The weak lira’s impact on the Turkish automotive sector.
A growing domestic automotive market gave Turkish carmakers some relief when European vehicle markets slumped in the wake of the euro-area crisis. Now, thanks to a combination of failed economic policies and tensions with the United States that caused a 70% fall in the Turkish lira, the domestic market has all but collapsed, while European markets are slowing even before the disruption promised by Brexit.
The government’s post-attempted-coup purges have hurt the lira and may have affected consumer demand.
Demand in the main export markets in Europe for Turkish-produced cars is stagnating and exports may continue to fall.
Renewed US efforts to isolate Iran will affect Turkish vehicle exports to that market.
