TRANSFORMING TURKEY’S AUTOMOTIVE INDUSTRY INTO A GLOBAL POWERHOUSE PRELIMINARY GLOBAL VALUE CHAIN ANALYSIS FOR TURKEY © 2020 Islamic Development Bank This work is a product of the staff of The Islamic Development Bank. The findings, interpretations, and conclusions expressed in this work do not necessarily reflect the views of the Islamic Development Bank, its Board of Executive Directors, or the governments they represent. The Islamic Development Bank does not guarantee the accuracy of the data included in this work. The boundaries, colors, denominations, and other information shown on any map in this work do not imply any judgment on the part of The Islamic Development Bank concerning the legal status of any territory or the endorsement or acceptance of such boundaries. This work is part of the ongoing Member Country Partnership Strategy formulation exercise between the Islamic Development Bank and Republic of Turkey. Text © Department of Strategy and Transformation (DoST):
[email protected] Islamic Development Bank. All rights reserved. TRANSFORMING TURKEY’S AUTOMOTIVE INDUSTRY INTO A GLOBAL POWERHOUSE Authors: Mohammed Faiz Shaul Hamid, Soule Sow (
[email protected],
[email protected] ) Attribution—Please cite the work as follows: Hamid, M Faiz Shaul, Sow, S, 2020. Transforming Turkey’s Automotive Industry into a Global Powerhouse Global Value Chain Unit, Department of Strategy and Transformation https://strategy.isdb.org Executive Summary In Turkey’s pursuit to integrate into the Global Value Chain (GVC), the automotive industry is one of the priority sector selected in the 11th Development Plan. As the industry globally is quite matured in terms of manufacturing and productivity given the diverse large automotive value chain that is fragmented regionally and globally, the automotive industry in Turkey is at a juncture facing three overarching challenges unique for the country and industry; advancement into new technologies, increasing productivity to support higher value add and shifting or diversifying products and markets.