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Automotive Exports May 2019

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www.automotive-exports.com<br />

Monthly automotive aftermarket magazine<br />

<strong>May</strong> <strong>2019</strong>


Monthly automotive aftermarket magazine<br />

GROUP CHAIRMAN<br />

H. FERRUH ISIK<br />

PUBLISHER:<br />

İstmag Magazin Gazetecilik<br />

İç ve Dış Ticaret Ltd. Şti.<br />

Genel Müdür<br />

Managing Editor<br />

Mehmet Söztutan<br />

mehmet.soztutan@img.com.tr<br />

Responsible Editor<br />

Yusuf Okçu<br />

yusuf.okcu@img.com.tr<br />

Mehmet Soztutan, Editor-in-Chief<br />

mehmet.soztutan@img.com.tr<br />

Editor<br />

Ayça Sarıoğlu<br />

ayca.sarioglu@img.com.tr<br />

Advertising Manager<br />

Adem Saçın<br />

adem.sacin@img.com.tr<br />

Ahmet D. Gölbaşı<br />

aderya@gmail.com<br />

Foreign Relations Manager<br />

Yusuf Okcu<br />

yusuf.okcu@img.com.tr<br />

The shift of the focus<br />

for global markets<br />

Following the shift of the focus on customers, markets, products and competition<br />

from the local level to the global level, Turkish automotive manufacturers and<br />

suppliers position themselves globally rather than locally.<br />

In addition, the consumer satisfaction standards based on domestic market<br />

demands have now become a quality standard satisfying customers worldwide.<br />

The autoparts industry of Turkey has developed rapidly in line with the automotive<br />

industry. The autoparts industry with its large capacity, wide variety of production and<br />

high standards, supports automotive industry production and the vehicles in Turkey, and<br />

also has a remarkable potential for additional exports.<br />

Whereas previous manufacturing activity focused on domestic markets only, production<br />

now extends to export markets. As a result of this structural change, the competitiveness<br />

at the domestic level is now replaced with competitiveness on a global scale, both in<br />

terms manufacturers and suppliers.<br />

This transformation in the sector urges automotive suppliers to improve their existing<br />

structures in line with the demands of global auto manufacturers. These improvements<br />

relate to a need to build advanced technological skills, infrastructure, research and<br />

development means; capable of effective and successful technical cooperation; skilled<br />

in unique product development; equipped with the ability to obtain shares in global<br />

projects as well as to have high brand competitiveness.<br />

We think that technology and competitive power will always be the two keys for the<br />

survival of the automotive industry. Permanent change is the rule of the game in the<br />

automotive industry as usual.<br />

This month, we participate in International SIA <strong>2019</strong> Motor Show, Kiev, Ukraine; to convey<br />

the message of Turkish automotive and autoparts exporters.<br />

Our publications remain at the service of those business people seeking to increase their<br />

