Automotive Exports March 2021

www.automotive-exports.com March 2021

Monthly automotive aftermarket magazine 

GROUP CHAIRMAN 

H. FERRUH ISIK 

PUBLISHER: 

İstmag Magazin Gazetecilik 

İç ve Dış Ticaret Ltd. Şti. 

Managing Editor (Responsible) 

Mehmet Söztutan 

mehmet.soztutan@img.com.tr 

Editor 

Ali Erdem 

ali.erdem@img.com.tr 

Mehmet Soztutan, Editor-in-Chief 

mehmet.soztutan@img.com.tr 

Advertising Managers 

Adem Saçın 

+90 505 577 36 42 

adem.sacin@img.com.tr 

Enes Karadayı 

enes.karadayi@img.com.tr 

Full steam ahead… 

Following a mandatory yet brief break due to the coronavirus outbreak, Turkish 

factories in western Kocaeli, Bursa and Sakarya provinces – leading industrial cities of 

the country, started operating, with new investments on the way thanks to increasing 

orders. 

As known, the Turkish auto parts industry has recorded a dynamic growth in line with 

the automotive industry. From simple components in the mid-1960s, the sector has 

ascended to produce high-tech components. 

The industry with its large capacity, wide variety of production and high standards, 

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

ample potential for additional exports. 

The leading foreign automotive parts manufacturers have established their presence 

in the country through joint-ventures. There has also been substantial locally-owned 

investments by spare parts manufacturers. 

The major effects are that: 

- Quality of production improved dramatically, especially through the establishment 

of quality management systems. 

- The industry has adapted to the EU regulations and has established an efficient 

and exemplary cooperation with public institutions in the transformation of the EU 

regulations to national regulations. 

- Exports have risen sharply, and Turkish production has been integrated into 

manufacturers’ global planning. 

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

major international automotive manufacturers, has attracted an increasing number 

of foreign investors. 

Key factors which attract foreign capital inflows to Turkey mainly include the market 

size, consumer composition, friendly investment legislation and banking system 

together with other attractiveness arising from highly skilled human resources in 

production and management, the unsaturated domestic market with high potential, 

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

We wish them lucrative trade for the business people operating in the automotive 

business. 

International Marketing Coordinator 

Ayca Sarioglu 

ayca.sarioglu@img.com.tr 

Correspondent 

İsmail Çakır 

ismail.cakir@img.com.tr 

Finance Manager 

Cuma Karaman 

cuma.karaman@img.com.tr 

Accountant 

Yusuf Demirkazık 

yusuf.demirkazik@img.com.tr 

Digital Assets Manager 

Emre Yener 

emre.yener@img.com.tr 

Web Designer 

Amine Nur Yılmaz 

amine.yilmaz@img.com.tr 

Technical Manager 

Tayfun Aydın 

tayfun.aydin@img.com.tr 

Design & Graphics 

Sami aktaş 

sami.aktas@img.com.tr 

Subsciption 

İsmail Özçelik 

ismail.ozcelik@img.com.tr 

HEAD OFFICE: 

ISTANBUL MAGAZINE GROUP 

Ihlas Media Center 

Merkez Mah. 29 Ekim Caddesi No: 11B/21 

Yenibosna Bahcelievler, Istanbul / TURKEY 

Tel: +90 212 454 22 22 

www.img.com.tr sales@img.com.tr 

KONYA: 

Metin Demir 

Hazım Uluşahin İş Merkezi C Blok 

Kat: 6 No: 603-604-605 KONYA 

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

PRINTED BY: 

İHLAS GAZETECİLİK A.Ş. 

Merkez Mahallesi 29 Ekim Caddesi İhlas Plaza 

No:11 A/41 Yenibosna–Bahçelievler/ İSTANBUL 

Tel: 0212 454 30 00 

www.ihlasmatbaacilik.com 

automotiveexport 

2021 

automotiveexports

TOGG 

cooperates 

with Farasis for 

li-ion battery 

production 

Turkey’s Automobile Joint Venture Group 

(TOGG), which is producing the country’s 

first fully indigenous electric car, signed 

a letter of intent with leading lithiumion 

(li-ion) battery producing company 

Farasis Energy for the production and use 

of battery cells in the full range of TOGG 

products, the company said in a press 

release. 

According to the agreement, battery 

cells will be provided by Farasis and the 

battery modules and packs will be jointly 

developed and produced in Turkey. 

The agreement was signed between the 

board chairpersons of both companies in 

Bilişim Vadisi (Informatics Valley) in the 

northwestern Kocaeli province of Turkey. 

TOGG CEO Gürcan Karakaş, commenting on 

the cooperation, said that the agreement 

was signed as a result of a large-scale 

evaluation process initiated in 2018 

during which more than 30 global battery 

suppliers have been evaluated, within the 

framework of confidentiality agreements 

(NDAs), including possible domestic 

collaborations. 

“Among them, the company that best met 

our technical, commercial and strategic 

criteria and one of the world’s leading li-Ion 

battery manufacturers, Farasis, has been 

chosen as our business partner,” he said. 

Karakaş noted that it is important 

to produce this technology, which is 

considered one of the most important 

and fundamental technologies for electric 

vehicles today, within the country with an 

important player in the sector. 

“TOGG’s mobility ecosystem will become 

an important regional player that develops 

technology and produces serious economic 

value,” he added. 

Li-ion batteries are a fundamental 

component of an electric car. 

In addition to supplying batteries, the 

two companies will also expand their 

cooperation through a joint venture 

company, which is set to combine Farasis 

technology with the country’s automotive 

industry leaders, to provide battery energy 

storage solutions for Turkey and the 

surrounding region. 

Rifat Hisarcıklıoğlu, chairperson of the 

Union of Chambers and Commodity 

Exchanges of Turkey (TOBB) – the umbrella 

organization for the TOGG, said in a 

statement following the signing ceremony 

that the joint venture established with 

Farasis “will be an initiative to increase 

the efficiency of our country’s energy 

system, reduce our country’s dependence 

on foreign energy, and accelerate our 

development of a clean and efficient 

energy system.” 

“This cooperation will go beyond producing 

electric vehicle batteries in Turkey and also 

improve battery R&D competencies in our 

country, trigger automotive manufacturers 

to bring their electric vehicle projects 

to our country and enhance the energy 

storage business with nonautomotive 

energy storage products in Farasis’ product 

March 2021 8

portfolio,” the TOGG chairperson also said. 

He pointed out that the joint venture will 

form a basis of very important economic 

value as a representative of the energy 

company in the region, adding that the 

TOGG alone will lead the technological 

transformation in Turkey while contributing 

to the country’s zero-emission future. 

’TOGG pioneering initiative’ 

Farasis co-founder and CEO Yu Wang, who 

attended the signing ceremony online due 

to the COVID-19 pandemic, said Turkey 

is one of the most important automotive 

markets in the region. 

“Partnering with the TOGG as they prepare 

to manufacture electric vehicles, building on 

the advanced and accumulated automotive 

know-how in Turkey, is a natural step we 

have taken in line with our basic strategies,” 

he said, noting that they “value Turkey as 

the next big market for electrification and 

thus an ideal location along with the TOGG 

as a greatly innovative partner doing the 

right work, at the right time, in the right 

place, to support the ambitious growth 

plans of our company.” 

“We have signed this letter of intent to 

meet the demands both in Turkey and in the 

region. We are excited that this cooperation, 

which started with the supply of batteries, 

will turn into a long-term partnership,” 

Wang added. 

The energy company’s head of European 

organization and business, Sebastian Wolf, 

who had personally taken part in the 

signing ceremony, noted that from the very 

beginning of the cooperation talks with the 

TOGG, they felt that both companies share 

the same goal of electrifying the future of 

individual mobility. 

“We expect the Turkish automotive and 

nonautomotive market to face substantial 

growth in demand for li-ion batteries,” he 

said, expressing excitement over partnering 

with the Turkish automotive joint venture. 

The agreement foresees a comprehensive 

business plan for cooperation between the 

two countries by 2020 end, while the official 

establishment of the joint venture company 

is set for the beginning of 2021. 

In June 2018, five industrial giants – Anadolu 

Group, BMC, Kök Group, Turkcell and Zorlu 

Holding – joined hands with the umbrella 

organization TOBB to produce the TOGG to 

realize Turkey’s long-term aim of producing 

a fully Turkish-made automobile, unveiling 

prototypes on Dec. 27. 

The TOGG will produce five different models 

– an SUV, sedan, C-hatchback, B-SUV and 

B-MPV – by 2030 and own the intellectual 

and industrial property rights to each. Mass 

production of the SUV will begin in 2022, 

with the sedan to follow. 

Farasis Energy Inc., the predecessor 

of Farasis Energy Ltd. based in China’s 

Ganzhou, was founded in the U.S. in 2002, 

gradually extending its business across 

China and Europe. The company has a broad 

portfolio of battery solutions and global 

customers in different markets. 

Farasis is currently one of the largest 

manufacturers of pouch cells for the BEV 

market, with multiple global R&D centers 

and over 4,000 employees. The company 

has previously started programs with BAIC, 

one of the leading original equipment 

manufacturers (OEMs) of China and Daimler 

(Mercedes-Benz) on a range of electric 

vehicle battery solutions. 

March 2021 

10

Automechanika Frankfurt: Leading aftermarket 

trade fair to take place as physical event with a 

new online program 

Frankfurt am Main – This year’s 

Automechanika Frankfurt is taking place 

as a hybrid event for the first time. The 

primary focus will be on the physical 

event and all the advantages it offers. 

Automechanika will be supplementing 

these by providing all exhibitors with new 

opportunities to network digitally with 

those members of the international B2B 

audience who cannot travel to Frankfurt 

due to the pandemic. Digital features that 

are made available to all exhibitors free of 

charge maximise their reach while opening 

up entirely new possibilities for product 

presentations and communication with 

customers. 

Detlef Braun, Member of the Executive 

Board of Messe Frankfurt GmbH, is positive 

about the future: Starting in June, the 

Frankfurt exhibition grounds will be hosting 

trade fairs once again. First up is Indoor-Air, 

a trade fair for ventilation and air quality, 

and work on the content and organisation 

of this September’s Automechanika, our 

leading trade fair brand, is also in full 

swing. Thanks to our hygiene and safety 

concept, everything is in place to ensure 

safe events for everyone involved. 

The primary focus is on face-to-face 

business encounters. And to ensure that 

customers who are still unable to travel 

to their normal extent in September will 

be able to take part, the organisers are 

planning a hybrid format. 

Michael Johannes, Brand Manager 

of Automechanika: We want to bring 

industry players from different countries 

and continents together be it live in 

Frankfurt or virtually from afar to satisfy 

their need to network. Based on the good 

experience we’ve had over the past six 

months providing digital services for our 

customers not only in German-speaking 

countries, but also in Russia, Dubai, 

Shanghai and beyond, we have decided 

to hold Automechanika Frankfurt as a 

hybrid event. ACMA Automechanika New 

Delhi, one of 15 Automechanika trade fairs 

worldwide, has also opted for the hybrid 

format when it takes place next month. 

Johannes: Our entire international brand 

family works together closely, and we have 

gained valuable experience and expertise 

from each of our trade fair teams activities 

in their home countries. 

New digital features 

Automechanika Frankfurt is taking place as 

a physical event on the Frankfurt exhibition 

grounds in accordance with all applicable 

hygiene and protection measures. To 

ensure that networking will also be 

possible for those international visitors 

who are not able to travel to Frankfurt, 

exhibitors can take advantage of new 

digital features. 

Olaf Mußhoff, Director of Automechanika 

Frankfurt: Thanks to a digital matchmaking 

and scheduling tool and facilities for live 

chats and 1:1 video calls, exhibitors will be 

able to communicate directly with their 

customers and generate new leads. We 

are making these services available free 

of charge this year to the approx. 2,000 

exhibitors who have already confirmed that 

they are taking part. Exhibitors product 

information and company profiles will also 

remain online even after the event has 

finished. This lets us give all participating 

companies greater reach. 

Exhibitors can also present their product 

innovations via live stream. 

Michael Johannes explained: We have used 

these months to invest in our employees’ 

technical skills and establish our own 

web studio for our customers here on the 

Frankfurt exhibition grounds. I am already 

looking forward to the videos and live 

streams that our exhibitors will be creating 

to supplement the supporting program. 

Events: in person in Frankfurt and as live 

streams online 

For everyone who is unable to travel 

to Frankfurt due to the coronavirus, 

Automechanika Frankfurt will be offering 

some of the supporting program digitally 

as well. This means that people can 

take part in a select online program that 

includes Collision talk, the Automechanika 

Innovation Awards, Automechanika 

Academy an event focusing on themes 

that are important to the future and a 

special program for workshops. Most of the 

content will also be available online in the 

media centre afterwards. 


