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Türkiye's trade halt cripples Israeli automotive market

by Daily Sabah with Agencies

ISTANBUL Aug 07, 2024 - 2:39 pm GMT+3
This picture shows a view of Haifa and its port in northern Israel, July 31, 2024. (AFP Photo)
This picture shows a view of Haifa and its port in northern Israel, July 31, 2024. (AFP Photo)
by Daily Sabah with Agencies Aug 07, 2024 2:39 pm

Türkiye's halt of bilateral trade has put Israel in a difficult position, a report by one of the leading Turkish publications said Tuesday citing Israeli media.

According to newspapers, Ankara's commercial boycott has most severely impacted the automobile sector, with the country’s most popular car brands disappearing one by one.

Türkiye, which has shown a strong reaction to Israel's monthslong massacre in Gaza, announced in May that it had moved to the second phase of measures taken at the state level, suspending all export and import transactions related to Israel, covering all products.

Ankara said it had suspended all bilateral trade with Israel until the conflict is resolved and aid can freely enter the Palestinian enclave. The decision made Türkiye the first of Israel's key trade partners to halt exports and imports over its relentless attacks in Gaza.

Following the decision, Israeli Foreign Minister Israel Katz stated that new trade alternatives would be sought by focusing on local production and imports from other countries. However, it appears that Türkiye's decision to halt trade has placed Israel in a rather unenviable situation.

An article published recently in the Israeli Ice media outlet emphasized that Türkiye's boycott decision was a significant blow to Israel. "The economic embargo imposed by Türkiye and President Erdoğan on Israel is beginning to show signs. Israeli car importers report severe shortages in models of popular car brands," the report said.

"Brands such as Toyota, Hyundai, Renault and Ford have vanished from Israeli roads and are no longer being ordered. Since the factories are European exporters based in Türkiye, Hyundai, Toyota, Renault and Ford have not been arriving in Israel since May," it added.

"The cheapest car in Israel, the Hyundai i10, has also completely disappeared from the roads. The Hyundai i20 and Hyundai Bayon cannot be ordered at all."

The Calcalist news site similarly also appeared to admit that Türkiye, one of the leading 10 countries in car exports, has already changed the map of the local industry with its trade embargo on Israel.

"Inventories of popular Toyota and Hyundai models have run out, and there is no possibility of a return to exports even after the war. Importers are in search of alternatives. They may need to contact manufacturer agents, which means longer shipping processes and higher payments for proper maintenance," it stated.

"Hyundai, Toyota, Renault and Ford manufacture in Türkiye, and since last May, like many other products, these cars are no longer exported to Israel. The list of models produced in Türkiye is well known because some of them are bestsellers."

Furthermore, the outlet cited that, for example, "the stocks of the Toyota Corolla family at Union Motors have run out, the Toyota CH-R is still available, and about a week ago, anyone trying to order the Hyundai i10, which was the cheapest car in Israel, encountered a message that ordering was not possible due to the situation with Türkiye."

"Those trying to place an order these days will find that the model's order page is no longer available," it added.

Ten months into the Israeli war, vast tracts of Gaza lie in ruins amid a crippling blockade of food, clean water and medicine.

Israel has killed nearly 40,000 Palestinians in Gaza since Oct. 7 and is accused of genocide at the International Court of Justice (ICJ) for its military campaign.

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  • Last Update: Aug 07, 2024 3:45 pm
    KEYWORDS
    türkiye-israel relations israel-palestine conflict trade relations exports automotive market shortages
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