Automotiv_September

www.automotive-exports.com 

Monthly automotive aftermarket magazine 

September 2018 

Turkish automotive sector 

keeps its growing trend 

Turkey’s automotive exports 

record 13.8 pct increase 

Auto spare parts 

production up

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GROUP CHAIRMAN 

H. FERRUH ISIK 

PUBLISHER: 

İstmag Magazin Gazetecilik 

İç ve Dış Ticaret Ltd. Şti. 

Genel Müdür 

Managing Editor 

Mehmet Söztutan 

mehmet.soztutan@img.com.tr 

Mehmet Soztutan, Editor-in-Chief 

mehmet.soztutan@img.com.tr 

We are at Automechanika, 

Frankfurt 2018 

Actually, the Turkish automotive and auto spare parts industry have prospered 

dynamically in line with ever increasing demand from abroad. So, business 

people operating in the industry have become outward oriented more than 

ever before. This fact is also reflected through the pages of our publications. 

Actually, the last decade has been a turning point for the Turkish automotive 

industry in terms of its integration into the world economy. Foreign firms 

that have been attentive to the potential that the Turkish automotive industry 

possesses have been investing in Turkey. Foreign partners have begun to view 

their facilities in Turkey as their production center for the global market. 

The auto parts industry of Turkey has developed rapidly as a consequence of 

developments in the automotive industry. The Turkish auto parts industry with 

its large capacity, wide variety of production and high standards, supports 

automotive industry production and the vehicles in Turkey and also has ample 

potential for exports. 

Following the shift of the focus on customers, markets, products and competition 

from the local level to the global level, Turkish manufacturers and suppliers 

position themselves globally rather than locally. 

There are numerous producers of automotive components and services in 

Turkey. These manufacturers compete in global markets and set high standards 

of export figures. Many companies operating in the Turkish market possess 

international certifications, enhancing their global market position. 

As known, our publications remain at the service of those businesses people 

seeking to increase their share in the increasingly competitive foreign markets. 

This month, we participate in Automechanika,Frankfurt 2018.The Fair will be 

celebrating its 25th anniversary with a host of new themes. We think that 

the Fair will live up to its status as the world’s major international trade fair for 

automotive parts, accessories, equipment and services and the best platform 

for tapping into the overseas markets. The Fair is very professional and highly 

recognised as there are more international brands, and the overall quality of 

exhibitors has increased in each edition. 

We are convinced that the event would be instrumental to increase business 

opportunities in the automotive industry as usual. 

We wish all business people success and lucrative business. 

Responsible Editor 

Yusuf Okçu 

yusuf.okcu@img.com.tr 

Editor 

Ayça Sarıoğlu 

ayca.sarioglu@img.com.tr 

Advertising Manager 

Nihat Akman 

otomotivnihat@gmail.com 

Foreign Relations Manager 

Yusuf Okcu 

yusuf.okcu@img.com.tr 

Consultant Editor 

Leniiara Agliullina 

Correspondent 

İsmail Çakır 

ismail.cakir@img.com.tr 

Graphics & Printing Manager 

Tayfun Aydın 

tayfun.aydin@img.com.tr 

Design & Graphics 

sami.aktas@img.com.tr 

Chief Accountant 

Zekai Turasan 

zturasan@img.com.tr 

Finance Manager 

Mustafa Aktas 

mustafa.aktas@img.com.tr 

Subsciption 

İsmail Özçelik 

ismail.ozcelik@img.com.tr 

HEAD OFFICE: 

Evren Mahallesi Bahar Caddesi Polat İş Merkezi 

B Blok No:1 Kat: 4 Güneşli - Bağcılar/ İstanbul 

Tel: (90.212) 604 51 00 

Fax: (90.212) 604 51 35 

www.img.com.tr turkey@ihlas.net.tr 

KONYA: 

Metin Demir 

Hazım Uluşahin İş Merkezi C Blok 

Kat: 6 No: 603-604-605 KONYA 

Tel: (90.332)238 10 71 Fax: (90.332)238 01 74 

PRINTED BY: 

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Merkez Mahallesi 29 Ekim Caddesi İhlas Plaza 

No:11 A/41 Yenibosna–Bahçelievler/ İSTANBUL 

Tel: 0212 454 30 00 

www.ihlasmatbaacilik.com 

Please mention 

Automotive Exports 

when writing to advertisers


BDDK 

decreases 

Turkish 

banks’ 

foreign 

currency 

swap limits 

Turkey's banking watchdog the Banking 

Regulation and Supervision Agency 

(BDDK) decreased the daily limit in 

foreign currency swap transactions from 

50 percent of banks' equity capital to 25 

percent in a bid to stabilize the lira. 

"The total notional principle amount of 

banks' currency swaps and other similar 

transactions (spot plus forward FX) with 

foreign counter parties where at the initial 

date of the transaction local banks pay 

TRY and receive FX should not exceed 25 

percent of the bank's regulatory capital," 

the BDDK said in a statement. 

"In this regard, unless current excess is 

eliminated, no further transactions of these 

types could be executed and maturing 

transaction should not be renewed. 

The above mentioned ratio should be 

calculated daily on a consolidated and 

individual basis," the statement added. 

Turkish officials described the U.S. 

moves and their effects on the lira as an 

economic war, and retaliated in kind to 

U.S. sanction. 

12 SEPTEMBER 2018

Automechanika Frankfurt celebrates 

silver anniversary 

Automechanika Frankfurt is the biggest and most important 

trade fair for the automotive industry. Its 25th anniversary is 

scheduled for 11 – 15 September 2018. During the last edition 

Messe Frankfurt welcomed a record number of participants - 

4843 exhibitors from 76 countries and 132,944 trade visitors 

from 170 countries. 

Manufacturers of equipment, parts and accessories, suppliers 

and service providers, industry associations, retailers, specialist 

publishers come to Frankfurt for 5 days of discussions and 

business deals. During Automechanika, decision makers are able 

to consolidate existing accounts and establish new ones, find 

investors or products, gain expertise and perspective, 

Automechanika’s significance and impact are undisputed - 

the event boasts unmatched product array and explores the 

automotive aftermarket in depth. It is where the mobility of 

tomorrow can be seen through the projects of the industry’s 

innovators. The 4 focal points in 2018 will be Alternative drives, 

Networked vehicles, New mobility services and New workshop 

technologies. 

From 2018 on, the number one event for the tyre industry REIFEN 

will be co-located with Automechanika Frankfurt. The expanded 

exhibition range, additional themes and business prospects will 

produce the perfect synergy. REIFEN 2018 will occupy Messe 

Frankfurt’s new Hall 12. 

In addition, classic and vintage cars will be introduced in a new 

distinct area of their own. In 2018 the biennial trade fair will be 

celebrating its 25th anniversary with a host of new themes and 

REIFEN as a co-located show. 

Today, the portfolio of Automechanika holds 16 events in 15 

countries. Newest member of the family is NACE Automechanika 

Atlanta The Automechanika brand is backed worldwide by 

around 21,000 exhibitors, 600,000 trade visitors and about 50 

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Turkish economy expected to be affected 

positively by US-China trade war 

According to U.S.-based credit rating 

agency Fitch Ratings, the trade war 

between the U.S. and China may 

positively impact the Turkish economy 

in 2019 and 2020. 

A statement released by Fitch 

indicates that the growing impact of 

the U.S.-China trade war may cause 

global economic growth to fall to 

2.8 in 2019. The credit rating agency 

said, "The possible rise of the trade 

tension due to the imposition of new 

tariffs on the $2 trillion dollar global 

trade flow may result in a 0.4 percent 

contraction in the global expansion in 

2019." In its June Global Economic 

Outlook report, Fitch estimated that 

the world economy might register a 

3.2 percent expansion in 2019. 

However, due to the trade wars, the 

agency cut back its estimations to 2.8 

percent. The agency also expressed 

its expectation that the U.S.-China led 

trade war, which continues to grow, 

may not affect the Turkish economy 

this year, but the Turkish economy 

is likely to see a 0.1 percent and 0.2 

percent rise in its growth in 2019 and 

2020, respectively, as a positive impact 

of the tension. The statement also 

highlighted that if the U.S. imposes 25 

percent tariffs on automotive imports 

from China, these tariffs will likely have 

reverberations on other economies.


Turkish, German finance ministers 

discuss recent developments, 

agree to meet in September 

Turkish Treasury and Finance 

Minister Berat Albayrak and his 

German counterpart Olaf Scholz 

discussed recent developments in 

Turkish economy in a phone call, 

agreeing to hold a meeting in Berlin 

on September 21 with their French 

counterpart Bruno Le Maire. 

Albayrak and Scholz discussed U.S. 

sanctions and steps taken against 

the Turkish economy in a phone 

call, according to a statement 

released by the ministry. 

"Scholz underscored the 

importance of the strong Turkish 

economy both for Germany and 

the European Union (EU)," the 

statement read. 

Minister Albayrak emphasized his 

appreciation for the supportive 

statements from Germany. 

"The statements that came 

particularly from German 

Chancellor Angela Merkel and 

other German and EU officials 

boost the confidence in Turkey 

ties with Germany and the EU," it 

added. 

Treasury and Finance Minister 

Berat Albayrak emphasized that the 

support for Turkey is promising for 

a period in which a cooperative 

and constructive approach will 

yield positive result for both sides. 

Both ministers have agreed to 

take steps to strengthen economic 

cooperation and initiate mutual 

efforts to that end in the upcoming 

period. They have also decided 

to hold a meeting in Berlin, the 

ministry's statement noted. 

18 SEPTEMBER 2018


Borsa Istanbul’s swap move to 

attract London transactions 

The Turkish stock exchange, Borsa 

Istanbul (BIST) is establishing a 

swap market to carry out overthe-counter 

transactions between 

financial market institutions in one 

organized market. 

This step to simplify liquidity 

management and increase 

transparency, would pull the overthe-counter 

transactions from 

the London market to this central 

market in BIST and help monitor 

financial markets more closely. 

The market would also help 

manage risks that occur as a result 

of the positions that are opened 

in the underlying assets, such as 

exchange rates and interest rates, 

more effectively. It will also produce 

a liquid market where the risks are 

cleared. 

In terms of investors, with the 

Istanbul Clearing, Settlement 

and Custody Bank (Takasbank) 

as the central counterparty, it will 

be possible to produce a more 

reliable environment so that the 

institutions that have access to the 

stock market can manage their risks 

more effectively. Institutions that 

have access to the stock market 

in the financial markets will be 

able to manage risks caused by 

incompatibilities, such as maturity, 

exchange rate, and interest type 

differentiation, more effectively. 

In a written statement BIST said that 

"the swap market, which is one of 

the most active markets in global 

financial markets, has started to be 

established in our stock market to 

serve all financial sector participants, 

especially our banks." 

Accordingly, Takasbank, as the 

central counterparty, will carry out 

the clearing of the transactions in 

this market and will provide risk and 

guarantee management services. 