Volvo phases out all cars but electric by 2030 

Swedish automaker Volvo said that it will 

make only electric vehicles by 2030, but 

the customers will have to purchase the 

cars online. 

The company said that it is phasing out 

the production of all cars with internal 

combustion engines – including hybrids. 

“There is no long-term future for cars with 

an internal combustion engine,” said Henrik 

Green, Volvo’s chief technology officer 

(CTO). 

Volvo’s announcement follows General 

Motors’ pledge earlier this year to make 

only battery-powered vehicles by 2035. 

Volvo also said that, while its all-electric 

vehicles will be sold exclusively online, 

dealerships will “remain a crucial part of 

the customer experience and will continue 

to be responsible for a variety of important 

services such as selling, preparing, 

delivering and servicing cars.” 

As part of the announcement , the Swedish 

automaker will unveil its second fully 

electric car, a follow-up to last year’s XC40 

Recharge, a compact SUV. 

Volvo said its goal is to have half of its 

global sales be fully electric cars by 2025, 

with the remaining half made up of 

hybrids. 

Automakers around the world are ramping 

up the production of electric vehicles 

as charging technology improves and 

governments impose stricter pollution 

regulations. 

“We are firmly committed to becoming an 

electric-only car maker,” Green said. “It will 

allow us to meet the expectations of our 

customers and be a part of the solution 

when it comes to fighting climate change.” 

Despite the rising number of EVs available 

in the U.S., fully electric vehicles accounted 

for less than 2% of new vehicle sales last 

year. Americans continue to spend record 

amounts on gas-powered trucks and SUVs. 

About 2.5 million electric vehicles were 

sold worldwide last year and industry 

analyst IHS Markit forecasts that sales will 

increase by 70% in 2021. 

Volvo says it sold 661,713 cars in about 100 

countries worldwide in 2020. According to 

Autodata Corp., 107,626 of those vehicles 

were sold in the U.S. 

Founded in 1927, Volvo Cars has been 

owned by China’s Zhejiang Geely Holding 

Group since 2010. 


Japan automakers post 4.5% 

output slump over chip shortages 

The widespread chip shortages force 

global auto industry to cut production. 

Accordingly, the production at Japanese 

automakers including Honda Motor Co 

slipped 4.51% in January from last year. 

The country’s seven major automakers, 

including Toyota Motor Corp and Nissan 

Motor Co’s, produced a combined 2.12 

million vehicles last month, according to 

Reuters calculations based on output data 

released by the companies . 

That compared with a 24% production 

jump in December. The global automobile 

industry has been grappling with a chip 

shortage since the end of last year, with 

the former U.S. administration’s sanctions 

on Chinese chip factories adding to the 

problem. Last month, global vehicle 

production at Honda and Subaru fell 8.8% 

and 29.2%, respectively, mostly due to the 

semiconductor shortage. 

Nissan Motor Co’s global production, on 

the other hand, rose 2.4% in January from 

a year before. 

Honda and Nissan, Japan’s second and 

third-largest automakers have said this 

month they will sell a combined 250,000 

fewer cars in the current financial year. 

Elsewhere, automakers Suzuki 

Motor Corp, Mazda Motor Corp and 

Mitsubishi Motors Corp saw their global 

production drop in January. But the 

three automakers have said they have 

seen no impact of the chip shortage on 

production. 

Toyota Motor, which said earlier this 

month it had up to a four-month chip 

inventory, notched a 1.9% rise in global 

output, their fifth consecutive month 

of gain. Total global vehicle sales at 

Japan’s seven major automakers inched 

down 0.98% year-on-year to 2.06 million 

vehicles last month. 


Ford to spend 

$1B to convert 

German factory 

to make electric 

Ford said it would make a new electric car 

in Europe using Volkswagen’s mechanical 

framework for battery-powered vehicles 

and spend $1 billion to revamp a factory in 

Germany to make the zero-emission cars. 

Ford of Europe President Stewart Rowley 

said during an online news conference that 

the factory in Cologne will build an electric 

passenger vehicle to reach the market in 

mid-2023, and it may build a second one 

there in the future. 

He said it was part of Ford’s push to 

offer fully electric or plug-in, gas-electric 

versions of all passenger vehicles in Europe 

by 2024, with all European vehicles going 

full electric by 2030. The company also 

predicted that two-thirds of its European 

commercial vehicle sales will be electric or 

plug-in hybrids by 2030. 

“We are going all in on electric vehicles,” 

Rowley said. 

The agreement with Volkswagen enabling 

the use of the German company’s 

mechanical framework for electric cars 

– known by its German acronym MEB, 

or modular electric toolkit – lets Ford 

take advantage of Volkswagen’s massive 

investment in electric cars as the industry 

shifts toward zero-local emissions vehicles. 

The Volkswagen framework uses standard 

mechanical underpinnings such as the 

battery, wheels and axles that can be 

adjusted to manufacture different vehicle 

models. 

Carmakers in Europe must sell more 

electrics to meet new, lower limits on 

emissions of carbon dioxide, the main 

greenhouse gas blamed for global warming. 

If manufacturers don’t hold fleet average 

emissions below the limit, they face heavy 

fines. Rowley said Ford was in a position to 

avoid the fines going forward. 

Ford lost $1.28 billion last year as it dealt 

with a huge restructuring, a costly recall 

and a decline in the value of its pension 

fund. Meanwhile, the company said 

commercial vehicles are the key to growth 

and profitability in Europe, with new 

products and services through its alliance 

with Volkswagen and Ford’s Otosan joint 

venture in Turkey. 

The joint venture recently announced a 

new-generation commercial vehicle and 

battery assembly factory investment in 

Turkey’s industrial Kocaeli province. 

To be made through a fixed investment 

worth around TL 20.5 billion ($2.92), the 

investment will span six years. 

Once completed, Ford is expected 

to produce 210,000 new-generation 

commercial vehicles and 130,000 batteries 

per year. The Kocaeli facility, located in the 

Gölcük district, is the largest commercial 

vehicle production hub for Ford in Europe. 

Previously, the firm produced Turkey’s 

first plug-in hybrid commercial vehicle 

– Transit Custom Plug-In Hybrid – and 

was recently assigned responsibility 

to manufacture E-Transit, Ford’s first 

all-electric commercial van. The latest 

investment, to be made through 2025, is 

among the most significant Ford has made 

in more than a generation and “underlines 

our commitment to Europe and a modern 

future,” Rowley said in the statement. 

Ford said the investment in the Cologne 

plant, which employs just over 4,000 

workers, comes after its European 

operations returned to a profit in the 

fourth quarter of 2020. 

The investment is part of Ford’s goal of 

spending at least $22 billion on electric 

vehicles from 2016-2025. 


EU new car sales 

down 24% to 

record-low in 

January 

The January new car sales across Europe 

plunged by 24% year-on-year to a record 

low as the COVID-19 pandemic kept the 

market under pressure, an industry survey 

showed . 

In 2020, marked by strict lockdowns 

and economic upheaval, car sales in the 

27-member European Union slumped 

by some 3.0 million to under 10 million, 

according to the European Automobile 

Manufacturers’ Association (ACEA). 

“In January 2021, the EU passenger car 

market posted an accelerated decline, as 

COVID-related restrictions continued to 

weigh heavily on sales across the European 

Union,” the ACEA said in a statement. 

It said 726,491 vehicles were sold in the 

month, down from 956,447 in January 

2020. 

Spain was the worst hit, with a fall of 

51.5%, followed by Germany down 31.1% 

and Belgium 27.2%. 

France fared comparatively better, with a 

drop of 5.8% while Italy was down 14%. 

Sweden managed an increase of 22.5%. 

Outside the EU, sales in the UK plummeted 

39.5%, the worst performance since 1970, 

the ACEA noted. 

By maker, Volkswagen group sales tumbled 

26.8% in January, with Stellantis – formerly 

Fiat-Peugeot – down 26.1% as Renault lost 

21.6%. German giant Volkswagen, once 

the best global auto seller, has already 

lost its top place to Japanese Toyota with 

the effect of declining sales in 2020. The 

pandemic year, meanwhile, saw Turkey 

jumping in overall auto sales rank in 

Europe as the only country with sales in 

positive territory. Turkey saw the sales 

jumping 57.5% year-on-year to 610,109 

units in 2020, the data by the Automotive 

Manufacturers Association (OSD) showed 

earlier in January 


managed to conclude innovation process 

of LPG kits whose R&D studies lasted 3 

years and that they minimized the petrol 

consumption on cars equipped with LPG 

systems down to %2. “New generation 

ECU (Electronic Control Unit) that we’ve 

developed is manufactured to function 

in coherence with the automobile’s own 

software. The software on our kit runs 

like automobile’s authentic software, not 

like an outside interference. Additionally, 

128 different electronic control systems 

monitor the overall operation. As for the 

petrol consumption, it’s down to max 

%2 which is ideal and probably a record 

low consumption. Master Direct also 

operates efficiently on automobiles that 

are powered with tuning systems. I’d like 

to acknowledge Cangas R&D team for their 

outstanding endeavors and our managerial 

team for their vision and endless 

contribution. I sincerely wish it brings good 

luck and contributes to whoever is involved 

in our sector.” 

Okan NIGDELI 

Cangas R&D Tech. Manager 

Striking accomplishment by 

Turkish engineers 

Cangas, an engine tech company has minimized petrol consumption on 

TSI, FSI, TCE, GSI engine cars -equipped with LPG conversion - around 

%2. Delivered to be on the dealers inventory with the registered label, 

‘Master Direct’, the kit offers pioneering production and software 

specifications. 

Drawbacks are History! 

Developed as a result of a two-year R&D 

effort, Cangas Master Direct Kit shines 

with unequalled software. The LPG ECU is 

checking 128 functions and operates with 

the automobile’s own system as one. 

This very system is not all about software 

adaptation; it offers various other 

remarkable advantages which contribute so 

much to users’ budget. 

The data collected out of performance tests 

displays that average petrol consumption 

of cars, equipped with Master Direct 

does not exceed %2, which we believe is 

legendary among other LPG kits selling at 

the market! 

The performance results are amazing. 

It operates quite satisfactorily up to an 

Headquartered in İzmir and specialized 

to manufacture sequential LPG systems 

and spare parts, Cangas LPG Technologies 

jump-started 2021 with their new, cuttingedge 

tech product, ‘Master Direct’. 

Excitingly welcomed by the relevant sector, 

Master Direct, applicable to TSI, FSI, TCE, 

GSI engined cars, manufactured in 2015 

and later is successfully continuing. There’s 

a growing demand to the kit both from 

domestic and international markets as it 

lowers the petrol consumption around 

%2. Info rming us of the new product, 

registered as ‘Master Direct’, Okan 

Niğdeli, the R&D manager at Cangas 

Technologies said they successfully 


average of 6500 rpm without cutting off gas 

usage. One doesn’t have to worry about 

challenging roads where one needs power 

and performance. 

Master Direct, whose parts have gone 

through countless numbers of tests clearly 

eliminates problems like engine knocking 

or flood. It stands out by a landslide with its 

perfect functioning in combustion chamber. 

Master Direct Kit will be supplied to the 

Dealers Before the Year is Out! 

More than 100.000 km test drives with 

over 30 automobiles prove that Master 

Direct is ready to do its role at the market 

as the flagship of Cangas. 

The mass-production of Master Direct, 

appraised highly according to the tests, will 

be on the shelves at the Cangas dealers 

before the year is out. 

This is not the first high-caliber 

success of Cangas! 

Cangas has already realized 

yet another pioneering 

accomplishment in the world. 

They’ve developed an electronic 

smart kit that enables both single 

injection cars and those with 

carburetor to operate with top 

performance possible .It means 

its a unique system that converts 

carburator cars to sequential 

System. 

Accomplishment as such by Turkish 

engineers is a clear indication that there 

will be way more innovative contributions 

to the sector in the days to come. 

Informing us of their recently launched 

products, registered as ‘MIC 24’ and MIC 

28, Okan Niğdeli, the R&D manager at 

Cangas Technologies said they had worked 

roughly about 3 years on 4 4 cylinder 

engine applications with MIC 24 and on 6-8 

cc ones with MIC 28. “Last year, we applied 

preliminary installations to test the new 

products, which ended up in %98 success. 

That we obtained such a good result 

excited and made us proud so much. Upon 

heavy demand from customers through 

our 250 dealers and installation teams 

nationwide, we escalated the production 

which is %100 domestic for the year 2020. 

