Toyota’s exports in Turkey decline due to troubled Russian market

Toyota’s exports in Turkey decline due to troubled Russian market image

Toyota Motor Corp’s unit in Turkey has seen exports down by 30% because of a weaker rouble in Russia’s auto market, but it is confident to repair the damage with help from its Japan and Europe sales.

The Turkey plant Adapazari is responsible for producing Corollas and Versos at the moment and has a capacity of 150,000 vehicles, standing for 1.5% of Toyota’s global car manufacturing of around 10 million cars and trucks. The unit’s chief, Orhan Ozer, has stated for Reuters that they’re expecting to finish the year with a 9% decline in its auto sales, and did not give a sales figure for the first half of 2015, only saying that the output went down 14%.

“We saw a serious fall in exports this year due to the events in Russia and the devaluation (of the rouble). Russia was our top market for the Corolla, we were planning to sell a quarter of our Corollas to Russia, but we’re not even selling 10 percent, “ said Ozer.

The economy in Russia due to lower oil prices and the Western sanctions over the Ukraine crisis has led to a fast decline in the car sales there, with a massive drop of 36% in 2015 down to a total of 1.55 million new car sales.

Ozer revealed that Israel has actually been its main buyer, followed by Russia, Egypt, France and Spain. The Turkish plan usually exports 90% of its manufactured vehicles, but has managed so far to only do so for 73% of them.

Despite its current situation in Turkey, Toyota is looking to increase exports and the Adapazari plant’s capacy by two thirds up to 250,000 cars with an investment plan of $500 million set into action in 2014.

By Gabriela Florea

Be the first to comment

Leave a Reply

Your email address will not be published.


Time limit is exhausted. Please reload CAPTCHA.