www.automotive-exports.com August 2021
Monthly automotive aftermarket magazine
H. FERRUH ISIK
İstmag Magazin Gazetecilik
İç ve Dış Ticaret Ltd. Şti.
Managing Editor (Responsible)
Mehmet Soztutan, Editor-in-Chief
+90 505 577 36 42
Full steam ahead!
Turkey’s automotive production and exports recorded a strong rebound this year,
data showed, following a drop a year ago due to the coronavirus pandemic.
As noted earlier in this column, the exports by Turkish automotive sector have reached
remarkable figures in the last decade. The automotive industry has been active since
the early seventies. Since the full integration to the European Customs Union in 1994,
Turkey has become a major production platform for global automotive manufacturers.
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.
To sum up the Turkish automotive industry, we can say 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
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.
Indeed, the industry exhibit its full potential in major specialized fairs both at home and
abroad. We are convinced that the events would turn out to be an ideal ground for
the business people operating in the automotive business.
Our publications remain at the service of those businesses people seeking to increase
their share in the increasingly competitive foreign markets.
We wish them lucrative trade.
International Marketing Coordinator
Digital Assets Manager
Amine Nur Yılmaz
Design & Graphics
ISTANBUL MAGAZINE GROUP
Ihlas Media Center
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Tel: 0212 454 30 00
best quality award
by Great Wall
The automotive technology company
Veoneer, Inc. (NYSE: VNE and SSE: VNE
SDB), was awarded the 2020 Best Quality
Award at the Great Wall Motor (GWM)
Annual Global Partners Conference.
On July 4, 2021, GWM arranged their
annual global partners conference in
Baoding, Hebei province, China. The
theme of the conference was ‘Create
change and move forward for a win-win
“We are greatly honored to receive the
Great Wall Motor award for the 1st time.
Veoneer China is cooperating closely
with GWM on both active safety systems
and restraint control systems. GWM is
one of our most important customers in
China. We will continue strengthening
our strategic relationships and keep
delivering innovative and high-quality
solutions to GWM also in the future,” said
Seven Zhang, Executive Vice President,
Customer Area China, who received the
prize on behalf of Veoneer China.
Turkey held 100
In order not to halt trade diplomacy during
the pandemic period, Turkey’s Trade
Ministry organized a total of 100 virtual
meetings with trade delegations beginning
from May of last year.
Some 1,801 producer and exporter
companies met with 4,279 foreign buyers
through 14,943 business-to-business
(B2B) virtual meetings. Virtual delegations
promote Turkish companies and products
in foreign markets when physical events
are not possible due to the pandemic
measures, such as lockdowns and travel
bans. The country has hosted 21 general
and 79 sectoral virtual trade delegation
meetings with Ghana, Qatar, South Africa,
Nigeria, Kenya, Tanzania, India, Romania,
Bulgaria, Azerbaijan, Georgia, Argentina,
Paraguay, Uruguay, Chile, Hong Kong,
Kyrgyzstan, Uzbekistan and Vietnam since
August 2021 8
Three years since its establishment,
Turkey’s Automobile Joint Venture Group
(TOGG), a consortium developing Turkey’s
first homegrown car, continues its activities
at full speed.
Seen as the country’s “second automobile
revolution” and revived by President
Recep Tayyip Erdoğan, TOGG was officially
established on June 25, 2018.
A former executive at Bosch, Mehmet
Gürcan Karakaş, was appointed TOGG’s
chief executive officer on Sept. 1, 2018.
Erdoğan on Dec. 27, 2019, unveiled
prototypes for a sport utility vehicle
(SUV) and a sedan, both fully electric and
A consortium of five major companies,
TOGG will produce five different models
– an SUV, sedan, C-hatchback, B-SUV and
B-MPV – through 2030.
Mass production of the SUV will begin in
2022, with the sedan to follow.
Construction of TOGG’s engineering, design
and production facilities began on July 18,
2020. The facility, built on an area of 1.2
million square meters (12.9 million square
feet) in the Gemlik district of northwestern
Bursa province, is planned for completion in
Around 4,300 staff will be employed within
TOGG, which will include at least 30% female
employees. As for suppliers, TOGG has
reached deals with 10 global corporations –
75% of them from Turkey and the remaining
25% from Europe and Asia.
TOGG named Sergio Rocha – a leading name
in the auto industry who managed projects
in the U.S., Europe and Asia – its chief
operating officer in November 2019.
The former chief designer of global car
brands such as Volkswagen and Mercedes,
Murat Günak, was appointed as head of
design at TOGG in April this year.
Talin Yıldız returned from France to Turkey to
become chief marketing officer.
TOGG chose advanced lithium-ion battery
technology company Farasis as its business
partner for the battery.