We are proud and happy to have launched 

such kits developed by our own R&D team, 

for which we see there is a great demand 

from the relevant market. Apparently, 

we reap the fruits of our constant R&D 

investments.” 

Specifications of MIC 24 

MIC 24 kit of Cangas features pioneering 

specs. It contains its own electronic control 

units (ECU). Being the achivement of Turkish 

engineers, the innovation is now a hope for 

single injection automobiles, mechanical 

injection automobiles and those with 

carburetor. 

The kit features following advantageous 

specifications: It maintains the emission 

level regardless of how much the air filter 

gets contaminated. It eliminates repulsion 

on mechanical and mono point injection 

cars. It complies with gasolina standards in 

terms of engine performance with the ability 

to get stabilized at high revs. Additionally, 

compared to mixer systems, it provides more 

than %10 less gas consumption. Injection 

of LPG into the engine is supplied by engine 

compression itself. Excessive accumulation 

of LPG, in the meantime, is prevented, 

thanks to the technical specs of MIC 24. 

Road analyses, engine performances, gas 

savings and satisfaction surveys carried 

out through test drives with over 2000 

automobiles powered by MIC 24 sequential 

LPG system proved the realization of 40% 

to 45% less gas consumption compared to 

petrol consumption. 

25 

March 2021

Exports at 

$169.5B for 

pandemic-hit 

2020 

In 2020, when the COVID-19 outbreak 

ravaged world economies and battered 

supply chains, particularly in Turkey’s main 

export destination, Europe, the country’s 

foreign sales slipped around 6.3% on an 

annual basis to $169.48 billion (TL 1.24 

trillion), according to official data released. 

Turkey’s imports last year rose 4.3% to 

$219.4 billion, bringing the foreign trade 

deficit to $49.9 billion, an increase of 

69.1%, the country’s statistical authority, 

the Turkish Statistical Institute (TurkStat) 

said. 

The export-import coverage ratio was 

77.2% in 2020, down from 86% the 

previous year. Among sectors, the 

manufacturing sector was the best 

performer with a share of 94.3% in overall 

exports in 2020. 

Meanwhile, the ratio of intermediate goods 

in the year was 74.3%. 

In 2020, Germany was Turkey’s main 

partner in foreign trade, with $15.97 billion 

in exports and $21.7 billion in imports. 

Country-to-country trade balances showed 

that Turkey had its largest deficit with 

China – nearly $20.15 billion. Turkey’s 

exports to European Union countries last 

year were $69.96 billion, down 8.8%, while 

imports were $73.27 billion, up 7.9%. 

The share of high-tech products was 3.4% 

of the country’s manufacturing exports for 

the year, down from 3.5% on a yearly basis. 

Foreign trade statistics are calculated using 

two different methods: the special and the 

general trade systems. 

The general trade system is a wider 

concept, including customs warehouses, all 

types of free zones, free circulation areas 

and premises for inward processing. 

According to the special trade system, 

exports were $160.5 billion in the year and 

imports $209.4 billion. 

Meanwhile, Turkey’s exports hit an all-time 

monthly high of $17.84 billion in December. 

The foreign sales of the country in the 

month in question saw a 16% rise, while 

imports were up 11.6% at $22.38 billion. 

The deficit last month was $4.53 billion, 

with a 3% yearly increase. 

The headline figure, despite the severe 

economic contraction and shrinking in 

foreign demand in the country’s main 

export markets, especially the EU, is the 

exporters’ success, Trade Minister Ruhsar 

Pekcan said at the time, congratulating 

exporters for bearing a hard year. 

Before the pandemic hit, Turkish exports 

enjoyed their best January ever with a 13% 

increase earlier last year, maintaining the 

upward trend posted in 2019. Exports were 

up 6.1% on an annual basis to $14.8 billion 

in January 2020, according to the Turkish 

Exporters Assembly’s (TIM) statements. 


Turkey’s 

January auto 

sales up 60% 

Passenger and light commercial vehicle 

sales in Turkey continued to increase 

in the first month of the new year, just 

they did last year, despite the pandemic. 

Accordingly, the sales surged 60.3% 

annually in January, data released by an 

industry group said. 

A total of 43,728 vehicles were sold 

across Turkey last month, the Automotive 

Distributors’ Association (ODD) said in a 

statement. Passenger cars accounted for 

80% or 35,358 of the sales, rising 60.6% 

during the same period. 

As many as 8,370 light commercial vehicles 

were sold this January, up 59.2% from the 

same month last year. 

The statement also reported that the 

automotive market last month rose 35.8% 

compared with the average 10-year 

January sales. 

Last year, when the coronavirus pandemic 

brought unprecedented obstacles to the 

sector, from restrictions to the supply gluts, 

the Turkish auto industry managed to end 

the year on a positive note in contrast to 

many European countries. 

Sales of passenger cars and light 

commercial vehicles jumped 61.3% 

year-on-year in 2020 to 772,788 vehicles, 

according to the ODD data published 

earlier in January. 

The industry worldwide was ravaged by 

the outbreak, with sales plummeting 

after governments worldwide imposed 

lockdowns to stem the spread of the 

virus, while the struggle for the European 

countries continued throughout the year. In 

Europe, sales were declining every month 

except in September. 

Turkey ranked sixth in Europe in auto sales, 

up from the ninth rank in 2019, according 

to the figures which were published before 

the European December sales data. 

According to the latest data by the 

European Automobile Manufacturers 

Association (ACEA), which included the 

December data, European car sales 

plunged by nearly a quarter last year. New 

car registrations sank by 23.7%, or 3 million 

vehicles, to 9.9 million units. 

All major markets recorded double-digit 

declines, down 32.3% in Spain, 28% in Italy 

and 25% in France. Germany suffered a 

more contained 19% drop. 

December sales were just 3.3% lower than 

the previous year, but performance varied 

drastically between markets. Italy and 

Spain both had double-digit dips. Germany 

gained 10% while Spain was flat. 

Special consumption tax up 

Turkey has raised the special consumption 

tax (ÖTV) level on electric motor vehicles 

only from between 3%-15% to 10%- 

60%, according to a presidential decision 

published in the country’s Official Gazette. 

It said that for vehicles with an engine 

power of up to 85 kilowatts (kW), the tax 

will be raised to 10% from 3%, for vehicles 

with a power of between 85-120 kW to 

25% from 7% and for vehicles with a power 

of over 120 kW to 60% from 15%. 


Volkswagen, Microsoft cement 

partnership on autonomous 

vehicles 

Cementing a 2018 partnership, German 

auto giant Volkswagen and U.S. tech major 

Microsoft said they were joining forces 

to develop autonomous vehicle driving 

systems. 

Volkswagen said it aims to speed up the 

development of such connected systems, 

which are increasingly becoming the norm 

in the auto industry as it transitions to 

electric vehicles. “This is the next step 

in our strategic partnership,” Microsoft 

director Scott Guthrie said. 

The companies gave no information about 

the financial or contractual details of the 

accord. Volkswagen and Microsoft have 

cooperated since 2018 on creating a Cloud 

platform for connected vehicles. 

The first trials of the planned system are 

due later this year, with rollout envisaged 

in 2022, a statement said. 

Volkswagen plans to invest some 27 billion 

euros ($32 billion) in this field by 2025. 

Volkswagen’s “Car.Software” unit set up 

last year will have some 11,000 people 

working on its “VW.OS” operating system 

which will connect cars over the Cloud. 

Other tech companies like Apple have 

already announced plans for autonomous 

vehicles, while the company is said to be 

testing its vehicles now. 

The German group, like its peers, is finding 

that the shift into electric cars is as much 

if not more of a computing challenge 

than one of manufacturing, leading to an 

increasing number of such tie-ups. 

General Motors has just signed a similar 

deal with Microsoft to speed up its 

introduction of autonomous vehicles while 

France’s Renault established a partnership 

with Google last year. 


Turkey’s exports 

hit all-time 

monthly high 

for 3rd straight 

month 

Turkish exports have hit an all-time 

monthly high for the third consecutive 

month in February, the country’s trade 

minister announced. 

Sales surged 9.6% year-on-year to over 

$16 billion (TL 117.23 billion) in the month, 

Ruhsar Pekcan told a meeting in the capital 

Ankara. 

Turkey made a flying start to 2021 thanks 

to its strong performance for the second 

month in a row, Pekcan said. 

Imports rose 9.8% to $19.4 billion, bringing 

the trade deficit to $3.4 billion, the data 

showed.The export-to-import coverage 

ratio was 82.7% this February, the minister 

noted. 

“In the first two months of this year the 

ratio rose to 82.9% from 79.5 a year ago,” 

she added. The data follows the highest 

monthly figures in January and December 

as sales surpassed $15 billion and $17.84 

billion, respectively. 

Also addressing the meeting, Turkish 

Exporters’ Assembly (TIM) Chairperson 

Ismail Gülle said now that the country has 

renewed records in the first two months 

of the year, they believe a year-end target 

of $184 billion could be achieved and even 

exceeded. 

Pekcan recalled that Turkey joined China to 

become the only two Group of 20 countries 

that managed to expand last year despite 

the coronavirus pandemic. 

The economy grew a less-than-expected 

but still strong 5.9% in the fourth quarter 

and 1.8% in 2020 as a whole, the official 

data showed. 

The outbreak led to a 6.26% drop in 2020 

exports as Turkey closed the year with 

$169.5 billion in foreign sales, exceeding 

the target of $165.9 billion in the mediumterm 

program. 

Imports were up 4.3% to reach $219.4 

billion. The trade deficit widened by 

69.12% to $49.9 billion last year. 

Rising sales to EU 

The exports rebounded rapidly in the third 

and fourth quarters last year, Pekcan said, 

recalling that sales increased by 6.7% in the 

October-December period to $51.3 billion, 

exceeding the $50 billion threshold for the 

first time. 

The country took a 3.7% share in the 


European Union’s total imports in 2020, 

according to EU statistical body Eurostat. 

This, Pekcan said, enabled Turkey to 

outperform Norway, South Korea and 

Japan to rank sixth in the bloc’s overall 

imports. 

“Since 2015, Turkey has been the only 

country to increase its share in EU imports 

for five consecutive years,” the minister 

said. 

The government is closely monitoring all 

factors, including excessive increases in raw 

material prices caused by the pandemic, 

difficulties and imbalances observed in 

logistics and volatility in international 

financial markets, Pekcan said, stressing 

that steps would be taken in favor of 

producers and exporters within this 

framework. 

She said the steps to be soon taken within 

the scope of the government’s reform 

process would help strengthen investments 

and production, also boosting exports. 

“In the coming periods, we will work 

together with all our exporters to increase 

and deepen our share in all our target 

markets, especially the EU, with more 

domestic production and more valueadded 

exports,” Pekcan noted. 

TIM’s Gülle said they conduced 55 virtual 

trade delegations and 10 virtual fairs in 50 

countries since May last year, looking to 

continue with face-to-face delegations as of 

the summer months. 

Works on logistics centers near completion 

Works on the logistics centers to be 

established abroad to facilitate exporters’ 

access to other markets is approaching 

completion, he noted. 

“We plan to establish these logistics 

centers in three cities in the United States 

and Africa’s Ghana. Bureaucratically, we 

have brought the documents to the final 

stage,” Gülle informed. 

“I believe that these logistics centers will 

double our exports to the regions where 

they are established and will support our 

exporters in distant markets.” 

Some 1,538 firms have made their first 

exports ever in February, Gülle said, 

carrying out around $70.48 million worth 

of sales. A total of 40,616 companies made 

exports in the month. 

Below are details of data on February 

exports: 

•Germany was Turkey’s top market in 

February as it received nearly $1.5 billion 

worth of goods 

•The U.K. and U.S. followed with $968 

million and $917 million, respectively 

•22 sectors increased their exports 

compared to a year earlier 

•The automotive industry again ranked first 

with around $2.54 billion worth of exports 

•Chemicals and ready-to-wear sectors 

followed with $1.68 billion and $1.52 

billion, respectively 

•The mining sector saw the highest 

increase in sales with 47% to $415 million 

•The defense and aviation sector followed 

with a 34% increase to $233.2 million 

•Sales to the U.S. were up $177 million in 

the month, said Gülle. Other noteworthy 

rises occurred in exports to the United Arab 

Emirates (UAE) and Germany with $175 

million and $159 million. 

Exports to the EU, the country’s largest 

market, surged by 11.8%, reaching a 

volume of $6.87 billion and holding a 

42.9% share, he noted. 

Among others, some $2.75 billion worth 

of exports were made to Middle East 

countries, while the African continent 

received $1.57 billion worth of Turkish 

goods. Around $1.3 billion worth of sales 

were made to Far East countries, while 

exports to North America amounted to 

$989 million, Gülle added. 

