Turkish vehicle output tumbles more than 20 percent in October
Posted by meb at November 12th, 2008
Turkish automotive output shrank more than 20 percent in October, industry data showed on Tuesday, as the vital export sector felt the impact of the abrupt downturn in European vehicle demand.
Turkey’s Automotive Industry Association (OSD) said vehicle production tumbled 20.5 percent year-on-year to 80,301 units during the month, while exports slid 27.5 percent to 54,928.
Car production fell 24.2 percent during the same period to 45,057 units, with car exports dropping 32.5 percent, it said.
The Turkish automotive sector has enjoyed strong growth in recent years, which continued in the first half of 2008, but it has since turned negative. In September output dipped 0.8 percent.
“The shrinking of the European market, which accounts for 90 percent of our exports, began to show its impact on our exports in October, with the cancellation of orders,” the OSD statement said.
“In the coming months, it is expected that this decline will continue,” it said.
It said Turkey was expected to manufacture 1.4 million motor vehicles at the end of 2008 but this estimation dropped to 1.2 million.
Turkey’s exports were expected to fall to 900,000 by end-2008, while earlier projections suggested 1 million, the OSD said.
It also said the Turkish automobile market has shrunk 39.2 percent, adding domestic car sales stood at 35,148 last month.
In the first 10 months of the year, automotive production was up 19.4 percent, and car output was 11.6 percent higher year-on-year.
Vehicle exports were up 24 percent and car exports were up 15.2 percent during the 10-month period.
The main market participants in Turkey are Tofas, a joint venture between Turkish conglomerate Koc Holding and Fiat, a Koc-Ford joint venture Ford Otosan, Oyak Renault and Toyota.
Ford Otosan announced this week it was halting production for two weeks from Nov. 13-26.
source: Hurriyet daily news
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