Türkiye’s automotive industry set a new export record in September, with $3.4 billion in exports, according to the Automotive Manufacturers Association (OSD).
Despite this achievement, concerns remain about the aging vehicle fleet in Türkiye, with one-third of vehicles over 13 years old, contributing significantly to environmental pollution and fuel consumption.
Record automotive exports in September
OSD Chairman Cengiz Eroldu announced that automotive exports in September 2024 hit a record, driven by a 16% increase in export volumes compared to the same period last year. A total of 90,000 vehicles were exported during the month. Eroldu noted that this is a positive indicator for the end of the year, although capacity utilization in the sector has dropped by 3 percentage points to 76%.
In January-September 2024 period, total automotive production decreased by 7 percent and automobile production decreased by 5 percent compared to the same period of the previous year. In this period, total production was realized as 1 million 597 units and automobile production as 657 thousand 148 units.
In the January-September period of 2024, the total market decreased by 2 percent compared to the same period of the previous year and realized as 881 thousand 442 units. In this period, the automobile market increased by 1 percent and realized as 673 thousand 73 units.
In the commercial vehicle group, production decreased by 11 percent, light commercial vehicle group by 9 percent and heavy commercial vehicle group by 23 percent in the January-September period of 2024. Compared to January-September period, commercial vehicle market decreased by 9 percent, light commercial vehicle market decreased by 8 percent and heavy commercial vehicle market decreased by 9 percent.
In January-September 2024 period compared to the same period of the previous year, total automotive exports were realized at a level parallel to the previous year in terms of units, while automobile exports decreased by 1 percent. In this period, total automotive exports amounted to 729 thousand 515 units and automobile exports to 467 thousand 188 units.
In January-September 2024 period compared to the same period of the previous year, total automotive exports increased by 2 percent in USD terms. In this period, total automotive exports amounted to $26.7 billion, while automobile exports decreased by 1 percent to $7.8 billion.
Aging vehicle fleet contributing to pollution
Eroldu emphasized that 10 million vehicles in Türkiye’s registered fleet are over 13 years old, accounting for 95% of the environmental pollution caused by traffic.
He proposed establishing a government-backed fund to phase out older vehicles and incentivize the purchase of newer, more environmentally friendly models, including hybrids and electric vehicles.
Calls for a scrappage fund
To address the environmental and economic impacts, Eroldu suggested the creation of a fund through the Ministry of Environment to encourage the scrapping of older vehicles. He highlighted that similar programs had been implemented in the past, although they were prone to abuse.
Eroldu stressed the importance of safeguards to prevent misuse and underscored the potential fuel savings such a move could bring, benefiting both the environment and Türkiye’s energy costs.
