Exchange rate-cost gap in automotive strains competitiveness

Turkey’s automotive industry remained the country’s top exporter in October with $4.032 billion in shipments, while export growth over the first 10 months of the year slowed to 3.4%, according to the Automotive Industry Exporters’ Association (OİB). OİB board chairman Kemal Yazıcı said industry costs have more than doubled in euro terms over the past four years, eroding competitiveness. He argued that exchange-rate gains must keep pace with inflation to prevent further margin pressure on exporters. The figures matter because autos are Turkey’s largest export category and a key source of foreign currency, so a widening cost-to-currency gap threatens both sector profitability and the broader trade balance. Watch upcoming monthly export data and the lira’s trajectory against inflation for signs of whether exporters can regain cost competitiveness.