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Monthly automotive aftermarket magazine

November 2018

Turkey-A global player in

automotive industry

American automotive

firm WABCO opens first

distribution center in Turkey

Top managers of

automotive industry

convened in Istanbul


Monthly automotive aftermarket magazine

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

Competitive more than ever

The exports by Turkish automotive sector, which is the driving force of

Turkish economy, reached remarkable figures in the last decade. The

Turkish automotive industry has been active since the early seventies.

Since the full integration to the European Customs Union in 1994,

Turkey has become a major production platform for global automotive

manufacturers.

As known, the auto parts industry of Turkey has recorded a dynamic

growth in line with the automotive industry. From simple components in

the mid-1960s, the sector ascended to produce high-tech components

currently.

The 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 additional exports.

The leading foreign automotive parts manufacturers have established

a presence in the country through joint-ventures, which dominate

production and exports.

The export potential of the automotive parts sector, coupled with the

presence of major international automotive manufacturers, has attracted

an increasing number of foreign investors.

Key factors which attract foreign capital inflows to Turkey mainly include

the market size, consumer composition, friendly investment legislation

and liberal banking system together with other attractiveness arising

from highly skilled human resources in production and management,

the unsaturated domestic market with high potential, easy access to

neighboring (regional) emerging markets, and low labor cost.

The industry exhibit its full potential in major specialized fairs both at

home and abroad. Our publications remain at the service of those

businesses people seeking to increase their share in the increasingly

competitive foreign markets.

We are convinced that the events in which we participate have turned

out to be an ideal ground for the business people operating in the

automotive business.

We wish them lucrative trade.

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:

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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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Please mention

Automotive Exports

when writing to advertisers


Monthly automotive aftermarket magazine

Turkey’s right-hand-drive

bus showcased in UK

Visigo HyPer - the first RHD bus model of Turkish company Anadolu

Isuzu - was put on display for the U.K. market at Euro Bus Expo 2018

in Birmingham.

Tugrul Arikan, general manager of the company, told that their RHD buses were only

manufactured for the U.K. market.

"We will produce more buses for the countries, including Northern Ireland, Malta, Turkish

Republic of Northern Cyprus (TRNC), Greek Cypriot administration, Singapore and Hong

Kong," Arikan said.

He said around 40 buses are expected to be sold in 2019.

Euro Bus Expo 2018 is the Europe's biggest bus and coach exhibition of the year, according

to its website.

Anadolu Isuzu is an open joint stock company, whose main field of activity is production

and sales of commercial vehicles such as light truck, truck, midibus, bus and pick-up.

Tugrul Arikan, general manager of

Anadolu Isuzu


Monthly automotive aftermarket magazine

Germany

fines Audi

nearly

$1 billion

over diesel

emissions

German authorities have fined

luxury automaker Audi 800

million euros ($925 million) for

selling cars with excessive diesel

emissions.

Prosecutors in Munich said that the fine

was imposed because Audi neglected

its oversight duties in selling cars with

engines made by it and group partner

Volkswagen that did not conform to

legal limits on harmful emissions. The

case covered some 4.9 million Audi cars

sold in Europe, the U.S. and elsewhere

between 2004 and 2018.

The Munich prosecutor's office said Audi

had accepted the fine.

Shortly after the announcement, the

company said the fine would affect its

2018 financial results.

"Taking into consideration the

extraordinary effects of the fine, the Audi

Group will significantly underperform...

on its forecast for 2018 financial results,"

the carmaker said in a statement.

In September 2015 parent company

Volkswagen admitted rigging some 11

million diesel autos with software that

enabled them to pass emissions tests

even though emissions in real driving

were much higher.

The prosecutors' statement said the

resolution of the case did not affect an

investigation of individual Audi executives.

14 November 2018


Monthly automotive aftermarket magazine

Minister Albayrak announces tax

reductions to revive economy,

reduce inflation

The economy administration has accelerated efforts

to boost economic activity and curb running inflation

with tax reductions and massive anti-inflation

campaigns with the support of the private sector.

prices has exceeded 25,000, the

minister said.

Berat Albayrak, Treasury and Finance Minister

Treasury and Finance Minister

Berat Albayrak announced a

comprehensive tax package to

cut value-added taxes (VAT) and

excise duties in a number of areas

including real estate properties,

furniture, commercial vehicles and

home appliances.

In his address at the Turkish Tax

Inspection Board (TTIB) in Ankara,

Minister Albayrak highlighted the

recent positive developments in

the Turkish economy.

"After the recent spike of the

Turkish lira, we are now observing

a reduction in the inflation. We will

see the mitigation of inflation in

October figures."

In September, inflation hit 24.52

percent on a year-on-year basis,

up 6.3 percent from the previous

month, according to the Turkish

Statistical Institute (TurkStat).

Inflation climbed for a sixth straight

month, hitting its highest level in

almost 15 years.

As noted in Turkey's New

Economy Program (NEP)

announced last month, the

country's inflation rate target

for this year is 20.8 percent.

The target for next year is 15.9

percent, 9.8 percent for 2020, and

6 percent for 2021.

Earlier this month, Minister

Albayrak announced a "full-scale"

program to reduce inflation with

the expansive support of the

public and private sector. The

number of corporations and

institutions that participated in

the program and cut down their

Among the measures announced

to curb inflation was a campaign

of minimum 10 percent

nationwide cut on prices. To

support businesses and maintain

investments, the banks will

decrease interest rates by 10

percent on loans issued after

Aug. 1. The treasury and finance

minister stressed that some of

the participating companies

have reduced prices by more

than 10 percent by up to 20 to

30 percent. In order to expedite

the fiscal reforms, the minister

said the structure of TTIB will be

redesigned.

