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Production for the month totalled 93,364 units, compared with 108,083 units in the same month in 2011, the group said.
Passenger car production fell by 15% to 51,226 units, from 60,172, the association said.
Production of medium-sized trucks saw an even larger fall, with a 33% decline to 1,805 units in October. Production in the same month of 2011 was 2,685.
The biggest reduction was in tractors, where Turkish output went down by 35% to 2,691 units, from 4,137 units last year.
There were significant production rises in two types of buses, however, according to association statistics.
Minibus production rose by 23% to 2,457 units in October, from 1,994 units over the same period in 2011, while production of midibuses went up by a larger percentage to 434 units, 33% more than the 315 units in October 2011.
Midibuses are single-decker vehicles that can carry 30-40 passengers, fewer than a full-sized bus.
In the first ten months of 2012, Turkish vehicle production overall fell by 10%. Total output came to 922,032 units, down from 1.02 million in the corresponding months of 2011, the association said.
The light truck sector showed the biggest loss in the period, down by 32% to 2.37 million units, from 3.47 million in October 2011, the group revealed, while passenger automobiles were down by 11% to 479,420 units, from 536,909 units.
As in October, minibuses and midibuses saw increases in production over the first ten months of the year.
Minibus production rose by 32% to 22,607 units, from 17,126 in the first ten months of 2011, while the rise in midibus output was about half of October’s rate at 19%, with 3,408 vehicles produced in comparison with 2,857, the association said.
Tractor production was almost unchanged year-on-year, showing only a 1% drop in production to 37,386 units in January-October 2012, from 37,665 last year.