Türkiye's tire market is accelerating its expansion

Press release: Turkey's tire market is accelerating its expansion, local giant Petlas invests 2.5 billion to build a new factory, and Yokohama Rubber increases its layout of agricultural Tires

- Driven by geographical hubs and policy dividends, the production capacity will surge by 42% in 2025, targeting the Eurasian market

Istanbul, May 29, 2025-As the global tire industry shifts to emerging manufacturing centers, Turkey is becoming a hot spot for international giants and local companies to compete for investment with its location advantages across Europe and Asia, cost competitiveness and policy support. Recently, local leader Petlas announced a 2.5 billion yuan new factory plan, and Japan's Yokohama Rubber strengthened its localization layout of agricultural tires, pushing the Turkish tire market into a period of explosive growth with production capacity and technological innovation in parallel134.

1. Market growth: driven by geography and policy

The Turkish tire industry has maintained an average annual growth rate of more than 7% in recent years, and its core driving force comes from three advantages:

Location radiation: connecting the 1.4 billion population market in Europe, the Middle East and Central Asia, the local population of 72 million has more than 17 million cars, and the terrain is hilly and steep (the slope of Istanbul roads is 45°), which has led to high-frequency tire replacement needs, especially anti-Skid and snow tires are rigid needs110.

Cost competitiveness: labor costs are only 1/3 of Western Europe, and the government provides foreign tax exemptions and industrial land subsidies to attract international companies such as Sumitomo and Bridgestone to set up factories14.

Export orientation: relying on the free trade agreement with the EU, tire exports account for more than 60%, and local giant Petlas sells its products to 130 countries, with exports exceeding US$2.4 billion in 202449.

2. Capacity Competition: Local leaders take the lead, international giants take the lead

Petlas launches "Europe's largest giant factory"

Investing US$360 million (about RMB 2.5 billion) to build a new production base in Kırşehir. After it goes into production in 2026, the annual production capacity of passenger car and light truck tires will jump 42% to 340,000 tons, creating 1,850 new jobs4.

Parent company AKO Group has invested more than RMB 3 billion in upgrading production lines in the past five years, pushing the product line to 2,500 types, covering high value-added fields such as military aviation tires and agricultural engineering tires45.

Yokohama Rubber strengthens its position as a hub for agricultural tires

Its subsidiary TWS established a subsidiary in Istanbul in early 2025, focusing on the "local service local" strategy for agricultural tires, providing fast delivery and customized solutions for the Central and Eastern European and African markets3.

Turkey's demand for agricultural tires has increased by 12% annually. Yokohama leverages local complex terrain testing technology to develop tires specifically for gravel mud rally to improve product adaptability35.

3. Technology upgrade: Terrain adaptation and green transformation go hand in hand

Wear-resistant technology: For terrains with multiple slopes and sharp bends, local companies develop high-grip patterns and reinforced carcass structures. For example, Petlas relies on domestic road condition data to develop military-grade durable tires 510.

Sustainable materials: The EU's new 35% recycled content regulation in 2028 has forced the industry chain to transform. Petlas and Sakarya Tire have invested in low-temperature pyrolysis recycling technology, reducing energy consumption by 20%19.

Performance verification through competition: Petlas has sponsored the Turkish Cross-Country Championship for three consecutive years, tested tire performance through extreme tracks in six provinces, and added the Giresun mud track challenge 5 to the 2025 competition.

4. Supply Chain Opportunities: Chinese Equipment Manufacturers Seize the Opportunity of Rubber and Plastic Exhibitions

Turkey consumes 400,000 tons of rubber raw materials annually, 70% of which is imported, and the demand for equipment imports is strong29:

The 2024 Turkey International Plastics Industry Exhibition attracted 1,094 exhibitors from around the world. The Chinese exhibition group debuted with an area of ​​4,000 square meters. Haitian, Yizumi and other companies launched energy-saving injection molding machines and recycling equipment adapted to the Turkish market, and the order volume increased by 35%68.

In 2025, the Plasteurasia exhibition is expected to attract more than 1,200 exhibitors, focusing on green technologies such as bio-based rubber and waste tire pyrolysis oil. Chinese companies Jwell and Tosda plan to release customized production lines in Turkey28.

5. Challenges and Risks: Seeking Resilience in Fluctuations

The industry faces triple pressures:

Raw material fluctuations: The price of natural rubber fluctuates by 10% annually due to the climate in Southeast Asia, and the cost of synthetic rubber fluctuates by US$150/ton with the price of crude oil19.

Geopolitical risks: EU DR regulations require rubber traceability certification, increasing compliance costs for small farmers; Turkey's domestic inflation rate affects consumer confidence19.

International competition: Chinese tire manufacturers are accelerating their overseas expansion, Turkey's anti-dumping duties force companies to improve quality, and the China-Turkey Association promotes negotiations to replace trade confrontation10.

Outlook: The compound growth rate from 2025 to 2030 may reach 9%

Industry organizations predict that the size of the Turkish tire market will exceed US$8 billion in 203019:

"Turkey is a natural laboratory for testing the extreme performance of tires and a strategic springboard for radiating three continents."

-Ahmet Candemir, PETLAS Trade Director5

Local capacity expansion and international technology input will continue to reshape the regional landscape, and companies that embrace green manufacturing and intelligent R&D will dominate the next round of growth.