Virus performance may open doors for auto industry: Expert

As the European automotive market resumes production amid uncertain demand due to coronavirus, Turkey is well-positioned to emerge from the crisis with less damage and to draw more export orders, according to an industry leader.

The automakers largely shut down their factories and halted production in the first four months of this year to stem the virus' spread as well as due to a collapse in demand.

Mostly restarting at a slow pace in May, the automotive production is expected to ramp up gradually in the second half of the year, depending on consumer behavior and the course of the virus.

Alper Kanca, head of the Automotive Supplier Industry (TAYSAD), said the expected automotive sector revival in 2021, after a contraction this year, will not help it overtake the 2019 levels globally.

"Obviously 2021 will be better than 2020, but there will not be a festive environment, as it will not catch up to the moderate success of last year," Kanca told Anadolu Agency.

According to the latest report by London-based global data firm IHS Markit, global auto sales in 2020 are projected to decline more than 20% year-on-year to 70.3 million units.

Kanca underlined that local shutdowns are expected to result in a similar contraction in Turkey's automotive sector, corresponding to a loss of $5 billion.

"Turkey will wriggle out of this crisis better than its rivals and receive more export orders," he said, owing to its solid performance during the virus crisis (both in business and healthcare), the dynamism of Turkish firms, its proven resilience in dealing with crises, and its export-oriented structure.

Pointing to the structural changes that the sector will face in the post-pandemic era, Kanca projected that countries...