The minister also announced a

number of reductions in six tax

items. The rate of VAT in real estate

had decreased from 18 percent to

8 percent over the last year as the

campaign continues until the end

of the year.

The title deed fees have been cut

to 3 percent from 4 percent. The

excise duty has been removed in

home appliance sales. The excise

duty in 1.6-liter motor vehicles has

been reduced by 15 percentage

points. Lastly, the 18 percent VAT

in commercial vehicles has been

cut down to 1 percent.

The minister said that these tax

reductions will revive economy

and will largely contribute to the

fight against inflation.

16 November 2018


Monthly automotive aftermarket magazine

The Central Bank revises up year-end

inflation forecasts

The Central Bank of the Republic of Turkey (CBRT) forecasted year-end

inflation rate in the country to reach 23.5 percent.

"We projected the inflation rate

to converge gradually to the

target under the assumption of a

tight monetary policy stance and

enhanced policy coordination

focused on bringing inflation

down," Central Bank Governor

Murat Çetinkaya said in a news

conference in Istanbul ahead of

the release of the bank's quarterly

inflation report.

The bank also foresees year-end

inflation for 2019 to reach 15.2

percent.

Çetinkaya said the inflation rate is

expected to stabilize at the bank's

medium-term target of 5 percent in

the medium term after it drops to

9.3 percent by the end of 2020.

He added that the inflation rate

would fluctuate between 21.9

percent and 25.1 percent through

to the end of 2018.

The rise in the forecast has been

driven by the upward revision in

the projections of lira-denominated

import prices, food inflation and

inflation in the third quarter of

2018, Çetinkaya noted.

According to the Turkish Statistical

Institute (TurkStat) on Oct. 3, the

country's annual inflation reached

24.52 percent in September.

Inflation climbed for a sixth straight

month, hitting the highest level in

almost 15 years. October's inflation

figures will be announced on Nov.

3.

Treasury and Finance Minister Berat

Albayrak said in mid-October the

Turkish economy will see inflation

drop in the last quarter of the year

as a result of the government's

expansive efforts to mitigate inflation

and economic rebalancing.

As noted in Turkey's New Economy

Program (NEP) announced on

Sept. 20 by Minister Albayrak, the

country's inflation rate target for

this year is 20.8 percent. The target

for next year is 15.9 percent, 9.8

percent for 2020 and 6 percent for

202.

18 November 2018


Monthly automotive aftermarket magazine

China’s Xi promises market

opening, more imports

President Xi Jinping promised to

open China wider to imports as

he opened a high-profile trade fair

meant to rebrand the country as

a global customer. But he offered

no response to U.S. and European

complaints about technology policy

and curbs on foreign business.

The China International Import

Expo is part of official efforts to

defuse trade tension while resisting

pressure to roll back industry plans

that Washington, Europe, Japan

and other governments say violate

its market-opening obligations.

"It is our sincere commitment to

open the Chinese market," Xi said

in a speech to a VIP audience that

included Russian Prime Minister

Dmitry Medvedev. Xi promised to

"stimulate the potential to increase

imports," including by cutting

costs for importers and improving

consumer spending power.

Xi's government is emphasizing

the promise of China's growing

consumer market to help defuse

complaints Beijing abuses the

global trading system by reneging

on promises to open its industries.

Business groups complain that

while Beijing is expanding imports

to serve its manufacturers and

consumers, it blocks access to

industries including finance and

logistics. They say regulators

are trying to squeeze foreign

competitors out of promising fields

such as information security.

Prime ministers and other senior

officials of governments including

Egypt, Pakistan and Vietnam also

are attending the fair.

The United States — China's biggest

trading partner — had no plans to

send a high-level envoy.

The expo is "likely not a huge benefit

or attraction for U.S. companies,"

said the chairman of the American

Chamber of Commerce in China,

William Zarit, in an email.

"Many may be attending because

they think it is politically smart," said

Zarit. "However, unless some of the

protectionist trade barriers currently

in place are changed, it won't

make much difference either way."

Xi made no mention of Beijing's

fight with President Donald Trump

over Chinese plans for stateled

development of technology

industries. But in an indirect

reference to Trump's "America

first" policies and threats of import

controls, he appealed to other

governments to "jointly safeguard

free trade."

China has cut tariffs and announced

other measures this year to boost

imports, which rose 15.9 percent

in 2017 to $1.8 trillion. But none

addresses U.S. complaints that

prompted Trump to impose penalty

tariffs of up to 25 percent on $250

billion of Chinese imports. Beijing

has responded with tariff hikes on

$110 billion of American goods.

Chinese leaders have rejected

pressure to roll back plans such

as "Made in China 2025," which

calls for state-led creation of global

champions in robotics and other

fields. Some American officials

worry that might erode U.S.

industrial leadership.

Trump and Xi had what China's

foreign ministry called an "extremely

positive" phone conversation. They

plan to meet this month during the

Group of 20 gathering of major

economist in Argentina, but private

sector analysts say a breakthrough

is unlikely.

The fight has added to challenges

for communist leaders are who

trying to shore up economic

growth that slumped to a postglobal

crisis low annual rate of

6.5 percent in the three months

ending in September. They also

are struggling to revive confidence

in a stock market that has tumbled

25 percent this year to become the

world's worst performer.

Xi acknowledged some Chinese

industries face "growing risks" but

said efforts to shore up growth are

already paying off.

"The fundamentals for sound and

steady growth of the Chinese

economy remain unchanged," he

said.

The expo fits in with Beijing's quest

to develop a trading network

centered on China and increase its

influence in a Western-dominated

global system.

China already is the No. 1 market

for its Asian neighbors and is

promoting its multibillion-dollar

"Belt and Road" initiative to expand

commerce by building ports,

railways and other infrastructure

across 65 countries from the South

Pacific through Asia to Europe and

Africa.

