Turkish auto sector will be slow to electrify
Wednesday, December 22, 2021
Significance
The Silk Road (SiRo) factory is a joint venture between Turkiye Automotive Enterprise Group (TOGG) and China’s Farasis Energy. According to President Recep Tayyip Erdogan, Turkey is on the way to becoming a global centre for EV production.
Impacts
- Rapid lira depreciation will cause domestic vehicle sales to fall sharply, especially for mid- and upper-range passenger cars.
- The weak lira will make exports cheaper, boosting sales.
- Moving into the EV market is essential if Turkey is to retain position in the global auto industry.