share in the increasingly competitive automotive markets.<br />

We wish them and their trading partners a fruitful and lucrative business.<br />

Consultant Editor<br />

Leniiara Agliullina<br />

Correspondent<br />

İsmail Çakır<br />

ismail.cakir@img.com.tr<br />

Graphics & Printing Manager<br />

Tayfun Aydın<br />

tayfun.aydin@img.com.tr<br />

Design & Graphics<br />

sami.aktas@img.com.tr<br />

Chief Accountant<br />

Zekai Turasan<br />

zturasan@img.com.tr<br />

Finance Manager<br />

Mustafa Aktas<br />

mustafa.aktas@img.com.tr<br />

Subsciption<br />

İsmail Özçelik<br />

ismail.ozcelik@img.com.tr<br />

HEAD OFFICE:<br />

Evren Mahallesi Bahar Caddesi Polat İş Merkezi<br />

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

Tel: (90.212) 604 51 00<br />

Fax: (90.212) 604 51 35<br />

www.img.com.tr turkey@ihlas.net.tr<br />

KONYA:<br />

Metin Demir<br />

Hazım Uluşahin İş Merkezi C Blok<br />

Kat: 6 No: 603-604-605 KONYA<br />

Tel: (90.332)238 10 71 Fax: (90.332)238 01 74<br />

PRINTED BY:<br />

İHLAS GAZETECİLİK A.Ş.<br />

Merkez Mahallesi 29 Ekim Caddesi İhlas Plaza<br />

No:11 A/41 Yenibosna–Bahçelievler/ İSTANBUL<br />

Tel: 0212 454 30 00<br />

www.ihlasmatbaacilik.com<br />

Please mention<br />

<strong>Automotive</strong> <strong>Exports</strong><br />

when writing to advertisers


Rental firm to place order for ‘Made in Turkey’ vehicles<br />

Turkey’s first indigenous car<br />

project has already started to<br />

attract the interest of car rental<br />

companies. Zeplin Car, one of<br />

the major players in this field with a<br />

fleet of 18,200 vehicles, has announced<br />

that it is ready to place an order for<br />

2,000 vehicles.<br />

Works on the domestic car, which<br />

will hit the roads in 2021, continue<br />

at full speed. The Industry and<br />

Technology Ministry is said to have<br />

been enjoying an influx of orders<br />

placed by individuals and companies.<br />

In November 2017, the Turkish public<br />

saw the launch of a groundbreaking<br />

initiative to manufacture Turkey’s<br />

first domestic automobile. The project<br />

has brought together the country’s<br />

largest manufacturers and companies<br />

in a consortium that includes Kıraça,<br />

Anadolu Group, Turkcell, Zorlu and<br />

BMC.<br />

During the announcement, President<br />

Recep Tayyip Erdoğan said he will buy<br />

the first car. According to reports, over<br />

30,000 orders have so far been placed<br />

by various individuals and companies.<br />

Zeplin Car Chairman Hakan Sevim<br />

said the daily car rental industry has<br />

brought an innovative solution for<br />

companies and individuals. “With the<br />

spread of electric cars in particular,<br />

the industry will grow even further.<br />

We want to fill this opportunity with<br />

domestic electric vehicles. For this<br />

reason, we have placed an order for<br />

2,000 vehicles. However, it is also<br />

important that the vehicle has a range<br />

of at least 400 kilometers.”<br />

Pointing out that they deliver some<br />

3,000 vehicles to consumers on a<br />

daily basis, Sevim said the economy of<br />

“sharing” is on the rise and that this<br />

market will grow even further with the<br />

increase of electric cars.<br />

“Now, without the need to buy,<br />

everyone can get the vehicle they<br />

want at any time. Turkey’s domestic<br />

automobile project is therefore of<br />

great importance. An electric car with<br />

a range of 400 kilometers will ensure<br />

significant savings for both companies<br />

and individuals. We will buy 2,000<br />

vehicles once the domestic automobile<br />

is ready,” he added.<br />

He added that they have started making<br />

future plans for daily car rentals in line<br />

with the electric car infrastructure. “In<br />

the future, people will go to electric car<br />

parks located within walking distance<br />

and instead of buying cars they will<br />

take the charged cars and go wherever<br />

they want. Therefore, we attach great<br />

importance to the domestic electric car<br />

project,” he said.<br />

Sevim said some 9,000 companies<br />

are registered with Zeplin Car.<br />

“We have developed the corporate<br />

membership system in Turkey for<br />

the first time. Under this project, we<br />

open current accounts for companies<br />

and provide cars to their staff in 81<br />

provinces of Turkey. The employees<br />

or the managers of the company with<br />

corporate membership can take the<br />

car as soon as they get off the plane<br />

in any cities they want, in line with the<br />

corporate agreement.<br />

April <strong>2019</strong> 8


Honda to shut Turkish auto plant by 2021<br />

Honda Turkey Inc. has decided<br />

to terminate its automobile<br />

manufacturing operations in<br />

Turkey in 2021 following the<br />

completion of the existing production<br />

of the Civic Sedan model, the company<br />

said in a statement released.<br />

In a written statement, Honda<br />

Turkey has announced its decision to<br />

discontinue production at the Turkeybased<br />

factory.<br />

The statement revealed that the<br />

decision was made because of<br />

developments in the electrification<br />

field in the global automotive industry<br />

and the necessity of ensuring the<br />

appropriate production capacity based<br />

on these developments.<br />

“Having successfully maintained its<br />

automobile production activities in<br />

Turkey for 22 years, Honda Turkey is<br />

proud to have reached all of its goals<br />

in this period. Honda’s impressive<br />

performance in the last few years is<br />

the most important evidence of the<br />

company’s great confidence in the<br />

Turkish market. Therefore, Honda<br />

Turkey will continue to offer sales and<br />

after-sales operations beyond 2021 with<br />

high quality services that it offers to its<br />

customers. In this respect, automobile<br />

operations consisting of the import and<br />

distribution of vehicles in Turkey will<br />

continue without interruption. Honda<br />

Motorcycle operations will not be<br />

affected by this decision,” the official<br />

statement read.<br />

Honda Turkey Chairman Takuya<br />

Tsumura underlined in the statement<br />

that they are aware of the need to<br />

spearhead the rapidly changing<br />

market dynamics and technological<br />

developments, adding, “This situation<br />

inevitably affects our automobile<br />

production operations in Turkey.”<br />

Tsumura also stated that they will<br />

provide all kinds of support, including<br />

re-employment, to employees affected<br />

by the decision. Currently, the company<br />

employs approximately 1,100 peopl<br />

<strong>May</strong> <strong>2019</strong><br />

10


Tofaş to invest $225M by 2020 for Egea facelift<br />

One of the leading automotive<br />

companies in Turkey, Tofaş,<br />

a joint venture of Turkey’s<br />

Koç Holding and Italy’s Fiat<br />

Chrysler, has decided to start the<br />

facelift investment of the Egea/Tipo car<br />

family produced at the Tofaş’s plant<br />

located in the northwestern province of<br />

Bursa.<br />

In a statement to the Public Disclosure<br />

Platform (KAP), Tofaş said it is foreseen<br />

to invest approximately $225 million by<br />

the end of 2020.<br />

“With the material disclosures dated<br />

10/25/2013 and 11/6/2014, the duration<br />

of the publicly disclosed project has<br />

been extended until the end of 2024,”<br />

the company said.<br />

Within the scope of the first investment<br />

plan, the statement read, 1.3 million<br />

units of production targeted in the<br />

2015-2023 period have been realized<br />

as approximately 530,000 units up to<br />

now and with the contribution of the<br />

new investment, a total of 1.45 million<br />

pieces of production, 70 percent of<br />

which is for export markets, is targeted<br />

during the project period of 2015-2024.<br />

“In this context, it is foreseen to invest<br />

approximately $225 million by the<br />

end of 2020 and it is planned to start<br />

production of new vehicles in the last<br />

quarter of 2020,” Tofaş said.<br />

In a statement, Tofaş CEO Cengiz<br />

Eroldu said the Fiat Egea has been the<br />

most preferable automobile in Turkey<br />

for the last three years, indicating that<br />

Fiat Egea, which was chosen “Best-Buy<br />

Car Of The Year In Europe” at AutoBest<br />

2016, is also maintaining its market<br />

success in the Europe, Middle East and<br />

Africa region.<br />

“The Egea model will continue<br />

providing value added to our country’s<br />

economy with the export volume it<br />

produces,” Eroldu said.<br />

In 2015 Tofaş introduced a sedan body<br />

vehicle as the first member of the Egea<br />

family, the company’s new passenger<br />

car project. The model also went on<br />

sale in other countries’ markets as<br />

of December of the same year. With<br />

the completion of project-related<br />

investments, hatchback and station<br />

wagon versions of the Egea family also<br />

went on sale in 2016. Costing about<br />

$1 billion, the project to develop these<br />

models represents one of the biggest<br />

product investments ever undertaken<br />

in the history of the Turkish automotive<br />

industry.<br />

The sedan member of the Fiat Egea<br />

family sold 34,000 units in 2018 and<br />

holds the title of being “Turkey’s<br />

Best-Selling Automobile” for the last<br />

three years. Founded in 1968, Tofaş is<br />

said to be the only company in Turkey<br />

that manufactures both passenger<br />

cars and light commercial vehicles.<br />

With an annual production capacity of<br />

450,000 vehicles and with nearly 9,000<br />

employees, Tofaş is Turkey’s fourthbiggest<br />

industrial enterprise.<br />

Having had an export ratio of 80 percent<br />

in 2018, the company is carrying<br />

exports to around 80 countries. It<br />

exported 243,832 units last year, while<br />

its total production stood at 301,750<br />

units. One of the important strategic<br />

production facilities of Fiat Chrysler<br />

Automobiles around the world, Tofaş<br />

is also one of the biggest research and<br />

development (R&D) centers in Europe.<br />

<strong>May</strong> <strong>2019</strong> 12


Turkey-A global player in autumotive industry<br />

During the 1990’s, as other<br />

international manufacturers like<br />

Toyota, Honda, Hyundai, Isuzu<br />

and Mercedes-Benz<br />

entered the market, Turkey rapidly<br />

became an automotive production base<br />

which not only caters to one-time<br />

developments of the industry but rather<br />

holds long-term development options.<br />

Today, Turkey has a thriving automotive<br />

sector, demonstrating substantial growth<br />

in the past. All players involved, including<br />

local authorities and the government, are<br />

participating in providing conditions to<br />

increase output in the future. Some of the<br />

facts are:<br />

-High level of integration into the global<br />

automotive industry<br />

-14th major automotive producer in<br />

theWorld,with 78% average export rate<br />

-Vehicles of Turkish origin hold the<br />

leading position among the vehicles<br />

coming from outside of EU<br />

-Production, export, and engineering hub<br />

of global brands for international markets<br />

-Quality products with high export rates<br />

-Hundreds of Tier 1 companies working<br />

directly with OEMs<br />

-Center of excellence in automotive<br />

engineering and R&D,in which new<br />

technologies are developed<br />

Strong international presence<br />

-Giants of global automotive value chain<br />

benefit from Turkey’s location, cost,<br />

andcompetitiveadvantages<br />

-Because of their profitable business<br />

in the country, companies in Turkey<br />

continue to invest in the country’s future<br />

-9 R&D centers support not only the local<br />

operations, but also the operations in<br />

other plants of parent companies.<br />

-Ford Otosan’s R&D department is one of<br />

Ford’s 3 largest global R&D centers<br />

-R&D centerin Bursa is the only center of<br />

Fiat outside of Italy serving the European<br />

market.<br />

-For Courier, Ford’s new light<br />

commercial vehicle, the Yeniköy plant is<br />

the sole production center in the world.<br />

-Toyota’s C-HR Hybrid is produced in<br />