"The commissioning of the swap 

market in our stock market will 

pave the way for such transactions, 

which are often carried out overthe-counter, 

to be carried out in 

our country under the guarantee 

of an organized market," the 

statement read. 

With the swap market, which is 

planned to be realized for the 

foreign exchange markets in the 

first place, BIST will continue to work 

on new products and markets, the 

statement noted. 

"The projects that will increase the 

depth of our existing derivative 

markets and their added-value 

to the country's economy will be 

accelerated," it added. 

It stated that basic issues such 

as market makers and liquidity 

provision in the market operation 

will be explained to the public 

through consultation with all 

stakeholders. 

The Banking Regulation and 

Supervision Agency (BDDK) has 

recently set limits for banks in 

Turkey to have up to 25 percent 

of the bank's last calculated equity 

as the sum of swaps and similar 

transactions with residents abroad. 

"If this restriction is relaxed for 

transactions in BIST, the banks 

may be relieved," said market 

experts, stressing that transactions 

between institutions themselves 

will produce transparency in terms 

of instantaneous visibility in this 

organized market. 

Analysts also pointed out that as 

institutions like BIST and the BDDK 

will carry out the flow of information 

to the central bank very quickly, the 

central bank will be more dominant 

in the market and will be able to act 

faster. 

The Capital Markets Board (CMB) 

said that data on these transactions 

will be collected by Central Registry 

Agency (CRA) and the necessary 

regulations will be made quickly, 

in order to transparentize the overthe-counter 

derivative transactions 

and monitor the risks. 

22 SEPTEMBER 2018


Erdoğan, Steinmeier discuss 

bilateral relations 

President Recep Tayyip Erdoğan 

and his German counterpart 

Frank-Walter Steinmeier discussed 

bilateral relations in a phone 

call with the Turkish president's 

state visit to Berlin approaching. 

According to the president's 

office, both leaders reiterated their 

determination to enhance bilateral 

ties, saying ministerial level visits will 

accelerate relations. Both countries' 

treasury and finance ministers 

are expected to hold meetings. 

Erdoğan also held a phone call 

with British Prime Minister Theresa 

May to discuss bilateral relations 

and regional issues. The two also 

exchanged views on the areas of 

economy, trade and investment. 

The European Union wants to see 

stable economic development in 

Turkey, Germany's foreign minister 

said. 

Speaking to German business 

representatives and ambassadors 

at the Foreign Ministry, Heiko 

Maas criticized U.S. President 

Donald Trump's sanctions and his 

economic pressure policy toward 

Turkey. 

"Of course we Europeans have a 

great interest in stable economic 

development in Turkey," he said. 

Maas said he will visit Turkey to 

meet Turkish government officials 

and discuss recent economic 

developments. 

Over the past two years political 

relations between Ankara and 

Berlin have suffered setbacks, but 

in recent months both sides have 

taken steps towards improving ties. 

Germany is Turkey's main economic 

and trade partner. More than 7,500 

German companies are active in 

Turkey. In 2017, the bilateral trade 

volume reached 37.6 billion euros 

($43.6 billion). 

He said Washington's sanctions 

forces Europe to formulate a 

response because the actions affect 

the bloc as well, adding that maybe 

the same could be done in the 

future "against our other important 

trading partners." 

European member states should 

take joint steps against U.S. 

dominance in global finance, 

he suggested, and proposed a 

European alternative to the U.S.- 

dominated SWIFT payment system. 

Germany's Economy Minister Peter 

Altmaier also voiced support for 

Turkey amid market worries after 

Trump imposed sanctions and 

raised tariffs on Turkey. 

Political tensions between Ankara 

and Washington had sparked 

worries in markets early this 

month, after Trump threatened 

to use economic pressure over 

the prosecution of an American 

pastor who faces terrorism-related 

charges in Turkey. 

Altmaier underlined Turkey's 

importance for Germany and for 

the EU. "We can have no interest 

in the destabilization of a country 

like Turkey with a population of 80 

million, which also hosts around 4 

million refugees," he said. 

Many of the European leaders 

earlier this month raised their voices 

to highlight the significance of the 

Turkish economy that has recently 

come under attack with the 

threatening economic showdown 

of Trump. 

Among them, Germany was one of 

the first countries that voiced strong 

support for the stabilization of the 

Turkish economy and emphasize 

its importance for Turkey's major 

partners, particularly EU countries. 

German Chancellor Angela Merkel 

emphasized the importance 

of a strong Turkish economy 

for Germany in a phone call 

with President Erdoğan as the 

two leaders stated their mutual 

determination to maintain 

cooperation between the two 

countries. 

24 SEPTEMBER 2018


Government sees no big 

risk in Turkish economy and 

financial system 

The government sees no big risk 

regarding Turkey’s economy or 

financial system, as the economy’s 

foundations are robust in mainly 

three areas, Treasury and Finance 

Minister Berat Albayrak has said. 

En route from Paris to Ankara, he 

also told a group of journalists 

that the government has been 

seeing the recent fluctuations as 

an opportunity to strengthen the 

country’s economyand financial 

system. 

In elaborating on the strong 

fundamentals, Albayrak said the 

public sector’s debt levels were 

low, household indebtedness was 

among the world’s lowest and the 

financial sector was quite robust. 

“We do not see a big risk regarding 

the Turkish economy and financial 

system, as our economy has strong 

fundamentals. The main point 

here is for us to examine what our 

deficiencies are … In this regard, we 

will realize the required structural 

reforms,” the minister said on Aug. 

27 when he was returning from 

Paris, where he held a meeting 

with his French counterpart Bruno 

Le Maire. 

According to Albayrak, the Turkish 

economy has three characteristics 

which will enable it “to minimize 

the risks of any global crises.” 

“First of all, our public sector’s debt 

is one of the world’s lowest in terms 

of net indebtedness. There is not 

any risk in this area,” he said. 

“Secondly, Turkey also has one 

of the lowest levels of household 

indebtedness,” Albayrak added. 

“Thirdly, our financial system is quite 

robust. Despite all recent tests, the 

system functions very well. The 

capital adequacy rate of our banks 

is at 16 percent, much higher than 

the European limit at 8 percent,” he 

said, adding that “the government 

does not see a big risk in general 

thanks to these strengths.” 

Albayrak noted the government 

saw the recent fluctuations in 

Turkish markets and the lira as an 

opportunity to do better. 

“We must build a much stronger 

structure to evade any future 

economic or financial fluctuations. 

We have taken the required lessons 

from the recent developments. We 

see this process as an opportunity 

to build do better,” he said, adding 

that there were political reasons 

behind the recent fluctuations. 

“The recent process was completely 

political, as there is not any change 

in Turkey’s strong economic 

fundamentals,” he said, while 

signaling further cooperation in 

economic terms with new actors 

after Qatar. 

A row with Washington over an 

American evangelical Christian 

pastor detained in Turkey on terror 

charges has accelerated losses in 

the lira, which is down about 38 

percent against the dollar this year. 

After a meeting with his French 

counterpart in Paris, Albayrak 

highlighted Ankara’s push for 

better ties with Europe and took 

aim at the United States, saying 

U.S. sanctions could ultimately 

aggravate the region’s terrorism 

and refugee crises. 

26 SEPTEMBER 2018


Istanbul to host international 

automotive engineering conference 

The movers and shakers of the global 

automotive industry will attend 

the "International Automotive 

Engineering Conference" (IAEC'18) 

being held for the third time in 

Istanbul. 

According to the written statement 

released by the Uludağ Automotive 

Industry Exporters' Association 

(OİB), the conference will be 

held at Swissotel The Bosphorus 

from Nov. 1-2 to discuss future 

automotive trends and address the 

latest developments in automotive 

electronics and software. 

Preparations for the event jointly 

organized by the OİB, the 

Automotive Industry Association 

(OSD), the Automotive Technology 

Platform (OTEP), the Vehicles 

Procurement Industrialists 

Association (TAYSAD) and the 

Association of American Automotive 

Engineers (SAE) are underway. 

The event is designed to facilitate 

discussion about the necessary 

steps to be taken by the automotive 

industry in engineering in the 

current dynamics of the sector 

while taking into account the 

opinions of international specialists 

from a technical point of view. 

Topics include: "New 

Developments;" "Software Security 

and Block Chain;" "Regulations and 

Tests for Smart Vehicles;" "Adaptive 

Platform for Smart Vehicles;" 

"Impacts of Developing New 

Technologies on the Automotive 

Industry;" "Future of 5G and 

Communication between Tools;" 

"Future of Electronics in Vehicles;" 

"Artificial Intelligence in Vehicles;" 

"Technology and Ethics;" "Domestic 

Entrepreneurship Strategies in 

Automotive;" and "Impacts of 

Developing Technologies and 

Innovative Initiatives on the 

Automotive Sector," and will be 

addressed in the third edition 

of the event under the theme 

"Present and Future of Automotive 

Electronics and Software." 

For the first time this year, master's 

theses and Ph.D. dissertations 

completed in automotive-related 

fields will be awarded at the 

conference. The top three thesis 

holders in the competition will 

invited to join one of the SAE's 

overseas conferences. 

28 SEPTEMBER 2018


Turkey undoubtedly being 

targeted, US economist 

Perkins says 

American economist and author John Perkins 

American economist and author 

John Perkins, best known for his 

book titled "Confessions of an 

Economic Hit Man" told Anadolu 

Agency that he had no doubt "a 

developing economy like in Turkey" 

is being targeted by economic hit 

men, adding that they not only 

work for the U.S. but also for other 

governments. 

Perkins underlined that the global 

financial order is being shaped 

according to the benefits of 

dominant powers, saying that 

these powers obtain major financial 

gains by promoting rivalry between 

two states. 

"They pit one country against 

another in order to arrange huge 

tax benefits, wage rates and other 

labor conditions, and numerous 

other policies that benefit their 

corporations, but hurt the people 

of the country," he said. 

Speaking to Anadolu Agency, 

the 73-year-old economist also 

recommended that Turkey stay 

away from the International 

Monetary Fund (IMF), saying the 

country has many options like 

Qatar. 

Perkins said that countries like 

Turkey could use such offers as an 

advantage to start a rivalry between 

financial institutions in China, U.S. 

and the Gulf region. 

"Countries like Turkey should 

definitely be negotiating with 

Russia, China, the Gulf countries, 

etc. I don't think they necessarily 

need to form alliances, but should 

use the leverage these countries 

offer to strike deals that are much 

more beneficial to their people," he 

said. 

"Turkey should do anything to 

prevent further foreign debt," 

Perkins added. 

The economist stressed that 

developing economies need to 

stand firm against the burden of 

debt, advising these countries to 

come together in order to reject 

the repayment of such unfairly and 

corruptly given debts. 

"Countries like Iceland, Argentina, 

and Ecuador provide an example 

of how this can be done," he said. 

Commenting on U.S. President 

Donald Trump's international trade 

policies, Perkins said that they pose 

a threat to the future of global 

economy. 

