Türkiye's motor vehicle production fell 5.9% year on year to 971,159 units in the first nine months of 2026, according to data from the Automotive Manufacturers Association (OSD) published on October 12.
The decline was concentrated in passenger cars, where output dropped 17% to 528,366 units. The automotive industry is one of Türkiye's largest manufacturing and export sectors, with plants run by global carmakers as well as domestic producers.
Shrinking domestic market
Demand at home also weakened. The total automotive market contracted 13% to 832,521 units over January-September, while the passenger car market shrank 15.5% to 627,977 units.
Imported vehicles continued to account for the bulk of sales, holding a 65% share of the passenger car market. However, the trend favored local production: imported passenger car sales fell 23% while sales of domestically produced cars rose 2%. In light commercial vehicles, imports declined 9% and domestic sales grew 11%.
Exports hold up in value
Despite lower production, total automotive exports rose 3% in value to $30.5 billion in the nine-month period. Passenger car exports, however, fell 8% to $7.8 billion, suggesting that commercial vehicles and parts supported the overall gain.
September alone offered a brighter signal. Total vehicle production rose 5.1% year on year to 129,571 units, although passenger car production was still down 3.8% at 70,197 units.
The figures echo broader weakness in Turkish manufacturing. Industrial production fell 1.9% year on year in August, with manufacturing down 2.5%, according to TurkStat. Separate retail data showed trade and repair of motor vehicles down 11.2% in August from a year earlier.
High borrowing costs have weighed on car purchases, which in Türkiye are often financed with loans. The central bank has maintained a restrictive policy stance to bring down inflation, while higher energy prices linked to the regional conflict have added to costs for manufacturers and consumers alike.
Sources
Photo: Jakub "Flyz1" Maciejewski / CC BY-SA 4.0, via Wikimedia Commons
