ISTANBUL (Reuters) — Ford Motor, Fiat Chrysler and Renault are set to benefit further after Turkey’s automotive industry association raised its production and export forecasts to record highs.
in Automotive News Europe, 15-11-2015
The three automakers are among major producers in Turkey through local joint ventures. Other auto companies with JVs include Toyota and Hyundai, according to Automotive News Europe’s Assembly Plant Map.
Turkey’s auto industry is benefiting from a recovery in key European markets and investments that have expanded factory capacity, the OSD automakers association said.
OSD raised its production target to 1.325 to 1.350 million vehicles from the 1.225 million it forecast in July, and its export target to 950,000 to 970,000 vehicles from 925,000.
“Thanks to r&d and investment incentives in the past two years, the industry increased its capacity 20 percent. Growth of the European market is helping as well,” OSD Chairman Kudret Onen told reporters on Friday.
Production next year could rise 5 percent barring an unexpected contraction in the local market, Onen said.
From January to October auto production, which includes cars, light commercial vehicles and trucks, rose 18.2 percent to 1.11 million vehicles compared with the same time last year, the association said.
Automakers invested a total of $4.5 billion in 2013-2014 to raise production capacity and introduce new models.
Car sales in the European Union, Turkey’s main market, grew 8.8 percent in January-September, according to industry association ACEA.