37 

March 2021

Turkey sold 

buses to 99 

countries in 

2020 

Buses, minibuses and midibuses produced 

in Turkey were sold to 99 different 

countries across the world in 2020. The 

exports of the vehicles have generated 

over $1.5 billion (TL 11.12 billion). 

In 2020, the highest amount of exports 

was made to European countries in the 

bus, minibus and midibus group. France 

was the biggest market for Turkish-made 

buses with a nearly 18% share, worth over 

$286.7 million. 

Germany, which ranked second, imported 

over $264.7 million worth of vehicles, 

while Italy ranked third with $131.9 

million. The shares of the two countries 

were over 17% and 8%, respectively. 

Exports of $683.4 million to these three 

countries accounted for almost 44.91% of 

Turkey’s total bus, minibus and midibus 

sales last year. Morocco, meanwhile, was 

also among the countries that increased 

its imports of such vehicles from Turkey 

in 2020. Exports to the country, which 

ranked fourth, jumped by 66% year-onyear, 

from $45.3 million in 2019 to $75.2 

million. Georgia ranked fifth with an 

increase of 96%, hitting $51.9 million. 

Sweden, Saudi Arabia and Egypt also saw 

a noteworthy increase in bus, minibus and 

midibus imports from Turkey. 

Exports to Sweden also increased by 

292% compared to 2019, from $13 million 

to $37.9 million, while exports to Saudi 

Arabia also increased by 348% from $6.4 

million to $22.3 million. 

Sales to Egypt, in the meantime, hit $13.6 

million in 2020, a significant jump from 

2019’s $164,000. 

The Turkish automotive sector also sold 

such vehicles to Libya, Rwanda, Uruguay, 

Madagascar, Congo, Malaysia and Guinea 

for the first time in 2020. 


Car sales in 

pandemichit 

2020 help 

Turkey rank 6th 

in Europe 

The pandemic year of 2020 saw Turkey 

jumping in overall auto sales rank in Europe 

as the only country with sales in positive 

territory. 

Measures to restrict the coronavirus 

pandemic hit sales in most of the 

continent’s largest markets, bringing the 

biggest yearly drop in car demand since 

records began. 

Car sales in the European Union, Britain 

and the countries of the European Free 

Trade Association (EFTA) fell 24.35% yearon-year 

to 11.96 million in 2020, according 

to data from the market evaluation 

report by the Automobile Manufacturers’ 

Association (ACEA). 

Some 15.8 million vehicles were sold over 

the course of 2019, according to the data. 

In contrast, Turkey saw the sales jumping 

57.5% year-on-year to 610,109 units, the 

data by the Automotive Manufacturers 

Association (OSD) showed. 

The figure also helped the country jump 

to rank sixth in Europe, up from its rank as 

ninth in 2019. 

Croatia posted the highest yearly drop with 

42.8%, followed by Bulgaria and Portugal 

with 36.8% and 35%, respectively. 

Spain posted the biggest drops among 

Europe’s largest markets with sales falling 

32.3%, while Germany reported a narrower 

fall of 19.1%. 

Sales in Europe’s other major markets such 

as France and the U.K. were down 25.5% 

and 29.7%, respectively. 

Italy fell by 27.9% year-on-year, while sales 

in the Netherlands and Belgium dropped by 

19.5% and 21.5%. Czech dropped by 18.8% 

and Poland was down by 22.9%. 

On a monthly basis, European sales in 

December declined for the third month in 

a row. 

New car registrations dropped by 3.7% 

year-on-year in the month to 1.215 million 

vehicles, the ACEA data showed. The same 

figure was 1.261 million in 2019. 

Sales in Europe’s five largest markets 

posted different results. Registrations in 

the United Kingdom, France and Italy fell 

by 10.9%, 11.8% and 14.9%, respectively, 

while Germany recorded a rise of 9.9% and 

sales in Spain remained unchanged yearon-year. 

Croatia again posted the highest drop with 

49.5%, followed by Slovenia and Bulgaria 

with 47.6% and 40.3%, respectively. 

Ireland saw a skyrocketing rise of 168.3% 

year-on-year in the month. Sales in Norway 

and Denmark were also up by 82.8% and 

46.8%, respectively. 


Turkish economy is expected to grow 6% in 2021 

Turkey’s economy is expected to grow 

by about 6% in 2021, according to the 

International Monetary Fund-IMF. The 

6% gross domestic product (GDP) growth 

projection in the preliminary findings of the 

IMF’s annual review of Turkey’s economy 

compared with a previous 2021 growth 

projection of 5% for the country issued 

as part of the IMF’s last World Economic 

Outlook. 

The spread of COVID-19 vaccines will 

power a stronger global economic recovery 

in 2021, it forecast. After sinking 3.5% in 

2020, the worst year since World War II, 

the global economy will grow 5.5% this 

year, the 190-country lending organization 

predicted. The new figure for 2021 is an 

upgrade from the 5.2% expansion the IMF 

forecast in October and would mark the 

fastest year of global growth since the 2010 

snapback from the financial crisis. 

The vaccines should contain the spread 

of the virus and allow governments 

around the world to ease lockdowns and 

encourage a return to normal economic 

activity. 

But the IMF also says economies worldwide 

will need support from their governments 

to offset the damage from the pandemic 

and warns that coronavirus mutations 

could cloud the outlook for global health 

and economic growth. 

The positive forecast supported the Turkish 

lira, which fared better than most of its 

peers in Europe, the Middle East and Africa 

(EMEA), trading 0.2% higher to the dollar. 

Turkey’s GDP soared to a more-thanexpected 

6.7% growth rate in the third 

quarter after contracting by 9.9% in the 

previous three months when lockdowns 

were imposed to curb the initial COVID-19 

wave. 

According to the new economic program, 

announced last September, Ankara projects 

2020 growth to come in at 0.3%. It expects 

a rebound of 5.8% in 2021. 

The IMF said the more optimistic forecast 

is due to the rollout of a vaccine, recovery 

of trading partner growth and carryover of 

positive momentum at the end of 2020. 

Turkey received 6.5 million further doses of 

the COVID-19 vaccine developed by China’s 

Sinovac Biotech, allowing a nationwide 

rollout to continue. 

The new shipment added to an initial 

consignment of 3 million doses, which 

Turkey received nearly a month ago. It has 

so far vaccinated more than 1.3 million 

people, mostly health workers and elderly 

people, according to Health Ministry data. 

The latest shipment is part of a second 

consignment, which will total 10 million 

doses. 

About 600,000 people were vaccinated 

in just two days when the vaccine rollout 

began in mid-January, but the pace slowed 

as it moved beyond health care workers. 

Measures to combat the spread of the 

coronavirus in spring last year led to a 


sharp slowdown in Turkey’s economy in 

the second quarter, and the government 

has taken a series of measures to ease the 

burden and revive activity. 

Rising COVID-19 cases throughout the 

country prompted the government to 

reimpose measures as of November as 

it adopted lockdowns for weekends and 

nighttime curfews on weekdays. 

As part of the relief package announced in 

spring last year, the government provided 

financial support to cushion the economic 

fallout from the outbreak. It had slashed 

taxes for hard-hit sectors and unlocked 

funding for workers. 

President Recep Tayyip Erdoğan announced 

the grant and rental support for businesses 

and promised to continue discounts for 

value-added taxes. 

Although the outbreak caused a decline in 

economic activity and employment in the 

second quarter of 2020, the IMF said the 

initial policy response to the pandemic led to 

a sharp rebound in the GDP. 

“The early stimulus relied primarily on 

rapid monetary and credit expansion, 

including policy rate cuts, cheap and rapid 

lending growth by state-owned banks, and 

administrative and regulatory measures 

designed to boost credit,” the statement 

said. Turkey implemented direct fiscal 

measures of around 2.5% of GDP in 2020, 

mainly in the form of tax deferrals and 

employment support, but more “targeted 

and temporary” fiscal support was needed, 

the IMF said. The IMF emphasized that these 

measures helped the economic activity 

rebound strongly in the third quarter to 

above pre-pandemic levels in Turkey, which 

is among the few countries estimated to 

have posted positive overall growth in 2020. 

“Turkey has some fiscal space to expand 

support in 2021, possibly in the order of 

1% of GDP. Additional social transfers to 

vulnerable households and informal workers 

would help support those most affected by 

the pandemic,” it noted. 

“Despite some fiscal space, direct fiscal 

measures amounted to just 2.5% of GDP, 

mainly in the form of tax deferrals, but also 

including employment support,” it added. 

“Employment is expected to continue to 

recover slowly as the pandemic subsides,” 

the IMF said. 

The country’s unemployment rate stood 

at 12.7% in October, according to official 

data. The IMF staff projected that Turkey’s 

inflation would fall modestly by the end of 

2021 but would remain well above target. 

The annual inflation increased to 14.6% in 

November, according to the official data. 

Month-on-month, consumer prices rose 

1.25% in the month. The higher-thanexpected 

rise in consumer prices has kept 

the pressure on the central bank to maintain 

a tight monetary policy. The Central Bank 

of the Republic of Turkey (CBRT) has hiked 

interest rates to 17% from 10.25% since 

November and promised even tighter 

policy if needed as he vowed to decisively 

battle inflation. On the other hand, Turkey’s 

current account deficit is expected to fall to 

3.5% of GDP, in large part, reflecting lower 

gold imports and a modest recovery of 

tourism, according to the IMF. 

45 March 2021

Turkey’s 

economy 

outperforms 

peers, grows by 

1.8% in 2020 

Turkey’s economy grew a less-thanexpected 

but still robust 5.9% in the fourth 

quarter of 2020 and 1.8% in the year as a 

whole, data showed, emerging as one of 

only a few globally to skirt a contraction 

amid the coronavirus pandemic. 

Propelled by a burst of credit in mid-2020, 

the fourth-quarter gross domestic product 

(GDP) grew 1.7% from the previous 

quarter on a seasonally and calendaradjusted 

basis, the Turkish Statistical 

Institute (TurkStat) said. 

A surge in GDP growth in the second 

half of the year that surpassed Turkey’s 

potential rate was driven by a near 

doubling of lending by state banks to face 

down the initial virus wave. 

The Turkish lira firmed to 7.3175 against 

the U.S. dollar after the GDP data and was 

1.5% stronger than close. 

Commenting on the data, Treasury and 

Finance Minister Lütfi Elvan pointed out 

that Turkey was one of the few countries 

to end 2020 with positive growth. 

The country outperformed all emerging 

market (EM) and G-20 peers except China, 

which grew 6.5% in the last quarter and 

2.3% in the whole of 2020. 

World economies mostly contracted 

and tumbled into recessions last year, 

with emerging and developing nations 

shrinking by some 2.4%, according to the 

International Monetary Fund (IMF). 

Only Turkey, China and Egypt were among 

those seen growing, the IMF said. 

In a Reuters poll, GDP was forecast to have 

expanded 7.1% year-on-year in the fourth 

quarter, despite new curfews and curbs 

on the service sector to address a second 

COVID-19 wave, and 2.3% for the whole 

year. 

The median of 20 forecasts in a Bloomberg 

survey was for a 6.9% expansion. 

A panel of 21 economists polled by 

Anadolu Agency (AA) had projected a 2.2% 

growth. Last year, the government had 

forecast GDP growth of 0.3%. 

Economists’ forecast for the last quarter 

was 7% on average, ranging from 5% to 

8.3%. 

Below are highlights of the GDP report 

released by TurkStat: 

•Financial sector activity drove growth 

in 2020, surging 21.4%, the TurkStat data 

showed. The agricultural sector rose 4.8% 

while the industry sector was up 2%. 


•Among the two hit hardest by the 

outbreak, service sectors dropped by 4.3% 

and the construction industry was down 

3.5%. 

•The expansion was also driven by a rise 

in household consumption, estimated 

to account for about two-thirds of the 

economy, which jumped 8% year-on-year. 

•Gross fixed capital formation, a measure 

of investment by businesses, was up an 

annual 10.3%. Government spending 

increased 6.6%, its largest annual gain since 

the first quarter of 2019. 

•Turkey’s GDP in current prices dropped to 

some $717.1 billion last year, down from 

$760.8 billion, the data showed. 

•The GDP per capita fell to $8,599 last year 

from $9,127 in 2019. It was $10,597 in 

2017. 

•The economy registered a growth of 6.3% 

in the third quarter of last year after a 

contraction of 10.3% in the second quarter 

as the coronavirus’s impact started to be 

felt in earnest. The GDP had expanded 

4.5% in the first quarter. An infographic 

showing Turkey’s quarterly GDP growth. 

(By Ayla Coşkun / Daily Sabah) 

Faced with a second COVID-19 wave, the 

government imposed new measures at 

the end of last year but sought to free up 

supply and production chains. 

