Automotive Ekports November 2023

1

Monthly automotive aftermarket magazine 

GROUP CHAIRMAN 

H. FERRUH ISIK 

PUBLISHER: 

İstmag Magazin Gazetecilik 

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Dynamism prevails as usual 

Türkiye’s automotive industry dates back to the early 1960s. During a period of rapid 

industrialization and progress, this key sector transformed itself from assembly-based 

partnerships to a full-fledged industry with design capability and massive production 

capacity within the last decade. 

Foreign partners have begun to view their facilities in Türkiye as their production center 

for the global markets. Türkiye is home to many global suppliers. There are more than 250 

global suppliers that use Türkiye as a production base, with 30 of them ranking among the 

50 largest global suppliers. 

The auto parts industry of Türkiye has developed rapidly as a consequence of 

developments in the automotive industry. 

The Turkish auto parts industry with its large capacity, wide variety of production and high 

standards, supports automotive industry production and the vehicles in Türkiye and also 

has ample potential for exports. 

The Turkish automotive and auto spare parts industry have prospered dynamically in line 

with ever increasing demand from abroad. So, business people operating in the industry 

have become outward oriented more than ever before. This fact is also reflected through 

the pages of our publications. 

It is hard to keep its competitive position in the world market full of emerging players. 

Thus, manufacturers have shifted their operations to value-added automotive products 

and brand names. Currently, Turkish manufacturers have their own designs and brands in 

international markets. 

In evaluating the future export potential of the automotive industry, using cross-country 

statistics, it is possible to indicate that Turkish automotive industry has comparative 

advantage regarding labor productivity, labor cost and the share of capital in the value 

added, especially with respect to the mature producers in the world. More than half of 

these manufacturers compete in international markets and set high standards of export 

figures. 

Our publications remain at the service of those businesses people seeking to increase 

their share in the increasingly competitive foreign markets. 

As usual, we convey the message of the Turkish automotive and auto spare parts 

exporters by participating in major fairs and exhibitions around the world. 

We are convinced that the events in which we participate would be instrumental to 

increase business opportunities in the automotive industry. 

We wish lucrative trade for all participants. 

automotiveexport 

EDİToR 

automotiveexports 

8

Auto production rises 13 percent in eight months 

Turkish carmakers produced more than 

943,000 vehicles in the first eight months 

of 2023, a 13 percent increase from a year 

ago, according to the data from Automotive 

Manufacturers’ Association (OSD). 

Passenger car output grew 21 percent 

year-on-year to nearly 600,000, but the 

annual increase in commercial vehicle production 

was lower at 2 percent to 344,000. 

Local carmakers boosted their exports by 

11 percent, shipping some 660,000 vehicles 

to foreign markets in the January-August 

period, with passenger car exports rising 26 

percent to 426,000. 

The industry’s export revenues amounted 

to $23.3 billion during this period, pointing 

to a robust 17 percent annual increase. 

In August alone, its export revenues rose 

by 21 percent to $2.7 billion. 

In the first eight months of the year, 

787,197 vehicles were sold on the local 

market, marking a 63 percent increase 

compared with the same period of 2022. 

Passenger car sales grew 64 percent year-on-year 

to nearly 583,000. 

Vehicle sales grew 73 percent year-on-year 

in August alone to 90,400, while the 

passenger car market expanded 88 percent 

to 66,000. 

Türkiye increased passenger car imports 

by 118 percent from a year ago to nearly 

52,000, which meant that imported cars 

accounted for 78 percent of all cars sold 

on the local market. In August, both total 

vehicle and passenger car production declined 

by 21.2 percent year-on-year. Some large 

carmakers suspended production due to 

maintenance work which could explain the 

drop in the industry’s output. The Turkish 

automotive industry has a total production 

capacity of 2 million vehicles. In terms of 

production, it ranks fourth in Europe and 

14th in the world, employing more than 

500,000 people. 

November 2023 10

Backed by EVs, 

Turkish auto 

sales soar to 

extend record 

streak 

Sales of cars in Türkiye hit another all-time 

high in September, adding to the peaks 

since the beginning of the year, according 

to industry data that also showed electric 

vehicle (EV) purchases maintaining an 

unprecedented trend. 

A record 96,793 passenger cars and light 

commercial vehicles exchanged hands 

last month, the Automotive Distributors 

and Mobility Association (ODMD) said in 

a statement, marking a 55.9% year-overyear 

increase. Car sales in September 

surged by 76.7%, totaling 78,971 units, 

the data showed, while the market for 

light commercial vehicles saw a more 

modest increase of 2.4%, with sales 

reaching 17,822 units. Demand soared as 

depreciation in the Turkish lira and soaring 

prices prompted consumers to continue to 

opt for cars they see as a tool to safeguard 

themselves from high inflation. 

The boost resulted in the overall 

automobile and light commercial vehicle 

market surpassing the average September 

sales of the past decade by 58.1%. 

From January to September, the combined 

sales reached a fresh record of 857,575 

units, marking a year-over-year growth of 

64.8%. The figure surpasses the whole of 

2022, when some 783,283 cars and light 

commercial vehicles exchanged hands. 

Car sales in the first nine months soared 

by 67%, reaching 666,890 units, the ODMD 

said. The light commercial vehicle market 

saw an increase of 57.2%, with sales 

totaling 190,685 units. 

Fiat led the way among carmakers in 

September, achieving sales of 15,537 units, 

followed by Renault at 11,714 and Ford at 

7,023. 

Meanwhile, electric cars have also been 

booming this year, capturing a market 

share unseen to date, backed by the first 

homegrown battery-powered vehicle brand 

that has been adding momentum to its 

deliveries. Nearly 34,600 EVs have been 

sold from January through September 

of this year, the data showed, marking a 

333.86% year-over-year increase. 

Togg, the manufacturer of Türkiye’s first 

electric car, delivered some 2,204 units of 

its C-segment SUV T10X in September. This 

figure brings its deliveries since late April to 

5,604 units. Togg ranked second just after 

Tesla, which sold 4,700 units of its Model 

Y last month. The carmaker has delivered 

some 10,200 units so far this year. 


Türkiye’s automotive production, car exports soar Jan-Sept. 

Türkiye’s automotive production increased 

by 12% in the January-September period, 

while automobile production rose by 21% 

when compared to the same period last 

year, official data released showed. 

The country’s Automotive Manufacturers 

Association (OSD) said total automotive 

production surpassed the 1 million mark 

and stood at 1,074,155 units in the first 

nine months, including 687,817 units of 

automobiles. 

When combined with tractor production, 

total production reached 1,117,620 

units. In the first nine months of the year, 

commercial vehicle production decreased 

by 1% compared to the same period 

last year, while light commercial vehicle 

production decreased by 4%. 

Production in the heavy commercial vehicle 

category meanwhile increased by 26%. 

Meanwhile, the sector’s total sales in the 

first nine months of the year increased by 

63% to 894,663 units when compared to 

the same period last year. Car sales in the 

first nine months soared by 67%, reaching 

666,890 units. Backed by a significant boom 

in electric car sales, the total auto sales this 

year according to market predictions are 

poised to hit the 1 million mark. 

On a quantity basis, the total automotive 

exports in the first nine months of the year 

surged by 7% versus the same period last 

year, reaching 733,956 units. 

During this period, car exports increased 

by 20%, while commercial vehicle exports 

were down by 11%. 

According to the data from the Turkish 

Exporters Assembly (TIM), the total 

automotive industry’s exports maintained 

its top position in sectoral exports with a 

16% increase in the January-September 

period. Meanwhile, according to the figures 

from the Bursa-based Uludağ Automotive 

Industry Exporters’ Union, total automotive 

exports during the same period increased 

by 16% to reach $26.2 billion (TL 728.38 

billion) compared to the same period in 

2022. 

Passanger car exports 

Local carmakers shipped over $8 billion 

worth of passenger cars in the first 

nine months to some 110 countries, 

autonomous regions and free zones, 

according to the data. 

Throughout this period, the share of 

passenger cars constituted 31.3% of the 

total exports of the automotive industry. 

France was the largest market for Turkish 

passenger car producers. Shipments to 

this country rose by 60.95% to reach $1.52 

billion. Passenger cars worth $948.7 million 

were sold to the Western European country 

in the same period last year. 

The United Kingdom came second as it 

purchased $848.8 million in the first nine 

months of 2023 from local companies, 

pointing to 5.7% rise when compared to 

the first nine months of 2022. 

Total foreign sales to France and the United 

Kingdom, which reached $2.38 billion 


therefore constituted 29.61% of overall 

passenger car exports. 

Türkiye’s passenger car exports to Spain, 

the third largest export destination, grew 

by 32% to reach $839.1 million. According 

to the data, Italy ranked fourth with a 

37% increase on an annual basis between 

January and September, while Poland stood 

fifth, with a 32% increase. 

