Coup aftermath could hit Turkey's automotive sector

Subject

The prospects for the automotive sector.

Significance

Carmakers have found some relief from crises abroad in expanding their domestic market. Now the sector faces a 'double whammy', with fallout from the Brexit vote weakening European demand and Turkey's recent failed coup threatening an already-slowing domestic market.

Impacts

• Slowing GDP growth will affect domestic commercial vehicle sales first.
• Growing political instability and the increased incidence of terrorist attacks will continue to affect the investment climate.
• Iran could offset losses in European markets, but they still take most Turkish vehicle exports.