Ankara is considering lifting some of the 

latest virus restrictions as of this month. 

President Recep Tayyip Erdoğan was due 

to announce gradual normalization steps 

following the Cabinet meeting in the capital 

Ankara. 

Analysts say the economy should expand 

by roughly 5% this year despite the tight 

monetary policy.The Central Bank of the 

Republic of Turkey (CBRT), which has 

repeatedly said it would target inflation 

more strongly under new Governor Naci 

Ağbal, has raised its policy rate by 675 

basis points to 17% since November to 

cool inflation. Credit has dropped off 

dramatically ever since. The benchmark 

rate was held steady in January and 

February meetings. Inflation is expected to 

have risen to more than 15% last month, 

polls showed as fruit and vegetable prices 

continue to exert upward pressure. It 

edged higher to stand at 14.97% in January. 

Ensuring price stability is Turkey’s main 

priority in 2021, Minister Elvan said. 

“Our policies fighting inflation will pave 

the way for more qualified and sustainable 

investment, production and growth,” he 

stated. 

The central bank expects inflation to come 

down to 9.4% by the end of 2021. However, 

it said changes of weightings in the 

inflation basket will have an upside impact 

on annual inflation until mid-2021. 

The central bank said the changes were 

projected to increase inflation by 0.5 points 

by April, then die out toward the end of the 

year. 

A separate data showed that Turkish 

factory activity grew at a slower pace in 

February as new orders contracted slightly, 

although manufacturers continued to 

expand production and add staff. 

The Purchasing Managers’ Index (PMI) for 

the manufacturing sector fell to 51.7 in 

February from 54.4 a month earlier, data 

from the Istanbul Chamber of Industry 

(ISO) and IHS Markit showed, staying above 

the 50 mark that separates expansion from 

contraction. 

Signs of improvements in demand led 

manufacturers to expand production 

despite a slowdown in new business and 

issues with the supply of raw materials. 

Higher output and planned new production 

lines led firms to take on more staff, the 

panel said, extending the current sequence 

of job creation to nine months. 

Input costs and output prices continued 

to rise but at a slower pace mainly due 

to higher raw material costs, with a 

strengthening of the lira helping lead to 

softer inflationary pressures. 

“Although there were signs of softening 

new order inflows in February, the overall 

Turkey PMI remained in positive territory 

as firms shrugged off a pause in new order 

growth and continued to raise production 

and employment,” said Andrew Harker, 

economics director at IHS Markit. 

“There was also good news on the inflation 

front. Although supply issues are causing 

higher raw material prices globally, an 

appreciation of the Turkish lira has helped 

to mitigate these pressures,” Harker 

concluded. 

March 2021 

48

Turkish exporters 

break a new record, 

automotive exports 

lead the way 

Turkish Exporters Assembly (TİM), which 

is the only umbrella organization of 100 

thousand exporters with 61 Exporters’ 

Association and 27 sectors, announced the 

temporary foreign trade data for February 

with the participation of Trade Minister 

Ruhsar Pekcan and members of the TİM 

Women’s Council, at a meeting in Ankara. 

According to the General Trading System 

(GTS), exports in February reached 16 

billion 12 million dollars, an increase of 

9.6 percent compared to the same month 

of the previous year, making the highest 

February export in history. 

Evaluating February export figures, TİM 

Chairman İsmail Gülle said, “After January, 

which we closed with a record in exports, 

the export family also showed a very 

successful performance in February. We 

have closed the last three months in a 

succession with a record. In February, 

our exports amounted to 16 billion 12 

million dollars, up 9.6 percent from the 

same month last year. In January and 

February 2020, we made a good start and 

set successive records. Likewise, we are 

proud of the record renewal in the first two 

months of 2021. Hopefully, we will reach 

200 billion dollars, which is much higher 

than our export target of 184 billion dollars 

for 2021. Our exporters continue to work, 

produce, export without slowing down. 

We believe that the maximum benefit 

of our country from the change in global 

supply chains will be possible by frequently 

meeting our exporters with buyers from all 

over the world.” 

Gülle said that 1,538 companies exported 

for the first time in February and that 

these companies, which had just started to 

export, exported 70 million 480 thousand 

dollars last month, and 40,616 companies 

in total exported in February. 

Emphasizing that 22 sectors increased 

their exports in February compared to the 

same month last year, Gülle said, “While 

our automotive sector, which exports 2 

billion 536 million dollars, maintains its 

leadership; Our Chemicals sector, which 

reached 1 billion 679 million dollars, was 

second and our ready-to-wear sector, 

which reached 1 billion 517 million dollars, 

was third. The sectors that achieved 

the strongest increase performance of 

February were Mining, which reached 

415.6 million dollars with an increase of 

47 percent, Defense and Aerospace, which 

reached 233.2 million dollars with an 

increase of 34 percent. The Ornamental 

Plants sector reached 16.3 million dollars 

with an increase of 25 percent. If we look 

at the dramatic increases in our sectors in 

February; Our steel industry increased its 

exports to Brazil by 2 thousand 333 percent 

and its exports to the United Kingdom 

by 510 percent. Our Electrical-Electronic 

sector increased its exports to Uzbekistan 

by 470 percent in February. Our Chemicals 

exports increased by 418 percent to 

Nigeria.” 

Stating that since May last year, they have 

been held 55 virtual trade delegations and 

10 virtual fairs in 50 countries, Gülle said, 

“Hopefully, we plan to continue our physical 

delegations in the summer months. With 

these delegations, we are building the 

future of our exports. With its successful 

export performance, our country has 

started to be exemplary all over the world. 

We will continue to work with a stronger 

belief and determination every day, with 

the awareness of how important export is 

for our economy, without compromising. 

Our passion for export will never end.” 

Noting that another important issue for 

export is market access, Gülle said, “To 

facilitate the access of our exporters 

to markets all over the world, we have 

reached the final stage in our efforts to 

establish Turkish Logistics Centers. We plan 

to establish these logistics centers in Los 

Angeles, New Orleans, and Georgia in the 

USA and Africa, Ghana. 

We have determined these positions 

in consultation with all our Exporters’ 

Associations and Secretaries-General, 

considering sectoral clusters, in such a way 

that our exporter will benefit the maximum. 

These logistics centers will fold our exports 

to the regions where they are established. 

It will support our exporter in remote 

markets.” 


Italian auto 

suppliers eager 

to resume 

production as 

Europe gradually 

reopens 

With the European car industry preparing 

to restart its engines as coronavirus 

lockdowns across the continent begin to 

ease, automotive suppliers in Italy do not 

want to be left behind. 

China-owned Volvo Cars and Germany’s 

Volkswagen Group, the market leader in 

Europe, are among the manufacturers who 

have announced plant reopenings. 

But in Italy, the initial epicenter of the 

coronavirus outbreak in Europe, the 

government has signaled that the economy 

will reopen gradually only after May 3, 

despite industry calls for an earlier restart. 

“We are ready to restart on May 4, 

but in fact it would really be necessary 

to do it earlier,” Marco Stella, head of 

the components branch of the Italian 

Association of the Automotive Industry 

(ANFIA), told. 

While the bulk of the European car industry 

is aiming to revive production in early May, 

auto parts suppliers need a head start 

to deliver their products in time for the 

assembly line, Stella said. 

Stella is also chief executive of DTS, a 

maker of exhaust and fuel systems for 

high-performance cars, and one of the 

vice presidents of CLEPA, the European 

Association of Automotive Suppliers. 

DTS is based in the heart of Italy’s so-called 

Motor Valley in the northern Emilia- 

Romagna region. Its headquarters are in 

Maranello, which is also home to Ferrari. 

The famous prancing horse marque is 

one of DTS’ top clients, alongside other 

supercar brands such as McLaren, Aston 

Martin and VW-owned Bugatti and 

Lamborghini. 

Italian daily La Repubblica reported that 

the restart of car production in Germany 

could be at risk if the supply chain from 

Italy does not resume promptly. 

But a German auto industry expert, 

professor Ferdinand Dudenhoeffer from 

the Institute for Customer Insight at the 

University of Gallen in Switzerland, said the 

claim was a bit overblown. 

He said Italy “has a limited importance for 

the supply chains in Europe,” and noted 

that carmakers usually “have at least two 

suppliers for a component.” 

“There may be a bottleneck in one instance 

or the other, which in my opinion should 

not be fundamental. So La Repubblica is 

putting it somewhat dramatically,” he told 

DPA. 

According to Stella, exports to Germany 

accounted for nearly 10% of the Italian car 

component industry’s 50 billion-euro ($54 

billion) turnover last year. 

He also mentioned a recent letter of 

support from Hildegard Mueller, president 

of the German Association of the 

Automotive Industry (VDA), addressed to 

Italy’s main business lobby Confindustria. 

“(Mueller) stressed the interdependency of 

our industries, and how much the German 

car industry needs its Italian suppliers and 

partners in value in Europe,” Stella said. 

The coronavirus pandemic has struck the 

European car industry at a time when the 

sector was already going through a difficult 

transition. 

Manufacturers have for a while been 

under pressure from ever-tighter emission 

standards and the cost of new investment 

in technologies for hybrid, electric and selfdriving 

vehicles. 

Against that backdrop, sales for new 

cars in the European Union tanked by 

more than 55% in March, a year-on-year 

record collapse blamed on pan-European 

lockdown measures. 

Stella talked of the need for a “bazooka” 

in terms of market subsidies to revive 

demand – a move also called for by the 

European Automobile Manufacturers 

Association (ACEA). 

According to Dudenhoeffer, “the 

coronavirus will weaken the European 

auto industry for a very long time,” forcing 

restructuring which “not all” of the current 

players “will survive in their current form.” 

“There will be mergers, overcapacity 

will have to be reduced and workforce 

numbers will decrease significantly,” he 

said, predicting hard times for Ford, Fiat- 

Chrysler, Peugeot-Citroen-Opel, Renault 

and Jaguar-Land Rover. 

“On the other hand, I see the German 

Volkswagen Group and BMW as being in a 

stable position. VW in particular will also 

expand its global market leadership with 

electromobility,” Dudenhoeffer said. 


Auto sales 

grow 24.2% in 

February 

Turkey’s automotive sales grew by 24.2% 

in February compared to the same month 

of last year, according to an industry group 

report released. 

Passenger cars and light commercial vehicle 

sales in Turkey totaled 58,504 last month, 

the Automotive Distributors’ Association 

(ODD) said in the report. 

With a second consecutive monthly 

growth, February’s sales were the highest 

for that month in the last 10 years. 

Sales of passenger cars accounted for 76% 

or 44,749 of the total, up 18.6% year-onyear 

in February. Meanwhile, a total of 

13,755 light commercial vehicles were sold, 

marking a 46.6% increase during the same 

period. 

Sector representatives forecast that sales 

may accelerate further with the lifting 

of weekend curfews. They also expect 

dynamism in the second-hand car market. 

ODD Chairperson Ali Bilaloğlu said trustbuilding 

statements from the Central 

Bank of the Republic of Turkey (CBRT) and 

the economic program, as well as their 

impact on the foreign exchange that lifted 

the Turkish lira’s value, had contributed 

to the increase in sales. Boosted public 

confidence in the country’s economy 

and commitment that the developments 

would be permanent, along with sales 

campaigns from several car brands, new 

model launches and the increased need 

for individual mobility, were also among 

the reasons that boosted sales, according 

to the ODD head. Murat Şahsuvaroğlu, the 

chairperson of the Authorized Automotive 

Dealers Association (OYDER), said the 

increase in sales in Turkey, at a time 

when a decline has been seen in Europe, 

demonstrates economic dynamics and 

continued interest in the sector. 

“The attractive zero-interest-rate 

campaigns from different brands were 

effective in this increase in sales. Brands 

mobilized sales by compromising profits,” 

he noted, adding that the lifting of the 

weekend travel restrictions will particularly 

boost used-car sales. Muhammed 

Ali Karakaş, the chairperson of an 

online second-hand car sales platform, 

Otomerkezi.net, said they anticipate the 

second-hand vehicle market will gain 

30-40% momentum with the approaching 

of the summer months, the easing of 

restrictions and the stabilization of prices. 

“We would like to emphasize to the 

consumer that the prices are already 

“bottom” and there are a lot of panic sales 

or affordable sales,” he added. 

He also noted that as long as there is 

surplus supply, citizens should not be afraid 

or hesitant of “not being able to find a car.” 

“Currently, there are approximately 600,000 

vehicles for sale on the second-hand market 

and 100,000 vehicles listed for urgent sale.” 


