Türkiye’s machinery exports rise 4.5% to $9.3B in January-April

Türkiye’s machinery exports surged 4.5% year-over-year to $9.3 billion (TL 424.74 billion) in the first four months of the year, according to a report on Sunday citing data from the Machinery Exporters’ Association (MAIB).

Including free zones, the consolidated exports of the machinery manufacturing industry totaled $9.3 billion during the January-April period.

While machinery export volumes declined by 6.7% in the period, the average export price per kilogram rose 12% to $8.60, resulting in an increase in export value, the report by Anadolu Agency (AA) said. As a result, the sector generated an additional $350 million in revenue compared with the same period last year.

Accordingly, annualized consolidated machinery exports rose 1.3% to $29.1 billion, while imports increased by 8.2% to $47.2 billion.

Germany, U.S. emerge as top export destinations

Germany remained the largest export market in January-April, with shipments rising 14.1% to $1.1 billion, the data showed.

It was followed by the U.S., where exports jumped 39.5% to $767 million, and Italy, where exports increased 12.7% to $442 million.

Iraq, Russia and Poland were among the major markets showing the sharpest contractions.

Among subsectors, the highest export value was recorded in internal combustion engines and components, at $867 million. This category was followed by construction and mining machinery with $629 million and pumps and compressors with some $530 million, respectively.

Exports of turbines, turbojets and hydraulic cylinders posted the strongest proportional increase, rising 40.1%, while leather-processing machinery saw the steepest decline, falling 52.2%.

‘A trusted partner’ worldwide

MAIB Chair Sevda Kayhan Yılmaz said Europe, which has already borne additional energy costs for years due to the Russia-Ukraine war, now faces an extra 25 billion euro ($29 billion) energy burden stemming from the U.S.-Israel-Iran conflict.

She also pointed to shifting dynamics in spending and noted that countries continue to increase defense expenditures even under such circumstances.

“In this environment, where investment priorities are shifting, our machinery industry’s existing high-tech production lines need to undergo an integration process fully aligned with the defense sector’s specific regulatory and certification requirements,” Yılmaz said.

She added that while countries are increasingly caught in conflicting interests, Türkiye has maintained dialogue with all of its trading partners and is managing this strategic transition by maintaining a presence wherever global industry is active.

Yılmaz said the sector is working to reinforce the image of Turkish machinery as a reliable and flexible solutions partner through trade fairs and business delegation events across a wide geographic area spanning multiple continents.

“As we adapt to the West’s new-generation protectionist barriers focused on cybersecurity and low-carbon standards, while competing with the East’s technological raw-material and production advantages, we want to preserve our reputation as a trusted partner around the world,” she said.

Support for tax incentives, broader financing

At the same time, Yılmaz welcomed structural measures aimed at expanding companies’ financial flexibility and strengthening their position in global competition.

She said the corporate tax reduction included in the new Investment Incentive Package should be viewed as a strategic step to ease burdens on manufacturing sectors.

“This regulation is important both for protecting the domestic supply chain and for enabling our companies to finance their transformation processes in global markets,” she said.

“Eliminating technical bottlenecks in financial markets would significantly enhance the long-term impact of this measure,” she added.

However, Yılmaz also suggested that the exchange rate has remained below inflation for an extended period, causing industrial revenues to lag behind rising costs.

“This imbalance, which has placed exporters at a disadvantage in international competition and which we believe is nearing its end, has made imports more attractive and exposed domestic producers to the risk of losing their position as the primary suppliers in the local market,” she said.

She added that removing technical bottlenecks in financial markets and directing resources selectively toward strategic sectors that develop technology would help revitalize the Turkish economy.

“Transforming the existing industrial capacity and potential into high productivity through a comprehensive strategy will once again be our strongest tool in combating the current account deficit and inflation,” she concluded.

DAILYSABAH