22 November 2018


Monthly automotive aftermarket magazine

Turkey top improver for first

time in Doing Business report

Turkey carried out a record number of business reforms in the past

year, earning the country a spot in this year’s top 10 global improvers,

read the World Bank Group’s Doing Business 2019: Training for

Reforms report on Oct. 31.

The reforms are a significant

acceleration of the country’s efforts

to improve the business climate

for domestic small and medium

enterprises, according to the

report.

As a result of the past year’s reforms,

Turkey advanced to 43rd place in

the global ease of doing business

ranking by climbing 17 ladders in

the list of 190 countries, the report

showed.

“I am pleased to note the priority

the government is placing on the

important agenda of improving

the business climate to boost

investment and produce jobs.

Given the current economic

environment in Turkey, it is,

nevertheless, encouraging to the

global business community and

local entrepreneurs alike to see the

process of conducting business

simplified in so many Doing

Business areas,” said Johannes Zutt,

the World Bank Country Director

for Turkey.

Some of the reforms implemented

in the past year were also

mentioned in the report.

According to the report, starting a

business was made easier and faster

by removing the paid-in minimum

capital requirement, eliminating

notarization requirements and

reducing registration costs. It now

takes seven days to start a business,

as opposed to being 10 days

previously.

Dealing with construction permits

was improved by publishing all preapplication

requirements needed

to obtain a construction permit

online, thereby enhancing the

process of construction permits.

Turkey now ranks 59 globally in this

area, compared with 96 last year,

it noted.

“Getting credit was also

strengthened by improving access

to credit information and enhancing

the rights of secured creditors in

bankruptcy proceedings. As a result

of this reform, Turkey catapulted to

32nd place globally in this area

from 77 last year,” it added.

Paying taxes was made easier by

improving the online portal for

filling and payments of taxes and

the time needed by a firm to file

taxes has been reduced to 170

hours from 215 hours.

The country performs best in the

areas of enforcing contracts, with a

global rank of 19, and a rank of 26

for protecting minority investors.

For example, resolving a

commercial dispute through a

local first-instance court in Turkey

costs 25 percent of the claim value,

compared to the regional average

of 26.3 percent.

It also performs well in the area of

registering property, with a global

rank of 39, and at just five days,

it is four times faster to register a

property transfer in Turkey than in

the region, according to the report.

However, the country

underperforms in the areas of

resolving insolvency with a global

rank of 109, paying taxes with

a rank of 80 and a rank of 78 for

starting a business.

24 November 2018


Monthly automotive aftermarket magazine

Five of top 10 auto brands

produced in Turkey

Five of the top 10 brands in the passenger car market are

manufactured in Turkey, with Renault, which has been manufacturing

in the country for 50 years, ranking first in the list. This trend shows

that consumers prefer cars produced by Turkish workers and engineers.

The market share of imported

automobiles has fallen by about 11.4

percent in the last five years, dropping

from 77.9 percent in 2013 to 70

percent in 2017 and to 66.5 percent

in January-October 2018. The share

of domestic automobiles produced

in Turkey, on the other hand, rose to

33.5 percent. Recent passenger car

investments in the automobile have

led to a decrease in the market share

of imported automobiles.

One of the leading automotive

companies in Turkey, Tofaş, started

to manufacture passenger cars in

its factory in Bursa with the Fiat

Egea sedan, while Oyak Renault

increased the number of its models

to two with the Renault Megane

sedan. Meanwhile, Toyota started to

produce the new SUV model C-HR

as well as the Corolla sedan in its

Sakarya factory. With the passenger

cars produced by Hyundai Assan

and Honda, the number of domestic

models sold in Turkey increased.

The imported-domestic balance in

the market has changed with the

recent figures. Consumers held the

most important role in this change as

they preferred the brands that were

produced in Turkey. The data of the

Automotive Industry Association also

proves this argument.

Accordingly, for the January-October

period, there are five brands that

are produced in Turkey among the

top 10 best-selling brands. Renault,

which has been producing in Turkey

for 50 years, ranks first in the list of

the best-selling brands with 61,820

units. Similarly, Fiat, which also has

investments in Turkey, comes third

with 29,727 units, followed by

Hyundai with 27,913, Honda with

22,435 and Toyota with 22,268

units.

The imported-domestic balance

is changing in the passenger car

trade but not enough. The number

of automobiles produced in Turkey

must increase in order to further

reduce the share of imported autos.

As in the world, demand for SUV

models in Turkey is increasing. In

the last four years, the SUV market

has grown at a high rate of 63.9

percent in Turkey. SUV sales, which

stood at 74,000 units in 2014, rose

to 122,000 units in 2017. In the

January-October period of 2018, the

market share of SUVs rose to 20.6

percent, amounting to 78,179 units

in sales. During this period, the bestselling

SUV model was the Nissan

Qashqai with 10,722 units, followed

by the Dacia Duster with 9,653 and

the Peugeot 3008 with 6,359 units.

In the January-October period, the

sedan auto market share was 50.7

percent. Most Turkish consumers

preferred sedan models. During this

period, eight of Turkey's top 10 bestselling

models were sedans, four of

which were produced in Turkey.

Among the models produced in

Turkey, 24,217 units of the Renault

Megane sedan were sold in the first

10 months, followed by the Fiat Egea

sedan with 23,740 units, the Honda

Civic Sedan with 17,656 and the

Toyota Corolla sedan with 16,351

units.

28 November 2018


Monthly automotive aftermarket magazine

Turkish government extends

free of charge space

allocations at industrial zones

The scope of free of charge spaces in Turkey’s organized industrial

zones has been extended, a decision by the Industry and Technology

Ministry has shown.

Mustafa Varank, Industry and

Technology Minister

According to the decision, which

was released on the Official

Gazette on Nov. 2, the spaces

at the organized industrial zones

in fourth-ranked districts will be

allocated without any fees.