Turkey for World markets<br />

-Daimler R&D is the center of<br />

competence for some parts and carries<br />

global responsibility.<br />

-With more than 40 thousand employees,<br />

automotive OEMs are one of the major<br />

employers in the manufacturing industry.<br />

<strong>May</strong> <strong>2019</strong> 14


www.ge-pas.com<br />

info@ge-pas.com<br />

İSTANBUL OTOMOTİV SAN. TİC. LTD. ŞTİ.<br />

Başvekil Cad. asirali İsmail Sokak No: 9/C Şehremini/İSTANBUL/TÜRKİYE<br />

Tel: 9 – 9 aks: 9


INEOS Styrolution<br />

exhibited new automotive<br />

solutions at PIAE in<br />

Mannheim/ Germany<br />

• High quality automotive interior and exterior<br />

applications<br />

• New structures with laser grained surfaces<br />

• StyLight® composite: New exhibits and<br />

presentation on latest developments<br />

Frankfurt, Germany - INEOS Styrolution, the global<br />

leader in styrenics, offered a comprehensive overview<br />

of its material lineup and solutions portfolio for<br />

the automotive industry at the PIAE (Plastics in<br />

<strong>Automotive</strong> Engineering) in Mannheim/ Germany (April<br />

3-4, <strong>2019</strong>). Highlights included the award-winning<br />

Luran®S for exterior applications, new structures<br />

with laser structured surfaces and the latest news<br />

on the company’s composite StyLight®, designed for<br />

structural and aesthetic applications.<br />

Luran® S is the material of choice for automotive<br />

exterior applications such as radiator grills and mirror<br />

housings. Dedicated grades of the material were<br />

developed for weather resistance and state-of-theart<br />

UV stabilization. At the Mondial de l’Automobile in<br />

Paris in 2018, Luran S, an ASA (acrylonitrile styrene<br />

acrylate) polymer, was announced winner of the<br />

<strong>Automotive</strong> Brand Contest in the category “Future,<br />

Mobility & Parts”. Today Luran S grades are more and<br />

more used for unpainted parts at SUV rear spoilers.<br />

INEOS Styrolution also exhibited new structures with<br />

laser grained surfaces developed in collaboration<br />

with Reichle Technologiezentrum GmbH. The<br />

following styrenics grades, typical materials of choice<br />

for automotive interior and exterior applications,<br />

are particularly looked at: Novodur® H701 (ABS),<br />

Novodur® H801 (ABS, Novodur® Ultra 4255 (ABS),<br />

Luran® SC KR2863C (ASA/ PC), Terblend® N NM-<br />

21EF (ABS/ PA) and Luran® HH-120 SPF50 (AMSAN).<br />

New applications of StyLight®, INEOS Styrolution’s<br />

composite material for structural and aesthetic<br />

applications will be presented at the INEOS Styrolution<br />

booth. The material is based on a modified SAN<br />

(styrene acrylonitrile copolymers) matrix and diverse<br />

fiber textile (carbon fabric, glass fabric, or hybrid<br />

carbon/ glass). The latest addition to the StyLight<br />

family of composites includes composites based on a<br />

PP (polypropylene) matrix offering customers for the<br />

first time an aesthetic PP thermoplastic composite<br />

solution.INEOS<br />

<strong>May</strong> <strong>2019</strong> 16


Turkey’s bus, minibus exports record nearly<br />

19 pct rise in Q1<br />

Bus-minibus-midibus exports,<br />

one of the subproduct groups<br />

of the automotive sector, rose<br />

by 18.91 percent in the first<br />

quarter of <strong>2019</strong>.<br />

According to the <strong>Automotive</strong> Industry<br />

Exporters’ Association, the Turkish<br />

automotive sector exported buses,<br />

minibuses, and midibuses to 110<br />

countries in 2018, amounting to $1.8<br />

billion in exports with a 12.57 percent<br />

increase year-on-year.<br />

In the first quarter of <strong>2019</strong>, this<br />

automotive group saw an 18.91 percent<br />

increase in exports over the same<br />

period of the previous year, rising from<br />

$420.8 million achieved in the first<br />

quarter of 2018 to $500.4 million in the<br />

same period of this year.<br />

If the sector’s export growth trend<br />

continues as in the first quarter, the<br />

year-end export figure is expected to<br />

exceed $2 billion.<br />

In the first quarter of the year buses,<br />

minibuses and midibuses were sold to<br />

72 countries, with Romania taking the<br />

lead in terms of quantity.<br />

<strong>Exports</strong> to Romania, which overtook<br />

Germany in this product group, surged<br />

13.5-fold over the same period of the<br />

previous year from $5.58 million to<br />

$80.65 million. This figure amounted<br />

to $75 million of the export increase<br />

Turkey achieved in this product group<br />

in the first quarter.<br />

<strong>Exports</strong> to Germany, which came<br />

second in exports this quarter fell by<br />

19.73 percent to $69.4 million. Turkey’s<br />

automotive exports to France, on the<br />

other hand, increased by 37 percent<br />

from $38.5 million to $52.9 compared<br />

to the same period of the previous year.<br />

Meanwhile, exports to Italy, Poland, the<br />

U.K., Spain, Bulgaria, Croatia, Belgium,<br />

Hungary, Israel, Norway and Greece<br />

surpassed $10 million each in the<br />

January-March period.<br />

Among these countries, Hungary saw a<br />

7.5-fold increase in exports from $1.5<br />

million to $12.6 million compared to the<br />

previous year.<br />

<strong>Exports</strong> to Israel, which is among the<br />

leading countries in the export hike,<br />

rose from $2.2 million to $11 million,<br />

while exports to Greece climbed from<br />

$3 million to $10.5 million.<br />

<strong>May</strong> <strong>2019</strong><br />

18


AutoTechService offers challenging opportunities<br />

AutoTechService is the leading<br />

B2B automotive event in<br />

Ukraine, with over 350<br />

exhibiting accompanies and<br />

35,000 expert visitors every year.<br />

The show is held alongside SIA - Kyiv<br />

International Motor Show, which<br />

enables to increase the number<br />

of visitors and produce a richer<br />

experience. AutoTechService is<br />

specifically tailored to the conditions<br />

of the Ukrainian automarket, and<br />

its popularity among professionals<br />

guarantees a high quality audience and<br />

large attendance at the exhibition. It<br />

provides exhibitors with a highly costeffective<br />

platform to reach their target<br />

audience. In addition, the exhibition<br />

provides you with an opportunity to<br />

learn about automotive industry trends<br />

and novelties.<br />

<strong>May</strong> April <strong>2019</strong><br />

20


EU plans to put speed limiters, data recorders on cars<br />

The European Union is moving to<br />

require cars and trucks to have<br />

technology that would help keep<br />

drivers from speeding as well<br />

as data recorders that would document<br />

the circumstances of accidents.<br />

Those were among the safety features<br />

included in a provisional agreement<br />

announced by the EU’s executive<br />

commission.<br />

The package would mandate so-called<br />

intelligent speed assistance, which<br />

recognizes speed limits using mapping<br />

systems and help drivers observe them<br />

by restricting engine power. The driver<br />

can override the system by pushing<br />

harder on the gas pedal. But the<br />

onboard data recorder could further<br />

deter speeding by registering the car’s<br />

speed.<br />

“Every year 25,000 people lose<br />

their lives on our roads,” said<br />

Elzbieta Bienkowska, the European<br />

Commissioner responsible for internal<br />

market and industry. “We can and must<br />

act to change this.”<br />

The European Commission, the<br />

executive arm of the 28-country<br />

EU, said that the features would be<br />

required on all vehicles on European<br />

roads from 2022.<br />

The other safety features would include<br />

systems to warn drivers if they seem<br />

drowsy and against distractions such as<br />

smartphone use. Cameras and sensors<br />

would be required to avoid accidents<br />

while backing up and to help keep a car<br />

in a lane. For cars and vans, the deal<br />

requires advanced emergency braking,<br />

which can detect obstacles and push<br />

the brake pedal if the driver does not<br />

responds in time.<br />

And another system would help bus<br />

and truck drivers avoid hitting cyclists<br />

in their so-called blind spots. Although<br />

properly adjusted mirrors should<br />

allow truck drivers to see to the side,<br />

Germany’s transport ministry has<br />

pushed for the measure to reduce<br />

deaths of cyclists and pedestrians.<br />

Much of the technology already exists<br />

and is available on more expensive<br />

cars.<br />

The European Automobile<br />

Manufacturers’ Association welcomed<br />

the EU’s agreement but said vehicle<br />

technology needed to be supplemented<br />

with better road infrastructure and<br />

measures to encourage safer driver<br />

behavior.<br />

“This challenging piece of legislation<br />

will no doubt be instrumental in further<br />

improving road safety - something<br />

all auto makers are fully committed<br />

to,” said ACEA Secretary General Erik<br />

Jonnaert. “At the same time vehicle<br />

technology alone will not be sufficient.<br />

For maximum effect, policy makers<br />

must now push for a fully integrated<br />

approach to road safety; combining<br />

vehicle technology with better road<br />

infrastructure and safer driver<br />

behavior.”<br />

The association warned in December<br />

that intelligent speed assistance should<br />

be introduced only gradually. It said the<br />

technology was hampered by too many<br />

false readings due to out-of-date maps<br />

and poor sign visibility.<br />

The measures announced were agreed<br />

on in negotiations between European<br />

national governments, the commission,<br />

and the European parliament. The<br />

provision political agreement is subject<br />

to formal approval by the European<br />

parliament and EU leaders.<br />

<strong>May</strong> <strong>2019</strong><br />

24


RENOLIT Promoting 100% Recyclable, Lightweight<br />

<strong>Automotive</strong> Interior Material Solutions at <strong>Automotive</strong><br />

Interiors Expo <strong>2019</strong>, Stuttgart<br />

Buriasco – RENOLIT GOR S.p.A., with a<br />

leading global position in the production<br />

of thermoplastic and thermoformable<br />

materials for the automotive market, is<br />

promoting its extensive range of 100%<br />

recyclable, thermoplastic composite<br />

material solutions for vehicle interior<br />

trim parts at AIE (<strong>Automotive</strong> Interiors<br />

Expo) <strong>2019</strong> (21-23 <strong>May</strong>), Stuttgart.<br />

The RENOLIT stand (A4085) at AIE will<br />

be showcasing the complete RENOLIT<br />

COMPOSITES range of established<br />

polypropylene based materials. This<br />

includes RENOLIT WOOD-STOCK,<br />

along with a wide variety of other<br />

highly formable sheets, rolls and<br />

rigid cored composite products, all<br />

specially developed for cost effectively<br />

fabricating coated automotive interior<br />

trim parts.<br />

This year there is a special focus on<br />

Parcel shelf made with RENOLIT TECNOGOR.<br />

(Photo: RENOLIT COMPOSITES, PR002)<br />

its latest ‘star product’ innovation,<br />

RENOLIT TECNOGOR. This next<br />

generation, thermoformable sheet<br />

and roll material has already gained<br />

a leading position in the global<br />

automotive interiors market with major<br />

OEM end customers. German, Italian,<br />

French and Japanese car makers<br />

now use RENOLIT TECNOGOR for<br />

a variety of thermoformed, custom<br />

coated, vehicle interior 3D trim parts.<br />

Successful applications include: parcel<br />

shelves, load floors, seat back covers,<br />

dashboard inserts and trunk trims.<br />

RENOLIT TECNOGOR is a safe, clean,<br />

100% recyclable, glass fiber (GF)<br />

reinforced, PP based, lighweight<br />

thermoplastic composite material. It<br />

has been specifically designed to cost<br />

effectively produce automotive interior<br />

trim parts. Tier 1 converters are able<br />

to combine superior part performance<br />

with consistent quality and higher<br />

productivity, while also achieving lower<br />

production costs as it can be 3D shaped<br />

in a ‘glue free’ one-step-process.


