The market leaders in the car industry, Fiat licensee Tofas and Oyak- Renault, have resumed production following suspensions of output due to the economic crisis.

The resumption follows a rescue deal for the battered automotive sector reached between the government and manufacturers based on tax concessions in exchange for price reductions. Aggressive discount sales campaigns by both companies have reduced their high stocks of a combined 30,000 units.

However, an Oyak-Renault spokesman says the company will take precautions again if the market re-enters a downturn. Tofas and Oyak-Renault have already laid off 3,200 and 1,300 workers respectively.

The automotive sector has been particularly hard hit by the crisis, with first half output down by 34 per cent compared with January-June 1993, and June levels down by 72 per cent on the same month a year previously.