Turkey auto production drops 10% as vehicle tax revenue tops 282 billion lira

Turkey’s automotive sector saw a sharp decline in output during January‑May 2026, with total vehicle production falling 10% to 538,718 units. Car manufacturing dropped 20% to 301,367 units, while tractor production plunged 39% to 8,397 units. Capacity utilisation averaged 61% and the overall market narrowed 8% to 468,507 units, with imported cars accounting for 65% of sales. Export volumes also fell, with total vehicle exports decreasing 15% to 373,825 units and car exports down 29%, though export value rose 2% to $16.6 billion.

Despite the market contraction, Special Consumption Tax (ÖTV) collected from motor‑vehicle sales exceeded 282 billion Turkish lira in the first five months, an 11% increase year‑on‑year. Tax revenue rose even as the market shrank, with per‑vehicle ÖTV climbing from 486,000 lira in May 2025 to 678,000 lira in May 2026, and the average per vehicle in the first five months rising from 502,000 lira to 603,000 lira.