The list of top 10 countries Türkiye 

exported passenger cars to included 

Germany, Slovenia, Belgium, Israel and 

Bulgaria. In the same period, notable 

increases in exports to Algeria, Kazakhstan 

and Libya were observed as well. 

November 

17 2023

EV charging network to extend further in Türkiye 

The Parliamentary Committee on Public 

Works, Urbanization, Transportation and 

Tourism Chairperson Adil Karaismailoğlu 

announced that the optimal location for 

electric vehicle charging stations that will 

cover all intercity road trips by determining 

the required number of electric vehicle 

charging stations and sockets for the 

years 2029, 2035 and 2053 have been 

determined. 

The former minister of Transport 

and Infrastructure noted in a written 

statement on the X social media platform, 

formerly known as Twitter, that their 

environmentally friendly steps in the green 

transformation journey continue. 

“Our goal is net zero emissions by 2053. In 

order for electric vehicles in our country to 

have a sustainable and accessible charging 

infrastructure, we conducted planning 

based on the spatial analysis of charging 

stations, taking into account factors such 

as average travel, energy consumption and 

driving time within the framework of the 

Transportation and Logistics Master Plan 

Model,” Karaismailoğlu said. 

“By promoting electric vehicles in our country 

and contributing to the future of sustainable 

transportation, under the leadership of 

our President Recep Tayyip Erdoğan in the 

Century of Türkiye, we will turn every dream 

into reality and decisively achieve our 2053 

zero-emission goals.” According to the 

infographic shared by Karaismailoğlu, the goal 

is to increase the number of electric vehicle 

charging sockets from 3,378 in 2023 to some 

37,946 in 2053 and to increase the electric 

demand from electric vehicles from 2.6 

gigawatts (Gw) to 64.46 Gw. 


Industrial output rises 7.4 percent 

Industrial production increased by 7.4 

percent in July from a year ago, after rising 

at a paltry 0.2 percent in the previous two 

months, the official data showed on Sept. 11. 

Manufacturing output also expanded 7.4 

percent year-on-year, while the annual 

increase in the capital goods sector’s 

production was 25.6 percent, said the 

Turkish Statistical Institute (TÜİK). 

Intermediate goods production grew 3.2 

percent from July 2022. The 16 percent rise 

in the durable goods sector was noticeable. 

In the energy sector, production increased 

by 0.9 percent in July from the same month 

of last year. TÜİK said industrial production 

fell 0.4 percent month-on-month in July, 

after rising 1.2 percent and 1.4 percent on 

a monthly basis in June and May. 

The growth of the Turkish manufacturing 

sector moderated in August as firms faced 

challenges in securing new business, a 

survey conducted jointly by the Istanbul 

Chamber of Industry (ISO) and S&P Global 

showed. The headline PMI in August 

stood at 49, from 49.9 in July, below the 

50 no-change mark for the second month 

running. Meanwhile, interest rates on 

commercial loans climbed above the 

interest rates local banks charge on housing 

and car loans as of Sept. 1, reaching 38 

percent. The interest rates on personal 

loans, car loans and housing loans were 53 

percent, 36.7 percent, and 35.7 percent, 

respectively. 

The interest rates on loans have been rising 

after the Central Bank started to hike its 

policy rate. Since June, the bank delivered 

a total of 1,650 bps hike in the one-week 

repo auction rate to 25 percent. 

The Central Bank’s Monetary Policy 

Committee will meet again on Sept. 21 to 

decide about its policy rate. 


Automotive exports expected to be $34 billion this year 

The Turkish automotive sector’s export 

revenues may climb to $34 billion this year, 

according to a report by KPMG. 

Last year, the local industry produced 

1.3 million vehicles and sales on the 

local market amounted to 827,000 while 

970,000 vehicles were shipped to foreign 

markets. 

Data from the Automotive Manufacturers’ 

Association (OSD) showed that export 

revenues of Turkish carmakers increased by 

5.5 percent last year compared with 2021 

to stand at $31.5 billion. 

The industry’s exports have exceeded $20 

billion in the first seven months of 2023, 

rising 16 percent from the same period 

of last year, according to the Turkish 

Exporters’ Assembly (TİM). 

The automotive sector accounted for 16 

percent of Türkiye’s total exports in the 

January-July period. 

The KPMG report noted the availability 

problems in the auto market due to the 

semiconductor shortages, coupled with 

the special consumption rates depressed 

domestic demand in 2022. 

However, the local auto industry appeared 

to have overcome this availability problem. 

In July, the combined sales of passenger 

cars and light commercial vehicles (LCV) 

leaped 115.4 percent from a year ago. 

Passenger car sales grew more than 109 

percent to around 86,000, while LCV sales 

soared almost 138 percent to 27,000. 

Experts said that carmakers were able 

to deliver the orders to their customers, 

which partially explained the surge in sales. 

Consumers also decided to buy now, 

anticipating that the car prices will 

increase in the coming months due to the 

depreciation of the Turkish Lira, which led 

to a sharp rise in vehicle demand in July, 

according to experts. Demand has been 

strong over the past months also because 

people purchased cars as an investment 

to protect their savings against inflation. 

Those, who cannot buy a house, which is 

a favorite investment among Turks, due to 

exorbitant property prices, turned to cars, 

said experts. 


Chinese EV Skywell maker agrees 

deal to build Türkiye battery plant 

China’s technology company Skyworth has 

reached an investment agreement with a 

Turkish group to build a battery factory in 

Türkiye, a statement said. 

The manufacturer of the Skywell electric 

vehicle (EV) brand, Skyworth said the 

deal was reached with Ulubaşlar Group to 

develop and produce batteries, without 

disclosing the location of the factory. 

The companies will invest $25 million each 

in the plant that is planned to be opened 

by the first quarter of 2024, the statement 

said. 

The factory will manufacture batteries 

featuring 800V+4C super-fast charging 

technology architecture. This will enable a 

charging power to increase from 120 kW 

to 480 kW, allowing the vehicles to charge 

80% in eight minutes, according to the 

statement. 

“The battery is a key element in the 

transformation of the automotive market, 

and producing this technology here will 

provide Türkiye with important capabilities 

and will make significant contributions to 

the economy of our country,” said Mahmut 

Ulubaş, CEO of Skywell Türkiye. 

Ulubaş also stressed on the impact the 

investment would have on employment 

and exports. 

Among others, the Chinese company could 

also launch production of Skywell’s new 

models that are planned to be launched on 

the market within three years in Türkiye, 

said Ulubaş. 

Ulubaşlar Group’s subsidiary Ulu Motor is a 

distributor of Skywell operating in Türkiye 

and 15 other countries. 

Ulubaş’s remarks were echoed by Wu 

Longba, co-founder and CEO of Skywell, 

who stressed the company’s close 

cooperation with Ulu Motor and also noted 

the plans to establish an assembly line in 

the country. 

“We will initiate feasibility studies for this 

collaboration (battery factory) as soon as 

possible, which will be a significant turning 

point in Türkiye-China relations. We are 

very enthusiastic about this partnership,” 

he noted. 

“Moreover, we plan to establish a vehicle 

production line, bring spare parts supply 

system to Türkiye, and manufacture certain 

components here,” he said. 

“We anticipate various future business 

partnerships with Ulu Motor throughout 

these processes. Our objective is to 

contribute to the development of Türkiye’s 

new energy vehicle industry technology 

and capacity.” 


US expands probe into 709,000 Ford SUVs, 

trucks over engine failures 

U.S. auto safety investigators announced 

they have expanded an investigation into 

Ford Motor Co. sport utility vehicles and 

trucks over catastrophic engine failures tied 

to a faulty valve to include nearly 709,000 

vehicles. 

The National Highway Traffic Safety 

Administration (NHTSA) also said in 

documents posted on its website that 

it upgraded the investigation to an 

engineering analysis, a step closer to a 

recall. 

The investigation now covers Ford’s F-150 

pickup truck, as well as Explorer, Bronco 

and Edge SUVs and Lincoln Nautilus and 

Aviator SUVs. All are from the 2021 and 

2022 model years and are equipped with 

2.7-liter or 3.0-liter V6 turbocharged 

engines. 

The agency says that under normal driving 

conditions, the engines can lose power due 

to catastrophic engine failure related to 

allegedly faulty valves. 

The agency opened its initial investigation 

in May of last year after getting three 

letters from owners. Initially, the probe was 

looking at a failure of the 2.7-liter engine 

on Broncos. Since then, Ford has reported 

861 customer complaints, warranty claims, 

and engine replacements including the 

other models. No crashes or injuries were 

reported. 

The company told the agency in documents 

that defective intake valves generally 

fail early in a vehicle’s life, and most of 

the failures have already happened. The 

company told NHTSA said it made a valve 

design change in October of 2021. 

Ford said in a statement that it’s working 

with NHTSA to support the investigation. 

