Back in the late 1990s, South Korea’s top automaker Hyundai Motor Co. built its first overseas plant in Turkey, betting on the European and Middle Eastern markets’ growth potential. Hyundai Assan Otomotiv Sanayi ve Ticaret A.
S. in Istanbul, simply known as HAOS, has since been the “ugly duckling,” posting losses for several years as the Turkish economy slumped. Undaunted by the economic woes, the Korean automaker has steadily increased the plant’s annual production capacity through 2013.
HAOS also relocated the i10 hatchback vehicle production line at Hyundai’s Indian plant to Turkey. As Turkey’s economy started to rebound soon after, the plant’s output volumes rose to as many as 242,100 units in 2023 from 137,100 in 2020. Years of efforts have borne fruit and the ugly duckling has finally turned into a beautiful swan laying golden eggs.
Last year, HAOS posted 198.5 billion won ($149 million) in net profit on sales of 3.02 trillion won.
The Turkish auto market has huge growth potential with a population of 80 million and the country’s economy growing at 4.5% in 2023. With increasing demand for new vehicles, Hyundai’s plant in Istanbul posted an operating rate of 119.
9% in the first half – the highest among 13 factories operated by Hyundai and its affiliate Kia Corp. across the globe. By comparison, Hyundai’s plant in Korea had an operating rate of 109.
1% in the first half, followed by 101% in the US and 98.6% in India. Kia’s Korean factory operated a.