Yildirim Ticaret ready for the future with confident steps<br />

light commercial, heavy commercial,<br />

construction machinery.<br />

What are the features that make your<br />

company different from other brands?<br />

Based on Kaizen principles, our<br />

company always develops itself<br />

and adopts innovations through a<br />

series of innovations. We are able to<br />

produce tailor made solutions for our<br />

customers. By reducing the time losses<br />

of our customers, we offer brand new<br />

and fast solutions.<br />

For this reason, these facts make us<br />

different from other companies.<br />

Do you have any investment plans as<br />

Yıldırım Ticaret brand?<br />

Our company has invested in machine<br />

and machine tools so far. Starting in<br />

<strong>2019</strong>, we will embark on a new factory<br />

construction. As soon as we finish the<br />

factory construction, we will continue<br />

to serve from a better and more<br />

developed place.<br />

To which countries do you export?<br />

The countries we particularly export to<br />

are our neighbors, such as Syria, Iraq,<br />

Iran, including the UK and France. 70%<br />

of the total turnover is for domestic<br />

market and the remaining 30% is for<br />

export markets.<br />

What are the fairs you have<br />

participated in Turkey and abroad?<br />

This year, we have participated in<br />

Automechanika Istanbul. We are not<br />

planning to attend another fair this<br />

year. We want to participate in one of<br />

the fairs organized in Europe next year.<br />

Yıldırım Ticaret, which has been<br />

developing year by year, based<br />

on a series of innovations, is at<br />

the service of the automotive sector by<br />

producing silicone turbo intercooler<br />

hoses. The company is moving forward<br />

with its new factory investment.<br />

“In 1999, Yıldırım Ticaret embarked on<br />

the automotive sector to meet the need<br />

for spare parts for heavy commercial<br />

vehicles. It continues its successful<br />

progress with silicone turbo intercooler<br />

hose manufacturing. In addition to<br />

domestic sales, it also makes a great<br />

contribution to the national economy<br />

by exporting its products.” Mustafa<br />

Yildirim of Yıldırım Ticaret said.<br />

Can you tell us about the<br />

establishment of Yıldırım Ticaret?<br />

We entered the sector in 1999 with the<br />

retail trade of heavy commercial vehicle<br />

spare parts. In a short period of time,<br />

we have added to our service the sale of<br />

mineral oil for the automotive industry.<br />

In 2010, we started manufacturing<br />

silicone intercooler turbo hose. We<br />

are currently serving the automotive<br />

industry, with special reference tos<br />

pare parts of construction machinery<br />

and special vehicles.<br />

Which machines and technologies<br />

do you use in the production of<br />

intercooler hose? Can you tell us about<br />

the variety of your products?<br />

In silicone turbo intercooler hose<br />

manufacturing, we use chemistry<br />

and machinery technologies. Our<br />

products include spare parts for<br />

How do you evaluate the development<br />

of the automotive industry as a<br />

specialist in manufacturing turbo<br />

and intercooler hoses? Are there<br />

any sectoral developments that have<br />

affected you positively or negatively<br />

over the years?<br />

Turbo intercooler hose industry will<br />

record a remarkable performance<br />

in line with the automative industry.<br />

However, with probable the increase of<br />

electric vehicles in the future and the<br />

decrease of the vehicles with internal<br />

combustion engine could exert negative<br />

effects on our sector. Actually, this is a<br />

long-term sectoral problem. The sector<br />

we are in is a dynamically developing<br />

sector for the next 20 years. We are<br />

able to meet the new challenges in an<br />

efficient manner.<br />

<strong>May</strong> <strong>2019</strong> 28


Turkish businessman seeks recall of Range Rover Vogue<br />

SUVs before EU offices<br />

A<br />

Turkish businessman --<br />

winning his case against a<br />

world-famous British carmaker<br />

in March over engine failure --<br />

has taken the lawsuit to the EU offices,<br />

an Istanbul based NGO said.<br />

International Diplomats Association<br />

said after winning his multi-year court<br />

battle Engin Yakut, the owner of the<br />

faulty Range Rover Vogue, claimed in<br />

his petition that thousands of Range<br />

Rover Vogue models in Turkey have<br />

been suffering from the same engine<br />

problem.<br />

The association said Yakut took his<br />

case to the European Court of Justice,<br />

European Commission, EU Parliament,<br />

and the bloc’s competition authority.<br />

“Land Rover Company will lose a great<br />

deal from its reputation if they reject<br />

to accept their fault. The company CEO<br />

should make a public announcement<br />

about the issue and [2013 model] Range<br />

Rover Vogue SUVs should be called<br />

back,” Yakut said, adding the vehicles<br />

with similar engine failures pose a<br />

danger for traffic safety.<br />

Yakut urged European prosecutors to<br />

launch an investigation against Land<br />

Rover Company as there are currently<br />

around 8,600 vehicles suffering from<br />

the same engine and transmission<br />

failures.<br />

Yakut bought a luxury Land Rover sport<br />

utility vehicle (SUV), Range Rover Vogue<br />

for 170,000 in 2013 but soon it broke<br />

down.<br />

Mechanics at Borusan Oto, the<br />

vehicle’s distributor in Turkey, issued<br />

a report blaming the breakdown on a<br />

manufacturing defect.<br />

After three attempts by Yakut to<br />

get Land Rover to replace his car<br />

went unanswered, Yakut filed suit<br />

in Istanbul’s 1st Consumer Court,<br />

demanding the car be pulled from the<br />

market.<br />

After seeing evidence of the<br />

manufacturing defect, a Turkish court<br />

ordered the company to reimburse<br />

Yakut for his purchase, with interest but<br />

did not order the Vogue model pulled<br />

from the market<br />

<strong>May</strong> <strong>2019</strong><br />

30


Mercedes boosts Aksaray’s economy by TL 1.7B in 33 years<br />

German automotive firm<br />

Mercedes has carried out<br />

a socio-economic survey<br />

that measured the concrete<br />

contributions its truck factory in central<br />

Turkey’s Aksaray has made since its<br />

establishment in 1986.<br />

Mercedes, operating in Turkey for<br />

over 52 years now, employed two<br />

independent research companies to<br />

carry out the survey.<br />

The findings showed that the factory,<br />

built with a foreign direct investment<br />

of 495 million euros ($551.81), has<br />

produced an economic value of<br />

over TL 1.7 billion in the city with its<br />

production, employment, research<br />

and development (R&D) activities and<br />

exports over 33 years.<br />

Some 2,000 people from the different<br />

demographic backgrounds, including<br />

local people, tradesmen, local<br />

authorities, employees and their<br />

families who joined the survey said that<br />

Mercedes-Benz Türk is a symbol of<br />

Aksaray, adding that the fact that the<br />

factory is located in the city is a source<br />

of pride for them.<br />

Mercedes-Benz Türk CEO Süer Sülün<br />

expressed their pride regarding the<br />

company’s impact in transforming the<br />

region. “Over time, we have seen that<br />

Aksaray, one of the most beautiful<br />

examples of local development, has<br />

become one of the few Mercedes-<br />

Benz cities in the world. With our<br />

production, exports, R&D activities,<br />

employment we have produced, and<br />

investment activities, we provide added<br />

value to both Aksaray and the national<br />

economy,” Sülün said.<br />

He added that Mercedes-Benz Türk<br />

constitutes some 20 percent of<br />

Aksaray’s economy thanks to the<br />

indirect and stimulated impacts of<br />

the truck factory on its surroundings.<br />

Aksaray’s total gross domestic product<br />

(GDP) in 2017 was TL 10.64 billion,<br />

according to Turkish Statistical Institute<br />

(TurkStat) data. “When we laid the<br />

foundations of the factory 33 years ago,<br />

we predicted that this investment would<br />

not be limited to providing employment<br />

alone, but the employment provided<br />

would have a direct impact on the<br />

quality of life. These figures prove that<br />

we have turned out to be right in our<br />

predictions,” he said<br />

Nissan Turkey new regional management center<br />

Japanese automotive giant,<br />

Nissan has made its Turkey<br />

country office the management<br />

center for eight North African<br />

countries and the Commonwealth of<br />

Independent States (CIS), the company<br />

confirmed in a statement.<br />

The decision will expand the sphere of<br />

responsibility for Sinan Özkök, Nissan<br />

Turkey’s managing director. He has<br />

now been appointed as the Managing<br />

Director for North Africa and CIS<br />

countries.<br />

As of April 1, Özkök will handle Nissan<br />

operations in Morocco, Tunisia,<br />

Sudan, Azerbaijan, Armenia, Georgia,<br />

Uzbekistan and Turkmenistan.<br />

According to the statement, the<br />

company’s activities in these countries<br />

were previously managed within the<br />

Middle East region.<br />

Nissan Turkey, which started to<br />

operate under the global umbrella<br />

of the brand in 2015, is continuously<br />

increasing its market share, it has<br />

retained its leading position in the<br />

SUV market with a 19 percent share.<br />

Nissan Turkey has also set an example<br />

to other countries with its innovative<br />

practices.<br />

Following the decision, Özkök said:<br />

“North Africa and the Commonwealth<br />

of Independent States are high<br />

potential markets for our brand.<br />

We are happy to contribute to the<br />

development of our brand by moving<br />

our knowledge and experience to a<br />

vast region, spanning from Casablanca<br />

to Tashkent. In this period where we<br />

are experiencing shrinkage in the<br />

domestic market, this decision will be<br />

a source of motivation for our team<br />

working in Turkey and produce new<br />

excitement.”<br />

Having started his career in the<br />

automotive industry in 1993, Özkök<br />

worked on logistics and product<br />

planning. Since 2001, he worked on<br />

strategic planning in Renault France<br />

and served as Paris regional manager.<br />

After returning to Turkey in 2007,<br />

Özkök served in many high-level<br />

positions such as dealer development,<br />

branch management and sales and<br />

network directorship.<br />

He was appointed Nissan Turkey<br />

Managing Director in October 2015 and<br />

managed to make the brand the leader<br />

in SUV segments and one of the top 10<br />

automotive brands in the country.<br />

<strong>May</strong> <strong>2019</strong> 32


<strong>Automotive</strong> exports reach $2.6 billion in April<br />

The Uludağ <strong>Automotive</strong> Industry<br />

Exporters’ Association (OİB)<br />

announced that the Turkish<br />

automotive industry achieved<br />

the second highest April performance<br />

in its history.<br />

According to an OİB written statement,<br />

Turkish automotive industry exports<br />

reached $2.6 billion with a 9.8 percent<br />

decline in April. Despite the fall, the<br />

industry achieved the second highest<br />

April performance in its history.<br />

The automotive industry, which still<br />

ranks first in Turkey’s exports with a 17<br />

percent share, reached an average of<br />

$2.6 billion in exports in the first four<br />

months of the year. Industry exports<br />

were $10.3 billion, a 6.8 percent fall in<br />

the January-April period.<br />

As far as product groups, the export of<br />

vehicles, with the exception of buses,<br />

minibuses and midi-buses, declined<br />

in April, while exports to EU countries,<br />

which have a 76 percent share of<br />

Turkish automotive exports, dropped 13<br />

percent.<br />

Considering the April performance<br />

in terms of product groups, export of<br />

private cars, which have a 37 percent<br />

share, plummeted by 23 percent to<br />

$961 million.<br />

Meanwhile, supply industry exports<br />

decreased by 3 percent to $926 million,<br />

the second-largest share of automotive<br />

exports.<br />

<strong>Exports</strong> of motor vehicles for<br />

transportation of goods decreased 1<br />

percent to $469 million, while exports<br />

of buses, minibuses and midi-buses<br />

increased 14 percent to $170 million.<br />

<strong>Exports</strong> to France, the largest market<br />

in passenger cars, dropped 36 percent,<br />

followed by Italy at 41 percent, Spain<br />

at 34 percent, Germany at 33 percent,<br />

the U.K. at 17 percent, Belgium at 36<br />

percent and Sweden by 22 percent.<br />

On the other hand, exports to Israel<br />

rose 15 percent and to Slovenia and<br />

Hungary by 19 percent each. <strong>Exports</strong> of<br />

passenger cars, to the U.S. soared by<br />

43.9 percent.<br />

Meanwhile, exports to Germany, the<br />

largest market for the automotive<br />

supply industry, shrank by 11 percent<br />

and to France, the second-largest<br />

market, by 1 percent and to Romania,<br />

plunging by 23 percent.<br />

Moreover, exports to the U.K., the<br />

U.S. and Algeria skyrocketed by 17<br />

percent, 24 percent and 58 percent,<br />

respectively. Export of motor vehicles<br />

for transportation of goods to the<br />

U.K., Slovenia, and Spain went up<br />

by 32 percent, 72 percent and 30<br />

percent, respectively, while exports<br />

to Italy fell by 41 percent, Belgium<br />

by 13 percent, the Netherlands by 18<br />

percent, Germany by 26 percent and<br />

Sweden by 59 percent. In April, exports<br />

to Germany, the largest market for the<br />

Turkish automotive industry, stood at<br />

$368 million, an 18 percent decline, and<br />

to France at $268 million, a 23 percent<br />

fall. <strong>Exports</strong> to Italy totalled $237<br />

million with a 28 percent fall.While<br />

exports to Spain and the Netherlands,<br />

two important markets, declined by 24<br />

percent each and to the Netherlands by<br />

22 percent, exports to the U.K., Slovenia<br />

and the U.S. were up by 14 percent, 39<br />

percent and 57 percent, respectively.<br />

The reason for the fall in the German<br />

market was the 33 percent fall in<br />

automobile exports and 11 percent fall<br />

in supply industry exports. Also, the<br />

reason for the shrinkage in exports to<br />

France and Italy was the 36 percent<br />

and 41 percent fall, respectively, in<br />

passenger car exports.<br />

<strong>Exports</strong> to EU countries, which are<br />

the largest market as far as country<br />

groups, dropped 13 percent to nearly<br />

$2 billion. <strong>Automotive</strong> exports to<br />

African countries surged by 30 percent<br />

and North American free trade zone<br />

countries by 14 percent.<br />

<strong>Exports</strong> to the EU countries stood at<br />

$8 billion in the January-April period,<br />

while exports to North American<br />

free trade zone and Middle Eastern<br />

countries shrank by 19 percent and 4<br />

percent, respectively.<br />

<strong>Automotive</strong> exports to African countries<br />

increased by 10 percent and Far<br />

Eastern countries by 12 percent.<br />

<strong>May</strong> <strong>2019</strong><br />

34


Year’s Record Came from <strong>Automotive</strong> Industry!<br />

* <strong>Automotive</strong> Industry has exceeded the targets with “Automechanika Istanbul”<br />

which is the World’s 3rd largest fair!<br />

* Automechanika Istanbul, the leading international automotive aftermarket fair<br />