The agency says it will evaluate how 

often the problem happens and review 

the effectiveness of Ford’s manufacturing 

improvements designed to address the 


Japan slams brake on lucrative used-car trade with Russia 

Japan’s decision to ban most used-car sales 

to Russia has slashed a trade worth nearly 

$2 billion a year that had boomed following 

sanctions over Ukraine elsewhere, 

according to business data and market 

participants. 

In early August, Japan’s government 

banned exports of all but subcompact 

cars to Russia, cutting off a lucrative 

backchannel in trade in used Toyotas, 

Hondas and Nissans for a network of 

brokers and smaller ports, especially 

Fushiki, an export hub on the Sea of Japan. 

While wiping out Russia’s biggest source of 

used cars, the sanctions have driven down 

prices for second-hand cars in Japan and 

left brokers scrambling to send vehicles to 

other regions, especially right-hand drive 

markets in New Zealand, Southeast Asia 

and Africa. Russia’s demand for secondhand 

cars from Japan jumped sharply after 

global automakers, including Toyota, pulled 

back from operations following Moscow’s 

invasion of Ukraine. 

By last year, with sanctions elsewhere 

tightening, Russia was buying more than a 

quarter of Japan’s used car exports for an 

average price of almost $8,200. That was 

more than double the price in 2020, when 

Russia took about 15% of Japan’s used-car 

exports. Those sales had been on track to 

top $1.9 billion for all of 2023 before Japan 

imposed its own tougher sanctions, trade 

data show. More than half of the 303,000 

used cars imported by Russia in the first 

eight months of the year came from 

Japan, according to figures from Russian 

analytical agency Autostat. That compared 

to sales of 606,950 new cars of mainly 

Russian and Chinese brands over the same 

period, Autostat data showed. Toyamabased 

SV Alliance, a 2-year-old car export 

business, had been part of the wartime 

boom that sent an average of some 6,500 

used cars to Russia every month through 

July from Japan’s Fushiki. The port is about 

800 kilometers (500 miles) from Russia’s 

Vladivostok, within two day’s sailing for a 

cargo ship. 

“Business is down about 70%, and we’ve 

had to let a couple of people go because 

there isn’t enough work,” said Olesya 

Alekseeva, a logistics coordinator at SV 

Alliance. 

Cheaper cars for recyclers 

Japan has been a leading used-car exporter 

for decades. A system of mandatory 

inspections pushes the cost of maintaining 

used cars higher for customers in Japan. 

Financing costs for new car purchases, by 

contrast, are low. 

The result: an export industry that has sent 

hundreds of thousands of cars on the road 

from Malaysia to Mongolia and Pakistan to 

Tanzania that were first purchased in Japan. 

Takanori Kikuchi, a director for automotive 

trade policy at Japan’s Ministry of Economy, 

Trade and Industry, said the government 

was “watching to see what kind of an 

impact” the new sanctions would have. 

Japan had originally banned exporting 

luxury vehicles to Russia in April last year. It 

added a prohibition on the export of heavy 

trucks in June. Under the new sanctions, 

dealers can still export smaller cars, such as 

the Toyota Yaris or the Honda Fit, to Russia. 

Element Trading, a used-car dealer in 

Niigata prefecture that borders Toyama, 

has seen the share of Russia in its business 

slide from a peak of above 50% to below 

20%, chief executive Wataru Nishiwaki said. 

The number of used cars on offer surged 

more than 20% in August from a year 

earlier, while average vehicle selling prices 

posted a 7% drop, preliminary data from 

auto auction house USS showed. 

The price decline was welcomed by some. 

Battery recycling firm 4R Energy has seen a 

“significant” tail wind from declining usedcar 

prices, including the Nissan Leaf, said 

chief executive Yutaka Horie. 

Lower prices give the joint venture 

between Nissan and trading house 

Sumitomo a wider opportunity to secure 

supplies, he said. 


Fitch cites 

Türkiye’s policy 

shift as driver 

behind outlook 

upgrade 

Fitch Ratings cited a return to more 

conventional economic policymaking since 

the May election as the primary driver 

behind its decision to upgrade Türkiye’s 

credit rating outlook. 

The credit rating agency revised the 

outlook on the nation’s long-term foreigncurrency 

issuer default rating to “stable” 

from “negative.” It affirmed its debt grade 

at “B,” five notches below investment 

grade. 

In its assessment released, the agency said 

the revision reflected the return to a more 

conventional and consistent policy mix that 

reduces near-term macro-financial stability 

risks and eases balance of payments 

pressures, according to Erich Arispe 

Morales, a senior director in Fitch Ratings’ 

sovereigns group. 

In an interview with Anadolu Agency (AA), 

Morales shared insights into Türkiye’s 

economic outlook, highlighting several key 

factors that have led to a more positive 

assessment. 

He also discussed the country’s growth 

prospects and weighed in on the possibility 

of an upgrade to “investment grade.” 

Morales explained that the country has 

moved away from targeted financial 

regulations that were perceived as 

“interventionist and unpredictable.” 

“This refers to reducing the monetary 

policy rate as the main mechanism to 

signal the central bank’s policy direction. 

We have also seen that policy is more 

consistent than before and we have a 

very mixed policy focused on growth and 

employment,” he said. 

This shift toward more consistent and 

growth-focused policies despite previous 

macroeconomic imbalances has helped 

stabilize the country’s economic outlook, 

he added. 

“We can point out also that we have 

seen some reduction in uncertainty after 

the elections, given now that the policy 

direction is clear,” he said. 

The change of policy direction since the 

May election, though, has seen President 

Recep Tayyip Erdoğan bring in two former 

Wall Street bankers to run the economy. 

Treasury and Finance Minister Mehmet 

Şimşek and Central Bank of the Republic 

of Türkiye (CBRT) Governor Hafize Gaye 

Erkan have shifted away from ultra-loose 

monetary policy and have dramatically 

raised interest rates in a bid to tackle the 

country’s long-term inflation problem. 

Under Erkan, the central bank has roughly 

tripled its benchmark policy rate to 25% 

and pledged that monetary tightening will 

gradually be strengthened as needed. 

Regarding Türkiye’s economic growth, 

Morales acknowledged that the second 

quarter of the year saw greater policy 

stimulus due to the general elections. 

Looking ahead, Fitch Ratings predicts a 

growth rate of around 4.3% for this year. 

He said, however, that if policy consistency 

and tighter fiscal measures continue, 

growth could slow to 3% next year before 

recovering to approximately 3.4% in 2025. 

While acknowledging that credit pressures 

have eased due to recent policy shifts, 

Morales emphasized that macroeconomic 

and external financial challenges persist. 

Türkiye currently faces inflation of 59% as 

well as challenges related to an exploitative 

foreign exchange-protected Turkish lira 

deposit scheme, he said. 

Morales pointed out that achieving 

“investment grade” status for a country is 

a long-term effort and requires sustained 

policy improvements over time. 

This effort not only boosts economic 

resilience but also enhances predictability 

for investors and benefits economic actors 

in Türkiye, he added. 

Morales also commented on recent 

announcements, including funding from 

Gulf countries and the World Bank’s 

decision to double investments in Türkiye. 

He highlighted the importance of access 

to financing, especially concerning the 

country’s current account deficit. 

The three-year commitment of bilateral 

and official financing represents a positive 

development for Türkiye, providing a stable 

source of funding for external accounts, he 

underlined. 

In terms of opportunities, Morales noted 

that Türkiye currently enjoys a degree of 

credibility among investors due to recent 

policy adjustments. 

Despite past reversals, the government’s 

efforts to address macroeconomic 

imbalances and provide stability have 

garnered investor confidence, he 

underscored. 

However, geopolitical risks, exposure to 

trade shocks, and global economic patterns 

remain concerns for the nation. 

The key near-term risk, according to 

Morales, is policy predictability, especially 

with local elections on the horizon in 

March 2024, where additional stimulus 

measures could be deployed. 


Togg dominates as electric vehicle sales boom in Türkiye 

Sales of electric cars in Türkiye have been 

booming this year, capturing a market 

share unseen to date, dominated by the 

first homegrown battery-powered vehicle 

brand that has been adding momentum to 

its deliveries. 

Nearly 22,900 electric vehicles (EVs) have 

been sold from January through August 

of this year, according to the Automotive 

Distributors and Mobility Association 

(ODMD) data. 

This translates into over 597% increase 

compared to 3,283 electric cars that were 

sold in the same period a year ago. 

Their gasoline-electric hybrid rival also 

maintained a robust pace and saw sales 

jump 65.7% in the first eight months to 

60,489 units. Despite having launched 

its deliveries just four months ago, Togg, 

Türkiye’s first domestically produced 

electric vehicle, has managed to swiftly 

become the bestselling brand with a top 

model in the electric car segment. 

The brand said it delivered 3,400 of its 

T10X as of the end of August. Of this, 1,965 

were delivered. Mass production of the 

fully electric C-segment SUV was launched 

last October, and deliveries started in late 

April. The carmaker had said it planned 

to deliver about 20,000 units by the end 

of 2023. Overall, passenger cars and light 

commercial vehicle sales in Türkiye from 

January through August reached 755,282 

units, an increase of 64.7% versus the same 

period a year ago. 