This move was one of the measures

in a package announced by

Industry and Technology Minister

Mustafa Varank who previously

vowed to fight “the attacks against

the Turkisheconomy.”

According to the decision, the

existing “free of charge” space

allocation will continue to be

applied to the fifth-ranked and

sixth-ranked districts.

Rent discounts in the organized

industrial zones which are located

in the second-ranked and thirdranked

districts have also been

extended to 60 percent and

80 percent, respectively, from

a previous 40 percent and 60

percent.

The decision aims to further raise

production and employment

by fueling investments in the

organized industrial zones.

Turkey’s domestic electric car debuts

at exhibition in Istanbul

A domestically manufactured electric car has been

showcased at an exhibition in Istanbul for the first time.

The domestic car, the TM-480, which can be charged

in one hour at a fast charging station, consumes TL 10

($1.80) worth of electricity per 100 kilometers.

The electric car, which is completely domestic with

regard to external design, engine, interior design and

all other parts, could be on the market in a short time

if necessary procedures are completed. Domestic car

manufacturer Dr. Gürsel Güzel said that for the first time

they have showcased the domestic car they produced.

The report said all parts of the TM-480 have been

produced domestically. "The vehicle's interior design,

exterior design, mechanical design, chassis, bonnet and

engine are domestic. Motor drive, electronic equipment,

all control units and software belong to us," Güzel said.

The car has 150 kilowatts of engine power and 203

horsepower. A total of $6.5 million was spent on

research and development (R&D) in five years. While

mass production could start after six months, it can take

two-to-three years due to certification procedures, the

report added.

The range of the electric domestic car TM 480 is 400

kilometers. It consumes TL 10 worth of electricity per

100 kilometers. The announced price is TL 200,000

(approximately $36,000).

Established in 2014 under the leadership of Güzel, GEN

Otomobil completed its first electric vehicle prototype,

GEN1, and grew its team by employing talented

engineers experienced in the automotive industry.

After the team grew, GEN started research and

development (R&D) operations to develop three

different mass-producible models: a sedan, a hatchback

and an LCV, the statement on the company's official site

read.

GEN Otomobil made its first appearance with its

hatchback prototype in September 2017 at the

International R&D Summit and Fair organized by the

Architects & Engineers Group in Turkey. After completion

of the three different prototypes, GEN Otomobil will do

the necessary work for mass production, according to

the statement.

32 November 2018


Monthly automotive aftermarket magazine

October exports total highest

monthly value in Turkey’s

history, hit $15.7B

Ruhsar Pekcan, Turkish Republic Trade Minister

The increasing trend in Turkish

exports continued in October and

peaked in terms of monthly value; its

highest in the history of the Turkish

Republic. Trade Minister Ruhsar

Pekcan announced that Turkish

exports in October recorded a 13.1

percent increase compared to the

same period last year and reached

$15.7 billion. Exports over the

last 12 months hit $166.8 billion.

Pekcan stated that Germany, the

U.K. and Italy were the top three

destinations for Turkish exports in

October. The minister stressed that

exports will reach $170 billion by

the end of the year as foreseen in

the New Economy Program (NEP).

Pekcan noted that the country's

exports to target markets soar

swiftly. "Our exports to Mexico

advanced 14 percent, to India 16

percent and to Latin America 41

percent," she said and added that

exports to Africa also surged by 25

percent annually in October.

Imports dropped by 23.5 percent

in the same month and fell to

$16.2 billion. The ratio of exports

to imports was recorded at 65.4

percent in October 2017, Pekcan

recalled and drew attention to

the significant increase in this ratio

which hit 96.7 percent last month.

Russia topped the list of countries

from which Turkey imports with

$1.9 billion. It was followed by

Germany with $1.6 billion and

China with $1.4 billion.

The foreign trade gap plummeted

on a yearly basis in the month,

according to the data. The country

posted a foreign trade deficit of

$529 million for October, down 93

percent from the same month last

year. Moreover, the foreign trade

volume dropped to $32 billion in

October, falling 9 percent.

The automotive industry ranked first

among sectors with an export value

of $2.9 billion. Chemicals followed

the automotive industry with $1.59

billion, and the textile sector came

in third with $1.56 billion. The

highest sectoral rise was observed

in jewelry exports, which increased

by 113 percent in October.

The manufacturing sector

accounted for 81 percent of total

Turkish exports and recorded a 16

increase compared to the same

period of the previous year and

reached $12.7 billion. The exports

of agricultural products made up

13.8 percent of total sales abroad.

With a 4.1 percent rise, agricultural

exports in the same period totaled

$2.1 billion. The mining sector

composed 2.6 percent of the total

exports and reached $2.1 billion.

Turkish Exporters' Assembly (TİM)

Chairman İsmail Gülle highlighted

the historic high in the October

exports and stressed that exports

are key to accomplishing

macroeconomic goals, including

growth, cutting down the current

account deficit and reducing

unemployment. Gülle underscored

that TİM will continue working to

update the customs union. Turkey

and the EU have been in talks over

the modernization of the 1996

deal.

As the only non-EU member

country that has had a customs

union agreement with the EU

since 1996, Turkey has been one

of the largest trade partners of the

union with an export value of 69.8

billion euros and an import value of

84.5 billion euros in 2017 in goods

alone.

In its Dec. 21, 2016 assessment, the

European Commission proposed a

modernization of the current deal,

which only covers a limited range

of industrial products and excludes

agriculture, public procurement

and services. Highlighting that

the upgrade of Turkey-EU trade

relations forms an essential part of

efforts made by Turkey and the EU

to deepen relations in key areas of

common interest, the commission

reiterated its resolve to continue

delivering on the commitments it

has made as part of the deal with

Ankara.

