Turkish automotive sector to apply brakes in 2005
The Turkish
automotive sector broke records in sales,
production and exports in 2004 despite increases in the special
consumption tax and the cut in
scrap discount on cars. However,
Turkeys
Automotive Manufacturers Association (OSD) anticipates that the
automotive sector will hit a slowdown this year.
Overall
production will drop 3% to 800000 units.
Automotive sales are projected to decrease 14% to 650000 units. Exports, which rose 44% last year, are expected to increase only 10% this year to 560000 units. Export turnover of $11-12 billion is anticipated for 2005.
The global
automotive sector has turned away from Western
Europe and is now looking to the south or east to orientate itself.
Turkeys main competitors at present are
Poland, Czech Republic,
Slovakia,
Slovenia,
Romania and
Russia, while
India,
China and
Iran are waiting in the wings to challenge
Turkey and the others. In such a competitive market
Turkey must maintain its steady domestic politics and economic policies in order to strengthen its position.
The Turkish
automotive sector is on the path of the eastern market, following the likes of
Poland,
Slovakia, Czech Republic,
Romania,
Slovenia and
Russia. French carmaker Peugeot announced a $700 million investment in
Slovakia. South
Koreas Kia and a German gear company also indicated they would invest $700 million and $400 million respectively in
Slovakia.