Dünya – Global car makers assessing Turkey’s investment environment for manufacturing operations are one step closer to joining Ford, Toyota, Renault, Hyundai and others who have already invested in the country’s fast growing automotive industry. In addition to a large domestic market with a low vehicle-per-capita rate, a highly skilled work force and nearby export markets, a recent amendment to the country’s investment incentives system provides automotive investors with another good reason to choose Turkey as an auto manufacturing hub.
Investments relating to the manufacture of engines, engine parts, transmission elements and electronics – which meet the minimum requirements of TRY 300 million for general automotive production, TRY 75 million for engine production and TRY 20 million for engine parts, transmission elements and car electronics- will receive Region 5 benefits regardless of the actual investment location, except for Region 6, which itself is eligible for further incentives.
According to the new incentives system which became effective last June, Turkey is divided into six regions with most support instruments made available to the least developed parts of the country whereby industrialized Region 1, consisting of western Turkish provinces, has fewer supportive measures for investors than Region 6, comprising of eastern and south-eastern provinces.
Turkey aims to increase the level of local content in its automotive production, currently at 56 percent and reduce the imports of intermediate goods. The country manufactured over 1 million motor vehicles in 2012, ranking as the 6th largest producer in Europe and the 17th largest in the world.