"President Trump seems to be 

determined to turn traditional 

international relations and the 

global economy upside down," 

Perkins said, adding that Trump's 

policies were extremely dangerous 

to the whole world, including the 

U.S. itself. 

Reminding that Turkey is not the 

only state subject to U.S. sanctions, 

the veteran economist said Ankara 

should do everything possible to 

retract Washington toward being 

reasonable. 

Turkey-U.S. relations deteriorated 

to an unprecedented extent after 

Washington decided to impose 

sanctions on Interior Minister 

Süleyman Soylu and Justice Minister 

Abdulhamit Gül over the detention 

of terror-linked pastor Andrew 

Brunson. 

Since then, Ankara has called on its 

counterparts in the U.S. to come to 

their senses and has been trying to 

solve the matter through diplomatic 

channels. 

30 SEPTEMBER 2018


OECD: Turkey had highest 

import shrink of G20 

countries in Q2 

Among G20 countries in the 

second quarter of this year, Turkey 

saw its imports shrink the most 

according to the latest report on 

foreign trade from the Organization 

for Economic Co-operation and 

Development (OECD). 

The report by the Parisheadquartered 

organization 

indicates that Turkey's imports 

were down by 9.4 percent in the 

second quarter compared to the 

first quarter. 

Imports stood at $64.3 billion in the 

first quarter, but declined to $58.3 

billion in the second quarter. 

In the same period, Turkey's exports 

decreased by 0.9 percent from 

$40.07 percent to $40.3 billion. 

G20 international trade contracted 

in the second quarter of this 

year, following eight consecutive 

quarters of growth, the OECD 

said. G20 exports declined by 

0.6 percent and imports by 0.9 

percent, it noted. 

It indicated that Saudi Arabia saw 

the highest increase in exports in the 

second quarter with 9.7 percent, 

followed by India (5.7 percent), 

the U.S. (4.4 percent), Canada (4.4 

percent), Russia (1.2 percent) and 

Australia (1.2 percent). 

Saudi Arabian exports were $73.3 

billion in the second quarter, while 

India and the U.S. saw their exports 

reach $80.8 billion and $427.3 

billion, respectively. 

Moreover, exports contracted 

strongly in Argentina (19.9 

percent), Brazil (9 percent), the 

U.K. (6.9 percent), with falls also 

recorded in China (2.8 percent) 

and the European Union (1.9 

percent). 

China's exports were $645.2 billion 

in the first quarter before declining 

to $627.2 billion in the second 

quarter. 

"Imports contracted in most G20 

economies, most significantly in 

Turkey (9.4 percent) and Brazil (6.5 

percent). Imports only increased in 

India (2.9 percent), Canada (1.4 

percent), Mexico (1.4 percent), 

Japan (1.2 percent) and Indonesia 

(1.2 percent," the OECD said in the 

report. 

The organization also said the 

widespread contraction in 

international trade can be partly 

explained by the significant 

depreciation of a number of 

currencies against the U.S. dollar 

in the second quarter, notably the 

Argentine peso (down 18 percent), 

the Turkish lira (down 15 percent) 

and the Brazilian real (down 11 

percent). 

"These effects were partially offset 

by rising oil prices: benchmark 

Dubai Crude increased to $71.6 

per barrel in the second quarter 

compared to $64.0 in the previous 

quarter," it added. 

Meanwhile, Turkey's foreign trade 

balance ran a $5.98 billion deficit in 

July, marking a year-on-year fall of 

32.6 percent, the national statistical 

body announced. 

Last month, the country's exports 

amounted to $14.07 billion, an 

11.6 percent annual hike, while 

imports totaled $20.05 billion, a 

6.7 percent decrease, compared 

to July 2017, the Turkish Statistical 

Institute (TurkStat) said. 

TurkStat noted that from January to 

July this year, exports were $96.27 

billion - up 7 percent on a yearly 

basis - and imports were some 

$143 billion, an annual hike of 10.2 

percent. 

According to official figures, 

the seven-month trade balance 

showed a deficit of $46.75 billion, 

up 10.2 percent over the same 

period last year. 

Official data showed that the ratio of 

manufacturing industries products 

in total exports was 94.9 percent in 

July, amounting to $13.36 billion. 

In 2014, Turkey's exports hit an alltime 

high of $157.6 billion, while 

the figure was nearly $157 billion 

last year. 

34 SEPTEMBER 2018


Turkish automotive sector 

keeps its growing trend 

According to a report by İşbank: Turkish automotive sector will continue 

its growth in the coming years, though at a slower rate. In 2018, there might 

be a downward pressure on the production front due to high-base effect. 

Recent figures suggest that, in the first quarter of 2018, total automotive 

production remained flat compared to the same period of last year. 

In this period, production of 

passenger cars fell 5% whereas 

commercial vehicle production 

increased by 13%yearly. On 

the other hand, strong growth 

in exports is expected to limit 

the downside pressures on 

production. In the first quarter, 

total exports went up by 18% yoy 

reaching 8.4 billion USD. In line 

with the favourable outlook in 

the external markets, especially 

relatively solid economic activity 

in Europe, exports are expected 

to keep its strength throughout 

the year. In 2018, appreciation of 

euro against dollar will continue 

to effect exports positively as 

well. Moreover, the share of 

domestically produced vehicles 

in domestic market has been 

growing as a result of rising 

imported vehicle prices due to 

higher FX rates. 

The launch of new models also 

contributed to this change in 

consumption patterns. Hence, in 

the first quarter of 2018, the share 

of imports was realized as 61% in 

total sales and 66% in passenger 

car sales. In 2017, these figures 

were 63% and 70%, respectively. 

As for the long-term prospects, 

low vehicle per capita ratio and 

relatively old age of vehicle park 

will keep on stimulating domestic 

demand for the automotive sector 

in Turkey. 

In this sense, the scrappage 

scheme which is settled in 

March 2018 will contribute to 

the expansion of the market 

positively. On the investment 

front, projects related to electric 

and hybrid vehicle production 

will be on the agenda. In this 

context, under the treatment of 

project-based public incentive 

system, Turkish government 

granted two companies to benefit 

from the incentives on hybrid 

and diesel engine investments. 

Another project going on is the 

“domestic car” which has been 

undertaken by a joint venture of 

domestic companies. For the time 

being, the plan is to introduce a 

prototype by 2019 and initiate its 

first sale in 2021. 

36 SEPTEMBER 2018


Turkey offers challenging opportunities 

for global manufacturers 

Tuğra Gönden, Cushman&Wakefield managing partner 

According to Manufacturing 

Risk Index 2018 research 

carried out by the commercial 

real estate consulting firm 

Cushman&Wakefield, China has 

maintained the lead in global 

manufacturing, while Turkey with 

a cost advantage, infrastructure 

investments and geographical 

location, has entered the top 10 

in the world. 

Withthe research, which examines 

a range of risks and cost factors, 

n the framework of research 

including political and economic 

risks as well as labor cost, a 

comprehensive assessment of the 

attractiveness of 42 countries for 

global manufacturing was carried 

out. 

The report said the global 

economy remains in good 

shape despite the uncertainty 

surrounding the future of U.S.' 

trade policies, the shape of 

Brexit in Europe and heightened 

geopolitical risk in the Middle East, 

parts of Asia and Latin America. 

"Global GDP [gross domestic 

product] growth is forecast to 

accelerate to 3.2 percent in 

2018 from 2.9 percent last year. 

Multiple factors support this 

outlook: The robust economic 

fundamentals of the U.S., Europe 

and China, a cautious monetary 

policy by the major global central 

banks and strong trade growth. 

The global exports of goods are 

expected to grow by 5.5 percent 

in 2017 - their fastest pace in five 

years - and by over 4 percent in 

2018," the report read. 

Industrial output in 2018 is 

projected to increase by 3.8 

percent globally - its fastest rate 

since 2011 - and by 3.0 percent 

in Europe, the report said. 

It also suggested that economic 

development and technological 

trends will shape the type 

and distribution of future 

manufacturing, but the sector 

will remain an engine of global 

growth. By 2020, the report said, 

manufacturing's share of the GDP 

will exceed 20 percent in the top 

60 largest global economies. In 

China, manufacturing will still 

account for a massive 30 percent 

of the GDP in 2025. In the 

eurozone, manufacturing makes 

up 17 percent of the GDP, led by 

Germany with over 23 percent. 

The report revealed that wage 

hikes and growing labor shortages 

in Central Europe are pushing 

more cost-sensitive industries east 

to Lithuania, Romania, Bulgaria 

and Turkey. 

"Emerging manufacturing 

locations in Turkey, Romania 

and Bulgaria are increasing in 

attractiveness based primarily on 

cost," it added. 

With infrastructure investments 

and the strength of its 

geographical location, Turkey 

continues to be the leading 

production base in the world. 

Its cost advantage, infrastructure 

investments and geographical 

location has enabled the country 

to enter among top 10 in the 

world. In his assessment regarding 

the report, Cushman&Wakefield 

managing partner Tuğra Gönden 

said economic, political and 

technological developments 

that have rapidly evolved have 

affected countries' positions in the 

production market. 

Gönden also indicated that it is 

possible with long-term structural 

trends and strategic positioning to 

ensure growth and sustainability 

in an increasingly competitive 

global manufacturing arena. 

"Located at the intersection of 

Europe, Asia, Russia and Africa, 

Turkey's geographical location 

and high-tech infrastructure 

investments offer significant 

advantages in terms of the 

global manufacturing market. 

Despite the geopolitical risks 

faced, our country continues 

to be the production base of 

Europe and the world. I believe 

that by correctly evaluating the 

location and potential of Turkey, 

the country will be a shining star 

in production in the long term," 

Gönden said. 

40 SEPTEMBER 2018


Swiss investor Faber says now good 

time to invest in Turkish assets 

Renowned global investor and 

markets commentator Marc 

Faber, best known for being a 

market pessimist which earned 

him the nickname "Dr. Doom", 

said Turkish assets could present 

a good investment opportunity at 

the moment. 

Although the economic strategist 

has been warning since 2010 

that global markets are headed 

for a 1987-style market crash, 

Faber told Anadolu Agency that 

he didn't foresee such a grim 

future for the Turkish economy. 

"People always say they would 

like to buy low and sell high. Well, 

Turkish stocks are valued in U.S 

dollars. At the moment they are 

within buying range. I am going 

to buy some Turkish assets, ETF's 

(Exchange-Traded Funds)," he 

said. 

Stating that he already had some 

Turkish bonds, although not in 

very large quantities, Faber said 

Marc Faber, İnvestor 

now was a good time to invest in 

Turkish assets. 

Faber, who is also the publisher 

of "The Gloom, Boom & Doom 

Report", said Turkey must reduce 

its sensitivities, narrow its trade 

deficit and close its current 

account deficit to not be affected 

by volatility in the coming period. 

Reiterating that the foreign and 

economic policies of the United 

States were not right, the Swiss 

investor said: "Trump is not 

pursuing diplomacy in foreign 

policy. He is like a bull in a china 

shop. He keeps picking on 

everyone; there is no diplomacy 

whatsoever. " 

"Turkey's Trump card is NATO. 

