Microchip shortage continues to impact Turkish vehicle output

As the microchip shortage that hit Turkey’s automotive output in 2021 continues in the first half of 2022, one of Turkey’s major automakers, Oyak Renault, has re-paused output for seven days at most of its production departments as of April 18.

Oyak Renault recently paused output for 10 days as of March 25 for the same reason, while Turkey’s other major auto producer, Toyota, also suspended production at its Turkish plant for five days as of March 7, as previously reported by S&P Global Commodity Insights.

These decisions follow output cuts by major producers throughout 2021 and in the first quarter of 2022.

Turkey’s total vehicle production fell 12% on year to 302,730 units in Q1 in this environment, while automobile output declined 21.5% to 166,363 units, according to the Turkish Automotive Manufacturers’ Association (OSD) data.

Bursa-based Oyak Renault is a joint venture between France’s Renault Group and Turkey’s Oyak, parent company of Turkey’s largest integrated steel producer Erdemir.

These stoppages have also been affecting the sector’s steel demand, sources said.

Oyak Renault has 360,000 units/year of automobile production capacity and 750,000 units/year of motor production capacity.

Ongoing microchip shortages could continue to affect automotive output in Turkey in the coming months, as the global shortage is expected to continue albeit at a diminishing pace throughout 2022, according to industry reports.

— Cenk Can