ISTANBUL – In a powerful affirmation of Turkey’s industrial confidence and market strength, global automotive giant Honda has announced its return to local manufacturing. The company plans to establish a new motorcycle production facility in Aliağa, İzmir, representing a substantial investment valued at approximately 760 Million Turkish Lira (equivalent to 2.94 Billion Japanese Yen). This move is a significant step in Honda’s regional expansion strategy, driven by surging local demand.
The Investment: Capacity and Economic Impact
The new facility, set to be constructed on a 100,000 square meter site, is expected to commence operations by mid-2026.
- Initial Capacity: The plant will boast an initial annual production capacity of 100,000 motorcycles.
- Expansion Potential: This capacity has the potential to double to 200,000 units in subsequent phases.
- Employment: The investment will directly create 300 new jobs in the region.
The decision to restart local production is strongly supported by Turkey’s booming motorcycle market, where Honda achieved a record 162,000 unit sales in 2024, solidifying its sector leadership.
Strategic Rationale: A Sourcing and Production Hub
Beyond the direct economic impact, Honda’s investment serves as a potent confirmation of Turkey’s long-term economic potential and its strategic status as a ‘production connection point’.
The Aliağa factory is expected to catalyze economic activity across numerous ancillary industries, including spare parts suppliers, logistics, and specialized component manufacturing. This multiplier effect reinforces the trend of major global manufacturers establishing resilient, nearshore supply chains in Turkey.
Burç Consulting: Facilitating High-Volume Automotive FDI
Honda’s return reflects a broader, accelerating trend within the automotive and motorcycle sectors toward optimizing regional production capabilities. For international suppliers and manufacturers looking to integrate into this burgeoning ecosystem, the timing is critical.
Ali Burç, Managing Partner at Burç Consulting, highlights the strategic placement of the investment: “Honda’s choice of İzmir reinforces the region’s strength as a prime nearshoring location with excellent logistics connectivity. For foreign automotive suppliers now compelled to localize production to service this new demand, securing the necessary investment incentives—such as tax reductions and customs exemptions—is paramount. Burç Consulting specializes in structuring these supplier investments, from greenfield site selection in industrial zones to securing government support, ensuring timely integration into Turkey’s high-volume manufacturing supply chain.”
Boosting Global Competitiveness
When operational, the new facility will not only help satisfy Turkey’s expanding domestic demand but will also significantly boost the country’s global competitiveness through increased production capacity and substantial export potential in the motorcycle and light vehicle sector.