Passenger cars surged by 64.3%, totaling 

582,419 units, while light commercial 

vehicle sales witnessed a 66.4% growth, 

reaching 172,863 units. 

Demand has been notably high as 

depreciation in the Turkish lira and soaring 

prices prompted consumers to continue to 

opt for cars they see as a tool to safeguard 

themselves from high inflation. 

Annual inflation surged to 58.94% over the 

12 months ending in August. It had reached 

a 24-year high of 85.5% last October and 

stood at 47.83% this July after regressing to 

as low as 38.21% in June. Battery-powered 

and hybrid vehicles saw their market 

shares reach 3.9% and 10.4%, up from just 

0.9% and 10.3% in the first eight months 

of last year, respectively. Cars powered 

by gasoline held a 61.6% share in the 

overall sales in the January-August period, 

down from 70% a year ago, while that of 

diesel vehicles fell to 15.7%, from 17%. 

Togg’s T10X now holds an 18.2% share in 

the overall EV market, a 33% in electric 

SUV and a 55.3% in C-SUV segments. It 

accounted for 3% of all passenger car sales 

in August. The company has become the 

leading brand and model in the Turkish 

electric vehicle market, overshadowing 

international competitors like Tesla, which 

opts not to disclose country-based sales 

figures. In addition to Tesla, many other 

brands have launched sales of models they 

had earlier announced. Many Chinese 

companies have also ramped up deliveries 

to the country. The T10X is initially being 

sold with one engine type and two battery 

options. It will feature battery packs with 

52.4 and 88.5 kilowatt-hour capacities, 

boasting ranges of 314 and 523 kilometers 

(195 and 325 miles). 

The batteries of the T10X can be recharged 

to up to 80% from 20% in less than 28 

minutes at fast-charging stations. 

A consortium of five Turkish companies 

called the Automobile Initiative Group 

of Türkiye, or Togg, is manufacturing the 

vehicle in cooperation with the Union of 

Chambers and Commodity Exchanges of 

Türkiye (TOBB). Besides the SUV, Togg will 

manufacture four other models – a sedan, 

C-hatchback, B-SUV and B-MPV – by 2030. 

The sedan will follow the mass production 

of the SUV. The current production capacity 

of around 100,000 vehicles per year will 

reach 175,000 once Togg’s factory reaches 

total capacity. President Recep Tayyip 

Erdoğan has said some 28,000 units would 

be produced this year. The brand aims 

to manufacture 1 million vehicles across 

the five segments by 2030. Togg plans to 

begin exports as of 2025, while the initial 

production will be tailored for the domestic 

market. 


Türkiye seeking to lure more foreign carmakers 

Talks are ongoing with carmakers from 

Europe and Asia, including China, to 

lure more investments into Türkiye’s 

automotive sector, Industry and Technology 

Minister Fatih Kacır has said. 

“We are hoping that at least one of them 

will announce an investment decision by 

the end of the year,” he said. 

Those companies may produce electric and 

hybrid vehicles in Türkiye, and the western 

province of Manisa appears to be the likely 

candidate for possible plant investment, 

Kacır said. 

“Volkswagen made a mistake. It missed 

an opportunity in Manisa. I hope they 

reconsider their decision. The site for a 

plant is ready in Manisa for those that want 

to make an investment,” he added. 

The German carmaker had abandoned its 

plan to build a factory in Manisa with a 

more than $1 billion investment. 

“We are holding talks with almost all 

carmakers from Europe and the Far East, 

including China. We, particularly, focus on 

luring investments for new generation, 

electric and hybrid vehicle production. 

Talks are ongoing with companies, which 

currently do not have investments in 

Türkiye,” he told a group of reporters. 

Kacır also said one of the global carmakers, 

which already operates in Türkiye, may 

announce new investments. He, however, 

did not name the company or provide 

other details. The minister recalled that 

the government provided a substantial 

incentive for Ford’s electric vehicle 

production initiative. 

“Also, Toyota will begin manufacturing a 

new hybrid model vehicle in Türkiye. There 

is strong demand from companies for 

electric vehicle investments in the country,” 

he said, noting that the government 

will continue to provide support for EV 

production. Türkiye is one of the largest 

automotive manufacturers in Europe. Last 

year, 1.35 million vehicles were produced 

in the country, pointing to a 6 percent 

increase compared with 2021. 

Passenger car production grew 3.6 percent 

in 2022 from the previous year to nearly 

811,000, according to data from the 

Automotive Manufacturers’ Association 

(OSD). In the first five months of 2023, 

automotive production leaped 20 percent 

to 616,000, with passenger car output 

rising more than 30 percent year-on-year 

to 386,000. The Automotive Distributors 

and Mobility Association (ODMD) reported 

earlier that 556,000 passenger cars and 

light commercial vehicles were sold in 

January-June, up 56 percent from the same 

period last year. Passenger car sales grew 

55 percent to 430,400. 


Business circles 

welcome new 

medium-term 

program 

Türkiye’s leading business associations have 

welcomed the government’s new mediumterm 

program, as they expect the economic 

roadmap to increase predictability. 

The new medium-term program, 

which covers 2024-2026, outlines a 

comprehensive strategy aimed at reducing 

inflation, fostering growth and addressing 

various key challenges. 

President Recep Tayyip Erdoğan unveiled 

the program on Sept. 6. Among the 

program’s goals, Erdoğan highlighted the 

aspiration for Türkiye to join the ranks of 

high-income countries, projecting a GDP 

size exceeding $1.3 trillion and a per capita 

national income of $14,855 in 2026. 

Business associations agree that the 

program will increase stability and 

predictability and improve investment 

environment. They also hail the program’s 

special focus on green transformation and 

digitalization. 

“We highly value the medium-term 

program as it will reduce uncertainties. 

We expect the program to give a boost 

to economic activity and predictability,” 

said Rifat Hisarcıklıoğlu, the president of 

the Union of Chambers and Commodity 

Exchanges of Turkey (TOBB). 

It is also very important that the program 

focuses on improving business climate as 

well as green and digital transformation, 

he added, noting they expect reforms to be 

implemented within the time frame. 

According to the program, the government 

plans reforms in seven key areas, including 

green and digital transformation, growth 

and trade, price stability, public finances, 

investment environment, employment and 

human capital and disaster management. 

Export and employment targets set out 

in the program are realistic, said Mustafa 

Gültepe, the president of the Turkish 

Exporters’ Assembly (TİM). 

“The emphasis on price stability is very 

important to exporters. We had problems 

in production and sales in the past periods 

due to high inflation,” he said while praising 

the program for including the goal of green 

and digital transition. 

The program will serve as an important 

anchor to manage market expectations, 

according to Şekib Avdagiç, the president of 

the Istanbul Chamber of Commerce (İTO). 

Avdagiç, who agreed that the targets 

in the program are realistic, also noted 

the program’s balanced approach 

toward maintaining fiscal discipline and 

considering the real sector’s concerns. 

He also welcomed the structural 

reforms aimed at achieving sustainable 

development. 

Gürsel Baran, the chair of the Ankara 

Chamber of Commerce (ATO), emphasized 

the need for combatting inflation, 

describing it as Türkiye’s most pressing 

issue. 

“This program, which aims to lower 

inflation to single digits while prioritizing 

investments, production and exports, gives 

reasons to us to be hopeful about the 

future,” Baran said. 


BUGATTI: Automotive Artistry to Admire 

From the day it was formed in 1909, Bugatti 

has embodied exquisite design, with 

founder Ettore Bugatti hailing from a family 

of acclaimed artists. Ettore’s grandfather, 

Giovanni, was a celebrated architect; 

his father, Carlo, was an internationally 

renowned furniture and jewelry designer; 

and his brother Rembrandt was an admired 

sculptor. These artistic influences define 

the Bugatti brand. As such, Bugatti takes 

center stage not just in the automotive 

sphere but across the cultural spectrum, 

enlightening museums, institutions and 

exhibitions all over the world. 

To this day, the brand’s commitment to 

excellence extends beyond power output 

and speed. Because of such a deep and 

rich heritage, each Bugatti must be a 

masterpiece in its own right. 

It is the incomparable timeless design 

and daring engineering expertise that 

epitomizes the brand, placing Bugatti cars 

as revered and cherished artifacts in the 

eyes of many. 

An homage to vehicle design from 

“MR. BUGATTI” in America 

In the coastal city of Oxnard, California, 

is the Mullin Automotive Museum – a 

captivating tribute to the artistry and 

innovation of French automotive design, 

founded by businessman and car 

enthusiast Peter W. Mullin. The collection 

features, among others, iconic models from 

Bugatti’s past, and beyond the remarkable 

cars on display, the museum’s architecture 

itself is a work of art, blending seamlessly 

with the automotive masterpieces within. 