of Turkey was successfully held, 4-7 April <strong>2019</strong>.<br />

The world’s 3rd largest fair<br />

of the automotive industry,<br />

Automechanika Istanbul reached<br />

a significant success at Istanbul!<br />

As the leading automotive trade brand<br />

in the region Automechanika Istanbul<br />

once again became the industry’s<br />

ultimate meeting point. The fair<br />

brought together 48,737 industrial<br />

trade visitors from 130 countries with<br />

1400 local and international exhibitors<br />

from 38 countries in Istanbul. This<br />

year, the fair exceeded its own record<br />

once again with increasing the visiting<br />

rate by 6%. Stating that Turkish<br />

automotive manufacturers targeted<br />

32 Billion Dollars’ worth of exports in<br />

<strong>2019</strong>, Hannover Fairs Turkey Fuarcılık<br />

General Manager Alexander Kühnel<br />

and Messe Frankfurt Istanbul’s<br />

Managing Director Tayfun Yardım<br />

stated that, “Within the scope of the<br />

trade fair which we organised in line<br />

with the vision of making a greater<br />

contribution to exports, our exhibitors<br />

signed important agreements. These<br />

agreements will have positive impacts<br />

on the industry’s targets. We will<br />

be seeing these positive impacts<br />

on Turkish economy more clearly<br />

particularly beginning from the second<br />

half of the year”.<br />

The international trade fair<br />

“Automechanika Istanbul” which was<br />

held between 4 - 7 April in Istanbul<br />

brought industrial professionals<br />

<strong>May</strong> <strong>2019</strong> 36


together with their target markets.<br />

At the trade fair which was organised<br />

for the 13th time with the cooperation<br />

of Deutsche Messe’s Turkey office,<br />

Hannover Fairs Turkey and Messe<br />

Frankfurt Istanbul, professional<br />

visitors had the convenience of<br />

finding everything they need about the<br />

automotive industry under a single roof.<br />

Pointing out to the importance of<br />

Turkey as a trade centre for the<br />

international automotive market, and<br />

the need to utilise this potential through<br />

an increase in exports, Hannover Fairs<br />

Turkey Fuarcılık General Manager<br />

Alexander Kühnel commented;<br />

“The automotive manufacturing<br />

industry is among Turkey’s most<br />

important industrial manufacturing<br />

areas. Automechanika Istanbul offers a<br />

very important opportunity in order for<br />

Turkey to show the world its strength<br />

in this field, and its future potential.<br />

With Automechanika Istanbul, which<br />

we organised with the vision of making<br />

a greater contribution to the exports in<br />

the industry, we achieved huge success<br />

also in <strong>2019</strong>. During a four-day period,<br />

our exhibitors made magnificent<br />

use of this opportunity and made<br />

important deals. The positive feedback<br />

we received from our exhibitors, and<br />

their satisfaction, motivated us to<br />

immediately start the preparations for<br />

next year’s trade fair”.<br />

Emphasising that the shrinkage<br />

experienced during the first quarter<br />

was temporary, and that the industry<br />

will gain momentum with new business<br />

deals to be realised in the remaining<br />

part of the year, Kühnel and Yardım<br />

continued his words as follows:<br />

“The vehicle sales experienced in<br />

European Union countries, which<br />

constitute Turkey’s largest export<br />

market, caused a decline in new<br />

orders, which resulted in a temporary<br />

shrinkage in manufacturing.<br />

Automechanika Istanbul witnessed<br />

successful conclusion of business deals<br />

that will change this course of events<br />

in Turkey’s favour. <strong>Automotive</strong> industry<br />

is very important for Turkish economy<br />

as it covers a wide range of goods.<br />

We attach great importance to the<br />

development of companies that focus<br />

on the manufacturing of this category<br />

of goods which ranges from passenger<br />

vehicles to the supply industry, motor<br />

vehicles for cargo carriage, and buses.<br />

We are delighted to have organised<br />

such a fruitful B2B trade fair in Turkey,<br />

which is a very important country for<br />

Deutsche Messe’s activities”.<br />

Stating that Automechanika Istanbul<br />

is an important meeting point for the<br />

sector at an international scale, Messe<br />

Frankfurt Istanbul Managing Director<br />

Tayfun Yardım also pointed out that the<br />

fair is not only focused on commerce,<br />

but is also an information-sharing<br />

platform. Mr. Yardım shared his<br />

thoughts on the fair with the following<br />

words:<br />

“Under the roof of Automechanika<br />

Brand which is the most successful<br />

trade fair brand in the world,<br />

Automechanika Istanbul as the 3rd<br />

biggest automotive industry fair in<br />

the world, once again closed its doors<br />

with record-breaking numbers. During<br />

4 days, 48,737 professional visitors<br />

from 130 countries met with 1400<br />

exhibitors in 13 halls. At the fair where<br />

all the components of the industry<br />

meet professionals from all over the<br />

world had the opportunity to see the<br />

latest trends, technologies and new<br />

products in the automotive industry.<br />

As in previous years, international<br />

participation and visit proved the<br />

importance of the fair in the world.”<br />

Female Employees In the Industry Was<br />

the Focal Point of the Event!<br />

Attracting attention with its<br />

international top-quality contents<br />

and conferences that add colour to<br />

the industry every year, this year<br />

Automechanika Academy discussed<br />

the role of women within the industry.<br />

Leading woman executives of the<br />

Turkish automotive industry will speak<br />

at the “Women in the <strong>Automotive</strong><br />

Industry; “Women Talk” Panel<br />

organised with the cooperation of<br />

KAGİDER.<br />

Automechanika Academy, which<br />

attracts attention with its international<br />

content and conferences, discussed the<br />

role of women in the sector for the first<br />

time this year at “Women Talk” Panel.<br />

Female executives in the automotive<br />

industry from Mercedes-Benz Türk,<br />

TOBFED Women’s Commission, Faydası<br />

Çok Multi Foundation and Turkish<br />

Tractor were the panelists who has<br />

attended the Women in the <strong>Automotive</strong><br />

Industry Panel; “Women Talk”.<br />

Within the scope of the Buyers’<br />

Delegation Program organized by<br />

the <strong>Automotive</strong> Industry Exporters’<br />

Association under the coordination of<br />

the Ministry of Trade, 37 purchasing<br />

delegations from 8 countries, mainly in<br />

Europe, Middle East and Africa region,<br />

were hosted at the fair.<br />

Automechanika Istanbul is supported<br />

by Ministry of Trade.<br />

14th International “Automechanika<br />

Istanbul” will be held between 2 – 5<br />

April 2020!<br />

<strong>May</strong> <strong>2019</strong> 40


ROTA displays its new product line at Bauma<br />

ROTA displayed its new<br />

product group such as the<br />

steering equipment for<br />

construction machinery<br />

and the hydraulic cylinders at<br />

Bauma Fair.<br />

Bauma, world’s largest<br />

construction machinery fair, was<br />

held in Munich, Germany between<br />

08-14 April <strong>2019</strong>. During the<br />

Bauma Fair, 3,700 exhibitors from<br />

63 countries met 620,000 visitors<br />

from over 200 countries.<br />

ROTA has has been<br />

manufacturing for the OEM /<br />

OES industry and aftermarket.<br />

ROTA, which produces more than<br />

600 OEM reference products<br />

for construction machinery,<br />

has exhibited some of the 25<br />

new products developed for<br />

the construction machinery. In<br />

addition, ROTA, which carries<br />

its quality-oriented production<br />

concept to hydraulic products,<br />

exhibited these products for the<br />

first time.<br />

As known, ROTA manufactures<br />

OEM products such as tie rod end,<br />

ball joint, centre rod, axial joint,<br />

triangular torque rod, torque rod<br />

and repair kit for commercial<br />

vehicles, agricultural tractors,<br />

construction machinery and<br />

special vehicles.<br />

Many business meetings were<br />

held with ROTA for new and<br />

potential customers during the<br />

fair. Zeki Cidik, the Executive<br />

Board Member of NSK Group who<br />

participated in the fair, said: “We<br />

have experienced a successful<br />

trade show to introduce our<br />

brands for the construction<br />

machinery market, thereby<br />

contributing to the export figures<br />

of our company. We also had<br />

the opportunity to introduce our<br />

products and see the potential<br />

of the market for the hydraulic<br />

cylinder products that we will<br />

start to produce. We will continue<br />

to promote our brands all over the<br />

world.”<br />

<strong>May</strong> <strong>2019</strong> 42


Eximbank to provide TL loans for non-SME<br />

firms to boost exports<br />

Türk Eximbank, which provides<br />

loans in local currency to small<br />

and medium-sized enterprises<br />

(SMEs) exporting in Turkish lira,<br />

will from now on grant loans to non-<br />

SME companies as well.<br />

In a statement, Trade Minister Ruhsar<br />

Pekcan said significant efforts have<br />

been made in recent years to improve<br />

trade in local currencies.<br />

She pointed out that the share of the<br />

Turkish lira in exports rose from 4.5<br />

percent in the first two months of 2018<br />

to 4.8 percent in the first two months of<br />

this year.<br />

Pekcan said Türk Eximbank has<br />

continued to provide TL loans to<br />

exporting SMEs with affirmative<br />

interest rates compared to market<br />

figures.<br />

She added that the bank channeled<br />

Turkish lira sources to SMEs in August<br />

2017 and provided additional credit<br />

support of about TL 10 billion to SMEs,<br />

including TL 2.1 billion in 2017 and<br />

TL 7.7 billion in 2018, adding the said<br />

support will continue to increase in<br />

<strong>2019</strong>.<br />

The trade minister said that Türk<br />

Eximbank’s loan facility in Turkish<br />

lira was planned to be diversified and<br />

increased by taking into consideration<br />

the importance and growing potential of<br />

trade in local currency in the upcoming<br />

period.<br />

On providing loans in the local currency<br />

to non-SME companies, Pekcan said:<br />

“For this purpose, the current Turkish<br />

lira loan program for SMEs exporting in<br />

the local currency will continue.”<br />

She said for non-SME companies, on<br />

the other hand, a previously announced<br />

loan program will be put into operation<br />

as of April 22, <strong>2019</strong>.<br />

The loan will have a one-year maturity<br />

period and a six-month interest rate<br />

payment based on the Central Bank of<br />

the Republic of Turkey’s (CBRT) daily<br />

weighted average funding rate.<br />

“We believe this opportunity will<br />

contribute to the development of trade<br />

in local currencies,” said Pekcan.<br />

<strong>May</strong> <strong>2019</strong><br />

46


Indigenous automobile to add 50B euros to<br />

Turkish economy<br />

The details and financial returns<br />

from the indigenous automobile<br />

project, launched in November<br />

2017 through the efforts of<br />

the Turkish business world, are<br />

being revealed as the project makes<br />

progress. Gürcan Karakaş, the CEO<br />

of Turkey’s Automobile Joint Venture<br />

Group (TOGG), said within the next 15<br />

years the ecosystem to be mobilized<br />

by their project will contribute 50<br />

billion euros ($56.5 billion) to the gross<br />

domestic product (GDP), 7 billion euros<br />

to the current account deficit and add<br />

about 20,000 people to direct or indirect<br />

employment.<br />

In his speech at the “The Future of the<br />

Mobility Ecosystem” panel moderated<br />

by Martaş Otomotiv board member<br />

Cem Baver Özalp at the Uludağ<br />

Economic Summit, TOGG CEO Karakaş<br />

said there are changes in three<br />

dimensions triggered by megatrends<br />

in the mobility ecosystem, namely<br />

those in the technological dimension<br />

of the automobile, social life, and the<br />

trends adopted by the lawmakers and<br />

countries.<br />

The TOGG CEO evaluated the approach<br />

of the company toward the concept of<br />

the domestic automobile. He noted that<br />

around 20 global examples of success<br />

and failure had been analyzed during<br />

the technical and feasibility studies of<br />

the project. Karakaş underscored that<br />

the market conditions are available for<br />

global competition and the indigenous<br />

automobile has a strong portfolio to<br />

compete in the global market.<br />

Speaking of the portfolio, he explained<br />

that an SUV will be included among<br />

the models given the demand in the<br />

market and four to five models will<br />

be on the market. Karakaş further<br />

stressed that Turkey is not indifferent<br />

to the transformation and megatrends<br />

in the world, adding that there is a real<br />