34 November 2018


Monthly automotive aftermarket magazine

Turkey ranks first with highest rate of

exports in total automotive production

Turkey has overtaken Canada in the highest rate of exports in total

automotive production, ranking first by exporting 83.3 percent of its

total production.

According to figures from the

automotive industry research firm

Jato Dynamics, Canada led the

way with the highest rate of exports

in total production in 2017 with 82

percent, followed by Turkey with

80 percent, Mexico and Europe

with 79 percent and South Korea

with 59 percent. However, this

table changed in 2018. Having

increased its export rate to 83.3

percent, Turkey exported 83 of

every 100 vehicles manufactured.

The export journey of the Turkish

automotive industry began in the

first half of the 1990s. Exports,

which stood at thousands of units,

have risen to millions of units

today. With investments in the last

five years, Turkey has become one

of the few automobile exporting

countries in the world.

Based on data released by the

Automotive Manufacturers'

Association, six manufacturing

companies, the drivers of

exports, exported a total of 12.4

million passenger cars and light

commercial vehicles between

1994 and 2017. Including 2018

January-September exports, this

figure exceeds 13.3 million units.

Oyak-Renault has so far exported a

total of 3.7 million units, followed

by Ford Otosan with 3.2 million,

Tofaş with 3 million, Toyota with

1.9 million, Hyundai Assan with

1.5 million, and Honda Turkey with

126,000 units.

Celebrating its 50th anniversary

this year, Tofaş exported its three

millionth vehicle in October. About

half of Tofaş's exports of 3 million

units consisted of Doblo model

with 1.5 million units, followed by

Fiorito with 830,000 units. Tofaş

CEO Cengiz Eroldu recalled that 75

units of Murat 124, sent to Egypt

in 1974, went down in history as

the first export of Tofaş, adding in

1996, they later achieved the first

large-scale automobile exports of

the Turkish automotive industry

with their Tempra model.

Turkey maintains its title as the

country that exports the largest

number of motor vehicles to

Europe in 2018. According to data

from the European Automobile

Manufacturers' Association (ACEA),

Turkey led the way in vehicle

exports to Europe in 2017 with 1

million units. Followed by Japan

and South Korea, Turkey also ranks

first in passenger car exports.

36 November 2018


Monthly automotive aftermarket magazine

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

38 November 2018


Monthly automotive aftermarket magazine

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-square-meter 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

Istanbul-based company, Varroc

Lighting now has a global

presence in 17 countries across

five continents.

46 November 2018


Monthly automotive aftermarket magazine

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.

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.

48 November 2018


Monthly automotive aftermarket magazine

Stricter automobile emission

tests come into force across EU

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.

"Stronger emissions tests are a key

piece of the puzzle," she said.

The German car industry has

criticized the EU-mandated tests,

saying the change has taken place

too fast and warning they could

result in damaging production

shortfalls.

Earlier this year VW blamed

production bottlenecks on the

tests, while BMW temporarily

stopped production of some

models with gasoline engines in

order to make them compliant.

BMW said in July it had largely

completed the transition to WLTP.

Manufacturing index at 44.3

points in October

Turkey's Purchasing Managers'

Index (PMI) for the manufacturing

sector stood at 44.3 points in

October, according to a closelywatched

business survey.

An Istanbul Chamber of Industry

PMI Manufacturing Index report,

conducted in cooperation with

IHS Markit, showed a 1.6-point

month-on-month rise in October

pointing to a further easing of the

health of the sector.

While the PMI rose for the first

time since July, the survey showed

that the output, new orders and

employment moderated to lesser

extents in October.

"A more stable exchange rate

scenario led rates of inflation

for both input costs and output

prices to slow markedly over the

month," the report read.

The survey revealed that the latest

slowdown was less marked last

month compared to September,

while the output prices rose at the

weakest pace since March.

"A stabilization of the lira

exchange rate helped lead to a

marked slowdown in the rate of

input cost inflation in October," it

added.

The report also noted that new

export orders eased to a greater

extent for the second month

running.

A reading greater than 50

indicates the sector is growing,

while a reading below 50 signals

a contraction.

50 November 2018


Monthly automotive aftermarket magazine

Mercedes-Benz Türk’s R&D

center providing truck road

test, engineering services

The research and development

(R&D) center established by

the global automotive giant

Mercedes-Benz at its truck factory

in Turkey's central province of

Aksaray has become the "only

center" of the German automaker

Daimler AG that provides truck

road tests and engineering

services throughout the world.

The center is one of Mercedes-

Benz Türk's most important

developments in 2018. The

construction of the new R&D

center, whose foundation was laid

at the company's factory last year

with an investment of 8.4 million

euros, has been completed,

according to a statement by

Mercedes-Benz Türk.

With the said investment, Aksaray

province has been included in the

global network of R&D centers

in Germany, the United States,

Brazil, India, China and Japan by

Daimler AG, the parent company

of Mercedes-Benz Türk.

The auto manufacturer's Aksaray

Truck Factory has the title of

being the biggest employment

resource of the region with more

than 2,000 employees and its

sub-industry.

Mercedes-Benz Türk has

significantly contributed to the

Turkish economy since 1986 in

terms of investment in Central

Anatolia, production, exports and

employment.

In the center, the latest milestone

in the 51 years of the company's

adventure in the country, 251

Turkish engineers will continue

their work specific to the truck

product group.

The center will be the start and the

end point of the tests of all trucks

carrying the Mercedes-Benz star.

8,000 square meters of the total

area of 40,000 square meters of

the center is closed, with the rest

being the open area.

Thanks to the virtual reality and

mixed reality technologies used

in the new R&D center, which

was equipped consonantly with

requirements of the Industry

4.0, R&D engineers working all

over the world within the global

network of Daimler can work

together at the same time.

