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Business News Turkey June 2024


Hithium signs strategic agreement with Maxxen

Chinese energy storage systems manufacturer Hithium has signed a strategic partnership agreement with Maxxen, a subsidiary of Turkish Kontek Enerji, with the aim of providing solutions in the field of energy storage technologies. According to Sean Sunming Huang, Hithium Founder and General Manager for the MEA Region, his company foresees that the Turkish market, which they have entered for the first time with the Maxxen partnership, will gain great momentum in the next few years. Pursuant to the agreement, the cells will be supplied from China under the Hithium brand, and the containers to be produced in the factory in Aydın will be marketed both domestically and internationally. Established with a total investment of USD 25 mn, Maxxen plans to start production in 2025, and reach an annual capacity of 3 GWh by 2027.

May 20, 2024


Colendi raises USD 65 mn in Series B funding

Turkish fintech startup Colendi has raised USD 65 mn in Series B funding at a valuation of USD 700 mn from a group of investors including Citigroup’s venture capital arm Citi Ventures. The Series B round was attended by Citi Ventures as well as Migros, Sepil Ventures, Re-Pie Asset Management, Finberg, and Hedef Holding. The company aims to raise over USD 150 mn by the end of this year, and expects to be valued at USD 1 bn when the round is completed. Colendi, which has 17 million users in Turkey, aims to reach 1 billion users and plans to achieve this goal by expanding into populous emerging markets such as Pakistan and Indonesia.

May 22, 2024


Turkish e-commerce increases significantly in 2023

According to a recently published report of the Ministry of Trade, in 2023 the e-commerce volume in Turkey increased by 115.2% compared to the previous year, reaching TRY 1.85 tn. The number of transactions increased by 22.3%, reaching 5.9 billion. The three sectors with the highest share in e-commerce volume were white goods and small household appliances, followed by electronics and then clothing, footwear and accessories. The countries with the most cross-border e-commerce of goods were Canada, the United Kingdom, the United States, the Russian Federation, Germany, Azerbaijan, and the Netherlands, in that order.

May 28, 2024


Bosch to produce hydrogen injectors in Bursa

Bosch, one of the largest international investors in Turkey, has invested an additional EUR 172 mn in the country in 2023, bringing its total investment since the year 2000 to EUR 4.2 bn. The company’s total R&D expenditure in Turkey was EUR 46.3 mn in 2023. Bosch has been working on direct injector prototypes, hydrogen engines, and other innovative products for storage components at its Bursa factory. Daniel Korioth, Bosch Turkey and Middle East President, said that the mobility ecosystem in Turkey has been strengthening, and indicated that following the investment in Bursa to produce hydrogen injectors for commercial vehicle manufacturers, production will start in 2026.

May 29, 2024


Amendments made to the Turkish Commercial Code

With the enactment of Law No. 7511, amendments have been made to the Turkish Commercial Code and further laws. This makes it mandatory for Joint Stock and Limited Companies to increase their minimum capital amounts, as determined in 2023, by Dec. 31, 2026; failure to do so will be grounds for dissolution. The requirement to determine the distribution of duties of the board of directors annually has been eliminated. In addition, some amendments have been made to the articles regarding the duties and rights of the board of directors. Furthermore, the penalties for violations of the provision regarding the exorbitant increase in the sales price of a good or service by manufacturers, suppliers and retail businesses have been increased.

May 29, 2024


Additional tax imposed on Chinese automotive imports

With a regulation published in the official gazette an additional tax has been imposed on all fuel-type passenger vehicles imported from China. The 40% tax currently applied to electric cars will now be applied to all fuel-type vehicles. In addition, the lowest customs tax has been determined as USD 7,000. The decision, published as of June 8, will enter into force on the 30th day after its publication.

June 8, 2024



Romanian PM pays visit to Turkey

President Recep Tayyip Erdoğan has received the Prime Minister of Romania, Marcel Ciolacu, in Ankara. Erdoğan declared that the mutual trade volume has exceeded USD 10 bn for two consecutive years, and that their goal is to reach USD 15 bn. 6 agreements were signed between the two countries on different topics, including social security, urban planning, and tourism.

May 21, 2024


Erdoğan hosts Uzbek leader

President Erdoğan and the President of Uzbekistan, Shavkat Mirziyoyev, have met in Ankara. Following the meeting, 18 agreements were signed between the two countries on different topics, including law education, human resources, product safety, media and communication, agriculture, tourism, energy transformation, space sciences, and the expansion of the preferential trade agreement.

June 6, 2024


Turkish Central Bank keeps interest rate constant

The Central Bank of the Republic of Turkey has decided to keep its policy rate (the one-week repo auction rate) constant at 50.00%. The bank stated that “the tight monetary stance will be maintained until a significant and sustained decline in the underlying trend of monthly inflation is observed, and inflation expectations converge to the projected forecast range.”

May 23, 2024


Both exports and imports increase in April

In April 2024, the Turkish economy registered an increase of both exports and imports, by 0.1% and 4.0%, respectively, over the same month of the previous year (YOY). With exports amounting to USD 19.3 bn and imports of USD 29.1 bn, the trade deficit increased by 12.9% to USD 9.9 bn during the same period. In April, Germany continued to be Turkey’s largest export partner (USD 1.5 bn), ahead of the USA (USD 1.2 bn), and the UK (USD 1.2 bn). China was again the country with the most imports to Turkey (USD 3.8 bn), followed by the Russian Federation (USD 3.3 bn), and Germany (USD 2.2 bn).

May 30, 2024


5.7% economic growth in Q1/24

In the first quarter of 2024, Turkey’s gross domestic product increased by 5.7% compared to the same period of the previous year. The quarterly GDP at current prices increased to TRY 8,822.3 bn, or to USD 285.6 bn in dollar terms. The construction industry recorded 11.1% growth, the manufacturing sector 4.7%, the agriculture sector 4.6%, and the service industry 4.3%.

May 31, 2024


Further increase in inflation

In May 2024, consumer prices in Turkey rose by 3.37% over the previous month, with a CPI increase of 75.45% YOY. The biggest monthly price increase was in clothing and footwear (9.60%), followed by housing (7.08%). No decrease occurred among the main product groups. The highest annual price increase was in education (104.80%). The domestic producer price index (D-PPI) went up 1.96% on a monthly basis, and 57.68% YOY.

June 3, 2024


Industrial production decreases

In April, Turkey’s industrial production index decreased by 0.7% YOY, with the manufacturing industry recording a fall of 1.5%. The biggest increases in the manufacturing industry category were reported in the product groups “repair and installation of machinery and equipment” (19.1%), “coke and refined petroleum products” (12.2%), and “beverages” (11.9%) while the highest decreases occurred in the product groups “wearing apparel” (-16.8%), “leather and related products” (-15.9%), and “printing and reproduction of recorded media” (-12.9%).

June 10, 2024


Unemployment keeps falling

In April 2024, approximately 3,042,000 people in Turkey aged 15 and older were officially out of work. The seasonally adjusted unemployment rate was 8.5%, 0.1 points down from the previous month, and 1.5 points down YOY. The labour force participation rate registered as 54.2% in total, and 36.6% for females.

June 10, 2024


Overview of Monthly Data

Overview June 24

Growth Rates

Growth Rates June 24


Inflation June 24