Sourcing and Manufacturing Excellence in the Automotive Supply Industry
The Turkish Automotive Supply Industry, responsible for producing high-precision components like Motor Parts and Filters, is the bedrock of the country’s leading export sector. Turkey (Türkiye) aims to reach a colossal 41 billion in total automotive Exports for 2025, with the supply industry contributing over 16 billion annually. This strong performance, sustained over nearly two decades, confirms Turkey’sstatus as a powerhouse in Manufacturing and a vital Nearshoring partner for global Original Equipment Manufacturers (OEMs).
- Scale and Scope: The sector includes over 1,100 component Suppliers, with more than 30 global top-50 Suppliers operating production facilities in Türkiye. The overall automotive sector ranks as the 13th largest in the world and 4th in Europe by production volume.
- Export Dominance: Motor Parts and Accessories were the 4th most exported product group from Turkey in 2023, valued at 7.62 billion. Germany remains the primary Trade partner, receiving the largest share of both finished vehicles and components.
Nearshoring and Logistics for Resilient Supply Chains
Turkey’s unique advantage lies in its ability to provide resilient, high-speed Sourcing solutions, critical for global automotive Supply Chains disrupted by recent geopolitical and logistical pressures.
- Proximity and Speed: Nearshoring to Turkey offers a definitive time advantage over long-distance Asian Suppliers, allowing for quicker response times, lower transport risks, and reduced Logistics costs for European assembly lines. This focus on agility is a strategic response to the weaknesses exposed in long, cost-focused Supply Chains.
- Vertical Integration: The high localization rate (50% to 70%) in OEM Manufacturingensures that the component supply, from engine parts to chassis components, is stable and efficient, reducing reliance on distant intermediate goods Sourcing.
Investment Focus and Economy Challenges
Foreign Direct Investment (FDI) remains crucial, having played an absolute role in the sector’s historical development. The government is actively encouraging further Investment in R&D and advanced Manufacturing to improve Turkey’s innovation potential and its position in the global value chain. As of July 2025, over 167 R&D and design centers were operational in the sector.
- Challenges: Despite the strong Exports performance, the Turkish Economy presents short-term headwinds. The automotive output shrank in the first five months of 2025, and high domestic labor/input costs, coupled with global competition, are straining component Suppliers. Industry leaders are calling for structural reforms to improve financing and control inflation to sustain the sector’s long-term competitive edge (Internal Link: Turkish Lira’s Calculated Resilience: Strategic Shift in Economic Policy).
- Future Investment: The growth of Electric Vehicle (EV) production in Türkiye is creating massive new opportunities for component Suppliers focusing on battery and e-mobility technologies, driving demand for specialized Manufacturing (Internal Link: Turkey Mobilizes $1B for Battery Storage & Solar).
Next Steps for Global Automotive Buyers
For global automotive companies, Turkey / Türkiye offers a strategic Sourcing and Manufacturing base that delivers high-quality, complex components with critical Nearshoring speed and resilience.
To receive a detailed analysis on establishing a robust automotive Supply Chain or identifying key component Suppliers and FDI incentives in Turkey, contact the experts at Burc Consulting.