opportunity resulting from not only the<br />

transformation of technology but also<br />

the market.<br />

“The race has just begun,” Karakaş<br />

continued. “We have not compared<br />

ourselves with the manufacturers of<br />

internal combustion engines of 150<br />

years, but with those who believe that<br />

this work will be solved by the mobility<br />

ecosystem and that the future will be<br />

there because of the transformations<br />

and megatrends.”<br />

Indicating that there are over 500 startups<br />

engaged in this line of business in<br />

the world, three quarters of which are<br />

interested in the mobility ecosystem<br />

to be produced around the car with<br />

these transformations, not the car<br />

itself, Karakaş said that there is not<br />

much difference between the classic<br />

car manufacturers and Turkey in this<br />

sense, underlining that compared to<br />

beginners, the distance is short enough<br />

to cover. Karakaş said that Turkey’s<br />

Automobile Project is the result of a 15-<br />

year effort. “We think that we can build<br />

it very easily because Turkey, as well as<br />

the automotive sector, has a really good<br />

infrastructure,” he noted, pointing out<br />

that they believe their plan has a very<br />

solid foundation.<br />

TOGG CEO Karakaş said the joint<br />

venture has determined eight criteria to<br />

implement this plan, listing the first one<br />

as opportunity and market, followed by<br />

a global brand and portfolio to compete<br />

with the world, and the formation of a<br />

global and competitive supply industry<br />

and start-up ecosystem. “We think that<br />

we can do it because if we can compete<br />

at the moment, we can ensure its<br />

sustainability as well. We want Turkey<br />

to get intellectual property rights.<br />

When we start our production, we will<br />

enter the market to the extent that will<br />

compete with manufacturers who have<br />

been in this business for a long time,”<br />

he said.<br />

<strong>May</strong> <strong>2019</strong><br />

48


Karakaş also highlighted that the<br />

company does not pursue separate<br />

quality for both the domestic market<br />

and the foreign market as some<br />

countries do.<br />

“Since we are also a 15-year project, we<br />

have enough breath, sources and belief<br />

in this matter,” he said.<br />

Touching on the project’s contribution<br />

to the Turkish economy, Karakaş said<br />

within the next 15 years the ecosystem<br />

to be mobilized by the project will<br />

contribute to the Turkish economy.<br />

“When substituting vehicles, reducing<br />

the dependence on oil and using more<br />

efficient systems are calculated, it<br />

has a positive contribution of 7 billion<br />

euros to the current account deficit,”<br />

he continued. “We will have nearly<br />

4,000 employees in our company. If<br />

one person works in the automotive<br />

industry, four people will be employed<br />

in the sub-industry and partners.<br />

Therefore, we believe that we will<br />

produce employment for 20,000<br />

people.”<br />

In November 2017, the Turkish public<br />

saw the launch of a groundbreaking<br />

initiative to manufacture Turkey’s<br />

first domestic automobile. This goal<br />

has brought together the country’s<br />

largest manufacturers and companies<br />

in a consortium that includes Kıraça,<br />

Anadolu Group, Turkcell, Zorlu and<br />

BMC.<br />

The initiative came after repeated<br />

calls from President Erdoğan for a<br />

joint venture car project by the Turkish<br />

Union of Chambers and Commodity<br />

Exchanges (TOBB) and the Ministry of<br />

Science, Industry and Technology.<br />

Global trends in automotive industry<br />

TOGG CEO Karakaş also spoke of the<br />

global trends in the automotive industry<br />

with specific notes on the development<br />

of electric cars and autonomous cars.<br />

“The availability of electric vehicles<br />

with the development of electric<br />

engines and battery technology<br />

makes it an alternative to internal<br />

combustion vehicles,” he continued.<br />

“This process is further accelerated<br />

with the development of environmental<br />

awareness and the pressure of<br />

emission laws. That is why we believe<br />

that electric vehicles will soon replace<br />

internal combustion vehicles,” he said.<br />

Karakaş noted that autonomous<br />

driving, combined with the development<br />

of sensor technology and digitalization,<br />

puts the car in a very different position.<br />

“In our cars, we can do what we can<br />

at home and at work because we will<br />

not focus on driving. We define this as<br />

the car’s transformation into a living<br />

space,” he added.<br />

Karakaş pointed out that with the<br />

cities getting a bit smarter together<br />

with technology, automobile sensors<br />

will be able to interact with smart<br />

cities, stressing the cars are being<br />

transformed into a smart device<br />

or a walking computer that can<br />

communicate with the devices at home<br />

- refrigerators, buildings, sites, cities<br />

and traffic safety systems.<br />

“When we combine all of them,<br />

everything that happens to the mobile<br />

phone with its usage areas will also<br />

be happening to the car. On mobile<br />

phones, while we used to be only able<br />

to call someone, we can do almost<br />

anything right now. The car is in<br />

this transformation with the same<br />

logic,” he noted. Karakaş said there<br />

are many countries, spearheaded by<br />

China, that perceive the technological<br />

transformation, especially the<br />

transformation in the automobile, as<br />

an opportunity, and therefore change<br />

the current postures, even the laws<br />

of the city to the extent of urbanism.<br />

Informing that China, which has been<br />

investing very high amounts for years<br />

especially in electric vehicles, intends<br />

to invest $130 billion in the next 10<br />

years. Adding that other automakers<br />

will also invest up to $300 billion in the<br />

next 10 years because if they do not<br />

take part in the transformation, their<br />

share of total profit pools will decrease,<br />

Katakaş said with regards to all profits<br />

generated in the automotive sector in<br />

2017, the amount earned from new<br />

business opportunities originating<br />

from the mobility system accounts for<br />

1 percent of the profit, which will go<br />

up to 40 percent in 2035, meaning that<br />

40 percent of the 2035 profitability will<br />

come from these new areas.<br />

“Conversely, the share of the classic<br />

carmakers from their current job<br />

in 2035 will be 60 percent. In new<br />

technologies, profitability rates are<br />

also higher, hence developing a very<br />

attractive market,” he continued.<br />

49<br />

<strong>May</strong> <strong>2019</strong>


Turkey or Bulgaria:<br />

VW to decide on new plant<br />

Amid many rumors over<br />

recent months, it has<br />

been reported that<br />

German automotive<br />

giant Volkswagen (VW) will<br />

decide where to build its new<br />

plant at the end of November,<br />

with Turkey and Bulgaria<br />

standing out as the two strongest<br />

candidates for the company to<br />

invest in.<br />

According to the information<br />

obtained by the German news<br />

agency Deutsche Presse-<br />

Agentur (dpa), the decision is yet<br />

to be made as the issue will be<br />

discussed at the VW supervisory<br />

board meeting at the end of April<br />

and the final decision will be<br />

made at the supervisory board<br />

meeting in November.<br />

Deutsche Welle (DW) Turkish<br />

revealed that personnel<br />

expenses in both countries<br />

are lower compared to those<br />

in Germany, pointing out that<br />

the result of the race between<br />

the two countries is clear. VW<br />

has made no disclosure on<br />

the billions of euros worth of<br />

investment.<br />

Meanwhile, speaking to<br />

automobile industry magazine<br />

Automobilwoche, Alper Kanca,<br />

Chairman of the <strong>Automotive</strong><br />

Suppliers Association of Turkey<br />

(TAYSAD), said that the Turkish<br />

public does not want VW to<br />

see Turkey as a sales market<br />

alone, and expects it to carry<br />

out production in the country.<br />

Recalling that VW sold 120,000<br />

vehicles in Turkey last year<br />

alone, Kanca said that the<br />

company should give a positive<br />

signal taking into consideration<br />

Turkish-German relations.<br />

Kanca added that the investment<br />

to be made in Turkey will be an<br />

important instrument in this<br />

regard.<br />

It is estimated that Turkey has<br />

a high chance to be chosen in<br />

terms of its current qualified<br />

workers and distribution<br />

structure. In addition, in mid-<br />

January, VW had agreed to<br />

produce minibuses at Ford<br />

factories in Turkey. Bulgaria,<br />

which is one of the options for<br />

the German automaker, hopes<br />

that the new plant will be opened<br />

in the country. According to<br />

dpa, a delegation from the VW<br />

examined the Bulgarian capital<br />

of Sofia ahead of German<br />

President Frank-Walter<br />

Steinmeier’s visit to the city in<br />

early April. Conditions in the<br />

country where the investment is<br />

planned will be effective in VW’s<br />

decision.<br />

Last November, VW announced<br />

that it would make an investment<br />

of 44 billion euros ($49.8 billion)<br />

in electric vehicles, autonomous<br />

driving and digital technologies<br />

for the next five years, disclosing<br />

that about 30 billion euros of this<br />

investment would be allocated<br />

for the development of electric<br />

vehicles. The company had also<br />

revealed that Skoda Karoq and<br />

Seat Ateca model vehicles under<br />

VW will be produced in the new<br />

factory planned to be opened in<br />

Eastern Europe.<br />

Turkey, Russia<br />

work on aircraft,<br />

armor parts<br />

Russia and Turkey are jointly working<br />

on aircraft and helicopters, and also<br />

components for armor, the press<br />

office of Russia’s state arms seller<br />

Rosoboronexport, part of the state hi-tech<br />

corporation Rostec, reported.<br />

“We have a number of joint projects for<br />

developing promising aircraft and rotorcraft<br />

platforms, components for the armor<br />

and the after-sale maintenance of the<br />

armaments supplied,” the press office<br />

quoted Rosoboronexport CEO Alexander<br />

Mikheyev as saying.<br />

Turkey is also showing interest in the<br />

newest Russian combat modules, air<br />

defense systems with different range<br />

capabilities and anti-tank weapons. Despite<br />

rivals’ interference in bilateral relations,<br />

Russia and Turkey are coping with the<br />

difficulties that arise, the chief executive<br />

stressed.<br />

“At present, we are discussing with our<br />

Turkish partners about the implementation<br />

of some of the most important projects<br />

in the sphere of military and technical<br />

cooperation and in the civilian industry... We<br />

are undoubtedly ready for various formats<br />

of technological cooperation, including such<br />

science-intensive spheres as the aerospace<br />

industry, helicopter-building and the energy<br />

sector,” the Rosoboronexport press office<br />

quoted Rostec CEO Sergei Chemezov as<br />

saying.<br />

The Rosoboronexport and Rostec chiefs<br />

announced this on the eve of the IDEF’19<br />

defense industry exhibition to be held<br />

in Istanbul from April 30-<strong>May</strong> 3. The<br />

exhibition will showcase equipment<br />

for land troops, the navy, the air force,<br />

security technologies, space technologies,<br />

onboard systems and also helicopters,<br />

ships, electronics, security systems,<br />

transportation and logistics equipment and<br />

systems.<br />

<strong>May</strong> <strong>2019</strong><br />

52


Auto production nearly 490,000 in Jan-April<br />

ANKARA- A total of 489,429 vehicles<br />

rolled off Turkish automotive industry<br />

production lines in the first four<br />

months of this year, the <strong>Automotive</strong><br />

Manufacturers Association (OSD) said.<br />

The country’s auto productionincluding<br />

automobiles, commercial<br />

vehicles, and tractors- fell 13% yearon-year<br />

in the January-April period.<br />

The association said automobile<br />

production in Turkey also fell 14%<br />

to reach at 322,281 during the same<br />

period.<br />

From January to April, total auto sales<br />

market almost halved to 123,155<br />

vehicles.<br />

Turkey’s automotive exports went down<br />

8% on a yearly basis to hit 126,026 in<br />

the first four months.<br />

The sector earned $10.5 billion from<br />

automotive exports between January<br />

and April.<br />

Share of imported cars in auto market shrinks to 61 pct<br />

The share of imported automobiles in<br />

the Turkish market has declined to 61<br />

percent in the first three months of<br />

this year as the market share of locally<br />

produced models keeps growing.<br />

Turkey imported more than 77.9<br />