Railway exports 

to slash costs, 

help Turkish 

goods earn 

Chinese market 

The decrease in the railway export time 

from Turkey to China – an opportunitybearing 

market for Turkish products – to 

12 days will pave the way for fresh fruit 

and vegetable sales to the Asian country 

while providing a downward trend in costs, 

Turkey-China Business Development and 

Support Association Chairman Ihsan Beşer 

said. 

Beşer told that the association that was 

established on Nov. 29, 2018, aimed 

to enhance economic, commercial and 

cultural cooperation between the two 

countries. 

He said that they have been working 

on ways to develop strong ties for both 

countries’ businesspeople. 

The Turkish official noted that China’s 

Belt and Road (BIR) initiative that was 

kicked off to produce an infrastructure 

and transportation network from Asia to 

Europe and the Middle East already made 

it easier to export to China. 

Beşer emphasized that there are several 

product groups related to different sectors 

in Turkey that came to the fore with their 

export potential to China, including food, 

textile, automotive, natural resources 

products, home appliances, agriculture 

machines, phone and recording devices. 

The maritime trade route to China from 

Turkey enables 35 to 45 days for the 

transportation of the goods which is now 

12 days with the export trains. 

The first train carrying goods from Turkey 

to China set off from Istanbul on Dec. 4, 

covering a distance of 8,693 kilometers 

across Turkey, Georgia, Azerbaijan, the 

Caspian Sea and Kazakhstan to reach the 

Chinese city of Xi’an, and completed its 

historic trip on Dec. 19. 

Meanwhile, on Jan. 29, Turkey also sent 

off two export trains, one headed to 

Russia and the other to China, using the 

Baku-Tbilisi-Kars (BTK) railway from the 

capital Ankara. The train to Russia was 

the first block train to use the route while 

the second one, which is carrying boron 

containers, was the third China-bound 

freight train. 


Turkey launches 

far reaching 

measures 

against 

pandemic 

Ayear into the coronavirus pandemic, 

Turkey has deployed plenty of ammunition 

in its arsenal to fight and cushion the 

fallout for its economy and citizens. 

From tax cuts, postponements and debt 

restructuring to cash aid and wage support 

systems, the government unveiled multiple 

measures for tradespeople, workers and 

citizens to mitigate the impact of the 

outbreak. 

Turkey registered its first COVID-19 case 

on March 11, 2020, the same day that the 

World Health Organization (WHO) declared 

the coronavirus a pandemic. 

It did so only after weeks of resisting the 

term and maintaining that the highly 

infectious virus could still be stopped. 

A year after, Turkey is in a “controlled 

normalization process,” with some 

restrictions eased but some strict measures 

are still in effect. It is also moving ahead 

with its vaccination campaign that began in 

mid-January. 

The pandemic forced many countries 

around the world, including Turkey, to 

enact measures to reduce mass mobility to 

stop the spread of the virus. 

Ankara had temporarily halted air traffic 

with some countries and shut schools and 

businesses. 

Citizens were urged to “stay at home” and 

advised to avoid social contact and work 

remotely if possible, and public institutions 

and private companies took measures in 

this direction. 

President Recep Tayyip Erdoğan initially 

announced a TL 100 billion ($13.44 billion) 

stimulus package to support the economy 

on March 18, postponing debt payments 

and reducing tax burdens in some sectors. 

Since then, Ankara gradually widened 

such measures. The support offered to the 

citizens has reached TL 311 billion, Erdoğan 

said this week. 

The government also stepped in to top up 

income or pay daily stipends, while small 

businesses were given access to fresh loans. 

Some of the measures announced last 

year have been extended ever since and 

continue to be implemented. 

The tax reductions introduced in several 

sectors, including tourism, accommodation 

and transportation, remain in effect until at 

least June of this year. 

The government in January this year 

announced it postponed the taxes of 

businesses whose activities were disrupted, 

including cafes, cinemas and various sports 

facilities. 

The ban on layoffs, a measure that kept the 

unemployment down throughout 2020, 

was extended through mid-May. It was 

first introduced in April last year for three 

months. 

The country also extended cash assistance 

to its citizens. It had been extending TL 

1,000 to the families in need. 

Limited to takeaway service for much of 

last year, restaurants and cafes reopened 

as of this month as the country announced 

steps to ease pandemic restrictions, after 

the number of new cases fell below 10,000 

daily. Weekend lockdowns were lifted in 

low- and medium-risk cities and have been 

limited to Sundays in those deemed higher 

risk. Just 10 days after Erdoğan announced 

the easing of measures, the daily number 


of new coronavirus cases in the country 

rose to the highest level this year, Health 

Ministry data showed. 

The number of new cases stood at 14,556, 

the highest since the end of last year and 

nearly double from a month ago. 

Health Minister Fahrettin Koca blamed the 

rise in cases on a faster spread of COVID-19 

variations. 

The country’s case tally stands at 2.82 

million, while the nationwide death toll 

reached 29,227. 

With a population of 83 million, Turkey has 

administered 10.41 million vaccine doses 

since mid-January. More than 7.7 million 

people have received a first shot and nearly 

2.6 million a second dose of the vaccine 

developed by China’s Sinovac Biotech. 

The business world’s eyes are also on 

whether the government will be extending 

the scheme that provides wage support to 

employees of companies who have been 

hit by the pandemic. Erdoğan has said the 

short-term work allowance would end as 

of the end of March. Under the allowance, 

the government has been paying 60% of 

staff salaries. 

Workers, including those forced to 

take unpaid leave, were also extended 

support payments as they were not 

eligible to benefit from the short-term 

work allowance. On the other hand, the 

banking industry, mainly the public lenders, 

stepped in throughout the year, deploying 

several loan packages and postponing debt 

payments. 

As of this year, tradespeople and 

shopkeepers have been also extended 

grant and rental support. The Trade 

Ministry also provided support for loss of 

turnover to businesses engaged in food 

and beverage service activities that were 

negatively affected by the outbreak. 

Despite the last year’s coronavirus fallout, 

the country’s economy has managed to 

emerge as one of only a few countries to 

avoid an economic contraction. 

The gross domestic product (GDP) grew 

5.9% in the fourth quarter and 1.8% in 

2020 as a whole, according to official data. 

The country outperformed all emerging 

market (EM) and G-20 peers except China. 


Taysad represents dynamically the 

Turkish automotive supplier industry 

Established in 1978, TAYSAD is the sole and 

most competent 

representative of the Turkish automotive 

supplier industry. 

TAYSAD plans its activities in line with its 

vision and mission and aims at 

becoming a center of attraction in the 

automotive industry, by enhancing 

its capability as a representative 

association, its effectiveness in the 

sector, as well as the cooperation between 

members and by providing 

better-quality services to meet members’ 

changing needs. 

The major facts are: 

.Established in 1978, TAYSAD is the sole and 

most 

competent representative of the Turkish 

automotive supplier industry 

. With 408 members, TAYSAD represents 

65% of the output of the 

automotive supplier industry and 70% of 

the industry’s exports 

. 80% of TAYSAD’s members operate in the 

Marmara region;12% in the 

Aegean region and 8% in other regions of 

Turkey 

. 408 TAYSAD members employ more than 

160,000 people. 

. 25% of TAYSAD members have foreign 

partners who hold varying levels 

of shares. 

.TAYSAD is a member of CLEPA, the 

European Association of Automotive 

Suppliers (www.clepa.be) 

. TAYSAD is the founding partner of OTAM - 

Automotive Technologies 

Research & Development Company. 

. TAYSAD has a reference position within 

Turkey for domestic and 

international OEM’s, Tier 1 Suppliers and 

institutions being the 

representative of Turkish Automotive Parts 

and Components Suppliers 

.TAYSAD holds ESCA Silver Label and ISO 

9001 Certificates. 

The product range of TAYSAD members 

covers all sorts of parts except a few 

items and is sufficiently diversified to 

support an 85-90% local parts ratio in 

domestically-produced motor vehicles. The 

main product groups manufactured 

by TAYSAD members operating in the 

motor vehicle manufacturing industry can 

be classified as follows: 

. Complete engines and engine parts, 

. Radiators 

. Heating, ventilating & air 

conditioning systems (HVAC systems) 

. Power trains, 

. Brake systems and parts, 

. Hydraulic and pneumatic spare parts, 

. Suspension parts, 

. Safety spare parts, 

. Foam and rubber parts, 

Chassis parts and spare parts, 

.Forged and cast parts, 

. Electrical equipment and illumination 

systems, 

. Batteries, 

. Automobile glass, 

. Seats 

. Design & Engineering services 

. Simulation services 

. Special vehicle production 

In order to adapt to the changing 

competitive environment, TAYSAD 

members 

closely follow technological developments 

and continue to invest in innovation and 

expansion. With the help of their advanced 

manufacturing capabilities, they 

produce prototypes, use testing facilities, 

perform CNC-based and conventional 

machining, engage in product 

development, pursue collective R&D 

activities with. 

foreign and domestic companies and use 

CAD-CAM applications during the design 

process. 

Vision 

To become, by 2023, a sectoral association 

representative of all companies in 

Turkey, that supply goods and services 

directly and indirectly to the automotive 

industry; a sectoral association which 

pursues and supports activities increasing 

the local share in global automotive 

manufacturing to at least 3%; and a 

sectoral 

association which has gained complete 

public support. 

Mission 

To provide the environment and conditions 

for developing the Turkish 

automotive industry as a whole and making 

Turkey one of the leading supply 

centers of the global automotive industry, 

by supporting its members as a 

collective organization. 


Turkey calls for 

investments in 

specialized free 

zones 

Turkey provides many opportunities and 

incentives for innovation and technologyfocused 

investments in the specialized free 

zones, Trade Minister Ruhsar Pekcan said , 

calling on investors to invest in those areas. 

“We plan to expand the specialized free 

zones model, which we first implemented 

for the software and information sector, 

for other high-tech and high value-added 

sectors in the future. I invite you to invest 

in our specialized free zones,” Pekcan said. 

The minister told that Turkey’s dynamic 

nature makes it quite an attractive country 

for investments, among other things. 

Among the major points that enable 

Turkey to come forward, as Pekcan said, 

there are the advantaged position in 

logistics, qualified and young population, 

the advantages of competitiveness in 

production and European Union standardquality 

infrastructure along with its 

customs union agreement with the EU. 

Although many developing countries have 

the potential to attract investment, the 

minister said, Turkey can be distinguished 

in a very positive course with these 

characteristics. 

Pekcan, who said that they aim to make 

Turkey one of the strategic suppliers 

worldwide by attracting more foreign 

direct investment (FDI), stressed that they 

maintain work to enhance the investment 

environment in the country under the 

coordination of the Coordination Council 

for the Improvement of the Investment 

Environment (YOIKK). 

The specialized free zones, meanwhile, 

are among the initiatives that contribute 

greatly to the country’s investment 

environment, she said, and that the 

ministry has commissioned the New 

Generation Specialized Free Zone Project to 

further strengthen those initiatives. 

Global supply chain 

The trade minister, noting that state 

support in exports is also important in 

terms of trade and investments, said that 

the companies with export potential and 

export-oriented works can easily attract 

investments from abroad. 

“As the Ministry of Commerce, we have 

a very different support instrument that 

differs according to the competence levels 

of our companies. Our ministry aims to 

increase the export of high value-added 

products,” Pekcan said. She also added that 

with the Global Supply Chain Competency 

Project, one of the most important types 

of support allocated by the state, local 

manufacturing companies operating in the 

aerospace, aviation, electrical-electronics, 

machinery, automotive, mining and metals, 

and chemistry sectors who conduct globalscale 

production are provided funds for the 

purchases of the machinery, equipment 

and hardware they need. The ministry also 

takes steps to effectively promote local 

manufacturers’ products abroad, she said, 

for the further strengthening of improving 

product image. Pekcan emphasized that 

the ministry is in constant negotiations 

with countries and regions for bilateral 

and multilateral agreements, and stated 

that they closely follow the EU Green 

Consensus Strategy and EU Supply Chain 

legal regulations within the scope of these 

negotiations. She reiterated that Turkey 

is also participating in the World Trade 

Organization’s (WTO) Investment Facilitation 

Working Group. 


Hybrid car sales 

edge out LPG 

cars in Turkey 

Hybrid car sales in Turkey edged out sales 

of liquefied petroleum gas (LPG)-powered 

vehicles in the January-February period. 

In the two-month period, a total of 6,979 

hybrid cars were sold, compared with 3,658 

LPG-powered units, according to Automotive 

Distributers’ Association (ODD) data. 

Hybrid car sales had an 8.7% share in the 

market, while LPG-powered cars had 

4.6%. 

Overall, sales of cars and light 

commercial vehicles were up by 37.4%, 

hitting 102,232 units in the same period. 

