Hürriyet – Turkey’s investment incentive system is set to receive revamping to facilitate investments in the country’s critical automotive sector that involves the production of key components such as engines and transmission parts.
“Turkey aims to increase the local content in automotive manufacturing to 77 percent, from its current level of 56 percent..” according to a statement by the country’s Minister of Economy, Zafer Caglayan. The Ministry is actively working on a road map to adjust incentives that are available to automotive manufacturers, the Minister said. It is expected to cut down on costly imports of engine and transmission parts.
“Imports of intermediate goods in the automotive sector accounts for USD 5 billion of imports every year..”, Caglayan noted. “Vehicle engines constitute one fourth of imported intermediate goods in the automotive sector. Followed by transmission elements with a share of 10 percent..”, the Minister explained, stating the necessity to increase the domestic supply of such components.
A major auto production hub, Turkey manufactured slightly more than a million motor vehicles last year. Global automakers including Ford, Renault, Fiat, Hyundai, Toyota, and Honda have production operations in the country.