percent of its automobile in 2013. That<br />

share dropped to 70 percent in 2017<br />

and further declined to 63.3 percent<br />

last year.<br />

According to the <strong>Automotive</strong><br />

Distributors Association (ODD), the<br />

market share of imported automobiles<br />

in January-February fell to 61<br />

percent, while the share of domestic<br />

cars increased to 39 percent. Thus,<br />

automobile imports have declined by<br />

16.9 points since 2013.<br />

While the automobile market shrank<br />

by 52 percent in the January-February<br />

period, imported car sales and<br />

domestic automobile sales fell by 55<br />

percent and 45 percent, respectively. A<br />

total of 30,184 automobiles were sold<br />

during this period.<br />

Also, the sales of light commercial<br />

vehicles dropped by 54 percent in the<br />

same period, in which the share of<br />

imports stood at 47 percent.<br />

One of the most important reasons for<br />

the decline in the share of imports was<br />

the increased demand for automobiles<br />

produced in Turkey.<br />

Currently, five automobile brands are<br />

producing eight models of automobiles<br />

in Turkey. Tofaş manufactures the<br />

Fiat Egea in Bursa, Oyak Renault<br />

produces the Megane sedan and Clio<br />

hatchbacks in Bursa, Toyota produces<br />

the C-HR and Corolla sedans in the<br />

industrial province of Sakarya, Hyundai<br />

Assan produces i10 and i20 and Honda<br />

produces Civic sedans in the country.<br />

Another reason for the decrease in<br />

imports is the fact that many brands<br />

have not launched their <strong>2019</strong> car<br />

models due to the recession, changing<br />

the supply-demand balance in the<br />

market. The gap caused by imported<br />

cars in the market is currently<br />

compensated by domestic automobiles.<br />

According to forecasts, a total of<br />

350,000 automobiles, including 220,000<br />

imported, will be sold in <strong>2019</strong>. The<br />

share of imported automobiles is<br />

expected to be 62.8 percent by the end<br />

of the year.<br />

Having run a foreign trade surplus in<br />

the past decade with the exception of<br />

the years of 2011 and 2015, the Turkish<br />

automotive industry broke a new record<br />

in 2018.<br />

Because of the rise in domestic models,<br />

the foreign trade surplus soared to $13<br />

billion in 2018 from $6.5 billion in 2017.<br />

A new foreign trade surplus record is<br />

expected in <strong>2019</strong>.<br />

<strong>Automotive</strong> equipment manufacturer<br />

Delphi Technologies has made Turkey<br />

a base of after-sale services and spare<br />

parts.<br />

Reşat Dumanoğlu, the regional director<br />

for Turkey, the Caucasus, the Middle<br />

East and Africa at Delphi Technologies,<br />

stated that the company grew by<br />

44 percent in 2018. “Thanks to our<br />

efforts, we have become the regional<br />

directorate of 67 countries in Turkey,<br />

the Caucasus, the Middle East and<br />

Africa,” he said.<br />

<strong>May</strong> <strong>2019</strong><br />

56


Investment coordination council lays out new reform vision<br />

to draw more FDI<br />

The Coordination Council for the<br />

Improvement of Investment<br />

Environment (YOİKK) convened<br />

to lay out a new revisionist<br />

road map for reform that will further<br />

strengthen Turkey’s investment<br />

environment. In his opening remarks<br />

at the meeting held in the Presidential<br />

Complex, Vice President Fuat Oktay<br />

drew attention to the reforms<br />

implemented in the last 17 years.<br />

“Turkey has been branded as the most<br />

reformist country among the members<br />

of the Organization for Economic Cooperation<br />

and Development (OECD)<br />

in eliminating the hurdles limiting<br />

foreign direct investment (FDI).<br />

Thanks to these reforms, Turkey has<br />

attracted $210 billion in FDI in the<br />

last 17 years. YOİKK, formed with the<br />

inclusion and contribution of many<br />

Turkish associations, bodies and<br />

nongovernmental organizations (NGOs)<br />

operating in the field of investment,<br />

has been conducting activities since its<br />

foundation, Oktay said.<br />

YOİKK, formed with the inclusion<br />

and contribution of many<br />

Turkish associations, bodies and<br />

nongovernmental organizations (NGOs)<br />

operating in the field of investments,<br />

has been conducting activities since its<br />

foundation, Oktay said.<br />

The vice president stressed Turkey’s<br />

determination to conduct sweeping<br />

reforms and noted that the meeting<br />

will specify the activities to be held in<br />

the upcoming period. The council will<br />

seek to further improve the investment<br />

environment, he added.<br />

The YOİKK will determine flexible and<br />

sustainable policies based on national<br />

and international circumstances.<br />

YOİKK has made significant<br />

contributions to the improvement of the<br />

investment climate, according to Oktay,<br />

who also noted that all these reform<br />

works were carried out by taking into<br />

consideration the comprehensive<br />

consultations and demands from<br />

the sections represented by the<br />

participants.<br />

The vice president emphasized that<br />

thanks to the results of the dedicated<br />

work run by relevant ministries and<br />

NGOs and coordinated by the board<br />

in the recent period, Turkey ranked<br />

43rd in the World Bank’s Ease of<br />

Doing Business list for <strong>2019</strong>, climbing<br />

17 places compared to previous<br />

year, noting that 2.4 percent out of<br />

the 5.7 percent average economic<br />

growth in the last 17 years came from<br />

investments.<br />

According to the report published<br />

by the World Bank, Turkey received<br />

74.33 points out of 100, improving 4.34<br />

points compared to previous year. New<br />

Zealand, which topped the list, scored<br />

86.59 points.<br />

According to the “Doing Business <strong>2019</strong><br />

– Training for Reforms” report, the<br />

previous year’s reforms accelerated<br />

Turkey’s efforts to improve the<br />

business climate for domestic small<br />

and medium-sized enterprises (SMEs).<br />

Oktay further remarked that the<br />

continuation of the momentum in the<br />

investment environment depends on<br />

the sustainability and development of<br />

works carried out by the institutions in<br />

the recent period.<br />

He indicated that with the vision it will<br />

lay out, YOİKK will be a pioneer for the<br />

increase of foreign direct investments,<br />

both in the international and domestic<br />

arenas.<br />

“In addition to being a platform for<br />

solving problems, YOİKK will act with<br />

a perspective that aims to produce<br />

an appropriate investment climate<br />

for attracting tomorrow’s technology<br />

and investments. We aim to make a<br />

‘participatory and innovative’ spirit<br />

of cooperation prevail in our board<br />

studies, whose road map and operation<br />

with main lines we will be designating.<br />

We plan to primarily include in the<br />

process the ‘solution oriented, welldefined<br />

and result-oriented’ reform<br />

proposals that our board members will<br />

offer to further develop the investment<br />

climate,” said Oktay.<br />

The contribution and guidance of<br />

YOİKK will have important effects on<br />

the national development initiative,<br />

according to the vice president.<br />

“As a result of the improvement in the<br />

investment environment, we expect the<br />

international investments that will head<br />

toward our country to produce added<br />

value, provide technology transfer<br />

to our country, and the employment<br />

figures and the current account balance<br />

to follow a more positive course. We<br />

should worker harder to attract foreign<br />

investment and remain competitive<br />

in this period of escalating global<br />

competition and financial tightening,”<br />

Oktay said.<br />

<strong>May</strong> <strong>2019</strong><br />

58


Turkish drivers’ appetite for electric vehicles<br />

above world average<br />

As recent developments have<br />

raised consumers’ belief in<br />

the future of electric vehicles,<br />

studies suggest that Turkish<br />

consumers’ willingness to purchase<br />

electric vehicles maintains a level<br />

above the world average.<br />

Developments in the field of electric<br />

vehicles are moving very rapidly.<br />

Studies show that battery prices are<br />

rapidly declining, while the ranges<br />

are increasing, plus fast charging<br />

stations are becoming incrementally<br />

widespread.<br />

According to information compiled from<br />

the TEB Cetelem Observatory <strong>2019</strong><br />

report, electrical vehicles offer some<br />

solutions in environmental, economic,<br />

industrial and social terms thanks<br />

to their specific technical features.<br />

However, in addition to some possible<br />

obstacles in the development process,<br />

ongoing technical and organizational<br />

issues are also worth noting.<br />

When these obstacles are overcome,<br />

drivers are expected to fully benefit<br />

from the power and convenience of this<br />

innovation. The results of the report<br />

indicate that significant progress has<br />

been made on issues related to the<br />

infrastructure and legal regulations of<br />

electric vehicles in the period between<br />

the observatory survey conducted<br />

in 2012 and the study conducted in<br />

<strong>2019</strong> on electric vehicles. Consumers’<br />

perceptions and requests have also<br />

changed during this period.<br />

Through the promotional activities<br />

carried out in this period and the<br />

first models seen on the roads in the<br />

meantime, people have gotten used to<br />

this new product more and more.<br />

In the survey conducted in 2012, the<br />

lack of confidence in the technology<br />

of the product was the third reason<br />

for not buying this product, while this<br />

item ranked sixth in this year’s survey,<br />

proving that people have adopted this<br />

product. While the limited range of<br />

electric vehicles stands out as the main<br />

weakness, it is seen that providing<br />

customers’ acceptance of this factor is<br />

an obstacle that cannot be ignored.<br />

Moreover, while the purchase price<br />

and range, which drivers consider as a<br />

critical criterion for electric vehicles,<br />

has not shown much improvement<br />

in recent years, this element is still<br />

considered to be one of the biggest<br />

obstacles to people’s adoption of<br />

electric vehicles. However, positive<br />

developments have been recorded<br />

in the amount of savings in usage<br />

expenses. Consumers’ perceptions<br />

of electric vehicles are likely to be<br />

significantly improved due to the<br />

increased attractiveness of electric<br />

vehicles. The rate of people ready to<br />

pay more for an electric vehicle in<br />

Europe increased by 7 points compared<br />

to 2012. Meanwhile, a survey of 10,600<br />

people between the ages of 18 and 65<br />

from 16 countries, including Turkey,<br />

outlined the opinions of consumers<br />

about electric vehicles.<br />

According to the report, 25 percent<br />

of the vehicles sold in the world are<br />

expected to be electric in 2030. This<br />

figure is expected to rise to 36 percent<br />

in China, where the purchase is<br />

encouraged, and up to 39 in Norway.<br />

According to statements by Turkish<br />

drivers participating in the survey, 29<br />

percent of the vehicles to be sold in<br />

Turkey will be electric.<br />

Given the Turkish consumers’<br />

perception of electric vehicles, the<br />

reason for not buying is the vehicles’<br />

high price. Short range despite long<br />

battery charge time is also expanding<br />

the distance between Turkish<br />

consumers and electric vehicles.<br />

Another factor keeping Turkish drivers<br />

away from electric vehicles is their<br />

range of 83 kilometers per day, which<br />

is 32 kilometers above the world<br />

average. In spite of the negative data,<br />

the rate of Turkish drivers, who said<br />

they could buy an electric car in the<br />

next five years, was 60 percent, which<br />

was 17 percentage points above the<br />

world average of 43 percent. Turkey’s<br />

first indigenous automobile to be<br />

manufactured by the Automobile Joint<br />

Venture Group (TOGG) is expected<br />

to enter the market in 2022 with an<br />

electric SUV in the C segment.<br />

The fact that batteries will be cheaper<br />

is shown as the first reason for electric<br />

vehicles to become widespread as of<br />

2030. A cost of $1,000 for one kilowatthour<br />

in 2010 is now down by 5 percent.<br />

In the future, this cost is expected to<br />

fall below $150<br />

<strong>May</strong> <strong>2019</strong><br />

60


Current account gap drops at its lowest since 2009<br />

Picking up from where it left off<br />

at the end of last year, Turkey<br />

has continued to see a gradual<br />

decline in its current account<br />

deficit. With measures taken by the<br />

government and the stabilization<br />

