The Turkish economy has been facing increasing difficulties in the last five years, including high inflation, appreciable value loss in the Turkish Lira, decreasing international trade volume, loss of foreign capital in the Turkish economy, and more.

The production in Turkey heavily depends on imported semi-products, which correspondingly impact exports. However, the great uncertainty in the Turkish economy makes things worse for exporters. In such a time, the Turkish carmakers have dominated the country’s exports in 2021 as they did in the previous years.

Car Exports in Numbers

In the Q1 of 2021, 415,187 cars were exported, which increased 28% from the same span in 2020. The total value of the exported automobiles in 2019 was around $180 billion, while it rose to $201 billion this year. Regarding all those promising numbers, the car industry dominates Turkish exports without a doubt.

Moreover, after-sale services are the second important part of the industry. In the first seven months of 2021, this sector provision brought in $24.8 billion, and the number was 46% higher than the previous years.

The pandemic seems like a boost for Turkish car exports, while other industries suffer devastating impacts from the COVID pandemic. Especially when the Turkish Central Bank has lost its power massively to protect the value of the Turkish Lira against the other currencies, earning in foreign money makes the Turkish carmakers highly valuable.

Is the Car Industry Sustainable?

The Turkish economy has been facing undesired fluctuations in recent years because of the politically biased and unrealistic economic policies. Turkey has reached a high inflation rate, and the undervalued Turkish Lira supports Turkish exports. Even further, the great value loss in the real wages decreases the production costs. Under these economic conditions, it is possible to claim that the car producers have some significant advantages to bolster their production and exports.

Moreover, there are other aspects of this fragile economy in recent years, one of which is the migration of skilled workers to developing countries. Many young Turkish people prefer going abroad to work in other countries with higher living standards, and this brain drain is a far-reaching problem for the whole Turkey economy.

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