Displaying the remarkable talent of 

the entire Bugatti family, the Mullin 

Automotive Museum houses more than 

75 pieces of furniture by Carlo Bugatti, 

numerous sculptures by Rembrandt, and 

the largest private collection of Ettore and 

Jean Bugatti automobiles in the world. For 

a long time, the highlight of the exhibit was 

the Jean Bugatti-designed 1936 Type 57SC 

Atlantic. 

Peter Mullin wasn’t just a fan of Bugatti, he 

was a close friend of the brand. A man with 

the ambition to make Bugatti respected 

and formidable as it had been in its peak 

years of the 20th century, Peter regularly 

centered his exhibitions around his Bugatti 

masterpieces. Peter’s recent passing was 

felt greatly by the entire Bugatti family, but 

in the iconic Mullin Automotive Museum 

his legacy lives on forever. 

Robert Petersen’s celebration of 

automotive art 

The Petersen Automotive Museum, nestled 

along the Miracle Mile in Los Angeles, 

stands asa testament to architectural 

innovation and automotive passion. 

Inspired by the form of acar, the building 

of the Petersen Automotive Museum’s 

stainless-steel ‘body’ wraps around the 

‘chassis’ of the existing museum. It is 

architectural artwork that represents 

aspects of automotive history as important 

as the vehicles displayed inside. Yet, the 

principal piece of art sits behind the bold 

steel structure: the 1939 Bugatti Type 57C 

‘Shah’. 

A true one-of-one tour-de-force, the ‘Shah’ 

wraps a supercharged 3.3-liter twin-cam 

straight-eight engine in a dramatic body 

from Vanvooren of Paris designed in the 

style of Figoni et Falaschi, one of the most 

progressive coachbuilders of the day. Sold 

out of the Shah’s Imperial Garage for a 

sum equivalent to $275 in 1959, the ‘Shah’ 

tragically remained hidden from public gaze 

until full restoration in 1983. 

The ‘Shah’ does not stand alone as the 

only Bugatti gem within the Petersen 

Automotive Museum, however. Visitors can 


also admire the Bugatti Type 57 Atalante 

and an EB 110 GT, two exquisitely designed 

pieces of automotive heritage. 

An incomparable collection from the 

Schlumpf Brothers 

Situated in Mulhouse, within the famed 

Alsace region of France, home to Bugatti, 

the Musée National de l’Automobile brings 

together more than 600 revolutionary 

and emblematic automotive creations, 

including more than 100 of Bugatti’s most 

acclaimed models – each one painstakingly 

acquired by the Schlumpf brothers over a 

period of three decades. 

From the Bugatti Type 28 to the Bugatti 

Royale conceived in 1930, each car is 

hand-picked for its historic significance 

and breathtaking proportions. The jewel 

in the crown, however, is the modern-day 

icon that is the Bugatti Veyron. Placed on 

a rotating base, the Musée National de 

l’Automobile offers an exceptional stage for 

an extraordinary piece of design. 

Two generations of automotive 

legacy in the hague 

Housed within the imposing architectural 

structure created by renowned American 

architect Michael Graves, the Louwman 

Museum in The Hague, Netherlands, is a 

historical treasure trove that showcases the 

world’s most revered automotive designs 

and artwork. It is the result of more than 

80 years of automotive dedication by two 

generations of the Louwman family, with 

over 275 classic and historical models 

in the collection covering 16,000 m2 of 

floorspace. 

Bugatti’s presence in the Louwman 

Museum, from the 1913 Type 18 ‘Black 

Bess’ to the 1934 Type 57 Roadster 

Grand Raid Gangloff, pays homage to the 

designs that not only shaped automotive 

history but also the designs that represent 

the relentless pursuit of automotive 

perfection. Exhibiting six of Bugatti’s most 

memorable cars, the Louwman Museum 

truly underscores a remarkable legacy of 

incomparable aesthetics and innovation for 

Bugatti. 

Over 150 years of design history at 

the Nationales Automuseum 

Opened in July 2023, and already revered 

as one of the most comprehensive 

and prestigious composition of works 

in Europe, the Stiftung Nationales 

Automuseum – The Loh Collection in 

Dietzhölztal, Germany, features around 

150 unique automobiles from 135 years of 

automotive history. Holding prominence 

amongst this field of automotive legends at 

the Stiftung Nationales Automuseum is the 

Bugatti Veyron Super Sport. The illustrious 

8.0-litre quad-turbocharged W16 engine 

is the embodiment of form and function 

going hand-in-hand – an ethos that is the 

lifeblood of Bugatti. 

It is this lifeblood that has run through 

Bugatti’s history, and the Loh Collection is 

also home to some of the most remarkable 

models at the very heart of this history, 

including the captivating Type 57C Aravis 

and Type 57C Atalante. 

An exceptional insight into the history of 

Bugatti 

Founded by a small fraternity of Bugatti 

enthusiasts back in October 1987, the 

Bugatti Trust encourages and facilitates 

research into the work of Ettore Bugatti 

and the Bugatti family. 

The organization was originally led by 

the late H G Conway, who was widely 

acknowledged as a leading Bugatti 

authority in the UK and globally. The 

Trust was conceived as a repository for 

Hugh’s extensive historical collection of 

photographs, correspondence, documents 

and Bugatti factory drawings. 

Located near the historic town of 

Cheltenham, UK, next to the historic 

Prescott Hillclimb, the Bugatti Trust is also 

home to some iconic Bugatti models. The 

Trust is open to the public and additionally 

runs an educational outreach program for 

schools and universities making use of its 

ever-expanding archive as well as physical 

museum artefacts. 

Last year the organization dedicated its 

main exhibition to Jean Bugatti, celebrating 

his life and pioneering influence on the 

Bugatti Type 57. 



Driverless taxis gain ground in San Francisco 

California authorities have taken a major 

step forward in expanding driverless taxi 

services in San Francisco, giving the green 

light for operators Waymo and Cruise to 

compete with ride-share services and cabs. 

The California Public Utilities Commission 

(CPUC) heard six hours of public comment 

before voting three-to-one to let Waymo, 

a unit of Google-parent Alphabet, and 

General Motors-owned Cruise essentially 

run 24-hour robotaxi services in San 

Francisco. 

Waymo cars were cleared to travel at 

speeds as fast as 65 miles per hour (105 

kilometers per hour) without human 

drivers at the wheel, even in some 

inclement weather. 

It also won permission to offer driverless 

car rides to paying passengers in its home 

city of Mountain View, in Silicon Valley. 

Cruise was approved to run fared 

passenger service in San Francisco at no 

faster than 35 miles per hour and not 

through dense fog or heavy smoke. 

Previously, Cruise could charge customers 

only during certain hours of the day. 

Waymo had not been allowed to charge for 

rides without a human driver on board. 

Driverless cars were first introduced in San 

Francisco in 2014 with a mandatory human 

“safety driver” on board. 

Four years later, California scrapped its 

requirement for a human driver to be in 

the car. 

The CPUC session drew commenters from 

all sides of the issue, with some calling 

robotaxis unsafe menaces while others 

lauded them as solutions to everything 

from climate change to road rage. 

Driverless cars have gotten stuck in the 

middle of roads, blocked bus lanes or 

even interfered in police or firefighter 

operations. 

But others at the hearing praised the 

vehicles for giving independence to people 

with disabilities, making roads safer and 

helping eliminate discrimination. 

Others opposed cars of any kind, saying 

the future lies in clean, convenient and 

affordable public transit. 


BMW to invest $750M in UK Mini plants 

to fuel electric car output 

German auto giant BMW announced it will 

invest 600 million pounds ($750 million) 

at its U.K. plants to take its iconic Mini 

brand all-electric by 2030, a fresh boost 

for Britain’s car industry following years of 

Brexit-related uncertainty. 

From 2026, BMW will make two electric 

models at its Mini plant in Oxford – the 

Mini Cooper 3-door and the compact 

crossover Mini Aceman. The plant will 

make only electric models as of 2030. The 

same two models will also be made in 

China and exports of those cars will begin 

in 2024. 

British business minister Kemi Badenoch 

will visit the plant in Oxford for the 

announcement of the investment, which 

the government said boosted total 

investment in the automotive sector in 

recent years to over 6 billion pounds. 

“BMW’s investment is another shining 

example of how the United Kingdom is 

the best place to build cars of the future,” 

British Prime Minister Rishi Sunak said 

in a statement.The carmaker said the 

U.K. government had provided support 

for the investment but did not provide 

details. 

BMW will also invest in its U.K. plant 

in Swindon which makes parts for Mini 

models. The company did not say what 

would happen to its engine plant in 

Hams Hall. The small, fast and affordable 

original Mini went on sale in 1959 and has 

remained popular under BMW since it 

revived the brand in 2001, but its future in 

Britain has been uncertain for years. 

