Audit report predicts a steady recovery of Turkey’s automobile sector in 2020
An audit report released by world-known accounting and consultancy firm KPMG in Turkey on Feb. 12, indicated the country’s automobile production and exports will recover steadily in the year 2020.
According to the report, two main factors that may increase the industrial investments in Turkey are the launch of the first Turkish indigenous car in last December and the prospective Volkswagen’s investment plans in the country.
Volkswagen, which already has an established production firm in Turkey, is expected to make the decision for its factory investment in 2020, the report noted.
The automotive sector, one of the country’s main locomotives, faced difficulties in 2019 and impacted economy in Turkey.
In 2017, there was 1 million auto sales recorded in the domestic market. The sales however, significantly dropped in the following years. They decreased by 35 percent in 2018 and by 23 percent in 2019 to about 492,000 units.
The country’s automotive production and exports also narrowed down by 9 percent in 2019 as opposed to the 5 percent in the previous year. Turkey’s automotive exports stood at $31.2 billion last year.
The automotive sector in Turkey also offers many job opportunities to the locals. It has around 500,000 people employed in the industry.
According to the report, the country will see around 580,000 auto sales in 2020, with an annual increase of 18 percent.
The report also forecasted that the country will produce over 1.4 million vehicles and export more than 1.2 million of them this year.