Automotive Exports – May 2017

Monthly automotive aftermarket magazine
Automotive Sector Has
Importance For Public Sector
The automotive industry features an outstanding sector in terms of the
public sector, Naci Agbal, Turkish Minister of Finance
The 7th edition of the Turkish
Automotive Authorized
Association (OYDER) was held in Istanbul.
In his keynote speech in opening
of congress Minister Agbal said the
automotive sector has become a sector
which is gaining importance with every
passing day. In the sector an increasingly
graphic happening in recent years, he
noted, adding this condition has brought
utmost positive expectation together for
the future.
Highlighting added-value of the Turkish
automotive industry, market and exports
to the Turkish economy in terms of
every aspect, Agbal said, “The share of
the automotive sector’s manufacturing
industry in the Gross National Product
is 10%. As for the share in the GDP is
3%. The automotive sector contributes
directly 4% to the employment in the
industrial sector, as for indirectly 15%.”
Indicating the automotive sector was
noteworthy resources for public finance
and in terms of income for budget, Agbal
continued; “The automotive sector is an
easy section in terms of tax collection. It
is registered in the rate of 100%. In 2016,
we collected TL18,9 billion as only special
consumption tax. Roughly there is social
security prime or income tax stoppage
nearly TL 10-15 billion. So, the sector is
abundance. The sector supports the
budget and economy.”
Marking the automotive sector had been
showing a performance increasingly
year on year; Agbal said as of the end of
2016, 16.8% of the total exports came
from the automotive industry.
Reminding the Turkish automotive market
had grown 13.4 percent between 2002-
2016, Minister Agbal recorded, “In this
period, the growth rate of the Turkey’s
economy is 5.7%. In other words, the
automotive market has grown over
twofold of the Turkish economy. It
shows this that the income flexibility of
the automotive market is quite high. In
that respect the positive developments
in the Turkish economy directly affect
the automotive market in a positive way.
Along with increased income in the
upcoming years, outstanding growth
would happen in the ownership of
automobile. This will keep the sector in
the positive level.”
Reminding the positive advancements
that have happened in the exports
made them delighted, Agbal continued;
“Especially, in 2016 and in the first quarter
of 2017 there are extraordinary boosts in
the sector exports. These increases are
the developments that make us enjoy
extremely in terms of contribution to the
economic growth in 2017.”
Minister Agbal stated currently over 21
million unit automotive existed in Turkey,
average age of these vehicles is 13-year
old. Over 15-year old vehicles accounted
for over 5 million units.
Marking the situation of the sector
involved some economic and political
preferences, Agbal said, “Paralleling the
Turkish economy development, the
automotive sector will record noteworthy
developments in the upcoming years.
Each 1% increase in the GDP pushes the
automotive market to grow more than 1
percent.”
In the meeting, Z. Alp Gulan, Chairman of
Automotive Authorized Sellers Association
(OYDER), said the automotive sector
would deal with 7 different ministries, so
being embodied via whether a ministry
or an Undersecretariat would let the
sector business to accelerate.
Stating the sector accomplished the
year 2016 successfully in the aspect of
production, exports and market, Gulan
said, “I think that there is much distance
in the market to go. The number of
vehicles per 1000 people is 250, of these
143 are automobiles. The automotive
sector featuring the export championship
needs a very strong domestic market
every time in order to attract the new
investors. The one of the most important
criterions of the strong market is a stable
and harmonious taxation system with the
EU.”
Indicating the market and production in
the world automotive sector has been
shifting to east, Gulan said; “In 2018,
the number of 30 million of the total
100 million vehicles which are expected
to be produced and sold in the world
would be produced and sold in China.
As such a great market is in question
for the investors, without having a
strong domestic market potential there
would constitute a risk in getting new
investment. In the upcoming 5 years the
primary target of the every firm should
exert effort, time and resource in order to
digitalize in business process. Those will
not fulfill this might be eliminated.”
Recording new regulations were needed
in the secondhand vehicles trade,
OYDER Chairman Gulan said their one
of the most important targets to have a
regulation put into force for the vehicles
which would complete their economiclife.
Koc Holding Executive Board Deputy
Chairman Ali Koc said the automotive
sector featured at the top of globalizing
sectors.
He continued, “We have been in a strong
position as the production and R & D
center in the European continent. Even
we can say the competition advantage
exists. Currently we rank at 14th in the
automobile production and 7th in the
light commercial vehicle production in
the world. In Europe we rank 1st in the
light commercial vehicle production and
5th in the automobile production. Our
country is developing with every passing
year. The average sector market was
440 thousand units in 2002-2004; 630
thousand in 2005-2009; 840 thousand
in 2010-2014 and over 1 million units in
the last 2 years. This shows our country
has how much resilience stance against
every kind of factors. Last year, we
guessed the domestic market as 900
thousand, but we confused. I hope we
will mistake the same fault in terms of
domestic sales this year. In the upcoming
years, we predict the last 10-year trend
will continue increasingly. The number
of vehicles per 1000 people is boosting.
When we look at the Western Europe
and other countries the market potential
is open and accomplishing sales of 2
million units in the upcoming period
might be a realistic prediction.”
Koc also added the sector has been the
locomotive in the country exports, while
producing the number of 1,5 million
vehicles in 2016, of these 1,1 million
were exported.
48 MAY 2017