While hybrid car sales were up by 227.8% 

year-on-year in January-February, LPGpowered 

car sales were up by 7.9%. 

Diesel-powered car sales, on the other 

hand, were down by 15.5%. 

Electric car sales also posted a significant 

rise over the same period at 72.5%. 

Both in January and February, Turkey’s 

overall passenger and light commercial 

vehicle sales have increased despite 

the pandemic that slashed the market 

elsewhere, for instance in Europe. 

The sales surged 60.3% annually in 

January, according to the earlier ODD 

data while they were up 24.2% in 

February compared with the same 

month of last year. 

A total of 43,728 vehicles were sold 

across Turkey in January, while the 

number reached 58,504 in February. 

With a second consecutive monthly 

growth, February’s sales were the 

highest for that month in the last 10 

years. In 2020, when the coronavirus 

pandemic brought unprecedented 

obstacles to the sector, from restrictions 

to the supply gluts, the Turkish auto 

industry managed to end the year on 

a positive note in contrast to many 

European countries. 


Turkish king-size electric tractor 

ready for mass production 

The development of a Turkish-made, kingsize 

electric tractor has been completed, 

and the locally developed vehicle will be 

mass-produced as of June, the company’s 

head announced. 

“We have 25 tractors ready and waiting 

on our assembly line,” said Önder Yol, the 

chairperson of ZY Electric Tractor. 

The company has already received preorders 

and sold a significant number of 

units, Yol told. 

The project has been carried out jointly 

with public lender Ziraat Bank. It was 

expected to pass onto the mass production 

phase by the end of 2020 but was 

disrupted due to the coronavirus pandemic. 

Yol explained that three types of tractors 

are currently being used in the country, 

namely garden, middle and large versions, 

noting they will be developing electric 

tractors suitable for their area of use. 

The small version will have up to 140 

horsepower and will be suitable for garden 

work and in the areas where the middlesize 

tractors can be used. 

“These tractors can be charged in about 20 

minutes and run for up to five hours,” Yol 

noted. 

Middle-sized tractors usually have engines 

with up to 105 horsepower, he said, adding 

that their machines feature up to 220 

horsepower. 

A middle-size version of the electric tractor 

produced by ZY Electric Tractor at the 

factory in Istanbul, Turkey, March 8, 2021. 

These will be reliable for the even most 

difficult field conditions for up to seven 

hours, the chairperson said. 

The mass production phase of the middlesized 

electric tractors will start in the first 

months of 2022, Yol informed as he said 

95% of the works have been completed. 

The king-size version of the electric 

tractor will hit the market with 320 

horsepower, above the world average of 

130 horsepower. 

“We will use systems that can produce 

up to 1,000 horsepower. This will do both 

the work done by large tractors and will 

perform all the work done by tractors 

called ‘monsters’ abroad,” Yold said. 

This version will be able to run for up to 

seven hours. Yol said this extended use will 

lead to an increase in production. 

“The tractor can be charged in 90 minutes. 

When a unit is placed outside, it can be 

easily charged in under an hour,” he noted. 

“If it had not been for the pandemic, 

we would have already gone into mass 

production. We had difficulties completing 

our supplies. We have completed 85% 

of our paperwork for the type approval 

certificate,” he explained. 

The company can manufacture up to 1,050 

units of large-size tractors, a figure Yol said 

they aim to increase up to 10,000 in the 

coming period. 

The biggest feature of these tractors is that 

it is quiet and doesn’t emit fumes. 

In animal husbandry, according to Yol, 

silence is important for animals since 

milk production can drop when they are 

constantly exposed to loud noises. 


Turkey-A global player in 

automotive industry 

During the 1990’s, as other international 

manufacturers like Toyota, Honda, 

Hyundai, Isuzu and Mercedes-Benz entered 

the market, Turkey rapidly became an 

automotive production base which not 

only caters to one-time developments 

of the industry but rather holds longterm 

development options. Turkey has a 

thriving automotive sector, demonstrating 

substantial growth in the past. All players 

involved, including local authorities and the 

government, are participating in providing 

conditions to increase output in the future. 

Some of the facts are: 

-High level of integration into the global 

automotive industry 

-14th major automotive producer in 

theWorld, with 78% average export rate 

-Vehicles of Turkish origin hold the leading 

position among the vehicles coming 

from outside of EU 

-Production, export, and engineering hub 

of global brands for international 

markets 

-Quality products with high export rates 

-Hundreds of Tier 1 companies working 

directly with OEMs 

-Center of excellence in automotive 

engineering and R&D, in which new 

technologies are developed strong 

international presence 

-Giants of global automotive value chain 

benefit from Turkey’s location, cost, 

and competitive advantages 

-Because of their profitable business in the 

country, companies in Turkey 

continue to invest in the country’s future 

-9 R&D centers support not only the local 

operations, but also the operations in 

other plants of parent companies. 

-With more than 40 thousand employees, 

automotive OEMs are one of the 

major employers in the manufacturing 

industry. 


Incentive for 

Ford Otosan’s 

new-generation 

vehicle, battery 

production 

Ford Otosan’s new-generation commercial 

vehicle and battery assembly factory 

investment in Turkey’s industrial Kocaeli 

province will benefit from project-based 

government incentives, the Official Gazette 

showed. 

To be made through a fixed investment 

worth around TL 20.5 billion ($2.6 billion), 

the investment will span six years, the 

statement said. 

Once completed, the joint venture of Koç 

Holding, Turkey’s largest conglomerate, 

and U.S. automotive giant Ford is expected 

to produce 210,000 new-generation 

commercial vehicles and 130,000 batteries 

per year. 

The investment is said to provide 3,000 

additional jobs, and the number of 

qualified personnel is projected to be 200. 

The Industry and Technology Ministry will 

be able to provide an additional period 

of half of the initial period in case the 

investment is not realized within the 

prescribed period. 

The investment project will be able to 

benefit from support such as customs 

duty exemption, value-added tax (VAT) 

exemption, VAT refund, tax deduction, 10- 

year insurance premium employer share 

support without the maximum amount 

limit, 10-year income tax withholding 

support, a maximum of TL 250 million of 

qualified personnel support and allocation 

of investment ground. 

In a separate statement, Ford Otosan said 

the investment is aimed at implementing 

the new generation of electric and 

linked commercial vehicle projects and 

developing automation and modernization 

of the company’s production facilities. 

Based on Ford’s continued commercial 

vehicle market leadership in Europe and 

increasing market share success, the 

company said it anticipates increasing its 

installed capacity to meet growing demand 

in the commercial vehicle market. 

The carmaker announced it has initiated 

works to establish the battery assembly 

plant for electric vehicles in Kocaeli. 

The Kocaeli facility, located in the Gölcük 

distirict, is the largest commercial vehicle 

production hub for Ford in Europe. 

The firm, with its other plants in Kocaeli, 

will have the first integrated electric vehicle 

production facility in the country, Haydar 

Yenigün, the general manager, said. The 

battery assembly factory is planned to 

be operational by 2022. Previously, the 

firm produced Turkey’s first plug-in hybrid 

commercial vehicle – Transit Custom 

Plug-In Hybrid – and was recently assigned 

responsibility to manufacture E-Transit, 

Ford’s first all-electric commercial van. 

Ford said the E-Transit will deliver up to a 

range of 350-kilometer (217 miles) with 

a 67 kilowatt-hour, 400-volt lithium-ion 

battery pack. 

The vehicle will be produced for North 

American customers at the Kansas City 

Assembly Plant in Claycomo, Missouri, in 

the U.S. 

E-Transit, expected to be available for 

European customers in early 2022, is part 

of Ford’s more than $11.5 billion global 

investment in electrification through 2022. 

Ford Otosan supplies the European market 

with Transit family light commercial 

vehicles. Yenigün also said Ford Otosan is 

one of the largest investors in the country 

with 2.5 billion euros (around $3.08 billion) 

in investments, of which 56 million euros 

was in electric car production, in the last 

decade. 


Turkey to sustain 

recovery in foreign 

trade, minister says 

Turkey will maintain its strong recovery momentum in foreign 

trade during the months ahead, the Minister of Trade said. 

Leading foreign trade indicators such as the Purchasing 

Managers’ Index (PMI) are showing positive signs, Ruhsar 

Pekcan said at the virtually held meeting of the Turkish 

Chemistry Sector Council. 

On Turkey’s export performance, Pekcan underlined that the 

country continued its exports “with all our strength and with 

great skill, despite the pandemic and all external factors.” 

She noted that Turkey had registered an all-time high February 

export figure, with a 9.6% year-on-year rise to $16 billion (TL 

121.40 billion) and highlighted that investments, production 

and exports were among the country’s top priorities. 

“Therefore, it’s extremely important that we act in a planned 

and programmed manner on a sectoral basis,” she said, adding 

that the meeting offered a unique opportunity to discuss the 

dynamics of the industry in order to review the country’s goals 

and future plans. She said the chemical industry is among 

the target sectors under the country’s Export Master Plan 

announced in August 2019 for sustainable exports and stressed 

that her ministry would continue supporting the sector. 

The chemical sector, except solid mineral fuels, saw a 6.2% 

year-on-year rise in exports, reaching $17.2 billion in 2020. 

In the first two months of 2021, the figure jumped 15.7% to $3 

billion. The two-day meeting, organized under the chairmanship 

of the Istanbul Chemical and Chemical Products Exporters 

Association (IKMIB), will address the current situation and 

future expectations of the chemical industry through seven 

different sessions. 


Turkey to 

establish 

logistics center 

in US as exports 

exceed $10B 

Turkey is set to establish foreign logistic 

centers, particularly one in the U.S., that 

are expected to accelerate local exporters’ 

access to markets and boost the foreign 

sales volume, Turkish Exporters Assembly 

(TIM) Chairperson Ismail Gülle said. 

The move came as part of the country’s 

efforts to quickly reach its $100 billion (TL 

737.36 billion) foreign trade volume target 

with the U.S., the world’s largest importer. 

“We have carried out a detailed study for 

the logistics center we plan to open in 

the U.S. We have a target of $100 billion 

in foreign trade volume with the country. 

We believe that the logistics center to be 

opened is of great importance for us to 

achieve this goal quickly,” Gülle said in 

a press release issued by TIM, the only 

umbrella organization of 100,000 exporters 

with 61 exporter associations and 27 

sectors in Turkey. 

In 2020, Turkey’s exports to the U.S. topped 

$10.1 billion, achieving a jump of 13.5% 

year-on-year despite the contraction of 

global demand due to the pandemic, 

making it the country with the third-most 

exports. 

Turkey exported to 226 countries last year, 

and exports hit an all-time monthly high 

of $17.84 billion in December, according 

to the Trade Ministry’s data released this 

month. 

The most notable increases in the exports 

to the U.S. were in the carpet sector with 

foreign sales worth $932.3 million, booking 

an increase of 40.2%. The steel sector 

increased by 59% to $430.8 million, the 

jewelry sector rose 54.5% to $485.2 million 

and the ready-to-wear and apparel sectors 

jumped 22.6% to $793.6 million. 

TIM said in a report on the U.S. market 

that it is one of the five most important for 

Turkish exporters, noting that Turkey has 

significant potential for the U.S. market 

in 192 out of the 1,000 most-exported 

products in global trade. 

Foreign sales to the U.S. are expected to 

further increase in the post-pandemic 

period, making it easier to reach the 

targeted $100 billion in bilateral trade. 

The planned logistics center will be a step 

closer to this target and is set to be tailored 

particularly toward the textile, furniture 

and carpets sectors. 

Exporting costs to fall 

Gülle pointed out that the efforts to launch 

the foreign logistics centers abroad have 

been carried out under the leadership of 

the Trade Ministry for some time, adding 

that West Africa and North America stand 

out among the primary locations for those 

centers. 

Activities continue in West Africa, most 

particularly in Ghana, he said. 

“In North America, we conducted a 

detailed study for the logistics center we 

plan to open. We have a target of $100 

billion in foreign trade volume with the U.S. 

To achieve this goal quickly, we believe that 

the logistics centers to be opened are of 

great importance. We need to determine 

the location of the logistics center by 

considering the maximum benefit of our 

sectors,” Gülle said, noting that the sectoral 

clustering is an important factor that forms 

the basis of superior competitiveness and 

economic development. 

Market shares 

The TIM head also said they calculated the 

market shares of each sector, especially 

the carpet, furniture and home textile 

sectors, in each U.S. state to determine 

the best location for the logistics center. 

In the first 11 months of 2020, the market 

share of the carpet industry was 78% in 

the state of Maine, 60% in South Carolina, 

48% in New Jersey and 45% in New York, 

according to the information shared by 

Gülle. Meanwhile, the furniture industry 

had a market share of 11% in Delaware, 

5.4% in Missouri, 1.7% in New Jersey and 

1.4% in Washington. 