Still, the industry remains on edge with 

both Britain and Europe’s carmakers calling 

for a delay in the implementation of post- 

Brexit “rules of origin”, under which 45% 

of the value of an EV being sold in the 

European Union must come from Britain or 

the EU from 2024 to avoid tariffs. 


Türkiye ‘back in the game’ with lira carry trade 

A top Wall Street bank has said it expects 

real interest rates to turn positive by the 

end of the year and predicts a potential 

revival of Turkish lira carry trade as 

Ankara continues its overhaul in economic 

policymaking. 

Analysts at Goldman Sachs said Türkiye’s 

accelerated path toward rate normalization 

continued, as the country’s central bank 

delivered another sizable interest rate hike 

to rein in stubborn inflation. 

The policy shift from a yearslong easing 

cycle after President Recep Tayyip Erdoğan’s 

reelection in May has seen the country’s 

central bank triple its benchmark one-week 

repo rate to 30%. 

The bank has vowed readiness to raise rates 

further if needed to curb inflation, which 

shot back to nearly 60% in August. 

Erdoğan has publicly expressed his backing 

for the aggressive monetary tightening 

that seeks to cool inflation, rebuild foreign 

currency reserves and curb the chronic 

current account deficit. 

In a report titled “Türkiye is back in the 

game,” Goldman Sachs said real rates in 

Türkiye, still deeply negative despite the 

rate hikes, were on track to turn positive 

by year-end. Adjusted for the future 

inflationary outlook, real rates currently 

stand minus 29%. 

The report highlighted a shift in Türkiye’s 

economic approach and said the recent 

increase in policy rates suggests that 

deposit rates are likely to increase further, 

noting “support of a positive real rate 

strategy,” in sharp contrast to previous 

years, although implementation risks 

remain. 

The report emphasizes the renewed 

determination of the economic 

administration to provide positive real 

interest rates, saying it may now be 

possible to “beat the FX depreciation 

reflected in forward pricing” and that carry 

trade in the lira could be “back in the fray.” 

Goldman Sachs says a policy interest rate 

of 40% or above by the end of the year 

would bring Türkiye’s real rates into positive 

territory, given that it would surpass the 

inflation forecast for the next 12 months. 

Such a trend would reignite interest among 

foreign investors, including carry trade 

enthusiasts. Carry trade is a strategy where 

investors borrow money in countries with 

low-interest rates to invest in a currency 

with higher returns. The lira has weakened 

more than 30% against the United States 

dollar this year. Analysts at Goldman Sachs 

forecast that the currency would trade 

at 28 and 29 against the dollar in three 

and six months, respectively, stronger 

than the levels in the forward markets, at 

approximately 30 and 33 


EBRD ups Türkiye growth outlook, 

sees inflow of foreign capital 

The European Bank for Reconstruction and 

Development (EBRD) raised its outlook 

for growth in Türkiye, marking the latest 

upward revision prompted by the fiscal 

stimulus in the run-up to the May elections 

and the post-vote shift in the economic 

policymaking. Growth for Türkiye, the 

single biggest recipient of EBRD funds, 

has been revised up to 3.5% from 2.5% 

for 2023, the lender’s latest bi-annual 

growth forecast showed. This will help to 

partially offset weaker growth prospects in 

emerging Europe and the Mediterranean 

region, according to the bank.The EBRD 

still highlighted the challenging external 

balances and maintained its view for the 

next year when it expects the Turkish 

economy to grow by 3%. Overall, the EBRD 

region, which covers some 40 economies, 

is expected to expand by an average of 

2.4% this year before picking up speed to 

register output growth of 3.2% in 2024 as 

inflation eases further. 

Multiple global institutions, including the 

Organisation for Economic Co-operation 

and Development (OECD) as well as rating 

agencies Fitch and Moody’s, upgraded their 

2023 forecast for Türkiye’s gross domestic 

product (GDP) growth. 

The revisals followed data showing the 

economy expanded by a more-thanexpected 

3.8% in the second quarter, 

following the revised growth of 3.9% in the 

first three months. 

Yet, activity is expected to slow through 

year-end as election-related stimulus fades 

and big rate hikes weigh. 

After winning reelection in May, President 

Recep Tayyip Erdoğan reshuffled his 

Cabinet and named an economy team of 

respected technocrats to lead a turn from 

a years-long easing cycle to aggressive 

monetary tightening to tackle the stubborn 

inflation. 

Mehmet Şimşek was appointed as treasury 

and finance minister, and Hafize Gaye Erkan 

took the helm of the country’s central 

bank. 

Since June, the central bank has tripled its 

benchmark one-week repo rate to 30%, 

including two sizable hikes in August and 

September. It says it is ready to raise rates 

further than needed to rein in inflation, 

which shot back to nearly 60% in August. 

The EBRD highlighted foreign financing 

imbalances, stressing the short-term 

external debt exceeding $200 billion and 


the current account deficit at nearly $60 

billion. 

The lender also pointed out that foreign 

exchange reserves are increasing but 

continue to remain at a modest level. 

The central bank’s net international 

reserves have recovered strongly since 

June, increasing $30 billion in around four 

months. 

EBRD economists say Türkiye has shown 

a relatively strong growth performance 

in recent years, but there has been a 

slowdown. 

The report stated that GDP growth 

decreased from 5.6% to 3.9% in the first 

half of 2023 compared to the same period 

of 2022. It also highlighted the upward 

course in inflation, which is expected to rise 

to 60% by the end of 2023. 

The new measures have encouraged an 

inflow of foreign capital, according to Rafik 

Selim, a regional chief economist at the 

EBRD, in what he says signals a return of 

foreign investors and helping rebuild the 

country’s reserves. 

Selim said the shift toward orthodox 

economic policies needs to be sustained, 

noting that the steps since the May 

elections have been received with cautious 

optimism by markets. 

“We are witnessing a decline in Türkiye’s 

credit risk premium (CDS) from its historic 

peak in May 2023. We are also seeing 

an improvement in investor confidence. 

Foreigners’ holdings of Turkish equities and 

bonds have picked up strongly,” he told 

Anadolu Agency (AA). 

A measure of protection against potential 

EBRD Regional Chief Economist 

credit events, such as default, the CDS 

score, which stood at as high as 700 points 

before the May election, fell below 400 

basis points following the policy pivot and 

unveiling of the country’s new three-year 

medium-term economic program. 

“The new measures, such as consecutive 

hikes in policy interest rates, increases 

in the value-added and other taxes, and 

cutting back on interventions to defend the 

lira are expected to also lead to lowering 

the current account deficit, which has 

widened significantly, and rebuilding 

foreign exchange reserves,” Selim said. 

“The Medium-Term Program that was 

released in September has also been 

received positively by investors, signaling 

the authorities’ commitment to price 

stability, efficient distribution of resources 

and the sustainability of growth.” 

Selim said tighter fiscal and monetary 

policies will lead to a slowdown in growth 

in the second half of 2023. 

“Leading indicators suggest that consumers 

and businesses are becoming more 

pessimistic and spending less. The fiscal 

deficit is also expected to remain larger 

than in recent years,” he added. 

Allowing the Turkish lira to depreciate led 

to a monthly current account surplus in 

July, the first since October 2021, and also 

because of solid tourism income, he said. 

“The depreciated lira will also help increase 

the competitiveness of Turkish exports,” 

Selim said. 

“Foreign capital is flowing, signaling a 

return of foreign investors, and helping 

in the rebuilding of reserves,” he said, 

adding that Türkiye was also able to secure 

investments from Gulf countries to the 

tune of $50 billion in different sectors, such 

as space and defense, energy and natural 

resources. Şimşek said the country had 

secured $10.4 billion in external financing 

since June. Out of this, the banking sector 

secured over $6.7 billion, the real sector 

attracted $3.26 billion and the non-banking 

financial sector accounted for $367 million. 

Selim stressed the importance of sustaining 

the shift toward orthodox economic 

policies, terming it crucial to attract 

investors and sustain their confidence, as 

well as ensuring more sustainable growth. 

“There is also a need to strengthen the 

monetary transmission mechanism to 

continue with the revisions in macro 

prudential policies and to gradually phase 

out schemes introduced to support the 

lira,” he said. 

“At the same time, the structural 

reform agenda must be reinvigorated to 

improve the business environment and 

the investment climate. This includes 

addressing systemic issues affecting 

Türkiye’s long-term growth potential.” 



World Bank has confidence in economic team’s policies 

The World Bank has confidence in the 

policies of Türkiye’s new economic team, 

says Humberto Lopez, the bank’s country 

director, adding that the economic outlook 

for the Turkish economy will improve in 

mid-2024. 

Earlier in September, the global lender 

decided to more than double its funding 

for Türkiye to $35 billion over the next 

three years. 

“With those funds, both public and private 

sector will be supported,” Lopez told daily 

Hürriyet. They particularly aim to facilitate 

exporters’ access to loans, he added. 

