Turkey’s automotive sector could be indirectly affected by the Russian-Ukrainian conflict due to rising costs, professionals say.
Turkey’s exports to Russia, which reached $705 million last year, are not expected to be affected so far, Baran Çelik, the head of the Automobile Exporters Association (OİB), told Reuters. daily Hurriyet.
“Some $625 million of that figure was made by supply manufacturers. With this figure, Russa was the eighth largest market in the supply industry,” he said. “The main problem for our manufacturers will be rising energy and raw material prices,” Çelik added.
Turkish automotive exports reached $29.3 billion in 2021.
Alper Kanca, an executive of the Union of Chambers and Commodity Exchanges of Turkey (TOBB), also said that Turkey will be indirectly affected by the Russian-Ukrainian conflict.
“The tension will have an impact on a global scale. The whole world will feel the rising prices of energy resources, raw materials and commodities,” said Kanca, who chairs the TOBB Automotive Supply Industry Assembly.
European countries, which are Turkey’s main trading partners, will be particularly affected, he added.
Turkey’s auto exports fell 1.6% in January to $2.2 billion, while supply industry exports rose 7% to $951 million, OİB says . The automotive sector has always taken the lion’s share of Turkey’s total exports with 12.7%.
Turkey is targeting $250 billion in total exports this year, up from $225.3 billion in 2021.
The Ministry of Commerce and the Assembly of Turkish Exporters (TİM) have set up a crisis office to support Turkish companies involved in trade with Ukraine and Russia.
Turkey has close ties with both countries in the areas of construction contracts, tourism, wheat imports and exports of fresh fruits and vegetables. Turkey’s exports to Russia increased from $4.5 billion in 2020 to $5.7 billion last year. Imports from Russia were $29 billion, down from $18 billion a year earlier.