Mehmet Fatih Kacır, Minister of Industry and Technology, said, “Our negotiations with investors for new investments in different sectors that have strong supply links with the automotive sector, especially our automotive supply industry, will continue in 2025.”
Kacır answered CHP Ankara MP Aliye Timisi Ersever's written parliamentary question regarding various data on companies operating in the automotive industry.
Pointing out that the Turkish automotive industry is the locomotive industry of the country's economy with an installed capacity of over 2 million, an export volume of 37.2 billion dollars, an employment contribution of more than 550 thousand people and the 13th largest producer in the world, Kacır noted that global brands have invested a total of 18 billion dollars in the Turkish automotive industry since 2000, and more than 30 of the top 100 global suppliers have opened production facilities in Türkiye.
Stating that the number of R&D and design centers of automotive manufacturers and suppliers accredited by the Ministry has reached 162, Kacır said:
“While vehicle production in Türkiye was around 300 thousand in 2002, it increased approximately 5 times, reaching over 1.4 million in 2023. This increase indicates a compound annual growth rate of 7 % in the period in question. In addition, we made an ambitious entry into the electric vehicle and driverless mobility ecosystem on a global scale through Togg, our domestic and national born electric vehicle, and 45 thousand Toggs were introduced to their owners in 1.5 years. Our commitment to electric cars and new technologies has led many global brands such as Ford, Toyota and Renault to move their new generation vehicle production to Türkiye. Currently, 8 of the 13 brands producing automobiles in Turkey are global brands, and we will continue to support them and encourage them to realize their new technology investments in Türkiye.”
“A wide range of support is provided for investment projects”
Minister Kacır reminded that the Ministry is implementing investment incentive practices in order to turn Türkiye into a regional production base by supporting the investment environment in high-tech, innovative and high value-added sectors, including the automotive sector.
Stating that a wide range of supports are provided to investment projects within the framework of the Decree on State Aids in Investments and the communiqué on the implementation of the Decree, Kacır said that there are supports such as customs duty exemption, value added tax exemption, tax reduction, insurance premium employer's share support, investment location allocation, interest or profit share support, income tax withholding support and insurance premium support.
Regarding the supports provided under the provisions of the aforementioned legislation, Kacır said, “From June 20, 2012 until today, 2 thousand 588 Investment Incentive Certificates have been issued as a result of the applications made by our investors to our Ministry for investments in the automotive main industry and sub-industry. Within the scope of these documents, the projected fixed investment amount was 878.9 billion liras and the projected number of employment was 105 thousand 481 people.”
Kacır pointed out that as a result of the intensive efforts of the Ministry, other stakeholder public institutions and organizations such as the Presidential Investment Office and the government, the interest of global companies, especially from China, in Türkiye continues to increase and in this context, BYD company has started its investments for the establishment of an electric and rechargeable hybrid car production facility and an R&D / Innovation center in Türkiye:
“In 2025, we will continue our negotiations with investors for new investments in different sectors that have strong supply links with the automotive sector, especially our automotive supply industry. In addition, electric vehicles, hydrogen-fueled vehicles and battery production will be supported through the calls announced under the HIT-30 High Technology Investment Program, the largest investment support program in Türkiye's history. Here, our investors will be provided with market development support, investment location opportunities, favorable financing conditions and the highest level of public support.”
“At least 1 million electric vehicle production capacity” target
“With the HIT-Mobility call, it is aimed to increase Türkiye's power in the automotive industry in the field of electric vehicle production and to reach a production capacity of at least 1 million electric vehicles per year with a total support budget of 5 billion dollars,” Kacır said:
“Within the scope of the call, new investments including the establishment of an R&D center with a high domestic contribution rate that will provide a minimum annual production capacity of 150 thousand electric vehicles will be supported. With the Electric Vehicles Call, our automotive sector will be prepared for the future together with its supply chain, and within the framework of the Battery Call, a capacity of 80 Gwh will be built until 2030. As a result, the Ministry will continue to take steps to strengthen the automotive sector and intensively support technical knowledge, innovation, capacity, production and employment in this field.”
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