NATO has crucial bases in Turkey. 

Turkey has two options in the 

long-term; it can stay close to 

Europe and stay in NATO or 

join the Shanghai Cooperation 

Organization. This would indicate 

that Turkey has left the West or 

that it will be in less contact with 

it, becoming closer with Russia 

and China instead. This is an 

option in Mr. Erdoğan's hand. I 

think Trump does not understand 

that this is a very real possibility," 

he said adding that Turkey was 

not without alternatives. 

Underlining that U.S. President 

Donald Trump's trade policies 

could drag the world into 

recession, Faber said, "Economists 

around Trump believe that imports 

from China are responsible for 

the U.S.' trade deficit. China is 

the indicator of the US.' declining 

competitive power. The U.S. has 

had low capital investment over 

the last 20-30years. Economists 

believed that consumption should 

be increased to increase growth. 

The result is naturally an increase 

in trade deficit. " 

Faber pointed out that the 

consequences of the global trade 

wars initiated by the U.S. could be 

devastating, saying "Trade wars 

are complete madness. They are 

continuing at a time the global 

economy is already slowing 

down. Just look at copper prices 

now, for example, they have 

completely collapsed. This is a 

sign that the global economy 

is slowing down. I think we are 

headed towards a recession." 

President Trump announced 

on Aug. 10 that the U.S. was 

doubling aluminum and steel 

import tariffs on Turkey, fixing 

them at 20 percent and 50 

percent, respectively. 

In retaliation, Turkey also 

increased tariffs on several U.S.- 

origin products, including alcohol 

and tobacco products and cars, 

according to a new presidential 

decree published in the official 

gazette. 

44 SEPTEMBER 2018


Bursa prospers in 

automotive exports 

Almost two-thirds of the roughly 

900,000 vehicles that Turkey is 

expected to export to foreign 

markets are assembled in Bursa. 

Thousands of people work in 

giant car factories that produce 

vehicles for global companies like 

Renault and Fiat to be sold on the 

growing Turkish market or to be 

shipped to Europe. 

The car industry in Bursa is hugewith 

Renault and Fiat vehicles 

manufactured in factories to 

be sold in Turkey or exported 

to Europe. More recently, 

government officials and 

businessmen have been trying 

to promote Bursa as a tourist 

destination. 

The Turkish automotive and spare 

parts industry is concentrated in 

the Marmara Region, mainly in 

Bursa. Two major car factories 

and two “Organized Industrial 

Zones” are located in Bursa. 

The automotive supplier industry 

of Bursa produces almost all 

types of parts, components and 

spare parts such as engines and 

engine parts, power train parts 

and components, brake and 

clutch parts and components, 

hydraulic and pneumatic systems, 

suspension systems, security 

systems, rubber and plastic parts, 

chassis, frames and parts, casting 

and forging, electrical equipment 

and parts, lighting systems, 

accumulator batteries, seats etc. 

The auto parts industry of Bursa 

has developed rapidly as a 

consequence of developments 

in the automotive industry. 

The auto parts industry with its 

large capacity, wide variety of 

production and high standards, 

supports automotive industry 

production and the vehicles in 

Bursa and also has ample potential 

for exports. The automotive and 

auto spare parts industry have 

prospered dynamically in line 

with ever increasing demand 

from abroad. 

46 SEPTEMBER 2018


Turkey’s automotive exports 

record 13.8 pct increase 

Turkey's automotive exports in 

July stood at $2.7 billion, with 

an increase of 13.8 percent 

compared to the same month last 

year. According to the June data 

of Uludağ Automotive Industry 

Exporters' Association (OİB), the 

sector's exports increased by 

14.4 percent in the January-July 

period, reaching $19.2 billion. 

Exports of passenger cars 

increased by 7 percent to $7.7 

billion in the January-July period, 

compared to the same period of 

the previous year. 

The automotive subindustry 

exports rose by 22 percent, 

exports of motor vehicles for 

goods transport by 15 percent, 

while bus-minibus-midibus 

exports rose by 6 percent. 

In terms of products group, the 

automotive sub-industry exports 

increased by 22 percent to 

$913 million, while passenger 

car exports surged by 5 percent 

to $1.1 billion, motor vehicle 

exports for goods transport by 

11.5 percent to $487 million, and 

midibus exports went up by 17 

percent to $157 million. 

In July, exports to the U.K. 

increased by 30 percent, 

followed by France with 36 

percent. Exports to the U.S., on 

the other hand, declined by 31 

percent. Exports to Germany, the 

leading market for the automotive 

subindustry, increased by 9 

percent, while exports to Italy 

rose by 18 percent, followed 

by France with an increase of 

48 percent, Romania with 20 

percent, the U.S. with 45 percent 

and Russia with 42 percent. 

Meanwhile, in bus-minibusmidibus 

exports, there was an 

increase of 42 percent in exports 

to France. But Germany, another 

important market in this respect, 

experienced a decrease of 6 

percent, while other leading 

markets in this product group, 

Italy, the U.K. and Spain showed 

an increase of 75 percent, 

102 percent and 77 percent, 

respectively. On a country-bycountry 

basis, the largest market 

in July was Germany with $394 

million in exports, with an 

increase of 12 percent. It was 

followed by the U.K. with $352 

million. Exports to France, the 

third-largest market for Turkey, 

increased by 36 percent to 

reach $322 million. Exports of 

passenger cars to the U.K. rose by 

39 percent while export of motor 

vehicles for goods transport to the 

country increased by 16 percent. 

Passenger car exports to France, 

on the other hand, increased by 

39 percent and exports in the 

automotive sub-industry rose 

by 48 percent. In July, while 

there was an increase in exports 

to key markets - Slovenia by 42 

percent, Poland by 23 percent, 

Romania by 24 percent, Hungary 

by 74 percent, and Russia by 29 

percent, exports to Spain dropped 

by 11.5 percent, to the U.S. by 31 

percent, to Israel by 14.5 percent 

and to Iran by 45 percent. 

The increase in exports to 

Slovenia was affected by the 58 

percent increase in motor vehicle 

exports along with the increase 

of 26 percent in passenger cars. 

In Spain, a 61 percent drop in 

exports of motor vehicles for 

goods also affected the overall 

decline. Exports to the European 

Union countries, the largest 

market in country groups, rose by 

15 percent to $2.2 million with 

a share of 79 percent in exports. 

With regards to the alternative 

markets, African countries showed 

an increase of 50 percent, while 

exports to North American Free 

Trade Zone fell by 20 percent. 

48 SEPTEMBER 2018


Yeni İsp Oto Yedek Parça penetrates 

into foreign markets 

ABD,AAPEX fuar,2017 Martex,Polonya 2014 Rusya, OOO MZ Tonar 2006 

Founded in 2001, Yeni İsp Oto Yedek 

Parça has been exporting quality 

auto spare parts and accessories to 

Russia, Ukraine, Poland, Lithuania, 

Belarus, Kazakhstan, Uzbekistan, 

Bulgaria and many other countries 

for 20 years. 

The Company also involves in 

marketing of the automotive 

products of a series of leading firms 

operating in the industry such as 

Meklas, Maysan Mando, Aydınsan, 

Sem Lastik, Kale Balata, Besel Bijon, 

Hobby Exhaust, Mesa, Kormas. 

Erman Nuroğlu, one of the founders 

of the Company, being an Associate 

Professor of Polymer Physics, shares 

his experiences with the clients. 

Mürsel Serter, other partner of the 

Company, has become a locomotive 

of this sector with Sertplas which 

is a well known company of the 

automotive world. 

Erman Nuroğlu, Chairman of the 

Board of the Company attended 

conferences organized for the 

10th and 15th anniversary of 

the establishment of MZ TONAR, 

one of the biggest truck & trailer 

manufacturer of the Russian 

Federation, in 2005 and 2010. He 

also participated in the international 

conference on the New Solutions 

for Automotive Electricity in Kaluga, 

Russian Federation. 

Yeni İsp Oto Yedek Parça Dış Ticaret 

Ltd.Şti. represents the Turkish spare 

parts sector successfully abroad. 

Erman Nuroğlu regularly participates 

in promotional activities at Frankfurt, 

Moscow, Shanghai and Poznan fairs 

and also undertakes the promotion 

of automotive products abroad 

as a participant at Automechanica 

Frankfurt, Istanbul fairs and AAPEX 

2017 Las Vegas, USA. 

İstanbul,Automechanika,2018 

Moskova MIMS,2018 

FUAR 2011 Moskova 

50 SEPTEMBER 2018


Turkey becomes an attractive 

base for Gulf investors 

Gulf investors, were hosted 

in Konya and Mersin this 

year, Investment Support and 

Promotion Agency of Turkey 

(ISPAT) Gulf States Representative 

M. Mustafa Göksu said, adding 

that investors are interested in 

agriculture and livestock. 

Göksu said that they brought 

hundreds of investors from the 

Gulf countries to Turkey last year 

and that this year they also hosted 

163 investors primarily from Saudi 

Arabia in Mersin and 200 in 

Konya. 

Göksu said in a statement that 

interest from investors from the 

Gulf in Turkey is increasing. 

Prefacing that Turkey's economy 

is growing, Göksu said investors 

are coming to Turkey to address 

the domestic market and realize 

imports already made with 

other countries from Turkey. 

"This is a golden opportunity 

for us. We will make Turkey a 

base in investment and exports. 

Because Turkey is a very attractive 

country," Göksu said, adding that 

investors examine the incentives 

in all countries. 

"Incentives are like icing on a 

cake. If the cake is good, the icing 

has meaning. If the cake is bad, 

the icing has no meaning," Göksu 

said. 

He said that Turkey is a suitable 

country for investment and that 

investors rely on Turkey and its 

stability. "The heart and soul of the 

Arab world is with us. They want 

to become locals by converting 

this love into investment in 

Turkey. Hopefully, just like every 

year, we continue to increase the 

investments this year by bringing 

hundreds of investors in Turkey." 

Göksu said they bring investors 

from different sectors to Turkey 

every year. "By introducing 

Gulf investors to companies in 

Turkey, we enable investments 

and exports to increase and 

partnerships to form, paving the 

way for Turkish businesspeople 

who want to expand their 

businesses," Göksu said."As we 

introduce these companies to 

Gulf countries, we are bringing 

together people who work in a 

certain sector we determine every 

year." Last year they brought 

together Turkish companies and 

investors operating in energy and 

Göksu said that this year, they 

brought together businesspeople 

working in agriculture and 

livestock from both Turkey and 

the Gulf. "We aim to reduce 

the meat imports of our country 

and turn it into an exporter. Our 

geography is very convenient for 

this," he said. 

Pointing to investors' desire to 

come to Turkey, investment and 

become locals, Göksu said despite 

the fact that these people procure 

the products they import more 

cheaply from other countries, 

they see Turkey as a supplier in 

animal consumption and added 

that they will bring these people 

to Turkey. 

