July 2023 (in real terms, revised):
-0.6% on the previous month (seasonally and calendar adjusted)
-1.7% on the same month a year earlier (calendar adjusted)

Production in industry in real terms (price adjusted) was down 0.2% in August 2023 month on month after seasonal and calendar adjustment, according to provisional data provided by the Federal Statistical Office (Destatis). The less volatile three-month on three-month comparison showed that production was 1.9% lower in the period from June to August 2023 than in the previous three months. After revision of the provisional data, production in July 2023 decreased by 0.6% compared with the previous month (provisional figure: -0.8%).

Different developments can be observed in the economic sectors of industry. A drop in production in construction (-2.4% on the previous month, seasonally and calendar adjusted) and in energy production (-6.6%) had a negative impact on overall performance in August 2023. The decline observed in the manufacture of machinery and equipment by 2.3% was also an important contributor to the overall result. By contrast, the growth in production in the automotive industry (+7.6%) had a positive impact on overall performance. This follows a decline of 9.4% in this sector in July 2023.

In August 2023, production in industry excluding energy and construction was up 0.5% from July 2023 after seasonal and calendar adjustment. The production of capital goods rose by 1.3% and that of intermediate goods by 0.5%. The production of consumer goods declined by 1.4%.

Compared with August 2022, production in industry was down 2.0% in August 2023 after adjustment for calendar effects. Production in industry excluding energy and construction decreased by 0.7% over the same period.

Source: DESTAIS
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• Using a competitive and highly-skilled workforce combined with a dynamic local market and favorable geographical location as leverage, the vehicle production of 13 global OEMs in Turkey increased from 374,000 in 2002 to over 1.3 million units in 2015. This represents a compound annual growth rate (CAGR) of around 10 percent during the same period.
• Significant growth posted by Turkey’s automotive sector led to Turkey becoming 15^th largest automotive manufacturer in the world and 5^th largest in Europe by the end of 2015.
• Turkey has already become a center of excellence, particularly with respect to the production of commercial vehicles. By the end of 2015, Turkey was the number one producer of light commercial vehicles (LCV) in Europe.
• Proven as a production hub of excellence, the Turkish automotive industry is now aiming at improving its R&D, design, and branding capabilities. As of the end of 2015, 75 R&D centers belonging to automotive manufacturers/suppliers are operational in Turkey.
• Notable examples of global brands with product development, design, and engineering activities in Turkey include Ford, Fiat, Daimler, AVL, and Segula. Ford Otosan’s R&D center is one of Ford’s three largest global R&D centers, while Fiat’s R&D center in Bursa is the Italian company’s only center serving the European market outside its home country. Meanwhile, Daimler’s R&D center in Istanbul complements the German company’s truck and bus manufacturing operations in Turkey.
• Turkey offers a supportive environment on the supply chain side. There are around 1,100 component suppliers supporting the production of OEMs. With the parts going directly to the production lines of vehicle manufacturers, the localization rate of OEMs varies between 50 and 70 percent.
• Turkey is home to many global suppliers. There are more than 250 global suppliers that use Turkey as a production base, with 28 of them ranking among the 50 largest global suppliers.
• Auto manufacturers increasingly choose Turkey as a production base for their export sales. This is evidenced by the fact that around 75 percent of production in Turkey is destined for foreign markets. In 2015, more than 900,000 vehicles were exported from Turkey to foreign markets.
• While Germany, France, Italy, the UK, and Spain are currently the major export customers of the Turkish automotive industry, there is a trend of diversification in export destinations with companies looking to break into nearby emerging countries where there is considerably more demand potential for new auto sales.
• The rise of per capita income from USD 3,000 in the first few years of the 2000s to USD 10,000 in 2015 led to higher sales in the motor vehicles market. While the average annual sale figures in the market were around 360,000 in the early 2000s, the average sales increased to 870,000 by 2015.
• Despite the strong growth in the market, the automobile penetration in Turkey — 165 cars per 1,000 people — is well behind the European average of 500. This indicates ample opportunities for carmakers in the domestic market. Increased purchasing power combined with a low automobile ownership rate should help drive automobile sales in the coming years.

 Date: 13 March 2017

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