.

Sharp increases in fuel prices

e consumer awareness and urgency. Households and

firms begin to:

•reconsider long-term mobility choices

•perceive EVs as a hedge against volatile energy prices

This behavioral shift can significantly boost demand,

especially during oil price shocks.

Oil price increases often coincide with:

•energy security concerns

•environmental policy acceleration

Governments may respond with:

•EV subsidies

•tax incentives

•stricter emissions regulations

These policies amplify the demand effect beyond pure

market forces.

5. Limitations and Constraints

However, the impact is not absolute. Several factors

can weaken the relationship:

•High initial EV prices may still deter consumers

•Charging infrastructure gaps limit adoption

•Electricity prices may also rise (reducing cost

advantage)

•Supply constraints (battery production, semiconductor

shortages)

•Short term: Demand response is moderate due to

switching costs and existing vehicle ownership

•Long term: Stronger impact as consumers replace

vehicles and firms adjust investment decisions

Historical data (e.g., oil price spikes in 2008 and 2022)

shows a positive correlation between fuel prices and EV

interest/sales, particularly in regions with strong policy

support like Europe and China. Rising oil prices tend to

increase demand for electric vehicles through substitution

effects and cost advantages. However, the strength

of this relationship depends on infrastructure, policy

support, and technological development. In the long run,

persistently high oil prices act as a powerful catalyst for

the global transition toward electrified transportation.

Welcome to Automechanika İstanbul 2026

World’s leading trade fair brand for the automotive aftermarket industry

76

May 2026

Automechanika’s one and only event in Türkiye,

Automechanika Istanbul will take place on May 19 - 22,

2026 at Istanbul TUYAP Fair and Congress Center.

Take part in Automechanika Istanbul, intercontinental

meeting point of the leading trade fair brand for the

automotive aftermarket. Automechanika Istanbul

is a trade platform that provides strong business

connections and the most up-to-date technological

knowledge exchange for the entire supply chain,

including production, distribution, maintenance and

repair.

The automotive aftermarket sector reached a

market size of 9 billion USD

Automechanika Istanbul, in its 25th year, is preparing

to shape the sector’s transformation and boost export

capacity.

The The total market size of Türkiye’s automotive

aftermarket products and services sector is estimated

to have reached approximately USD 9 billion in 2025.

According to Ali Özçete, Chairman of the Automotive

Aftermarket Products and Services Association (OSS),

following a year in which cost management and

financial discipline came to the forefront, a gradual

recovery in domestic demand and an acceleration in

sectoral transformation are expected in 2026. Özçete

emphasized that the high average age of the vehicle

fleet, the increase in electric and hybrid vehicles, and

ongoing digitalization will continue to support the

aftermarket. He also highlighted that Automechanika

Istanbul, as a strategic meeting point for the sector,

provides an important platform for Turkish companies

to establish new business connections and gain

greater visibility in global markets.

Türkiye’s automotive aftermarket sector operates

through a broad service network consisting of

manufacturers, wholesalers/retailers, and service

providers across both major automotive production

regions and the entire country. With its 256 member

companies, OSS contributes significantly to the

development of the sector. Evaluating 2025 as a

cautious yet balanced year, Özçete noted that cost

management, access to finance, and cash flow were

among the most critical agenda items throughout the

year. Expressing more positive expectations for 2026,

he emphasized the importance of Automechanika

Istanbul—one of the most significant platforms

where the Turkish automotive aftermarket sector is

showcased internationally—which will be held for

the 25th time this year. Özçete stated: “Under the

motto of 25 years of leadership in the automotive

aftermarket, Automechanika Istanbul 2026, which will

be held on 19–22 May at the Tüyap Fair and Congress

Center in cooperation with Messe Frankfurt Istanbul

and Hannover Fairs Turkey, will make significant

contributions to the development and international

recognition of our sector.”

Cost management, access to finance and cash flow

shaped the agenda in 2025

Özçete stated that 2025 was not a year of rapid growth

but rather a period where resilience and financial

discipline came to the forefront: “The agenda of 2025,

which was cautious yet balanced for our sector, was

mainly shaped by cost management, access to finance

and cash flow. Although there was a limited contraction

in the domestic market in USD terms, companies

largely managed to maintain their operational

capacities, employment levels and export connections.

Looking at the market size, we estimate that Türkiye’s

automotive aftermarket reached approximately

USD 9 billion as of 2025. This includes spare parts,

maintenance and repair services, equipment, as well as

new service areas related to electric vehicles.”

“The continuity of maintenance needs and the

development of digital sales channels support the

sector”

Özçete stated that the high average age of the

vehicle fleet, continuous maintenance needs and

the development of digital sales channels continue

to support the sector: “For this reason, although

growth remained controlled in 2025, our sector

preserved its structural strength and potential. While

cost management and financial discipline were more

prominent last year, we expect a gradual recovery in

domestic demand and more balanced growth in 2026.

The high average age of the vehicle fleet, the continuity

of maintenance and repair needs, and the increase in

electric/hybrid vehicles will continue to support the

sector. In addition, the warranties of 1,232,635 new

vehicles sold in 2023 will expire as of 2026, which

will increase the number of vehicles entering the

aftermarket. We expect this to have a positive impact

on the sector. We consider 2026 as a year in which

growth and sectoral transformation will accelerate.

In this process, we aim not only to increase turnover,

but also to expand the share of value-added product

groups, achieve a stronger position in export markets,

improve our digital sales and logistics infrastructure,

and enhance technical expertise, particularly in electric

vehicles.”

The sector will focus on three main trends in 2026

Özçete underlined that three main trends are expected

to stand out in the aftermarket sector in 2026: “Firstly,

the high average age of the vehicle fleet will continue

to keep maintenance and repair demand strong.

Secondly, the increase in electric and hybrid vehicles

will accelerate technical transformation; services

related to batteries, software and high-voltage systems

will gain greater importance. Thirdly, digitalization

will be a decisive factor. E-commerce channels,

data-driven inventory management and technologysupported

service solutions will provide a competitive

advantage. From this perspective, 2026 will be a year

where growth, adaptation to technology, efficiency and

value-added services come to the forefront.”

“Automechanika Istanbul has provided a strong

foundation for the sector for 25 years”

Özçete emphasized that Automechanika Istanbul,

one of the most important global meeting points of

the aftermarket industry, holds a special place in

the sector: “Over the past 25 years, Automechanika

Istanbul has produced a strong foundation for our

manufacturers, distributors and service equipment

companies to enter new markets, establish export

connections and increase brand awareness.

Today, the fair has evolved into a strategic platform

showcasing the sector’s transformation areas,

particularly electric vehicle technologies, digitalization

and sustainable product groups. In this special

year, we expect the fair to increase international

participation, expand high-quality business meetings

and contribute to Turkish companies achieving a

stronger global position in value-added product

segments. The 25th anniversary of Automechanika

Istanbul is both an important milestone reflecting the

level our sector has reached and a source of pride

for our country. As one of the world’s largest trade

fairs, Automechanika Istanbul makes an undeniable

contribution to the development and international

recognition of the sector in Türkiye.”

May 2026

77

Automotive Exports Mayıs 2026

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