Göksu previously said they will 

familiarize Arab investors with 

investment opportunities in Turkey 

and introduce them to domestic 

firms. He said that interest in 

the forum was well above their 

expectations and that they plan to 

organize a second forum to meet 

demand. 

"With these activities, we aim to 

introduce investors from Gulf 

countries to domestic investors 

and present the opportunities 

Turkey has to offer to foreign 

investors. Our goal is also to bring 

Arab investors together with 

those who do the same work for 

them to establish partnerships 

and enable them to carry these 

partnerships to other countries," 

Göksu said. 

Göksü said that last year they 

hosted very productive programs 

in Diyarbakır and Şanlıurfa for 50 

businessmen from Saudi Arabia, 

Qatar, Kuwait and Bahrain who 

participated in the 8th Middle East 

Agriculture, Livestock, Poultry and 

Dairy Industry Fair. Arab investors 

who and made connections 

with local companies continue 

to closely follow the domestic 

market, he said. 

56 SEPTEMBER 2018


VW to offer all-electric car sharing 

service in Germany’s Berlin 

Volkswagen said it's launching an 

all-electric car sharing service in 

Berlin using its battery powered 

Golf and Up! models as it seeks to 

build a business serving people in 

big cities who don't own cars. 

The company said that it planned 

to expand its" We Share" project 

to big cities in Europe and North 

America by 2020. 

Volkswagen said it would deploy 

2,000 of the compact cars in the 

first months of next year to build 

visibility and ensure that there 

are enough cars available that 

customers could always find one 

near them. 

It said Berlin was ideal because it 

was big and densely populated. 

Set to begin in the second quarter 

of 2019, We Share will at first 

offer 1,500 VW e-Golf compact 

cars in the capital, with a further 

500 smaller e-up! vehicles to be 

added later. 

The cars will gradually be replaced 

as new models from VW's nextgeneration 

"I.D." range become 

available. 

We Share will join other "free 

floating" car sharing services -- 

in which autos are left parked 

around the city for users to book 

via a mobile phone app -- already 

long present in Berlin and other 

major cities around the world. 

Executives at the world's biggest 

carmaker see growth potential of 

at least 15 percent per year for 

such offerings in Europe. 

But Wolfsburg-based VW faces 

entrenched competition from the 

likes of Daimler and BMW, who 

agreed in March to merge their 

car sharing apps Car2Go and 

DriveNow. 

The two high-end manufacturers 

aim ultimately to offer a suite 

of "mobility services" from car 

sharing to taxi hailing or finding 

free parking spaces and electric 

car charging points, aiming to 

compete with challengers like 

California-based Uber. 

Combined, Car2Go and 

DriveNow already offer 20,000 

vehicles for short-term rental in 

some 31 cities, with four million 

registered users. 

VW also has big plans for 

integrating different forms of 

transport, with initiatives like 

electric buses that can be hailed 

to "virtual stops," currently being 

tested in German port city 

Hamburg. 

It plans to spend 3.5 billion euros 

($4 billion) by 2025 on a suite of 

projects under its so-called "digital 

offensive. 

World Automotive Conference to 

convene in Istanbul for 5th time 

The World Automotive 

Conference will bring together 

key players, manufacturers and 

suppliers from the sector for the 

fifth time in Istanbul this October. 

This year's key themes include 

"Future of Manufacturing: 

Robotics & Digitalisation," 

"Intelligent Supply Chain & 

Logistics," "The Future 'Car': 

electric vehicles, autonomous 

& connected driving," "The 

Aftermarket: changing consumer 

preferences & the car-ownership 

question mark," and "The Future 

of Mobility: 5G & Smart Cities." 

Aisin, Anadolu Isuzu, Autoliv, 

BASF, BMC, BNP Paribas, Borçelik, 

Borusan Lojistik, BP, Brisa 

Bridgestone, CMS, Continental, 

Daimler, EY, Facebook, Farplas, 

Garanti, Google, Groupe Renault, 

Hattat Holding, Hyundai, Karsan, 

Magna, MAN, Maxion, NIO, 

Otokar, Ricardo, Siemens, Temsa, 

Tofas, VMware, Volkswagen will 

be among this year's participants 

at the conference. 

International experts from the 

sector will also hold panels as 

part of the conference program, 

in addition to presentations 

from international companies 

regarding their case studies and 

research. 

58 SEPTEMBER 2018


Turkey’s car company due to 

initiate operations in September 

Mehmet Gürcan Karakaş, 

CEO of Automobile 

Initiative Group 

Turkey is geared to manufacture 

a domestic car company and 

brand capable of competing 

on the global scale. The CEO of 

the newly formed Automobile 

Initiative Group, Mehmet Gürcan 

Karakaş told that group was ready 

to commence with a qualified 

team of specialists. Karakaş said 

that he had analyzed the financial 

and technical aspects of the 

indigenous car project. 

"Our mission is to carry out 

a project of transforming 

technology with a qualified team 

of experts. We will give it its final 

shape after we begin work on 

Sept. 1," he said, pointing out 

that they are acting with a vision 

of a car brand that can compete 

with and have a say in the global 

market. 

The partnership agreement 

to launch Turkey's first locally 

produced car brand was 

signed on May 31, according 

to a statement from the partner 

companies. 

Five local firms with 19 percent 

shares each; Anadolu Group, 

BMC, Kök Group, Turkcell, 

and Zorlu Holding, along with 

the Union of Chambers and 

Commodity Exchanges of Turkey 

(TOBB) with five percent shares, 

will jointly lead the firm. 

Karakaş, one of the top global 

executives in technology giant 

Bosch, was officially appointed as 

the CEO of the new firm. 

His appointment was announced 

by President Recep Tayyip 

Erdoğan during an interview . 

"The indigenous car project's 

shareholders' trust, commitment, 

and adaptation impressed me," 

said Karakaş. 

He said as an engineer who 

has committed himself to the 

automotive industry he was 

excited to bring the experience 

he gained abroad to Turkey. 

The initiative came after repeated 

calls from President Erdoğan for a 

joint car project by TOBB and the 

Science, Industry and Technology 

Ministry. 

Last November, President 

Erdoğan announced that the 

prototype of the first domestically 

produced car - expected to be 

produced in Ankara - would be 

ready in 2019 and would enter 

the market by 2021. 

"I want to own the first automobile 

(produced), provided that I 

will pay for it. No one should 

hesitate. We will produce Turkey's 

car with the best design and 

technology, both for our country 

and the world," Erdoğan said in 

November. 

The President praised efforts to 

ensure that the mass production 

of the first domestically produced 

automobile would be either 

electric or hybrid. 

Turkey attempted to produce 

its first domestically produced 

car the Devrim (Revolution) in 

1961, however the attempt was 

unsuccessful and production 

was halted following the first 

prototypes. 

60 SEPTEMBER 2018


Turkish automotive industry 

keeps its competitive power 

and advantages 

The foundation of Turkey’s 

automotive industry dates back to 

the early 1960s. During a period of 

rapid industrialization and progress, 

this key sector transformed itself 

from assembly-based partnerships 

to a full-fledged industry with design 

capability and massive production 

capacity. Between 2000 and 2017, 

original equipment manufacturers 

(OEM) invested USD 14 billion 

in their operations in Turkey. 

These investments significantly 

expanded their manufacturing 

capabilities, which in turn led 

Turkey to become an important 

part of the global value chain of 

international OEMs. Meeting and 

exceeding international quality and 

safety standards, today’s Turkish 

automotive industry is highly 

efficient and competitive thanks to 

value-added production. 

• Leveraging a competitive and 

highly-skilled workforce combined 

with a dynamic local market and 

favorable geographical location, 

the vehicle production of 13 global 

OEMs in Turkey increased from 

374,000 in 2002 to over 1.7 million 

units in 2017. This represents a 

compound annual growth rate 

(CAGR) of around 10 percent 

during that period. 

• Significant growth posted by 

Turkey’s automotive sector led to 

Turkey becoming the 14th largest 

automotive manufacturer in the 

world and 5th largest in Europe by 

the end of 2017. 

• Turkey has already become 

a center of excellence, particularly 

with respect to the production of 

commercial vehicles. By the end 

of 2016, Turkey was the number 

one producer of light commercial 

vehicles (LCV) in Europe. 

• Proven as a production hub of 

excellence, the Turkish automotive 

industry is now aiming at 

improving its R&D, design, and 

branding capabilities. As of the 

end of 2017, 132 R&D and design 

centers belonging to automotive 

manufacturers and suppliers were 

operational in Turkey. 

• Notable examples of global brands 

with product development, design, 

and engineering activities in Turkey 

include Ford, Fiat, Daimler, AVL, 

and Segula. Ford Otosan’s R&D 

center is one of Ford’s three largest 

global R&D centers, while Fiat’s 

R&D center in Bursa is the Italian 

company’s only center serving the 

European market outside its home 

country. Meanwhile, Daimler’s R&D 

center in Istanbul complements 

the German company’s truck and 

bus manufacturing operations in 

Turkey. AVL Turkey, which opened 

up its 2nd R&D center in Turkey, 

started to develop autonomous 

and hybrid vehicle technologies. 

• Turkey offers a supportive 

environment on the supply chain 

side. There are around 1,100 

component suppliers supporting 

the production of OEMs. With 

the parts going directly to the 

production lines of vehicle 

manufacturers, the localization rate 

of OEMs varies between 50 and 70 

percent. 

• Turkey is home to many global 

suppliers. There are more than 250 

global suppliers that use Turkey 

as a production base, with 28 of 

them ranking among the 50 largest 

global suppliers. 

• Auto manufacturers increasingly 

choose Turkey as a production 

base for their export sales. This is 

evidenced by the fact that around 

80 percent of production in Turkey 

was destined for foreign markets 

in 2017. More than 1,300,000 

vehicles were exported from Turkey 

to foreign markets in the same 

year. In addition, Turkey was the 

number one vehicle exporter to 

European markets with 986,000 

units in 2017. 

• While Germany, France, Italy, 

the UK, and Spain are currently 

the major export customers of 

the Turkish automotive industry, 

there is a trend of diversification in 

export destinations with companies 

looking to break into nearby 

emerging countries where there 

is considerably more demand 

potential for new auto sales. 

• The rise of per capita income 

from USD 3,000 in the first few 

years of the 2000s to around USD 

11,000 in 2017 led to higher sales 

in the motor vehicles market. While 

the average annual sale figures in 

the market were around 360,000 

in the early 2000s, the average 

sales increased to nearly 1,000,000 

by 2017. 

• Despite the strong increase in the 

sales, the automobile penetration 

in Turkey -- 165 cars per 1,000 

people-is well behind the European 

average of 500. This indicates 

ample opportunities for carmakers 

in the domestic market. Increased 

purchasing power combined with 

a low automobile ownership rate 

should help drive automobile sales 

in the coming years. 