Mercedes-Benz Türk CEO Süer

Sülün recalled that in 2016, the

30th anniversary of the Aksaray

Truck Factory, they announced

the investment plan of 113 million

euros to boost the production

and employment capacities.

Sülün said the center will serve

with a capacity of 215 people in

all the research and development

processes from vehicle concept to

construction, including simulation

and vehicle tests.

"Our engineers will provide

truck road tests and engineering

services throughout the world.

We are proud that we will be

providing engineering services

to the world from Aksaray," Sülün

noted.

Mercedes-Benz Türk R&D Director

Mustafa Üstertuna said at the

new center, the truck and truck

parts will be tested by engineers

using the latest technological

equipment and software and

will be tested for reliability and

function in routes reflecting

customer usage and real road

conditions.

The parts and tools completed

at the Aksaray R&D center have

been approved to be valid in

all parts of the world, Üstertuna

continued.

"Our R&D engineers, who are

able to exchange information

with different teams within the

Daimler's global network in a

virtual environment, are having

an opportunity to develop future

technology within the global

ecosystem in Turkey at the same

time," he said.

"While important steps are being

taken for the development of our

truck and bus sector with our

R&D works, we are providing an

opportunity for the sub-industry

firms to be included in Daimler

AG's international portfolio, thus

paving the way for opening of

export ways from Turkey to the

world. In sum, while contributing

to Turkey's potential, we are

exporting engineering to the

whole world from Turkey,"

Üstertuna concluded.

52 November 2018


Monthly automotive aftermarket magazine

Turkey offers challenging

opportunities for global

manufacturers

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.

With the 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.

56 OCTOBER 2018


Monthly automotive aftermarket magazine

Turkey maintains fiscal

discipline to keep inflation in

check, budget in balance

Turkish Treasury and Finance

Minister Berat Albayrak

Turkish Treasury and Finance

Minister Berat Albayrak reiterated

the government's commitment

to fighting against inflation and

accomplishing the budgetary

target by the end of this year and

next year. "We will analyze yearend

data for the budget and in

the new year, we will continue

to form policies with strong

commitment to the fiscal balancing

and budget discipline," Minister

Albayrak said in a live broadcast on

the A Haber news channel.

"We are fully committed to the

principle of budgetary discipline,"

he emphasized. The central

government budget balance

posted a deficit of TL 56.7 billion

($10.45 billion) in the period

of January to September and

budget revenues totaled TL 546.8

billion in this period, up nearly 20

percent year-on-year. Last year,

the budget deficit was TL 47.4

billion, totaling around 1.5 percent

of the country's GDP. The new

economic program suggests that

the government predicts that the

ratio of the budget deficit to GDP

will be 1.9 percent this year and

1.8 percent in 2019.

The positive indicators for

economic rebalancing are most

evident in the monthly surplus of

the current account. "The October

data is expected to outperform

and we will see a better outlook

in November and December," the

minister said.

One of the macroeconomic

issues the government is tackling

the inflationary pressures which

disrupted pricing behaviors in the

real economy.

"We observed distorted pricing

mechanisms in September, which

is reflected in inflation data,"

the minister said. "In October,

inflation started to slow down. In

November and December, more

positive data for inflation will be

seen as the Turkish lira has spiked

against the U.S. dollar and lira,

dragging down production costs."

The downward trend in oil prices

and energy costs will also facilitate

a reduction in the inflation, the

minister stated. Minister Albayrak

also highlighted that last week's tax

reductions will reduce the inflation

in the last two months of the year.

Last week, Albayrak announced

a comprehensive tax package

to cut value-added taxes (VAT)

and excise duties in a number

of areas including real estate

properties, furniture, automotive

products and home appliances.

Turkey's Consumer price index

(CPI) increased by 25.24 percent

year-on-year in October, according

to data released by the Turkish

Statistical Institute (TurkStat).

The Turkish lira weakened after

the report and was trading 0.2

percent lower at 5.45 per dollar

in the afternoon. The currency

lost nearly half of its value against

the dollar amid a diplomatic row

with the U.S. but has rebounded

by more than 25 percent from

August's all-time low.

In September, inflation hit 24.52

percent on a year-on-year basis,

up 6.3 percent from the previous

month, according to TurkStat.

Inflation climbed for a sixth straight

month, hitting the highest level

in almost 15 years. Last week,

the Turkish Central Bank revised

Turkey's year-end inflation rate

forecast to 23.5 percent.

As noted in Turkey's New

Economy Program announced last

month, the country's inflation rate

target for this year is 20.8 percent.

The target for next year is 15.9

percent, 9.8 percent for 2020,

and 6.0 percent for 2021. Over

the past five years, the annual

inflation saw its lowest level at 6.13

percent in April 2013, while the

figure reached its highest level this

October.

In order to curb the inflation and

ensure a balance in the pricing

behaviors, the Treasury and

Finance Ministry launched a fullscale

campaign in early October

with the support of private sector.

Among the measures announced

to curb inflation was a campaign

of minimum 10 percent

nationwide cut on prices. To

support businesses and maintain

investments, the banks will

decrease interest rates by 10

percent on loans issued after

Aug. 1. The treasury and finance

minister explained that some of

the participating companies have

reduced prices by more than 10

percent by up to 20 to 30 percent.

Minister Albayrak stressed that

more than 2,500 companies have

participated in the campaign with

expansive discounts.

58 November 2018


Monthly automotive aftermarket magazine

American automotive

firm WABCO opens first

distribution center in Turkey

Belgium-based U.S. company

WABCO Holdings, one of the

leading global suppliers of

braking control systems and

other advanced technologies

that improve the safety, efficiency

and connectivity of commercial

vehicles, officially opened its first

distribution center in Turkey.

Sources said that the center

has been established with an

investment of TL 100 million

($16.67 million).

