Turkey's motor vehicle production in 2009 decreased 21.9 percent year on year, totaling 869,953 units, according to a report entitled "View of Turkey's Automotive Industry in 2009 and 2010," released by the Turkish Automotive Manufacturers Association (OSD).
Accordingly, Turkey's motor vehicle exports in 2009 amounted to 628,973 units, declining by 30.9 percent year on year, while the domestic market expanded by 9.01 percent to 574,000 units, boosted by the increase in demand for passenger cars driven by the government's tax reduction policy in March-September 2009.
The OSD also announced its outlook for the Turkish automotive industry in 2010:
•· In 2010, since there will be no additional incentives in Turkey or in the European Union, the demand in the local Turkish market and in the export markets is expected to be at 2009 levels.
•· Since the increase in demand was provided by the incentive measures in 2009, if the effects of the economic downturn continue then demand is foreseen to contract by about 10 percent in 2010.
•· Due to the limited change in demand in local and overseas markets, the output of the industry is expected to remain at 2009 levels.
•· Despite the unfavorable conditions faced by the automotive industry, the positive signs in the banking and financial system indicate a possible better outlook regarding the foreseeable future.
•· The Turkish automotive industry, which has been restructured in the crisis period, is seen to be in a more advantageous position as compared with the automotive sectors of the new EU member states, due to the strong efficiency of its workforce and its high total quality management standards.
•· Due to the stagnant demand for commercial vehicles, production cuts are planned for these vehicles in early 2010. A tax reduction of eight percentage points is seen as vital for this segment.