The industry’s market share in other 

states was below 1%, Gülle noted. 

In the home textile market, the share 

was 25.4% in Connecticut, 8.3% in Maine, 

7.3% in Wisconsin, 6.7% in Massachusetts 

and 5.9% in South Dakota. 

Gülle noted that those figures show 

that Turkey “has serious dominance in 

the market in some states, especially in 

carpets and home textiles.” 

Access to new markets 

Noting that the overseas logistic centers 

will be a regional base for exporters, will 

reduce the costs of market access and will 

accelerate access to new markets, Gülle 

went on to say that “while determining 

the locations of our logistics centers, we 

will consider the e-export opportunities 

as well as the physical exports of our 

exporters to the region.” 

“We will also respond to the needs of 

our e-exporting companies. We want 

to accelerate our work in this field with 

contributions from sectors and start the 

operations of our logistics centers abroad 

as soon as possible,” he said. 


Inventory 

shortages push 

used car prices 

up in Turkey 

Stock shortages in Turkey’s automotive 

industry have pushed used car prices to a 

high level, but a major automotive dealers 

association said the stock availability 

problem is expected to be resolved soon. 

Murat Şahsuvaroğlu, the head of the 

Authorized Automotive Dealers Association 

(OYDER), said the stock availability problem 

will be resolved in Turkey. 

Şahsuvaroğlu said the inventory shortage 

was largely caused by the coronavirus 

effect on the supply chains of the European 

carmakers. 

“Turkey imports cars mainly from Europe, 

which supplies essential parts from 

China. However, China is struggling with 

production delays due to coronavirus,” he 

said. 

With the recent coronavirus outbreak 

disrupting major automakers’ supply chains 

over shortages of Chinese parts, Turkish car 

dealers have been unable to hold any stock 

of new cars. The lack of stock availability 

and waiting lists ranging from two to three 

months have pushed customers to the 

used car market. Car dealers reported that 

the surging demand in the used vehicle 

market pushed prices as high as TL 250,000 

($41,032) for several mainstream models. 

Ahmet Ataseven, a car dealer at a secondhand 

automotive market in Samsun 

province, said the prices have gone up by 

almost 50% within months due to the stock 

shortage. 

“A model that was sold for TL 30,000 

($4,924) in January is now could find a 

buyer for TL 45,000 ($7,386),” Ataseven 

said, adding that even dealers at the used 

car market are facing stock difficulties. 

Despite the stock shortages, passenger 

car and light commercial vehicle sales in 

Turkey almost doubled in January and 

February in 2020, according to Automotive 

Distributors’ Association (ODD) data. 

Surging demand for passenger cars helped 

prop up sales growth as they jumped 98% 

year-on-year in January and February 

to 59,743. The sales are expected to 

be around 550,000 to 600,000 in 2020, 

according to Ali Bilaloğlu, head of the ODD. 

The automotive industry had faced 

multiple problems last year after high 

volatility in foreign exchange rates in the 

second half of 2018, followed by a high 

increase in interest rates on loans, which 

led to a sharp decline in domestic demand. 

Last year was rather difficult for the 

industry, as passenger car and light 

commercial vehicle sales declined by 22.8% 

year-on-year to 479,060. Several measures, 

including tax exemptions, incentives and 

a cheap loan campaign by public lenders, 

brought some relief. 


MEYLE honored with 

TOP 100 Innovation Award 

Innovation: an integral part of the company 

Award-winning innovation: Germany’s 

automotive spare parts manufacturer 

MEYLE AG belongs once again to the 

most innovative companies and has 

been awarded the coveted TOP 100 

seal 2021. On behalf of compamedia, 

the organizer of the TOP 100 innovation 

competition, innovation researcher 

Prof. Dr. Nikolaus Franke and his team 

examined the innovative strength of 

the nearly 400 participating companies. 

The researchers used around 120 test 

criteria from five categories as a basis: 

Innovation-promoting top management, 

innovation climate, innovative processes 

and organization, external orientation/ 

open innovation andinnovation success. 

In addition, measures relating to the 

corporate response to the Corona crisis 

were examined and evaluated. 

MEYLE was particularly convincing in the 

categories “Innovation-promoting top 

management” and “Innovative processes 

and organization” at TOP 100. Among 

other things, the company was able to 

score points with measures and processes 

related to digitalization and demonstrate 

innovative strength, especially under 

exceptional circumstances regarding 

corona: MEYLE reacted extremely quickly 

and ensured to successfully accompany 

customers with individual offers such as 

MEYLExperience, as a digital alternative 

to the Automechanika industry trade fair, 

also with online trainings and customer 

visits. The rapid corporate response to 

the Corona pandemic also underscores 

the high level of digitalization at MEYLE: 

For example, flexible mobile working 

time arrangements were implemented 

for employees and converted to almost 

exclusively digitized processes within a 

very short time - including comprehensive 

technical set-up in relation to MS Teams 

as well as SharePoint. “Corona has also 

shown us: Digitalization goes a long way!”, 

summarizes Dr. Karl-J. Gaertner, CEO of 

MEYLE AG. “We were able to implement 

ways of working and digital processes and 

maintain our daily work routine at almost 

100% despite contact restrictions - and all 

thanks to the great commitment of our 

employees to switch to the digital way of 

working from one second to the other. 

Therefore, a very big thank you also goes to 

all employees at MEYLE.” 

Results of the excellent innovative strength 

are also the product lines MEYLE‐HD, 

MEYLE‐PD as well as the MEYLE‐KITS. 

“Especially with our MEYLE‐HD product line, 

we show how innovative we are and what 

added value there is for our customers and 

independent workshops,” affirms André 

Sobottka, Board Member Sales - Marketing 

and Communications. Already in 2018, 

MEYLE convinced the jury of Automechanika 

Frankfurt with the MEYLE‐HD slotted 

bushing kit and was pleased to receive the 

Innovation Award in the category Repair and 

Maintenance. “The TOP 100 Award is also a 

strong signal that absolutely corresponds to 

our claim for better parts, solutions as well 

as services. A great motivation encouraging 

us to continue doing exactly that,” Sobottka 

is pleased to say. 

Prof. Dr. Nikolaus Franke, the scientific 

director of TOP 100, is impressed by the 

award-winning medium-sized companies. 

“The TOP 100 companies have consistently 

focused on being as innovative as possible,” 

he notes. The official awards ceremony 

will take place on November 26, 2021. 

The winners of the current TOP 100 year 

will receive congratulations from Ranga 

Yogeshwar, who has been mentoring the 

innovation competition for ten years, at the 

7th German SME Summit in Ludwigsburg. 

TOP 100: the competition 

Since 1993, compamedia has been awarding 

the TOP 100 seal of approval to mediumsized 

companies for special innovative 

strength and above-average innovation 

success. Since 2002, scientific management 

has been in the hands of Prof. Dr. Nikolaus 

Franke. Franke is the founder and director 

of the Institute for Entrepreneurship and 

Innovation at the Vienna University of 

Economics and Business. With 25 research 

awards and over 200 publications, he is 

one of the leading innovation researchers 

internationally. The mentor of TOP 100 is 

science journalist Ranga Yogeshwar. Project 

partners are the Fraunhofer Society for the 

Promotion of Applied Research and the 

BVMW association of small and mediumsized 

enterprises. 


German researchers develop hydrogen 

paste that could fuel vehicles 

A team of researchers at the Germanybased 

institute developed a hydrogen 

paste, which bears a passing resemblance 

to toothpaste and could one day be used to 

fuel vehicles. 

Researchers at the Fraunhofer Institute of 

Manufacturing Technology and Advanced 

Materials (IFAM), led by Marcus Vogt, 

named their product, which could be 

revolutionary in the transport sector, 

“Powerpaste.” 

The paste’s main ingredient is magnesium 

hydride, a compound that, when 

introduced to water, reacts with it to form 

hydrogen and magnesium hydroxide. It 

would be stored in vehicles in the form of a 

cartridge and to refuel, a driver would swap 

a used hydrogen cartridge with a new one 

and then fill the tank with water. 

According to researchers, the paste offers 

a safe, convenient and affordable hydrogen 

fuel option for small vehicles such as 

scooters, or in flying drones where weight 

is at a premium. 

The paste has a huge energy storage 

density, Vogt said adding that it has a 

storage of more energy per liter, and per 

kilogram, than either batteries or petrol 

can manage. Moreover, unlike a battery, 

the paste does not gradually lose its stored 

energy if it is left on the shelf. 

In a bid to fight climate change and global 

warming in recent years, many companies 

and countries have been shifting attention 

to hydrogen-based energy solutions. 

Last year, in a move to diversify cleaner 

energy resources and reduce carbon 

emissions, Turkey has launched an initiative 

to exploit hydrogen as a fuel in various 

sectors, making it available to the market 

by the end of 2021. 

In an attempt to decrease the usage of 

oil, natural gas and other fuels that have 

a negative impact on the environment 

and climate, Turkey has boosted efforts 

to add clean sources to its energy mix, 

which in turn will also help it become less 

dependent on imported goods. 

Also last year Airbus CEO Guillaume Faury 

said that the company is aiming to put the 

world’s first hydrogen-powered commercial 

plane into service by 2035. 

France and other European countries 

are investing billions of euros in the 

development of green hydrogen, with the 

highly polluting transport industry a prime 

area for its intended use. 


Volvo phases out all cars but electric by 2030 

Swedish automaker Volvo said that it will make only electric 

vehicles by 2030, but the customers will have to purchase the cars 

online. The company said that it is phasing out the production of all 

cars with internal combustion engines – including hybrids. 

“There is no long-term future for cars with an internal combustion 

engine,” said Henrik Green, Volvo’s chief technology officer (CTO). 

Volvo’s announcement follows General Motors’ pledge earlier this 

year to make only battery-powered vehicles by 2035. 

Volvo also said that, while its all-electric vehicles will be sold 

exclusively online, dealerships will “remain a crucial part of the 

customer experience and will continue to be responsible for a 

variety of important services such as selling, preparing, delivering 

and servicing cars.” 

As part of the announcement, the Swedish automaker will unveil its 

second fully electric car, a follow-up to last year’s XC40 Recharge, 

a compact SUV. Volvo said its goal is to have half of its global 

sales be fully electric cars by 2025, with the remaining half made 

up of hybrids. Automakers around the world are ramping up the 

production of electric vehicles as charging technology improves and 

governments impose stricter pollution regulations. 

“We are firmly committed to becoming an electric-only car maker,” 

Green said. “It will allow us to meet the expectations of our 

customers and be a part of the solution when it comes to fighting 

climate change.” 

Despite the rising number of EVs available in the U.S., fully electric 

vehicles accounted for less than 2% of new vehicle sales last year. 

Americans continue to spend record amounts on gas-powered 

trucks and SUVs. 

About 2.5 million electric vehicles were sold worldwide last year 

and industry analyst IHS Markit forecasts that sales will increase by 

70% in 2021. Volvo says it sold 661,713 cars in about 100 countries 

worldwide in 2020. According to Autodata Corp., 107,626 of those 

vehicles were sold in the U.S. 

Founded in 1927, Volvo Cars has been owned by China’s Zhejiang 

Geely Holding Group since 2010. 

Manufacturing activity expands at stronger pace in January: PMI 

The recovery of Turkey’s manufacturing sector continued in 

January, a survey showed on Feb. 1, as output, new orders and 

exports all showed growth following the second wave of the 

coronavirus outbreak and initial vaccine rollouts. 

The headline index reading rose to 54.4 in January from 50.8 a 

month earlier, data from the Istanbul Chamber of Industry and 

IHS Markit showed, staying above the 50 mark that separates 

expansion from contraction. 

Output returned to growth following a two-month sequence 

of moderation caused by a renewed wave of the coronavirus 

outbreak, the panel said. Higher new orders and coronavirus 

vaccine news contributed to the rise in production, it said. 

The growth in new orders led firms to hire more staff, the panel 

said, with staffing levels rising at fastest pace in over three years. 

Input costs continued to rise sharply, according to the panel as 

firms experienced severe disruptions to supply chains with delays 

linked to raw material shortages. 

“Data highlighted a positive start to the year for the Turkish 

manufacturing sector... The key highlight from the latest survey 

was a sharp rise in employment,” said Andrew Harker, economics 

director at IHS Markit. 

“Positive vaccine news contributed to the more buoyant picture 

in January. As with economies all over the world, the near-term 

fortunes of the sector will depend on developments related to the 

pandemic and vaccine roll-out.”

Automotive Exports March 2021

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?