"Underlining WABCO's continued

commitment to Turkey and its

significant investment in the

region, the 2,000-square-meter,

state-of-the-art facility based in

Istanbul enhances the distribution

capab

ilities for WABCO's extensive

portfolio of technologies and

services to support the needs

of local aftermarket customers,

original equipment manufacturers

and trailer builders in the country,"

the company said in a statement.

Speaking at the opening

ceremony, Investment Office

President Arda Ermut said that

WABCO's investment proves the

company's trust in the Turkish

economy. "We have already

started to discuss with WABCO its

new investments in Turkey. It will

be very important to boost our

competitiveness and added value

in the automotive sector," Ermut

said.

The company added that it has

maintained a 36-year relationship

with Intermobil, its exclusive

representative, fourth-party

logistics provider and supply chain

management partner in Turkey,

and will further build its local

customer relationships through

improved product availability,

quicker response times and local

customer service excellence.

"Present in Turkey since 1982,

WABCO has forged deep

relationships across the Turkish

commercial vehicle industry,

which includes some of

the world's leading original

equipment manufacturers," it

added.

WABCO's investment in Turkey

has grown significantly in recent

years, the statement read. "In

2011, WABCO opened an

International Sourcing and

Purchasing Office in Istanbul

which currently purchases over

$50 million of commodities

annually, ranging from metals to

rubber and casting to forging, as

well as assembly parts sourced

from over 20 Turkish suppliers."

The new distribution center

was inaugurated at a grand

opening event, hosted by

WABCO Chairman and CEO

Jacques Esculier. Customers,

industry representatives, central

government officials, suppliers,

partners and WABCO employees

were present on the occasion.

"Demonstrating our commitment

to Turkey and building on

our major $50 million annual

expenditures here, we strongly

believe that our investment in this

cutting-edge distribution center

will help further contribute to

the growth of the commercial

vehicle industry in the region,"

said WABCO Chief Supply Chain

Officer Nicolas Bardot, at the

opening ceremony. "In addition to

enabling WABCO to significantly

increase access to our extensive

portfolio of advanced products

and services to our aftermarket

customers and trailer builders

in Turkey, these investments

will help foster even closer

relationships with local suppliers

to deliver further value and

differentiation for our customers,"

added WABCO president EMEA

Nick Rens.

60 November 2018


Monthly automotive aftermarket magazine

Turkey’s foreign trade deficit

falls 77.1 pct in September

Turkey's foreign trade deficit saw

an annual fall of 77.1 percent in

September, the country's statistical

authority announced.

Last month, Turkey's exports went

up 22.4 percent year-on-year

to $14.45 billion, while imports

decreased by 18.3 percent to

$16.3 billion. In September, the

country's foreign trade deficit

amounted to $1.87 billion, down

from $8.17 billion.

"In September 2018, exports

coverage imports was 88.5

percent while it was 59.1 percent

in September 2017," TurkStat said.

Official data showed that

Germany with $1.42 billion was

the top market for Turkish exports.

"The country was followed by the

U.K. with $1.05 billion, Italy with

$816 million and Iraq with $719

million," it added.

The institute said the top country

for Turkey's imports was Russia

with $1.7 billion in September,

followed by China ($1.5 billion),

Germany ($1.4 billion) and the

United States with $1.1 billion.

In the nine-month period, exports

totaled $123.04 billion with an

annual hike of 7 percent, and

imports were $174.16 billion, up

3.1 percent over the same period.

As a result, Turkey's foreign trade

balance in January-September

posted a deficit of $51.1 billion

- down 5.2 percent - as the

deficit was $53.9 billion over the

same period last year. Exports

to Turkey's major trade partner,

the EU, totaled $61.9 billion or

accounted for 50.4 percent of

all exports, while the country's

imports from the bloc were $63.4

billion.

The Near East and Middle Eastern

region was the second largest

export market for Turkish products

with some $21.5 billion, followed

by African countries with nearly

$10.3 billion.

The EU was followed by the

countries in Asia with an amount

of $55.2 billion on the imports

side.

In 2014, Turkey's exports hit an

all-time high of $157.6 billion,

while the figure was nearly $157

billion last year.

Over the past five years, the

highest export-to-import ratio on

a yearly basis was recorded in

2016 with 71.8 percent, while

Turkey's foreign trade deficit has

fallen from $99.8 billion in 2013

to $76.8 billion in 2017.

62 November 2018


Monthly automotive aftermarket magazine

Turkey’s automotive exports

record second-highest monthly

figure, hit $2.9B in October

One of the driving forces of the

Turkish economy, automotive

industry exports hit $2.9 billion in

October, marking a year-on-year

rise of 11 percent. This figure was

the second-highest export figure

after the record of $3.1 billion

in March on a monthly basis,

according to Uludağ Automotive

Industry Exporters' Association (OİB)

data. Meanwhile, the share of the

automotive industry in total exports

stood at 19 percent. As far as

product groups go, exports by the

automotive subindustry grew by

3 percent to $939 million, private

car exports by 10 percent to $1.19

billion, motor vehicles for goods

transport by 5 percent to $471

million and bus-minibus-midibus by

26 percent to $178 million.

On the country basis, exports

to Germany, the largest market,

decreased by 2 percent, while

exports to the U.S. rose by 24

percent, to Poland by 15 percent, to

Morocco by 40 percent, to Algeria

by 122 percent and to Slovenia

by 48 percent. Also, exports to

Romania, Spain and Iran, which are

among the major markets, dropped

by 12 percent, 10 percent and 75

percent, respectively.

Exports to the European Union, the

largest market on the basis of the

groups of countries, went up by 13

percent, reaching $2.27 billion in

October. European Union countries

had a 78 percent share in exports.

While exports to African countries,

which are among alternative

markets, soared by 60 percent,

exports to Middle Eastern countries

plummeted by 41 percent.

