Although the Turkish automotives market continued to grow strongly in the first half of 2021, in the second half it experienced a contraction that was partly attributable to production slowdowns resulting from global supply chain microchip shortages.

Retail sales of cars and light commercial vehicles in Turkey were down by 4.6% in 2021 as compared with 2020 and numbered 737,350 units sold. Looking at the market’s 2021 performance in more detail however we see that while total car sales (561,853 units) were down by 7.9% year-on, light commercial vehicle sales (175,497 units) were up at exactly the same rate of 7.9%.

-4.6%With 737,350 units sold, retail car and light commercial vehicle sales in Turkey were down by 4.6% year-on in 2021.

The principal factors supporting demand for vehicles in 2020-2021 were (1) resolution of pent-up demand which had resulted from reduced vehicle availability attributable to shrinking markets and to supply-chain disruptions in 2018-2019 and (2) in the case of LCVs in particular, continued growth in online shopping volumes. The two most noteworthy factors depressing demand on the other hand were (1) higher Q4 2021 interest rates and (2) higher prices, both attributable to a weak Turkish lira.

In 2021 the Fiat Egea was once again the best-selling car in Turkey–this time for the sixth year in a row–and it remains the most popular car in every one of its body-type segments. Yet another increase in market share has cemented the Fiat badge’s leadership of the LCV market.

In the minivan segment, which makes up a substantial portion of the market, the Fiat Doblò was applauded as “Most popular LCV of the year” while the Fiorino also maintained its successful performance.

With its 16.4% market share, Fiat was the most preferred brand in the domestic automobile market in 2021.

DOMESTIC RETAIL SALES

Turkish retail sales (737,350) of automobiles and LCVs were down by 4.6% year-on in 2021. With combined sales of 124,738 units, Tofaş’s Fiat, Fiat Professional, Jeep®, Alfa Romeo, Maserati, and Ferrari brands together accounted for a 16.9% share of the overall market last year.

With a total of 121,254 units sold giving it a 16.4% share of the 2021 market, the Fiat brand handily defended its leadership of the car & LCV market. The continued successful performance of the Fiat Egea family was a factor contributing to Fiat’s 13.1% share of the domestic automobile market. Sales of 49,183 units made the Fiat Egea Sedan Turkey’s best-selling car for the sixth year in a row. Successful performance by the Fiat Egea Cross, a crossover that went on sale early in the year, contributed to the Fiat brand’s overall market share as likewise did sales of Fiat Egea hatchbacks and station wagons.

Sales in the overall LCV market increased by 7.9% in 2021 and amounted to 175,497 units sold. Tofaş’s own sales in this market were up by 7.1% year-on, a performance which parallels that of the market as a whole. Tofaş’s robust growth in LCV sales (up 6.8% in 2020) was sustained last year. Its Fiat and Fiat Professional models commanded a 27.4% market share and put the brand in second place once again. Fiat’s Doblò and Fiorino sales also upheld the company’s leadership of the car-derived van segment.

16.9%Combined sales of 124,738 units gave Tofaş’s Fiat, Fiat Professional, Jeep®, Alfa Romeo, Maserati, and Ferrari brands a 16.9% share of the overall market.

The 112,477 vehicles that Tofaş shipped abroad in 2021 corresponded to a 12% share of Turkey’s total automotives exports in 2021.

EXPORTS

The European automobile market (consisting of the EU, UK, and EFTA markets) shrank by 5% year-on in 2021. Two factors contributed to this contraction: production slowdowns caused by disruptions in semiconductor supply and the lingering (albeit lessened) effects of the Covid-19 pandemic. At the national-market level, sales in Germany were down by 10.1% while they were up in France (0.5%), Spain (1%), and Italy (5.0%). Still 10% below its 2019 (pre-covid) level as of end-2021, the European automobile market has not yet fully recovered from the contraction it experienced in 2020.

In 2021 Tofaş exported a total of 112,477 vehicles, down by 4.6% as compared with 2020. With this performance, Tofaş contributed a 12% share of Turkey’s exports by volume last year.

Although automobile exports were down by 25% year-on in 2021, LCV exports were up by around 17.7%. The decline in automobile exports is attributable mainly to supply-chain disruptions and to a rapid shift in market preference in favor of electric and hybrid vehicles. The increase in commercial-vehicle exports continue to be supported by near-universal growth in the overall volume of online shopping.

Taking all of these results into account, Tofaş’s export earnings were up by 35.3% year-on in 2021 and weighed in at TL 14,643 million.

35.3%In 2021, Tofaş’s export earnings increased by 35.3% year-on.

PRODUCTION

The 228,544 thousand vehicles which the company produced in 2021 made up 17.9% of the country’s total automotive industry output.