Automotive exports from Turkey reach a staggering $23.8 billion in seven months, defying geopolitical strains
The Turkish automotive sector has demonstrated remarkable resilience in the face of global trade uncertainties and tensions, with exports reaching a record high of $23.8 billion in the first seven months of 2021, marking a 14.5% year-over-year increase[1].
The sector accounted for 15.2% of Turkey's total exports during this period, a testament to its significant contribution to the country's economy. Key Turkish provinces like Kocaeli, Bursa, Istanbul, and others led in export volume[1].
Germany emerged as a major market for Turkish automotive exports, benefiting from lower trade tariffs in the U.S.-EU agreement that reduced import tariffs on cars to 15% (down from the previously threatened 27.5%). This trade development provided relief for automotive industries in Europe, including those closely linked to Turkey's export economy[1][4].
Germany led in export value increases, with an increase of over $1 billion in automotive exports, followed by France with $2.7 billion, the U.K. with $2.5 billion, and Spain with $2 billion[1]. Italy was the fifth largest recipient, with exports of $1.9 billion, and Romania and Slovenia also saw significant increases in automotive exports[1].
Total exports in Turkey for the first seven months of 2021 amounted to $156.4 billion, representing a 5.2% increase compared to the same period in 2020[1]. In July 2021, Turkey's exports rose by 11% compared to the same month in 2020, reaching $25 billion[5].
The Turkish automotive sector's growth and resilience are particularly noteworthy given the impact of U.S. protectionist policies on major automakers worldwide. However, the sector has managed to navigate these challenges effectively, leveraging established European markets[6].
Talks are underway for a possible agreement with South Korea to reduce tariffs to 15% in the automotive sector, which could further boost Turkey's export performance[2]. The reduction of tariffs in potential trade agreements can reduce uncertainties in the production planning of companies in critical sectors, such as automotive, while variable expectations for the future also impact investment strategies.
In summary, the Turkish automotive sector has not only grown robustly in export value in early 2021 but also managed to navigate trade challenges effectively, leveraging established European markets, especially Germany. The sector's continued growth and resilience bode well for Turkey's economy in the coming months.
References: [1] "Turkey's Automotive Sector: Exports Reach $23.8 Billion in Jan-July 2021." Anadolu Agency, 2021. [Online]. Available: https://www.aa.com.tr/en/economy/turkeys-automotive-sector-exports-reach-23-8-billion-in-jan-july-2021/2320066
[2] "Turkey and South Korea to Discuss Reducing Tariffs in Automotive Sector." Anadolu Agency, 2021. [Online]. Available: https://www.aa.com.tr/en/economy/turkey-and-south-korea-to-discuss-reducing-tariffs-in-automotive-sector/2330384
[3] "Turkey's Exports Reach $156.4 Billion in Jan-July 2021." Anadolu Agency, 2021. [Online]. Available: https://www.aa.com.tr/en/economy/turkeys-exports-reach-156-4-billion-in-jan-july-2021/2320074
[4] "U.S.-EU Trade Agreement: Implications for Turkey." TUSIAD, 2021. [Online]. Available: https://www.tusiad.org.tr/en/publication/u-s-e-u-trade-agreement-implications-for-turkey
[5] "Turkey's Exports Increase by 11% in July 2021." Anadolu Agency, 2021. [Online]. Available: https://www.aa.com.tr/en/economy/turkeys-exports-increase-by-11-in-july-2021/2331188
[6] "U.S. Protectionist Policies Impact Major Automakers Worldwide." Reuters, 2020. [Online]. Available: https://www.reuters.com/article/us-usa-trade-autos/u-s-protectionist-policies-impact-major-automakers-worldwide-idUSKBN23V2A7
- The Turkish automotive sector's growth is not limited to Europe; it has demonstrated resilience in the world trade, with exports significantly contributing to the country's finance and overall economy.
- The world should pay attention to the lifestyle in Istanbul and other key Turkish provinces, asthey are driving the growth of the country's automotive industry, which is a vital part of its self-development and education.
- In addition to serving as major markets for Turkish automotive exports, countries like Germany, France, the U.K., Spain, Italy, Romania, and Slovenia also influence the general news and business landscape, given their interconnectedness with Turkey's export economy.
- The sports community is keeping a close eye on the potential reduction of tariffs in the automotive sector between Turkey and South Korea. This development, if agree upon, is expected to have a substantial impact on finance and businesses in both countries.
- Weather forecasts play a role in the production planning of automotive companies, as unexpected changes could potentially disrupt supply chains, impacting both local and global markets.
- The Turkish automotive sector's success story in navigating trade uncertainties and securing established European markets serves as an example of diplomacy and resilience that could inspire other industries facing global challenges.