One of the reasons for the World Bank’s 

decision to provide additional funding 

to Türkiye is the confidence in the new 

economic team’s policies, according to 

Lopez. Several factors played a role in the 

bank’s decision to boost its exposure to 

Türkiye, he noted. 

“The current road map for the economy 

and the macroeconomic adjustments 

that are being undertaken by Finance 

Minister Mehmet Şimşek and Central 

Bank Governor [Hafize Gaye] Erkan are 

increasing our confidence,” Lopez said. 

The Turkish economy will take a sigh of 

relief in mid-2024, and the economy will 

emerge stronger, Lopez said. 

“We forecast a growth rate above 3 

percent. We are very optimistic about it 

and do not expect economic activity to 

deteriorate.” 

In June, in its Global Economic Prospects 

report, the World Bank revised its GDP 

growth estimate for the Turkish economy 

for 2023 upwards from a previous 2.7 

percent to 3.2 percent. The bank’s growth 

forecasts for 2024 and 2025 are 4.3 percent 

and 4.1 percent, respectively. 

“There will be light at the end of the tunnel 

in the mid-2024. I am very optimistic about 

the outlook. I believe Türkiye will emerge 

from this difficult situation stronger.” 

“I am saying this because of two reasons: 

The Turkish private sector and people are 

resilient. They have the experience from 

the past crises, and they can adapt. Also, 

we see improvements in the data regarding 

the economy.” 

He recalled that two credit rating agencies 

have upgraded Türkiye’s outlook to stable 

from negative. “This is an important 

indicator.” 

Lopez, however, said that lowering inflation 

will take time. 

While commenting on the additional funds, 

Lopez stated, “We assessed the current 

situation and the needs and agreed that a 

new package worth $18 billion would be 

appropriate.” 

Some $6 billion will be allocated to the 

public sector and $9 billion to the World 

Bank’s International Finance Corporation 

(IFC), Lopez said. 


EU seeks to put brakes on China without hurting ties 

When the EU launched an investigation 

into Chinese electric car subsidies, Brussels 

wanted the world to know that it will 

protect the automotive sector that is the 

jewel in Europe’s industrial crown, even 

if it upsets Beijing. European Commission 

President Ursula von der Leyen was 

resolute when she announced the probe 

on Sept. 13, denouncing unfair practices 

that undercut European competitors, but 

sparked an angry retort from China. 

Beijing warned the investigation would 

harm trade ties and accused the EU of 

“naked protectionism”, triggering fears 

of a trade war. The EU faces an almost 

impossible balancing act in its relations 

with China, which the bloc variously 

describes as a partner on global issues, an 

economic competitor and a systemic rival. 

On one hand, Brussels wants to maintain 

ties with Beijing to help resolve issues it 

believes can only be solved on a global 

level, such as climate change. 

On the other, the EU is seeking to reduce 

its dependence on China, heeding lessons 

from its past over-reliance on Russia for 

fossil fuels. 

Experts say this latest move demonstrates 

that the EU is willing to take action in line 

with its oft-repeated claim that it will “derisk” 

but not “decouple” from China. 

The driving force behind von der Leyen’s 

announcement was the EU’s bitter 

experience with China over solar panels. 

The car industry is significant for Europe, 

providing direct and indirect jobs to around 

14 million Europeans, some 6.1 percent of 

all EU employment. 

China’s carmakers are a growing threat, 

and this year it became the world’s largest 

exporter of cars, overtaking Japan for the 

first time. The share of Chinese electric 

car brands in Europe is surging, reaching 

6.1 percent between January and July this 

year, rising from a low base of 0.5 percent 

in 2019. 

China’s success is in large part due to 

its early investment in batteries and its 

domination of critical raw materials used 

in much clean tech. The EU is also rushing 

to pass a law to move away from relying 

on China for key materials such as lithium 

as part of a broader approach to bring 

more production to Europe and diversify its 

trading partners. Not everyone is convinced 

that China is guilty of unfair practices. 

Ferdinand Dudenhoeffer, an expert 

at the Center Automotive Research in 

Germany, accused von der Leyen of making 

“unfounded” claims, stressing that China’s 

success was due to “long-term” thinking 

and a “very strong” focus on developing 

electric cars. 

France pushed for a probe because “the 

French car industry is almost invisible in 

China”, Dudenhoeffer said, accusing Paris 

of seeking to protect its manufacturers at 

the expense of Germany’s carmakers, since 

40 percent of their sales are in China. 


Togg to produce 1 mln vehicles by 2032 

Türkiye’s first electric carmaker Togg will 

produce a total of 1 million vehicles by 

2032, Industry and Technology Minister 

Fatih Kacır has said. 

Some 97 percent of those vehicles will 

be sold to consumers while the public 

institutions will buy the remaining 3 

percent, the minister told a group of 

journalists. 

“The target is to manufacture 175,000 Togg 

vehicles in five years. The charging stations 

with 1,662 outlets are now available in 81 

provinces of Türkiye,” he added. 

A total of 1,571 charging stations will be 

set up across the country and they will 

be available on all intercity highways, 

according to the minister. By the end of 

this year 20,000 Togg vehicles will be on 

the roads, he said. Türkiye may become an 

important player in autonomous cars, Kacır 

stressed. 

“We are very successful in unmanned 

aerial vehicles. Togg has a research center 

in Ankara. Some 200 highly qualified 

engineers, most of them have previously 

worked in the defense industry, are 

working there.” Kacır also announced a 

joint investment with Qatar to produce 

65 nanometer chips. The size of the 

investment will be $60 million, according 

to the minister. “Those chips are widely 

used in the automotive and white goods 

industries. Türkiye is a leading producer 

in those sectors. In while goods, it is the 

second largest producer in the world and 

the top producer in Europe.” 

He also said that Türkiye will contribute 

46 million euros to NATO’s 1 billion euro 

Innovation Fund. 

“Our target is to help Turkish tech 

enterprises receive resources, much larger 

than our contribution, from this fund.” 


Turkish Airlines 

receives ‘World 

Class’ award for 

3rd time 

National flag carrier Turkish Airlines (THY) has been awarded the 

APEX World Class for the third time for its global leadership in guest 

experience and service quality in the aviation industry, according to 

the company’s statement. 

Besides Turkish Airlines, the 2024 APEX World Class airlines are 

Emirates, Japan Airlines, KLM Royal Dutch Airlines, Qatar Airways, 

SAUDIA, Singapore Airlines and Xiamen Airlines. 

Air carriers that win the award “truly master” guest experience by 

delivering outstanding customer service, as evaluated through a 

comprehensive audit of quality of service, safety and health control 

initiatives, according to APEX. 

Ahmet Olmuştur, Turkish Airlines’ chief marketing officer, said 

the award shows how well the carrier’s strategies and efforts are 

working. 

“Our ergonomic seats, personalized services, and unique offerings 

aimed at meeting our guests’ needs are all part of our efforts to 

make the flight experience exceptional,” he added. 

“In the world of elevated aviation experiences, Turkish Airlines 

soars above five-star airline status as a paragon of excellence, 

winning as one of the few prestigious 2024 APEX World Class 

airlines in the world,” said APEX CEO Joe Leader. 

He also praised Turkish Airlines’ on-board meals, saying: “With 

the touch of a Turkish Airlines flying chef, every meal becomes 

an unparalleled culinary journey, reminiscent of candlelit 

soirées under a starry Anatolian sky. Yet, it’s their authentic and 

extravagant Turkish hospitality, a blend of warmth and luxury, that 

truly encapsulates the heart of their service.” 

Founded in 1933, Turkish Airlines flies to 344 destinations in 

129 countries with a fleet of 429 aircraft. 


World central banks rally behind ‘higher for longer’ credo 

Central banks of the world’s biggest 

economies have served notice that they 

will keep interest rates as high as needed 

to tame inflation, even as two years of 

unprecedented global policy tightening 

reaches a peak. The so-called “higher for 

longer” mantra is now the official stance of 

the U.S. Federal Reserve (Fed), European 

Central Bank (ECB) and the Bank of England 

(BoE), as well as being echoed by monetary 

policy-makers from Oslo to Taipei. 

For central bankers first chastised for being 

late to spot the post-pandemic surge in 

inflation and then cautioned for overdoing 

their response, the prize of returning the 

global economy to stable prices without a 

recession is now within sight. 

Their task is to convince financial markets 

not to undo their work with bets on early 

rate cuts, and to watch for new risks 

such as rising oil prices – while hoping 

governments help with budgets that do not 

further fuel inflation. 

“We will need to keep interest rates high 

enough for long enough to ensure that we 

get the job done,” BoE Governor Andrew 

Bailey said after policymakers narrowly 

decided to hold its main interest rate at 

5.25%. Fed policymakers had a similar 

message. They held the Fed’s benchmark 

rate at 5.25%-5.50% but stressed they 

would remain tough in an inflation fight 

they now see lasting into 2026. 