64 SEPTEMBER 2018


Comvex Istanbul Fair to be 

held in November 

Comvex İstanbul Fair is the most 

important trade and marketing 

platform which provide a 

solid basis for an international 

cooperation by gathering all part 

of commercial vehicle, bus and 

component sectors under a single 

roof in Eurasian Region. 

Comvex İstanbul 2018, 6th 

International Commercial 

Vehicles, Buses and Component 

Expo will be held on 23-26 

November, 2018 with the 

cooperation of OSD (Automotive 

Manufacturers Association), 

TAİD (Heavy Commercial 

Vehicle Association), TAYSAD 

(Association of Automotive Parts 

and Components Manufacturers) 

and TÜYAP. The fair will present its 

power once again. 

Comvex İstanbul Fair which 

exhibited the new products, 

technologies and trends, hosted 

more than 1.000 exhibitors and 

120.000 visitors. The fair which 

hosted 209 exhibitor companies 

and 19.617 visitors in 2016, aim 

to provide the same qualified 

service for more exhibitors and 

visitors in 2018. Comvex İstanbul 

will continue to be the most 

important exhibition of the sector 

in 2018 and it will contribute to 

the sector more than ever before. 

66 SEPTEMBER 2018


Japan is making a push to 

develop flying cars 

Japan plans to develop flying 

cars by 2020, enlisting about 

20 companies to manufacture 

airborne vehicles in the country, 

according to Bloomberg. 

According to the report, 20 

companies, including Uber, 

Boeing, NEC, Toyota Motorbacked 

startup called Cartivator, 

ANA, Japan Airlines and Yamato 

representatives will gather at the 

end of this month for the first of 

their monthly meetings. 

The Ministry of Economy, Trade 

and Industry and the Transport 

Ministry plan to draft a road map 

for technological development and 

regulations this year. 

The ministry said it plans to seek 

$40.4 million in funds to support 

private-sector development of 

equipment for flying cars, including 

high-performance batteries and 

motors. 

"The Japanese government will 

provide appropriate support to help 

realize the concept of flying cars, 

such as production of acceptable 

rules," the trade ministry said. 

68 SEPTEMBER 2018


Turkish car leasing firm 

reclaims stake from 

Japanese Mitsubishi 

Intercity, one of Turkey's largest 

car leasing companies, has 

repurchased 47 percent of its stocks 

from Japan's Mitsubishi Group. 

With the repurchase of the stocks, 

Intercity once again became a 100 

percent domestic company. 

The Japanese industrial giant had 

acquired part of the Turkish car 

rental company in 2008 when the 

two sides agreed to invest around 

$3 billion in Turkey's rental car 

market over a period of four years. 

The repurchased shares went to 

Intercity founder Vural Ak. The 

share repurchase process was 

initiated last summer and was 

completed recently. 

Following the deal, Ak said, 

"Intercity has regained its ‘national 

and domestic' title." 

Intercity operates a fleet of 36,000 

vehicles as of this June. It aims to 

increase its revenue to TL 4 billion 

($645.76 million) and its profit to TL 

250 million by 2020. 

Ak added that the company has 

assets worth TL 3.255 billion. "If 

we achieve our target of 60,000 

vehicles by the end of 2020, we 

will increase the total assets of our 

company to TL 9 billion and our 

own resources to TL 1.9 billion." 

70 SEPTEMBER 2018


Turkey’s exports up 5.3 pct in 

first 8 months 

The 12-month overall exports rose 6.5 percent on a yearly 

basis, reaching $162.4 billion. 

Turkey's exports from January to 

August recorded a 5.3-percent 

annual hike, Turkish Exporters' 

Assembly (TIM) announced on 

Sept. 1. 

In the eight-month period, the 

country's overall exports totaled 

$108.7 billion, up from $103.2 

billion in the same period last 

year. In August alone, Turkish 

exports amounted to $12.4 

billion, representing a 6.5 percent 

decrease compared to the same 

month last year. TIM noted that 

the fall in exports in August was 

due to the nine-day Eid al-Adha 

holiday break. 

Turkey's exports hit an all-time 

high of $157.6 billion in 2014. 

They amounted to nearly $157 

billion last year. 

The exporters' assembly noted 

that Turkish products were 

exported to nearly 220 countries 

in August. 

"There was an increase in exports 

to 96 of these countries while 

the top five export markets were 

Germany, the U.K., Iraq, the U.S. 

and Spain," it said. 

TIM figures showed the 

automotive industry was the 

leading sector with exports worth 

$1.61 billion in August, followed 

by ready-made garments and 

apparel at $1.39 billion and 

chemical products at $1.37 

billion. 

Jewelry exports climbed 177 

percent year-on-year in August, 

marking the best performance 

among all sectors, while steel 

and fresh fruit/vegetable exports 

rose 43 percent and 10 percent, 

respectively. 

TIM data also showed that the 

12-month overall exports rose 

6.5 percent on a yearly basis, 

reaching $162.4 billion. 

72 SEPTEMBER 2018


Auto market targets over $30B 

for exports 

Baran Çelik, the chairman of Uludağ Automotive Industry Exporters' Association (OİB) 

Baran Çelik, the chairman of Uludağ 

Automotive Industry Exporters' 

Association (OİB), said Bursa's share 

in the automotive sector is around 

40 percent. 

"We call Bursa the 'capital of the 

automotive industry.' OİB, the 

export champion in Turkey for 12 

years, is also located in Bursa for 

this very reason," Çelik said. "The 

investments being made in the 

city in the past years are making 

the automotive and subsidiary 

industries sustainable. Bursa will 

keep its position in both the general 

industry and the automotive sector 

in Turkey by strengthening it 

thereafter." 

Noting that the new industrial zones 

established in Bursa in recent years 

will help overcome the bottlenecks 

at this point, he stressed that the 

automotive industry for Bursa is 

very important just as Bursa is for 

the industry. 

"Because Bursa has every kind of 

supply source that the automotive 

industry needs. The automotive 

sub-industry is positioned in four 

to five segments like plastic, metal, 

electronics, et cetera. Almost 

all of their world-renowned 

organizations are in Bursa now," 

Çelik stated. The OİB chairman 

earlier this month said automotive 

industry exports will exceed $30 

billion in 2018. Noting that the 

industry aimed for $29 billion in 

2018, Çelik had said, "If we look 

at the data for the first half of the 

year, we reached an export level of 

$16.4 billion. This shows us that we 

will exceed far beyond our aim. We 

will exceed over $30 billion." 

He said $16.4 billion of exports 

in 2018 were an all-time record 

for the first half of a year. Turkish 

automotive sector's exports 

reached $28.5 billion in 2017. 

According to the Turkish Exporters' 

Assembly (TİM), automotive was 

the leading sector with $2.5 

billion exports in June. The sector's 

exports increased by 1.9 percent 

compared to the same month the 

previous year. 

74 SEPTEMBER 2018


Auto spare parts production up 

Every year more than 500.000 vehicles are sold in 

Turkey, providing a high demand for parts and 

component, and also for spare and replacement 

parts. This paves the way for grounds for a powerful 

parts industry and trade platform. 

Domestic production of parts and components ranges 

from diverse products of 

engine and engine parts 

to electrical equipment 

and auto glass, just to 

name a few. 

There are 1,120 parts 

and components 

manufacturers in Turkey. 

70 % of those are small 

and medium sized 

enterprises, supporting 

many strong industrial 

development zones all 

across the country. The 

parts and components 

industry is mainly 

concentrated in the 

Marmara Region around 

Bursa (a two hour drive 

from Istanbul). Beside 

Bursa, Istanbul, İzmir, 

Kocaeli, Ankara, Konya, 

Adana and Manisa 

are home to many other 

important manufacturing 

sites. 

Due to high demand all 

over the country, vehicle 

manufacturers have 

already established their 

authorized service station 

network. In addition, there 

are thousands of small and 

medium sized garages 

located in every part of the 

country, servicing the repair 

and maintenance needs of 

the large vehicle park in 

Turkey. Both the network 

of service points and the 

large pool of garages 

are important to Turkey’s 

position as a producer and 

consumer of parts and 

components, as they are in 

constant need of supply of 

various parts from various price ranges. 

Above that, there are more than 12,000 gas 

stations in Turkey. Many of them offer repair and 

maintenance services in addition to their car wash 

facilities and contribute to the positive development 

of the automotive parts industry. 

76 SEPTEMBER 2018


German economy minister: Turkey 

important for Europe’s stability 

Germany's Economy Minister Peter Altmaier 

Germany's Economy Minister Peter 

Altmaier voiced support for Turkey 

amid market worries after U.S. 

President Donald Trump imposed 

sanctions and raised tariffs on 

Turkey. Altmaier underlined Turkey's 

importance for Germany and for 

the European Union. "We can have 

no interest in the destabilization 

of a country like Turkey with a 

population of 80 million, which also 

hosts around 4 million refugees," 

he said. 

Political tensions between Ankara 

and Washington had sparked 

worries in markets early this 

month, after Trump threatened to 

use economic pressure over the 

prosecution of an American pastor 

who faces terrorism-related charges 

in Turkey. 

The Turkish lira declined but staged 

a recovery recently, after positive 

messages from European capitals 

and Qatar's decision to invest $15 

billion in Turkey. 

Altmaier did not totally rule out 

possibility of assistance to Turkey, if 

Ankara would ask for support from 

its European partners. 

But he stressed that the situation 

has not come to such a point. 

"I do not think that at the moment 

we are in a situation where we 

have to take concrete decisions on 

financial or economic assistance," 

he said. 

Altmaier, a close ally of Chancellor 

Angela Merkel, acknowledged 

political differences between 

Berlin and Ankara on a number of 

issues, but also expressed his hope 

for overcoming them through 

dialogue. 

Political relations between Turkey 

and Germany suffered several 

setbacks in the past two years, but 

both sides took steps in the recent 

months toward the normalization 

of ties. 

President Recep Tayyip Erdoğan is 

expected to pay an official visit to 

Berlin on Sept. 28-29. 

Germany is home to more than 3 

million people with Turkish roots. 

Many of them are second or thirdgeneration 

Turkish families who 

migrated to Germany in the 1960s. 

EU heavyweight Germany is 

Turkey's main economic and trade 

partner, and more than 7,500 

German companies are active in 

the country. In 2017, the bilateral 

trade volume reached 37.6 billion 

euros ($43.6 billion). 

European leaders earlier this month 

raised their voices to highlight the 

significance of the Turkish economy 

that has recently come under attack 

with the threatening economic 

showdown of Trump. 

Among them, Germany was one of 

the first countries that voiced strong 

support for the stabilization of the 

Turkish economy and emphasize 

its importance for Turkey's major 

partners, particularly EU countries. 

German Chancellor Angela Merkel 

emphasized the importance of 

the strong Turkish economy for 

Germany in a phone call with 

President Erdoğan earlier this 

month, as the two leaders stated 

their mutual determination to 

maintain cooperation between the 

two countries. 

78 SEPTEMBER 2018


Putin’s new luxurious car 

unveiled at Moscow auto show 

A new Russian-made luxury presidential car was 

presented at the Moscow International Auto Salon (MIAS). 

