Contraction in Turkey's manufacturing industry spreads to automotive and white goods

The contraction process that has been ongoing in Turkey's manufacturing industry for nearly two years has now affected capital-intensive sectors such as automotive, white goods, and machinery. According to CBRT and ISO data, capacity utilization rates and production volumes in many sub-sectors declined significantly in the first nine months of 2026.

According to CBRT data for October 2026, while the seasonally adjusted capacity utilization rate in the manufacturing industry as a whole remained at 74.3 percent, this rate fell to 64.7 percent in machinery and equipment manufacturing, 68.5 percent in white goods, and 61 percent in automotive. The Istanbul Chamber of Industry's Sectoral PMI report revealed that the index remained below the 50 growth threshold in 8 out of 10 manufacturing sectors.

On a sectoral basis, exports in the white goods sector decreased by 17 percent and production by 11 percent in the first nine months of the year. In the automotive sector, total production fell by 6 percent, while automobile production declined by 17 percent. In the machinery sector, despite an increase in value terms, physical exports in quantity terms showed a decline of 6.0 percent.

Industry representatives are demanding urgent measures in the face of rising financing costs and intense competitive pressure from China. In this context, support measures such as reviewing protective tariffs, suspending GEKAP payments, and facilitating access to credit are being brought to the agenda.