In Europe, ECB President Christine Lagarde 

was adamant that further hikes for the 

20-country eurozone could not be ruled 

out. The central banks of Norway and 

Sweden both signaled they could hike 

again, with even the Swiss National Bank 

holding out the prospect of further interest 

rate hikes despite inflation at a comfortable 

1.6%. 

Türkiye’s central bank confirmed its 

hawkish turn while in Asia, Taiwan’s 

central bank flagged continued tight policy. 

The South African Reserve Bank held its 

key rate steady, but policymakers cited 

continued risks to the inflation outlook. 

Significant outliers include the Bank of 

Japan (BOJ), which kept interest rates ultralow, 

and the People’s Bank of China, where 

recent better economic prospects allowed 

it to keep rates on hold. 

Belgian central bank chief and ECB board 

member Pierre Wunsch – an early voice 

urging tougher central bank action to 

counter inflation from end-2021 – said that 

monetary policy was now at the right level. 

“At some point we were, I believe, lagging 

behind and we had to do some catch-up. 

But that’s over. We’ve done this catch-up,” 

Wunsch told. Despite gradually cooling, 

inflation in most large economies remains 

well above the target 2% level which 

central bankers deem healthy. In August it 

stood at 3.7% in the United States and 5.2% 

in the eurozone. 

But investors remain skeptical that central 

banks will stay the course given doubts 

over the strength of the Chinese economy 

and geopolitical worries from the Ukraine 

war to U.S.-Chinese rivalry. 

“By this time next year, we anticipate that 

21 out of the world’s 30 major central 

banks will be cutting interest rates,” Capital 

Economics wrote in a commentary entitled 

“A tipping point for global monetary policy.” 

It’s a potential twist that rattled markets. 

World stocks fell and the dollar gained 

as Treasury yields rose to levels last seen 

before the Great Financial Crisis. Sterling 

and the Swiss franc both tumbled. 

That said, the prospect that global interest 

rates are pretty close to peak will be 

of huge relief to emerging economies 

suffering from heavy debt servicing loads. 

With the United States and Europe both 

seen avoiding the outright recession once 

predicted, the enticing view of a “soft 

landing” for the global economy is coming 

back into sight, largely thanks to unusually 

buoyant labor markets. 

Policymakers admit they have yet to agree 

on an explanation for this. Some suggest 

firms are anxious to avoid a repeat of the 

skills shortages they suffered when the 

global economy took off in 2021 after 

COVID-19 lockdowns and so are “labor 

hoarding.” 

That unsolved puzzle means opinions are 

divided as to what the real underlying 

strength of the global economy is. 

Bank of Japan Governor Kazuo Ueda 

cautioned against declaring victory just yet. 

“We’ve seen heightening hopes for a U.S. 

soft landing. But there’s still uncertainty on 

whether that will indeed be the case,” he 

said. Some argue that this was why they 

detected, through all the tough talk, a noncommittal 

tone to the Federal Reserve’s 

language on the likelihood of a further rate 

hike this year. 

“(Fed chair Jerome) Powell was noncommittal 

and even faintly dovish about 

another 2023 hike, which is the actual 

here-and-now decision,” said Evercore ISI 

Vice Chairperson Krishna Guha. “This is a 

Fed that sees an opening for a soft landing 

and will try not to blow it.” 

mechanism to continue with the revisions 

in macro prudential policies and to 

gradually phase out schemes introduced to 

support the lira,” he said. 

“At the same time, the structural 

reform agenda must be reinvigorated to 

improve the business environment and 

the investment climate. This includes 

addressing systemic issues affecting 

Türkiye’s long-term growth potential.” 


The Little Car Company Unveils the Tamiya Wild 

One MAX: A Fullscale, Road Legal, Electric Vehicle 

Built with Adventurein Mind 

The Little Car Company, manufacturers of 

hand built electric scaled cars, officially 

revealed the highly anticipated Tamiya Wild 

One MAX. Based on the original Tamiya 

Wild One (58050) radio-controlled car- first 

released in 1985 the Tamiya Wild One 

MAX has been relaunched as a full-scale 

vehicle and is now on sale worldwide, with 

road legal versions available for customers 

in the UK and EU. The Tamiya Wild 

One MAX from The Little Car Company 

represents a culmination of careful 

design, extensive feedback from deposit 

holders and subsequent upgrades on the 

original concept to deliver outstanding 

performance and usability. Despite 

industry-wide supply delays, The Little Car 

Company has taken the time to listen to the 

community and implement improvements 

that enhance the overall experience. 

Tamiya Wild One MAX 

The Tamiya Wild One MAX comes 

equipped with premium features including 

Cobrabucket seats with 4-point harnesses, 

a 5” digital screen with marine-grade 

switches, Brembo disc brakes all round, and 

adjustable Bilstein dampers paired with 

Eibach springs. It utilises 14” Maxxis offroad 

tyres front and rear. 

To enhance safety and comfort, The 

Little Car Company has made some 

modifications to the original R/C car 

design. The cockpit has been widened 

to comfortably accommodate two adult 

passengers, addressing a consistent 

request from existing deposit holders. 

Meanwhile, the front suspension turrets 

have been smoothed, improving visibility 

and pedestrian safety, while the front 

suspension itself has been upgraded 

from a “trailing arm” design to double 

wishbones. Ongoing development has seen 

the car increase in size, now measuring 

3.6m (141.7”) in length and 1.9m 

(74.8”) in width. The Little Car Company 

has also developed a windscreen and 

wiper mechanism to enhance the car’s 

practicality. 

For off-road enthusiasts, the Wild One 

MAX offers a ground clearance of 270mm, 

an approach angle of 34.1 degrees, a 

breakover angle of 28.4 degrees, and a 

departure angle of 50.8 degrees. 

The Wild One MAX is powered by eight 

swappable battery packs, providing a 

total capacity of 14.4kWh, a maximum 

estimated range of 200km (on road) and 

a top speed of up to 62 mph (100km/h), 

with the vehicle weighing around 500kg in 

total. When existing deposit holders were 


surveyed about their interest in a road legal 

version, an overwhelming 95% expressed 

their desire for it. Consequently, each Wild 

One MAX has been developed by The 

Little Car Company to include a road legal 

pack in compliance with L7e quadricycle 

regulations* for the UK and EU markets. 

The Wild One MAX will be available in 

both left- hand drive and right-hand drive 

configurations. 

Tamiya Wild One MAX Launch 

Edition 

Strictly limited to the first 100 customers 

who place a deposit, the Launch Edition 

comeswith exclusive features in addition 

to the already high specification vehicle. 

Once the 100 Launch Edition examples are 

accounted for, the company will offer the 

standard Tamiya Wild One MAX vehicles at 

the same price and in an unlimited number. 

Each Launch Edition vehicle proudly 

displays a titanium plaque on the 

dashboard, acknowledging its status as 

one of the rare 1 of 100 Launch Edition 

units. The Launch Edition also encompasses 

a captivating carbon fibre dashboard, 

harmonising seamlessly with the matching 

carbon fibre key-fob. Additionally, in 

recognition of the vehicle’s influence 

and significance, Tamiya has decided 

to reintroduce a limited number of the 

original Wild One r/c model kits and, as 

part of the 100 limited-run Launch Edition 

package, the first 100 customers will be 

given a coveted Tamiya model kit of the 

iconic Wild One to build whilst they are 

waiting for delivery of their full-size car. 

To add a touch of personalisation, the 

holographic decals that are only on the 

LaunchEdition will be replicated at scale, 

allowing owners to embellish the rollbars 

on their r/cmodel vehicles to match their 

full-size equivalent. 

Ben Hedley, CEO of The Little Car Company, 

said: “Here at The Little Car Company we 

are on a mission to show that electric cars 

can be fun. We believe that you don’t 

need one thousand horsepower, stomach 

churning acceleration or electronic torque 

vectoring systems to make EVs enjoyable. 

We’ve strived to make the Tamiya Wild 

One MAX an exhilarating drive by following 

Colin Chapman’s ethos of “Simplify, then 

add lightness”. In my opinion, modern 

cars are now too large, too fast, too 

complicated, and too heavy - we believe 

that there is an alternative. Our goal is 

to create innovative lightweight vehicles 

which bring the purity and fun back into 

driving. I’m extremely proud of our talented 

engineering team who have brought this 

iconic Tamiya R/C car to life as a full-size 

car, capturing the nostalgia of the 1980s 

and bringing it to a brand-new audience 

with today’s technology. We also want 

to express our heartfelt gratitude to the 

Tamiya community and deposit holders for 

their unwavering support and invaluable 

input throughout the design process. Their 

enthusiasm, suggestions and feedback have 

delivered what we are proud to unveil to 

the world today. We’re looking forward to 

delivering this premium spec version of the 

Tamiya Wild One MAX with all the “bells 

and whistles”. Meanwhile, development 

will continue for both lower specification 

versions and kits for future launch.”

Automotive Ekports November 2023

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