Russian Minister of Industry and 

Trade Denis Manturov and Aurus 

Chief Executive Franz Gerhard 

Hilgert unveiled the Aurus Senat 

sedan, which will also have a 

limousine modification. 

The Senat is part of the Kortezh 

series, which includes a sedan, a 

limousine, a minivan and an offroad 

vehicle. Kortezh vehicles are 

expected to cost 10 million rubles 

($147,000) each. Aurus also aims 

to start the serial production of 

fully electric motorbikes not earlier 

than 2020. 

According to Manturov, Middle 

Eastern countries will be the 

first ones to import Aurus cars, 

particularly the United Arab 

Emirates (UAE). 

"In 2021, we will have a new 

structure, we will be ready to 

increase the production of our 

cars to 5,000 units. We will be 

able to meet the global demand 

for these cars," Hilgert said. 

Russian President Vladimir Putin 

used an Aurus Senat armored 

limousine for his presidential 

inauguration in May. 

Stricter automobile emission 

tests come into force across EU 

Elzbieta Bienkowska, 

EU Industry Commissioner 

Stricter emissions tests for all new 

cars in the European Union went 

into force. 

It comes in response to the 2015 

Volkswagen emission scandal, in 

which some of its diesel cars were 

rigged to fool tests while actually 

emitting illegal levels of fumes in 

real driving situations. 

The new controls are part of the 

Worldwide Harmonised Light 

Vehicle Test Procedure (WLTP). 

They are designed to measure 

emissions using real driving data, 

rather than a theoretical driving 

profile, which was the basis for 

previous tests, the EU said. 

The EU's roll-out of WLTP began 

one year ago, affecting all 

car models that were being 

introduced to the market for the 

first time. 

The rules apply to every new car 

for sale. 

"In the last three years since the 

emissions scandal broke out, 

we've cardinally changed the rules 

of the game to prevent emissions 

cheating, protect our public 

health and the environment, 

and boost our industry's 

global competitiveness," EU 

Industry Commissioner Elzbieta 

Bienkowska said in a statement. 

82 SEPTEMBER 2018


Toyota allocates $500M 

toward driverless car deal 

with Uber 

Toyota will allocate about $500 

million into ride-share firm Uber 

as part of a deal to work together 

on mass-producing self-driving 

vehicles, the Japanese car giant 

said. 

The deal, which reportedly values 

Uber at about $72 billion, aims at 

"advancing and bringing to market 

autonomous ride-sharing as a 

mobility service at scale," Toyota 

said in a statement. 

Analysts said the move showed 

Toyota was motoring full speed 

ahead toward a driverless car 

future, in a race involving the 

world's top auto firms as well as 

tech giants such as Google and 

Alibaba. 

Technology from both companies 

will be integrated into purpose-built 

Toyota vehicles and deployed on 

Uber's ride-sharing platform, with 

the first pilot rollout set for 2021. 

"Hundreds of vehicles" would 

be involved in that first phase, a 

spokesman told AFP. 

"The deal is the first of its kind for 

Uber and signals our commitment 

to bringing world-class 

technologies to the Uber network," 

said CEO Dara Khosrowshahi. 

The agreement came after the 

smartphone-summoned ride 

service began to rein in its solo 

effort to develop autonomous 

vehicle technology. 

Uber suspended its self-driving car 

program after a crash in March, 

which killed a woman pushing a 

bicycle in a street in the U.S. state 

of Arizona. 

Last month, the San-Franciscobased 

firm took a tentative step 

towards restarting the program, 

putting self-driving cars back on 

the road in "manual mode," with a 

driver at the wheel at all times. 

The testing will enable Uber to 

gather data on different scenarios 

that will be produced in computer 

simulations, and also develop more 

accurate mapping for the vehicles. 

Uber is among a number of 

technology and car companies 

racing toward what some say is an 

inevitable future in which vehicles 

drive themselves. 

The statement said the "massproduced 

autonomous vehicles" 

would be owned and operated by 

"mutually agreed-upon third-party 

autonomous fleet operators." 

Hans Greimel, Asia editor 

for the specialist Automotive 

News publication, said Toyota 

was "gearing up big-time for 

autonomous driving." 

"They are feeling the pressure 

and they are really turning their 

attention towards this field," he 

added. 

"It is a wide-open field and 

everybody is scrambling to feel their 

way. Maybe Toyota feels a sense of 

crisis, maybe they had a rough start 

but I don't feel they are behind." 

Traders appeared to welcome 

the news, pushing Toyota stock 

up 1.86 percent to 7.096 yen, 

outperforming the wider market 

which was 0.64 percent higher. 

Toyota had already invested an 

undisclosed amount in Uber in 

2016 via its subsidiary Toyota 

Financial Services and Greimel said 

cash was the main attraction for 

Uber. 

"I think what they are after with 

Toyota is the money more than 

anything," he said. 

However, he added that it was 

possible that the more conservative 

Toyota could end up slowing 

down the Silicon Valley firm. 

"Toyota is known for its safety and 

is more conservative but it could 

be a downside for a Silicon Valley 

company used to being very 

quick and nimble and making fast 

decisions. 

"Toyota needs to double-check, 

triple-check everything and this 

might slow them down a little bit," 

he said. 

Khosrowshahi is also looking at 

shifting cars to scooters and electric 

bikes for shorter, inner-city trips, he 

said in an interview published. 

While he admitted the move would 

likely cost the firm financially in the 

near term, he told the Financial 

Times it made sense as a long-term 

strategy as "during rush hour, it is 

very inefficient for a one-ton hulk 

of metal to take one person 10 

blocks." 

86 SEPTEMBER 2018


American Varroc Lighting 

acquires Turkish automotive firm 

Exterior vehicle lighting specialist 

U.S.-based Varroc Lighting Sytems 

has acquired Istanbul-based Sa-ba 

Automotive, a statement confirmed. 

"Through Sa-ba Automotive, 

Varroc Lighting gains valuable 

manufacturing and production 

capacity with a 10,000-squaremeter 

manufacturing and 

technology center near Istanbul, 

and a new plant under construction 

in Dimitrovgrad, Bulgaria," the 

statement said. The terms and 

conditions of the acquisition, 

however, were not disclosed. 

It also noted that the 20,000-squaremeter 

Bulgaria plant will give 

Varroc Lighting expanded and 

scalable production capacity for its 

European customers. 

"This acquisition further 

underscores our commitment to a 

global footprint that provides our 

customers with cost-effective and 

high-quality lighting products and 

technology," said Stephane Vedie, 

president and CEO of Varroc 

Lighting Systems. 

"Turkey is a growing market, 

and our presence there helps 

us expand the services we can 

provide to our growing customer 

base, while substantially increasing 

our capabilities in small lighting." 

In the statement, Varroc Lighting 

said that the acquisition was the 

sixth business initiative in the past 

16 months that directly support 

the expansion of its global product 

portfolio and manufacturing and 

engineering footprint. 

It also noted its manufacturing 

and product development facilities 

based in Morocco, Brazil, Japan, 

and Poland. It recently opened an 

expanded Lighting Development 

Center in Ostrava, Czech Republic 

while expanding manufacturing 

capabilities in Vietnam. 

With the acquisition of the Istanbulbased 

company, Varroc Lighting 

now has a global presence in 17 

countries across five continents. 

Turkey’s automotive exports to 

Europe reach new heights 

The Turkish automotive industry, 

which picked up some recent 

losses in the domestic market, has 

seen a rise in exports – exceeding 

$16 billion in the first half of the 

year – with more than 80 percent 

going to European countries. 

According to the Automotive 

Distributors' Association (ODD) 

and Turkish Exporters' Association 

(TİM), the Turkish automotive and 

light commercial vehicle industry 

contracted 11.92 percent in the 

first half of the year compared to 

the previous year. The industry, 

however, recorded $16.4 billion 

in exports with a 14.5 percent rise 

compared to the same period of 

last year. 

In accordance with these 

figures, the automotive exports 

constituted 20 percent of Turkey's 

total exports in the first half, 

which exceeded $80 billion. 

Meanwhile in the first half of 

2017, automotive exports stood 

at $14.3 billion. 

The automotive sector's exports 

to the European Union and other 

European countries in the first 

half of the year increased by 15 

percent and hit $13.6 billion, 

making up 80.5 percent of 

Turkey's $16.4 billion automotive 

exports in the first half of the year. 

Europe was followed by the 

Middle East for the Turkish 

automotive industry. Car sales 

to Middle Eastern countries rose 

by 2.2 percent, reaching $805.1 

million. 

With exports over $2.4 billion, 

Germany was the biggest market 

for Turkish manufacturers. It was 

followed by Italy with $1.8 billion 

and France with $1.7 billion. The 

U.K. ranked fourth in Turkey's 

automotive exports with $1.4 

billion. Accordingly, automotive 

sales separately to Germany, 

Italy, France and the U.K. each 

exceeded $1 billion. 

In contrast, sales to the U.S. 

dropped by $159 million and 

stood at $463 million. Automotive 

sales to Iran and Denmark also 

fell by $51 million $22 million 

respectively while the decrease 

in exports to Ireland was at 

$19 million. Turkish automotive 

industry's exports to Syria also saw 

a $15 million fall in the first half of 

the year. 

In 2017, the total automotive 

production increased by 13 

percent to 1.7 million compared 

to 2016, while automobile 

production reached 1.1 million 

with an increase of 18 percent, 

providing the sector with the 

highest levels in both total 

automotive and automobile 

production, according to 

Automotive Manufacturers 

Association (OSD) data. 

With these figures, both total 

automotive and automobile 

production reached their highest 

levels in Turkey. 

In 2017, total automotive exports 

increased by 17 percent and 

automobile exports by 24 percent 

compared to the previous year. 

In this period, total exports 

amounted to 1.3 million units, 

followed by automobile exports 

with 921,000 units. Thus, 80 

percent of the total production 

in the automotive industry was 

exported. 

According to the Turkish 

Exporters Assembly (TİM) data, 

total automotive industry exports 

maintained the leading position 

in 2017 with an 18.2 percent 

share in exports. 

88 SEPTEMBER 2018


Bursa manufactured 2,041 vehicles 

per day in first half of year 

In Bursa, which hosts automotive 

giants OYAK Renault, Tofaş and 

Karsan, 2,041 vehicles were 

produced per day in the first half 

of the year, with an average 1,606 

vehicles (78.69 percent) exported. 

Bursa-based Tofaş, OYAK Renault 

and Karsan reached 43.57 percent 

(367,401 units) of total production 

of 843,193 units excluding tractors 

(367,401 units) in the January- 

June period of this year. They also 

reached 42.02 percent (289,124 

units) of total exports of 688,081 

units in the January-June period of 

this year. 

Ford Otosan closed the first half 

of the year as the sector leader in 

production and exports, followed 

by OYAK Renault and Tofaş, 

respectively. 

