N※N

Turkey's Auto Market Set for Record Growth in 2025, Fueled by EV Surge

  //automotive-transportation.news-articles.net/co .. or-record-growth-in-2025-fueled-by-ev-surge.html
  Published in Automotive and Transportation on Wednesday, January 7th 2026 at 3:43 GMT by reuters.com

Turkey's Auto Market Poised for Record Growth, Driven by Electric Vehicle Surge

Turkey’s automotive market is predicted to reach a record high in 2025, with significant growth anticipated in electric vehicle (EV) sales, according to a report by the Automotive Industry Association (OSD). The Reuters article, published January 7th, 2026, details projections for a substantial market expansion, fueled by government incentives, increasing consumer interest in EVs, and a rebound from recent economic volatility. While challenges remain, the outlook is overwhelmingly positive, positioning Turkey as a key emerging market in the automotive sector.

The OSD forecasts total automotive sales to reach 950,000 units in 2025, a significant jump from the 905,000 units sold in 2024 – itself a recovery year. This projection represents a considerable increase from the downturn experienced in 2023, where sales plummeted to 705,000 units. The recovery is largely attributed to stabilization of the Turkish Lira following a period of hyperinflation and the implementation of government policies designed to stimulate demand. However, the report highlights a more nuanced picture: while the overall market is expanding, the composition of sales is undergoing a dramatic shift.

The Electric Revolution: The most striking aspect of the forecast is the anticipated surge in EV sales. The OSD predicts EV sales will account for 20% of all vehicle sales in 2025, reaching approximately 190,000 units. This is a monumental increase from the estimated 6.5% share held by EVs in 2024, and represents a significant acceleration of EV adoption in Turkey. Looking ahead, the OSD forecasts that EVs will comprise 35% of all sales by 2026, a truly substantial proportion.

This projected EV boom is directly linked to government incentives. Turkey introduced a series of measures in late 2024 to encourage EV purchases, including the abolition of the Special Consumption Tax (SCT) for domestically produced EVs. This tax break, along with subsidized loan options and infrastructure development initiatives, has significantly lowered the barrier to entry for potential EV buyers. The Reuters article notes that the government is also focused on expanding the charging infrastructure, crucial for alleviating “range anxiety” and fostering wider EV adoption. Further details on these initiatives, found on the Turkish Ministry of Industry and Technology’s website (referenced in the Reuters article), show a commitment to establishing at least 17,000 charging stations across the country by 2030.

Domestic Production Gains Prominence: A critical factor underpinning Turkey’s automotive growth – and particularly the EV surge – is the increasing localization of production. The article emphasizes the strategic importance of Togg, Turkey’s homegrown automotive brand. Togg, launched in 2023, is playing a pivotal role in driving EV adoption and is positioned to become a major player in the Turkish market and beyond. The company is not just producing EVs; it is building a complete mobility ecosystem, including charging infrastructure and digital services.

Togg’s production capacity is rapidly expanding. The company’s factory in Bursa, near Istanbul, is currently capable of producing 20,000 vehicles annually, and plans are underway to increase this to 100,000 units by 2026. The OSD report highlights that Togg’s growing production volume is directly contributing to the increase in domestic EV sales and reducing Turkey’s reliance on imported vehicles. Furthermore, Togg’s ambition extends beyond the domestic market; the company aims to export its vehicles to Europe and other regions, positioning Turkey as an automotive exporting nation.

Challenges Remain: Despite the optimistic forecast, the Reuters article acknowledges several challenges that could hinder growth. Continued economic volatility and fluctuations in the Turkish Lira remain a concern. High inflation, although slowing, could still impact consumer spending and affordability. Furthermore, geopolitical risks in the region, particularly the ongoing conflicts in neighboring countries, could disrupt supply chains and dampen investor confidence.

The report also points to the need for continued investment in charging infrastructure. While the government is actively expanding the network, the pace of deployment needs to keep up with the rapidly growing demand for EVs. Ensuring a reliable and widespread charging network is crucial for sustaining EV adoption and alleviating consumer concerns. Finally, competition from established international automotive brands will be fierce.

In conclusion, Turkey's automotive market is on a trajectory for significant growth, propelled by a surge in EV sales and supported by government incentives and domestic production capacity, particularly spearheaded by Togg. While economic and geopolitical uncertainties remain, the OSD's forecast paints a positive picture for 2025 and beyond, potentially solidifying Turkey's position as a key emerging automotive hub and a leader in EV adoption within the region. The success of this transformation will hinge on continued investment in infrastructure, a stable economic environment, and the ability of domestic manufacturers like Togg to compete effectively in the global market.