Automotive industry in China

The increase in auto prices will be limited due to fierce competition in 2025, when vehicle sales are expected to be around 1.2 million units, according to industry representatives.

Electric vehicles will capture a larger share in sales, while carmakers will continue to see lower profit, they also said.

Honda and Nissan, two of Japan’s largest car manufacturers, have announced their intention to merge, forming a giant that will claim the third spot globally in terms of sales.

The profits of automotive companies listed on Borsa Istanbul plunged in the first nine months of 2024 even though vehicle sales remain robust.

Several factors, such as rising costs, a higher share of imported cars in the market and FX rates all eat into the auto companies' bottom line.

Türkiye's goal is to rapidly reach an annual production capacity of at least 1 million electric vehicles, Industry and Technology Minister Mehmet Fatih Kacır has said.

Troubles in the European auto market are posing risks to Turkish carmakers, according to Cengiz Eroldu, the president of the Automotive Manufacturers' Association.

Eroldu noted that Europe is the largest export market for the Turkish auto industry.

Beijing said on Tuesday it had lodged a complaint with the World Trade Organization over the European Union's decision to impose hefty tariffs on Chinese-made electric cars.

European and Chinese automakers faced off at the Paris Motor Show as they seek to make electric vehicles affordable for the broader public as the sector faces stalling sales in many countries.

The biennial show has long been a major industry showcase, tracing its history to 1898.

China has requested for consultations with Türkiye at the World Trade Organization (WTO) over additional tariffs Ankara imposed on imported electric vehicles and other vehicles from China.

"This discriminatory action is a violation of WTO rules and a typical protectionist practice," China's Commerce Ministry said in a statement.

Chinese carmaker BYD, which plans to build a factory in Türkiye, has been holding talks with auto part suppliers across the country, according to Albert Saydam, the president of the Automotive Suppliers' Association (TAYSAD).

BYD's planned production plant and R&D center is the first foreign investment in the Turkish automotive sector in 27 years.

The Environmental Impact Assessment process has been initiated for the factory to be built by Chinese carmaker BYD in the western province of Manisa.

In July, BYD, the world's largest electric vehicle producer, signed an agreement with the Turkish Industry and Technology Ministry to set up a factory and make R&D investments in Türkiye worth $1 billion.