According to data compiled from 

Uludağ Automotive Industry 

Exporters' Association (OİB) 

and Automotive Manufacturers 

Association (OSD), production of 

the Turkish automotive industry, 

which totaled 869,162 units, 

excluding the tractors, in the 

January-June period of 2017, 

dropped by 3 percent to 843,193 

in the same period this year. 

Ford Otosan, which produced 

198,600 vehicles, closed the first 

half of the year as the sector leader 

by providing close to one quarter 

of total production (23.5 percent) 

by itself, followed by OYAK Renault 

with 189,006 vehicles and a 

share of 22.41 percent and Tofaş 

with 175,138 vehicles and a 

share of 20.77 percent. Toyota, 

on the other hand, came fourth 

with 129,644 vehicles and 15.37 

percent share, while Hyundai 

Assan ranked fifth with 107,377 

vehicles and 12.73 percent 

share. In the city where another 

Bursa-based company, Karsan, 

produced 43.5 percent (367,401 

units) of the total production with 

3,257 vehicles, 85 vehicles were 

produced per hour, amounting to 

2,041 vehicles per day. 

The exports of the automotive 

industry decreased by 3.7 percent 

to 688,081 units compared to last 

year in the January-June period 

when 714,283 units in were 

produced, not including tractors. 

In exports, Ford Otosan led the 

way with 165,131 vehicles, 

holding 24 percent of total 

exports, in the first half of the 

year, followed by Bursa-based 

OYAK Renault with 147,119 

vehicles and 21.38 percent share, 

Tofaş with 140,191 vehicles and 

20.39 percent share, Toyota 

with 117,469 vehicles and 17.07 

percent share and Hyundai Assan 

with 98,346 vehicles and 14 

percent share. 

In Bursa, which realized 42.02 

percent of total exports in the first 

half of the year with Karsan's 1,714 

units of exports, an average of 67 

vehicles were exported per hour, 

amounting to 1,606 vehicles per 

day. 

90 AUGUST 2018


Turkey - a global player in 

the autumotive industry 

During the 1990’s, as other 

international manufacturers like 

Toyota, Honda, Hyundai, Isuzu 

and Mercedes-Benz 

entered the market, Turkey 

rapidly became an automotive 

production base which not only 

caters to one-time 

developments of the industry 

but rather holds long-term 

development options. 

Today, Turkey has a thriving 

automotive sector, demonstrating 

substantial growth in the past. All 

players involved, including local 

authorities and the government, 

are participating in providing 

conditions to increase output in 

the future. Some of the facts are: 

-High level of integration into the 

global automotive industry 

-14th major automotive producer 

in theWorld,with 78% average 

export rate 

-Vehicles of Turkish origin hold 

the leading position among the 

vehicles coming from outside of 

EU 

-Production, export, and 

engineering hub of global brands 

for international markets 

-Quality products with high 

export rates 

-Hundreds of Tier 1 companies 

working directly with OEMs 

-Center of excellence in 

automotive engineering and 

R&D,in which new technologies 

are developed 

Strong international presence 

-Giants of global automotive 

value chain benefit from 

Turkey’s location, cost, 

andcompetitiveadvantages 

-Because of their profitable 

business in the country, 

companies in Turkey continue to 

invest in the country’s future 

-9 R&D centers support not only 

the local operations, but also 

the operations in other plants of 

parent companies. 

-Ford Otosan’s R&D department is 

one of Ford’s 3 largest global R&D 

centers 

-R&D centerin Bursa is the only 

center of Fiat outside of Italy 

serving the European market. 

-For Courier, Ford’s new light 

commercial vehicle, the Yeniköy 

plant is the sole production center 

in the world. 

-Toyota’s C-HR Hybrid is produced 

in Turkey for World markets 

-Daimler R&D is the center of 

competence for some parts and 

carries global responsibility. 

-With more than 40 thousand 

employees, automotive OEMs are 

one of the major employers in the 

manufacturing industry. 

92 SEPTEMBER 2018


Taysad: Competent 

representative of the Turkish 

automotive supplier industry 

Established in 1978, TAYSAD is 

the sole and most competent 


automotive supplier industry. 

TAYSAD plans its activities in line 

with its vision and mission and 

aims at becoming a center of 

attraction in the automotive 

industry, by enhancing its 

capability as a representative 

association, its effectiveness in the 

sector, as well as the cooperation 

between members and by 

providing better-quality services to 

meet members’ changing needs. 

The major facts are: 

• Established in 1978, TAYSAD 

is the sole and most competent 


automotive supplier industry 

• With 408 members, TAYSAD 

represents 65% of the output of 

the automotive supplier industry 

and 70% of the industry’s exports 

• 80% of TAYSAD’s members 

operate in the Marmara 

region;12% in the Aegean region 

and 8% in other regions of Turkey 

• 408 TAYSAD members employ 

more than 160,000 people. 

• 25% of TAYSAD members have 

foreign partners who hold varying 

levels of shares 

• TAYSAD is a member of CLEPA, 

the European Association of 

Automotive Suppliers (www. 

clepa.be) 

• TAYSAD is the founding 

partner of OTAM - Automotive 

Technologies Research & 

Development Company. 

• TAYSAD has a reference position 

within Turkey for domestic 

and international OEM’s, Tier 

1 Suppliers and institutions 

being the representative of 

Turkish Automotive Parts and 

Components Suppliers 

• TAYSAD holds ESCA Silver Label 

and ISO 9001 Certificates. 

The product range of TAYSAD 

members covers all sorts of 

parts except a few items and is 

sufficiently diversified to support 

an 85-90% local parts ratio in 

domestically-produced motor 

vehicles. The main product 

groups manufactured by TAYSAD 

members operating in the motor 

vehicle manufacturing industry 

can be classified as follows: 

• Complete engines and engine 

parts, 

• Radiators 

• Heating, ventilating & air 

conditioning systems (HVAC 

systems) 

• Power trains, 

• Brake systems and parts, 

• Hydraulic and pneumatic spare 

parts, 

• Suspension parts, 

• Safety spare parts, 

• Foam and rubber parts, 

• Chassis parts and spare parts, 

• Forged and cast parts, 

• Electrical equipment and 

illumination systems, 

• Batteries, 

• Automobile glass, 

• Seats 

• Design & Engineering services 

• Simulation services 

• Special vehicle production 

In order to adapt to the changing 

competitive environment, 

TAYSAD members closely follow 

technological developments 

and continue to invest in 

innovation and expansion. 

With the help of their advanced 

manufacturing capabilities, they 

produce prototypes, use testing 

facilities, perform CNC-based and 

conventional machining, engage 

in product development, pursue 

collective R&D activities with 

foreign and domestic companies 

and use CAD-CAM applications 

during the design process. 

Vision 

To become, by 2023, a sectoral 

association representative of 

all companies in Turkey, that 

supply goods and services 

directly and indirectly to the 

automotive industry; a sectoral 

association which pursues and 

supports activities increasing the 

local share in global automotive 

manufacturing to at least 3%; and 

a sectoral association which has 

gained complete public support. 

Mission 

To provide the environment and 

conditions for developing the 

Turkish automotive industry as a 

whole and making Turkey one 

of the leading supply centers of 

the global automotive industry, 

by supporting its members as a 

collective organization. 

94 SEPTEMBER 2018


Turkey’s industrial capacity 

usage increases in August 

Turkey's manufacturing industry 

capacity utilization rate rose 

slightly at 77.8 percent in August, 

the Central Bank of the Republic 

of Turkey (CBRT) announced. 

The capacity utilization rate (CUR) 

saw a 0.7-percentage point 

monthly gain from 77.1 percent 

in July, according to the bank. 

The bank stated that the CUR 

figures are based on the responses 

given to its business tendency 

survey by local units operating in 

the manufacturing industry. 

It added that while some 2,607 

companies responded to the 

survey in August, the monthly 

data does not reflect the bank's 

views or predictions. 

Among over 20 sectors, the 

highest capacity usage was seen 

in the manufacturing of coal and 

refined petroleum products with 

88.4 percent in August, while 

the lowest CUR was seen in the 

leather and related products 

sector, with 59.7 percent. 

On the main industrial groups 

side, the highest CUR was 79.7 

percent for intermediate goods, 

while the lowest capacity usage 

was 71 percent in food and 

beverages. 

According to CBRT data, 

manufacturers of investment 

goods used 78.9 percent of their 

capacity this month while the 

CUR in consumer goods was 73 

percent - durable goods at 71.6 

percent, and non-durable goods 

at 73.3 percent. 

Last year, the average capacity 

usage in the manufacturing 

industry was 78.5 percent. Over 

the past five years, the highest 

CUR was seen last November with 

79.9 percent, and the lowest was 

73.5 percent in February 2013. 

96 SEPTEMBER 2018


Peru, the gateway to South 

American markets for exporters 

from Turkey 

Peru was the main topic in a 

seminar held by TIM, Turkey 

Exporters Assembly, for the 14th 

time. Chairman of the Assembly, 

Ismail Gullle emphasized on the 

changes and transformations 

in the world and mentioned 

about the ending of free trade 

agreement, new barriers in global 

trade and trade wars through 

tariffs. 

The meeting was held for the 

preparations running about a 

commercial activity that will be 

made between 14th to 19th 

October 2018 to Peru under the 

name of “Compass of Exports”, 

and more than 300 companies 

were represented in the meeting. 

In his opening address, Ismail Gulle 

said that recent developments in 

global trade that are dominated 

by the moves of the USA who 

ends free trade agreement, put 

new barriers before trade and 

engaged a commercial war 

by rising the tariffs, “As Turkish 

exporters we have been always 

defended a trade that have 

mutual benefits for both sides. 

We are for a balanced trade and 

want to sell as much as we buy. 

It should be a mutually benefited 

system. Our aim is to reach out 

more new markets, and to sell as 

much as possible what we have 

produced. We want to have more 

exporters active more countries.” 

He said, “Peru pursues a proactive 

trade policy having serious 

economic potentials. Annual 

export volume is 40 billion dollars 

and imports account 30 billion. 

Our export volume to this market 

is only 100 million dollars. We 

import goods ow 75 million 

dollars. We have to improve the 

bilateral trade among us.” 

One of the guests in the meeting 

was Fernando Albareda, 

commercial attache of Peru 

Republic in Turkey. He mentioned 

that per capita income was 6,570 

dollars and inflation is 3.2 percent 

in Peru. Average annual growth 

in Peru in the last 18 years was 

5.1 percent, realized by mostly 

private sector investments. In 

2017 7 billion dollars of foreign 

investments entered in the 

country. He said, “As Peruvians, 

we also try to understand the 

market in Turkey. Peruvians know 

about Turkey through Turkish 

TV serials, they like them. Their 

perceptions about Turkey will be 

more positive thanks to this kind 

of meetings.” 

The meeting was moderated by 

Erkan Kaplan, deputy general 

secretary of the assembly, and 

several representatives of the 

participating companies have 

exchanged their experiences 

and information about Peruvian 

economy and possibilities for 

commercial relations. 

100 SEPTEMBER 2018

Automotiv_September

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