The automotive industry exported

$433 million worth of goods to

Germany, up by 4 percent, which

is the largest market on a national

basis, followed by Italy, the secondlargest

market, with $278 million

with a 3 percent rise. On the other

hand, exports to France tumbled by

7 percent to $269 million.

OİB Chairman Baran Çelik stated

that exports in the automotive

industry reached $26.3 billion with

a 12.5 percent upsurge in the first

10 months of the year.

Expressing that the average export

volume of the automotive industry

was $2.6 billion in the January-

October period, Çelik said, "In

October, exports of private cars

and bus-midibus-minibus increased

by double digits, while exports

of towing vehicles continued to

increase at high rates. Exports

to European Union countries

and African countries increased

by 13 percent and 60 percent,

respectively."

66 November 2018


Monthly automotive aftermarket magazine

Taysad: Competent

representative of the Turkish

automotive supplier industry

Established in 1978, TAYSAD is the sole and most

competent representative of the Turkish 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 representative of the Turkish 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.

68 November 2018


Monthly automotive aftermarket magazine

Turkey-A global player in

automotive 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 the World, 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, and competitive

advantages

-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 center in 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.

70 November 2018


Monthly automotive aftermarket magazine

Top managers of automotive

industry convened in Istanbul

Held for the fifth time WAC 2018,

World Automotive Conference,

attracted record number of

visitors. Over 40 directors and

top-level managers were at the

conference that was visited by

902 people. Ersin Kara, director

of the conference emphasized on

the timing of the event that has

become a strategic organization

that helps to establish networks

for cooperation in these critical

days.

Organized by Worldwide

Partnership, a London

headquartered firm,

representatives of leading firms

in automotive industry discussed

the future of the industry.

Panel, case studies, group

workshops and team activities

were the main events in the

conference and participants

find opportunities to share their

experiences.

Ersin Kara expressed his

satisfaction about the results

of the event and said, “We are

happy to share our experiences,

knowledge and to establish

serious business connections.”

Some of the names in the event

has expressed their views,

among them was Demet Yavuz,

consumer finance director of

Garanti Bank. She said, “Behind

the success of the industry

lays the cooperative efforts of

financial firms. 25 years ago, we

have to visit first the showrooms

of sellers for several times, then

we start to look for credit for the

car we wanted to buy. Now,

we have contracts with car

dealers for funding directly their

customers. People now have

become able to order and buy

a vehicle as if they are ordering

a pizza. They can get their car

delivered at their door steps.”

CIO of Mercedes-Benz Turk,

Gokce Bezmer said thet their

company emphasize on sharing

vehicles and they are developing

new ways and schemes to sold

cars to the members of new

generation. He said, “80 % of

earnings in the automotive

industry that has a sales volume

of 3.5 billion dollars in the world

accounts car sales. The sales

is expected to reach up to 6.7

billion dollars in 2030 and only

55 % of it will come from sales,

the 25% will be earned from

mobile services.”

Hakan Kostepen, Panasonic

America director, has told about

data based communities they

formed and the importance of

movement of people, goods,

data and energy. He said,

“Mobility changes lives of the

people. Community 5.0 is a new

term invented in Japan, that

focuses on peoplenet in addition

to worldwide internet.”

Ozlem Derici Sengul, an

economist, has told about

investment on technology,

human resources, and on R&D.

She said, “50 trillion of dollars

currency that was injected in he

world economy has been started

to call back since 2015. We do

not have luxury of working with

short term funds. For this reason

we have to plan for the next ten

to twenty years.

Carlos Moreira, CEO of Wisekey

firms from Switzerland has

emphasized on the data security

issues in automotive industry

and said that there is an urgent

need to design new cars having

asymmetric identity systems to

prevent hacking attempts.

72 November 2018


Monthly automotive aftermarket magazine

Oyak-Renault lays foundation for its

$115M plant in Turkey’s Bursa

Turkish-French auto manufacturer

Oyak-Renault laid the foundation

of its high-pressure aluminum

injection molding plant in Bursa.

The $115-million plant will produce

aluminum engine blocks for the

company's new generation of

hybrid vehicles, Turkey's Industry

and Technology Minister Mustafa

Varank said in the groundbreaking

ceremony.

"The plant investment was made

under the project-based incentive

system," he added. Varnak said

that the products made at the plant

would be exported. "It [the plant]

will contribute to employment and

exports while reducing Turkey's

current deficit of by $2.3 billion

annually."

Necessary parts in the engine

block production will be provided

by domestic manufacturers and

suppliers, the minister said.

Renault Senior Vice President

Nicolas Maure said that the plant

was the first step in the company's

future investment plans in Turkey.

Maure added that the company

has renewed its partnership with

Oyak for another 27 years.

Oyak-Renault, founded in 1969,

produces some 360,000 cars and

750,000 engines annually.

74 November 2018


4. – 7. 4. 2019

Türkiye’nin Lider Uluslararası

Otomotiv Endüstrisi Fuarı

TÜYAP Fuar ve Kongre Merkezi

İstanbul / Türkiye

www.automechanika.com.tr

TÜRKİYE CUMHURİYETİ

TİCARET BAKANLIĞI

Türkiye Cumhuriyeti

TİCARET BAKANLIĞI

İŞ ORTAKLARI

DESTEKLEYENLER

/automechanikatr /automechanikaistanbul

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12.Uluslararası

Günes Enerjisi ve Teknolojileri Fuarı

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Günes . Enerjisi‘nin Devleri Solarex Istanbul‘da Bulusuyor .

04-06 Nisan 2019

İstanbul Fuar Merkezi / Yeşilköy

9-10-11-12. Hall

Ziyaret Saatleri

10:00-19:00

Ücretsiz Davetiye için/Free Invitation

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