Türkiye’s automotive industry continues to navigate a turbulent yet dynamic landscape in 2025, with rising used car prices, a boost in production and exports, and mixed trends across vehicle segments. The latest July 2025 data from VavaCars’ AI-powered index and official government sources reveal a complex ecosystem shaped by inflation, consumer demand, and global trade momentum.
Used Car Prices Climb for the Second Month in a Row
According to the VavaAI Price Index, which uses artificial intelligence to track real-time movements in Türkiye’s second-hand vehicle market, used car prices rose by 1.9 percent in July compared to June. Over the last 12 months, the cumulative increase reached 23.6 percent, signaling persistent demand despite broader economic pressures.
This steady upward trend reflects a combination of factors including limited new vehicle availability due to supply chain disruptions, rising interest in budget-conscious alternatives, and inflation-related consumer behavior shifts.
A Closer Look at Inflation’s Impact on Auto Prices
While consumer prices in Türkiye surged 33.5 percent year-over-year, used car prices still rose at a slightly slower pace. Since the beginning of 2025, second-hand vehicle prices have increased by 10.5 percent, compared to a general inflation rise of 18.3 percent, according to Türkiye’s Statistical Institute (TÜİK). This indicates that, although the used car market remains hot, it is growing at a somewhat moderated rate relative to overall consumer goods.
Still, the demand for used vehicles is strong, particularly among middle-income families seeking affordable mobility solutions in an inflationary environment. Dealers have reported record-level inquiries for models between 3 to 7 years old, where price-value balance is considered optimal.
Vehicle Production on the Rise, With One Major Exception
Parallel to the surging prices in the used market, the domestic automotive production scene is also showing signs of recovery and adaptation.
Data from the Automotive Manufacturers Association (OSD) shows that total production in July rose 10 percent year-on-year. While car production grew by just 1 percent, commercial vehicle output soared by 31 percent, highlighting a sectoral shift. On the other hand, tractor production plunged by 26 percent, a surprising divergence that reflects changing priorities in the industrial and agricultural sectors.
In the January–July 2025 period, Türkiye’s overall automotive production increased by 1 percent, reaching 834,838 vehicles. Yet this aggregate figure masks important segment-level variations:
Passenger car production fell by 4 percent to 521,447 units
Commercial vehicle output grew by 11 percent
Light commercial vehicles rose 14 percent
Heavy commercial vehicles dipped 9 percent
These trends illustrate how Türkiye’s automotive industry is responding to both domestic demand and export opportunities, with light commercial vehicles in particular seeing a notable production surge.
Industry Capacity Utilization Reflects Sectoral Divide
Türkiye’s automotive manufacturing plants operated at a 67 percent capacity utilization rate during the first seven months of 2025. However, this figure varied significantly across segments:
Light vehicles operated at 69 percent
Truck production lagged behind at 56 percent
Bus and midibus facilities ran at 64 percent
Tractor factories dropped to a concerning 42 percent
This uneven distribution underscores the need for more targeted investment and policy support in lower-performing sub-sectors.
Exports Fuel Industry Momentum
Export performance continues to be a bright spot for Türkiye’s automotive industry. According to OSD, vehicle exports rose 14 percent in July, boosting the year-to-date total to 630,992 units, marking a 9 percent increase compared to the same period last year.
Key insights from the January–July 2025 export data:
Passenger car exports fell by 5 percent
Commercial vehicle exports jumped by 34 percent
Tractor exports declined by 32 percent, totaling 6,490 units
Despite the passenger car dip, Türkiye’s commercial vehicle segment emerged as the key growth engine for exports in 2025.
Automotive Exports Hit $23.5 Billion in Seven Months
Uludağ Exporters’ Association data confirms the robustness of this growth in monetary terms. Total automotive export revenue reached $23.5 billion in the first seven months of the year, accounting for 18 percent of Türkiye’s overall exports—cementing the sector’s status as the nation’s export leader.
Passenger cars generated $6.9 billion in export revenue, a 12 percent increase, even as export volumes fell, indicating that higher-value models and favorable pricing strategies are being employed.
Domestic Market Expands as Consumer Confidence Holds
Türkiye’s domestic vehicle market also experienced an upward trajectory in the first seven months of 2025. Total vehicle sales climbed by 6 percent, reaching 739,903 units. Key figures include:
Passenger car sales increased by 7 percent, totaling 572,198 units
Commercial vehicle market grew 3 percent
Light commercial vehicle sales rose 6 percent
Heavy commercial vehicle sales fell 8 percent
Despite inflationary pressures, consumer appetite for new vehicles—especially passenger cars—remains strong. Industry experts attribute this to pent-up demand from the previous year, aggressive financing campaigns, and the expanding range of models offering hybrid and EV options.
Electric and Hybrid Vehicles: The Emerging Frontier
Though not detailed in the July data, industry insiders continue to note the growing share of electric and hybrid vehicle sales in Türkiye. Several automakers have accelerated their transition strategies in response to both environmental policy incentives and consumer interest in fuel-efficient options.
Local manufacturers, including those behind Türkiye’s domestic electric vehicle initiative, are reportedly ramping up production capabilities to meet anticipated demand spikes in 2026 and beyond.
Challenges Ahead: Inflation, Input Costs, and Global Competition
While the outlook is largely positive, Türkiye’s automotive sector remains susceptible to global challenges:
Fluctuating raw material costs and exchange rates pose risks to profitability.
Competition from electric vehicle imports may pressure local manufacturers.
Geopolitical uncertainties could disrupt export routes, especially toward Europe and the Middle East.
To navigate these complexities, stakeholders are calling for strategic government support, including new incentives for R&D, sustainable production, and digital transformation across the value chain.
Türkiye’s Automotive Sector in 2025: A Balancing Act
The July 2025 data paints a vivid picture of an industry at a crossroads—growing steadily, yet grappling with structural and market pressures. Used car prices continue to climb, bolstered by resilient demand and inflation. Meanwhile, production and exports offer hope, especially in the commercial vehicle segment.
Türkiye’s position as a major automotive hub is secure for now, but maintaining its competitive edge will require continuous innovation, efficient policy-making, and an agile response to shifting global trends.
