Speaking at the 6th SteelOrbis Turkish Steel Market Conference, held in Istanbul on November 18, Professor Ercan Tezer, general secretary of the Turkish Automotive Manufacturers' Association, said that the Turkish automotive industry managed to overcome the effects of the 2008 world economic crisis in only one year, thanks to lively commercial vehicle sales, indicating Turkish investors' confidence in the future. Accordingly, in 2011 Turkey's automotive production exceeded pre-crisis levels.
However, as Prof. Tezer remarked, Turkey's automotive exports are still lower than in the pre-crisis period, due to the significant contraction in Europe's auto demand. Nevertheless, as Tezer stated, Turkish automakers are now heading to new export markets, including North America.
Expecting a moderate improvement in auto demand in 2012, Prof. Tezer explained that rapid rises in demand often result from the drawing forth of an existing demand potential, rather than the creation of new demand. Accordingly, slight upticks in demand may be actually healthier than rapid improvements in demand, Tezer added.
Prof. Tezer criticized the current tax regime in the Turkish automotive industry, and reiterated the importance of a reform in the current tax regime to a more transparent, widely conventional and fair structure.