Turkish Tire Market On the Upswing
The automotive tire market in Turkey is seeing growth and recovery from the global recession and European debt crisis, according to a new research report that predicts a 9 percent compounded annual growth rate for the market.
TechSci's "Turkey Tire Market Forecast and Opportunities, 2019" forecasts the growth rate in the next five years that will be driven by increasing demand for tires for passenger cars and commercial vehicles.
"The motorization rate in Turkey is estimated to be around 173 vehicles per thousand people," said Karan Chechi, TechSci's research director. "This low motorization rate coupled with increasing per capita income of Turkish consumers promises a bright future for the country's automotive sector."
Turkey also "provides seamless access to many neighboring markets along with several benefits such as cancellation of quota limitations and mutual exemption of import and export tariff between Turkey and other European members," Chechi added. "Due to these benefits, automotive exports from the country continue to rise. More than three-fourths of passenger cars produced in the country were exported in 2013. This increasing automotive production is eventually contributing to the demand for tires from the OEM sector in Turkey."