process in the economy, the country’s<br />

12-month rolling current account<br />

deficit has dropped to $12.83 billion in<br />

March, its lowest level since the end<br />

of 2009. The monthly current account<br />

deficit in March also saw its lowest<br />

level since October 2015 and dropped<br />

to $589 million, decreasing by $4.14<br />

billion year-on-year, according to the<br />

Central Bank of the Republic of Turkey<br />

(CBRT) report released. The figure was<br />

nearly $4.73 billion in the same month<br />

of 2018. A group of 17 economists,<br />

surveyed by Anadolu Agency, estimated<br />

a $900-million deficit in March, while,<br />

on the other hand, the median of 12<br />

forecast in a Bloomberg survey was for<br />

a gap of $1 billion. Economists expect<br />

the country’s current account deficit<br />

to maintain its trend and continue to<br />

narrow down in April as well and drop<br />

below $10 billion. Decline to continue<br />

rapidly during first half of this year<br />

Haluk Bürümcekçi, said recovery in the<br />

current account balance will continue<br />

until end of the first half of <strong>2019</strong>.<br />

“Lower foreign trade deficit versus<br />

the last year and posting surplus of<br />

services item were main factors for<br />

recovering of the current account<br />

deficit,” he noted.<br />

Bürümcekçi said that he expected the<br />

country’s year-end current account<br />

deficit will be $10 billion.<br />

Banu Kıvci Tokalı, the chief economist<br />

of HalkInvest, a subsidiary of state<br />

lender HalkBank, stressed the current<br />

account deficit could drop to $8-10<br />

billion in April, of which data will be<br />

released in June. She underlined that<br />

the decline in the deficit would continue<br />

rapidly during the first half of the<br />

current year due to policies to support<br />

exports, the base effect and moderate<br />

energy prices. Tokali forecast that<br />

the country would close the year with<br />

a $19 billion current account deficit.<br />

“The current-account-deficit-to-GDP<br />

ratio, which was 5.6 percent in 2017<br />

and 3.6 percent in 2018, could fall to 2.6<br />

percent by the end of <strong>2019</strong>,” she added.<br />

Orkun Gödek, DenizBank Investment<br />

Group strategist, highlighted that the<br />

current account deficit of $589 million<br />

was under the expectations of $1 billion<br />

in March.<br />

“In the first quarter, the current<br />

account deficit was $1.9 billion, while<br />

it was $16.2 billion in the same quarter<br />

last year,” he said. In an interview ,<br />

Treasury and Finance Minister Berat<br />

Albayrak said the current account<br />

deficit, which nearly hit $60 billion last<br />

year, will nearly be zeroed by the end of<br />

<strong>May</strong>. Albayrak said the current account<br />

balance and surplus were in a period<br />

of rapid recovery and that there would<br />

be no external financing requirement in<br />

the next period. The central bank said<br />

in its report that the development in the<br />

current account is mainly attributable<br />

to a $3.7-billion decrease in the goods<br />

deficit recording net outflow of $916<br />

million. The CBRT also said Turkey’s<br />

current account deficit – excluding<br />

gold and energy – posted a $3.5-billion<br />

surplus in March <strong>2019</strong>, versus a<br />

$573-million deficit in the same month<br />

last year.<br />

“Services item realized net inflow of<br />

$1.3 billion increasing by $113 million<br />

compared to March 2018,” the bank<br />

said. It added that travel item under<br />

services recorded a net inflow of $1.04<br />

billion, rising by $55 million compared<br />

with March 2018.<br />

Previously, current account deficit fell<br />

88.4 percent in January to $813 million<br />

deficit, indicating a decrease of $6.22<br />

million compared to January of the<br />

previous year, bringing the 12-month<br />

rolling deficit to $21.59 billion, the<br />

lowest level of 105 months.<br />

In February, it fell to $718 million, down<br />

by $3.78 billion from the same month<br />

last year. The 12-month rolling deficit<br />

reached $17 billion in the month.<br />

Economists forecast that the <strong>2019</strong>-end<br />

deficit will be $13.8 billion.<br />

Last year, the current account balance<br />

posted a deficit of around $27.6 billion,<br />

improving from a nearly $47.5 billion<br />

deficit in 2017. It realized at around<br />

3.5 percent of the country’s gross<br />

domestic product. The figure was the<br />

lowest since 2009, while Turkey’s<br />

highest annual current account deficit<br />

over the last decade was seen in 2011,<br />

with $74.4 billion. The country’s new<br />

economic program, announced in<br />

September 2018, targets a currentaccount-deficit-to-GDP<br />

ratio of 3.3<br />

percent this year, 2.7 percent in 2020<br />

and 2.6 percent in 2021.<br />

<strong>May</strong> <strong>2019</strong><br />

62


Auto sales drop to 119,500 in January-April<br />

Turkey’s overall auto sales market, including<br />

light trucks, in the January-April period, shrank<br />

48 percent compared to the same period in 2018,<br />

the <strong>Automotive</strong> Distributors’ Association (ODD)<br />

reported.<br />

The number of cars and light commercial vehicles<br />

sold in the country in the first four months of the<br />

year stood at 119,440, ODD said in a statement.<br />

Passenger car sales also posted a decrease of<br />

47.5 percent to total 93,228 between January<br />

and April. “In January-April <strong>2019</strong>, the light<br />

commercial vehicle market shrank by 49.7<br />

percent, in comparison to last year, to 26,212,”<br />

the group said in a statement.<br />

Over 159,000<br />

vehicles registered<br />

in first quarter<br />

The number of vehicles registered<br />

in Turkey reached 159,219 in the<br />

first three months of this year, the<br />

country’s statistics authority said.<br />

The first quarter figure was down<br />

42.1 percent from the same period<br />

last year, the Turkish Statistical<br />

Institute (TurkStat) announced.<br />

The total number of road motor<br />

vehicles registered was around 23<br />

million by the end of March.<br />

Automobiles accounted for the bulk<br />

of new registrations - 60 percent<br />

(95,583) - a drop of 42.4 percent<br />

year-on-year between January and<br />

March.<br />

In March, the number of registered<br />

motor vehicles also slipped 37.9<br />

percent compared to the same<br />

month last year, to 58,7909, TurkStat<br />

added.<br />

The breakdown of model brands for<br />

new registered cars in the month is<br />

as follows: Renault, 16.1 percent;<br />

Fiat, 12.3 percent; Volkswagen, 11<br />

percent; Hyundai, 6.5 percent; Honda<br />

and Toyota, 6.2 percent apiece; Opel,<br />

5.3 percent; Peugeot, 4.3 percent;<br />

Dacia, 4 percent; Mercedes-Benz, 3.7<br />

percent; and other brands accounted<br />

for 24.5 percent.<br />

Ford scraps 3<br />

factories, passenger<br />

car production in<br />

Russia over low<br />

demand<br />

U.S. carmaker Ford will close three of the<br />

four factories of its Russian joint venture after<br />

deciding to stop making passenger cars in a country where car sales have slumped<br />

in recent years, the company said.<br />

Ford said in a statement that it has signed a preliminary agreement with its local<br />

partner Sollers on “a significant restructuring of its... joint venture in Russia,<br />

focusing exclusively on growing its commercial vehicle business moving forward.”<br />

The joint venture “will discontinue its passenger vehicle portfolio in Russia to help<br />

deliver a more competitive and sustainably profitable business going forward,” Ford<br />

said.<br />

Ford, based in the US state of Michigan, said that by the end of June this year it will<br />

close its vehicle assembly plants in the northwestern city of Saint Petersburg and<br />

the city of Naberezhnye Chelny in Tatarstan, central Russia.<br />

It will also close an engine plant in Yelabuga in Tatarstan that opened in 2015.<br />

Sollers will have a 51 percent stake in the restructured joint venture.<br />

Currently, the factories produce seven models including the Ford Transit van.<br />

Ford said that the “Russian passenger vehicle market has been under significant<br />

pressure in recent years, with recovery slower than expected and a shift to lowerpriced<br />

passenger vehicle segments.”<br />

The carmaker said that this led to “underutilization” of factories and “inadequate<br />

returns on invested capital,” although sales of the Ford Transit continue to grow,<br />

with a 15 percent share of the market segment.<br />

Following a period of growth and massive investment by global carmakers, Russia’s<br />

car market collapsed between 2013 and 2016, whiplashed by international sanctions<br />

over the Ukraine conflict and a crash in global oil prices.<br />

New car sales, a key indicator of consumer confidence, fell by more than half during<br />

that period.<br />

However, sales of new cars in Russia rose in 2018 for a second year running, but<br />

slowed in February this year.<br />

<strong>May</strong> <strong>2019</strong> 64


Opening ceremony at the new Archroma Global Competence Center for <strong>Automotive</strong> & Synthetic Dyeing in Korschenbroich, Germany, in<br />

presence of Alexander Wessels (center), CEO, Mark Dohmen (right), Head of the Global Competence Center for <strong>Automotive</strong> & Synthetic<br />

Dyeing, and Thomas Hoffmann (left), Head of Operations, Korschenbroich. (Photo: Archroma)<br />

Archroma Opens Global Competence Center for <strong>Automotive</strong><br />

& Synthetic Dyeing in Germany<br />

Reinach, Switzerland - Archroma, a global leader in color and specialty chemicals<br />

towards sustainable solutions, has officially inaugurated its new Global Competence<br />

Center for <strong>Automotive</strong> & Synthetic Dyeing in Korschenbroich, Germany.<br />

The site is part of former M. Dohmen,<br />

an international group specializing<br />

in the production of textile dyes and<br />

chemicals for the automotive, carpet<br />

and apparel sectors, that Archroma<br />

acquired between 2014 and 2018.<br />

The inauguration ceremony, held<br />

on 6 <strong>May</strong> <strong>2019</strong> in the presence of<br />

Alexander Wessels, CEO of Archroma,<br />

and Mark Dohmen, former CEO of M.<br />

Dohmen and Head of the new Global<br />

Competence Center for <strong>Automotive</strong><br />

& Synthetic Dyeing, also celebrated<br />

the merger of M. Dohmen GmbH into<br />

Archroma Germany GmbH.<br />

With the new Global Competence<br />

Center for <strong>Automotive</strong> & Synthetic<br />

Dyeing, Archroma creates a global<br />

hub for technical expertise, market<br />

knowledge, technology and creativity.<br />

The site of Korschenbroich will<br />

therefore continue to operate as a<br />

specialist production and laboratory<br />

facility specialized in dyes and<br />

auxiliaries for synthetic fibers and wool,<br />

such as the Dorospers®, Dorolan® and<br />

Fadex® ranges.<br />

The exceptional combination of<br />

global experts, R&D laboratory and<br />

production will be fully dedicated to<br />

helping manufacturers of automotive<br />

and synthetic textiles to optimize their<br />

productivity and create value in their<br />

markets.<br />

The new Competence Center for<br />

<strong>Automotive</strong> and Synthetic Dyeing<br />

comes as a new addition to Archroma’s<br />

existing network of global hubs of<br />

expertise: The Global Competence<br />

Center for Special Dyes in Barcelona,<br />

Spain and the Global Competence<br />

Center for Finishing in Reinach,<br />

Switzerland.<br />

“The new Archroma Global Competence<br />

Center will strive to create the new<br />

innovative and sustainable system<br />

solutions that our customers need<br />

to win on their markets,” Alexander<br />

Wessels commented at the ceremony.<br />

“This is how we best support our<br />

customers, whilst at the same time<br />

pushing on our agenda to continuously<br />

challenge the status quo in the deep<br />

belief that we can make our industry<br />

sustainable.”<br />

“I am extremely proud to see the<br />

strong experience of M. Dohmen being<br />

the foundation of Archroma’s Global<br />

Competence Center for <strong>Automotive</strong> &<br />

Synthetic Dyeing in Germany, serving<br />

customers operating in applications<br />

as demanding and challenging as<br />

automotive or technical textiles,” Mark<br />

Dohmen added.<br />

Experts of the new Archroma Global<br />

Competence Center for <strong>Automotive</strong><br />

& Synthetic Dyeing will be at the<br />

upcoming Techtextil exhibition to<br />

introduce the latest of its innovations:<br />

Fadex® AS New, a new “super UV<br />

protector” to make automotive &<br />

transportation textiles more resistant<br />

to light. For more information, click<br />

here.<br />

Dorospers®, Dorolan® and Fadex®<br />

are trademarks of Archroma registered<br />

in many countries.<br />

© <strong>2019</strong> Archroma<br />

<strong>May</strong> <strong>2019</strong><br />

68

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