The homegrown car will reach 80% charge
in under 30 minutes with fast charging. It
will have a range of between 300 to 500
kilometers (186-310 miles).
Acceleration from 0 to 100 kph (0 to 62
mph) will be in 7.6 seconds with 200
horsepower, and under 4.8 seconds with a
400 horsepower engine.
TOGG announced in April that its C-SUV
model received the iF Design Award 2021,
one of the most prestigious design awards in
the world and a first for a Turkish brand
August 2021 10
sales mark highest
figures in 4 years
Sales of passenger cars and light commercial
vehicles across Turkey rose 12.5% yearon-year
in June to 79,819 vehicles, the
Automotive Distributors Association (ODD)
The year-on-year growth rate marked a
slowdown from the extremely high levels
in previous months, as the base effect from
last year’s pandemic-related slowdown
evaporated. However, this figure still
showed that June 2021 was the month with
the highest sales in the last four years. The
association forecast that sales of passenger
cars and light commercial vehicles would
amount to between 775,000 and 825,000
this year.Sales last year stood at 773,000.
Passenger cars accounted for 78.6% of the
sales with 310,325 units, a 52.4% rise from
the same period last year. A total of 84,376
light commercial vehicles were sold from
January to June, up 67.2% on an annual
August 2021 14
Engin Gökgöz, Key Automotive Customers’ Leader in European Region
Established in Australia as part of Brambles
Group, an international supply chain brand,
CHEP offers supply chain solutions that
optimize business processes in the the
consumer goods, fresh food, beverage,
automotive, industrial, manufacturing
and retail sectors. Equipment rented
from CHEP is collected after use, regularly
maintained and repaired, and put back
into service. That’s how costs in equipment
management are reduced and the
efficiency of the supply chain is increased.
Engin Gökgöz, Key Automotive Customers’
Leader in European Region, said that CHEP
which had a circulation network of more
than 330 million pallets, containers, and
crates in 59 countries with more than
11,000 employees, had been operating in
Turkey since 2009.
What service do you offer for the
We are an equipment-rental company
offering end-to-end solutions for
the top vehicle manufacturers and Tier1
brands globally since 1975. CHEP’s business
model is inherently based on the concept
of “Share and Reuse”. We call it ‘pooling’.
With the CHEP Pooling System, one gets
the containers one needs from us on
a rental basis. We believe that sharing
and reusing packaging equipment makes
them more sustainable; that’s why our
containers cannot be purchased. Under
this principle, it doesn’t matter whether
you are a small local start-up or a company
supplying the whole of Europe with
your products. CHEP controls the entire
administrative procedure, collection and
quality assurance of the containers &
crates in a closed-loop system.
As the automotive industry adopts to
produce circular business model to
produce more efficient and sustainable
electric vehicles, it needs to take
important steps to prevent waste
from happening during supply chain.
Manufacturers and suppliers that use
disposable cardboards to deliver products
cause the industry to generate more waste
and generate carbon emissions due to
inefficient packaging management. CHEP’s
business model based on sharing and
reuse raises the sustainability of processes
by eliminating potential waste.
What are the properties of your
Plastic containers & crates, which we
maintain and repair before use, are way
more robust compared to cardboard
boxes. They are exclusively designed to
serve automation systems. In addition, we
always guarantee the packaging supply
that our customers need, regardless of
fluctuations in demand. That’s how we
eliminate warehouse costs and problem
of client regarding not finding containers
on time. In the meantime, being part of
the CHEP network means less waste for
everyone. Thanks to our strong global
network, collection and return trucks
travel less distance and containers
arrive faster. We also help create new
collaboration opportunities with our
tracking solutions that terminate the risky
and inefficient transportation of costly and
critically important loads.
August 2021 16
How about other benefits your system
offers to manufacturers
First things first, we eliminate questions
like ‘where is my product?’ or ‘if it is lost
or not?’ in the minds of manufacturers.
Additionally, manufacturers get rid of
high costs of the procedures. More
importantly, there’s the ‘standards issue’
in the production line. Apart from the
supply of materials to transport the
product, there is a ‘customs dimension’ of
the overall delivery in export. Our clients
do not have to go through all that hassle
while dealing with customs while sending
or supplying products. I strongly advise
whoever concerned about not dealing
with customs or regulations or not harm
the environment by using cardboard boxes
to switch to our share and reuse model
to deliver their products to Europe at
What do you think Turkey’s role is for the
The picture of a global automotive industry
is not complete without Turkey. Our
country is an export country serving the
sector. Therefore, we must have very good
relations, especially with Europe. There are
plenty of successful companies in Turkey.
How would you comment on global lack
of containers recently faced?
As has been mentioned, we are a very
strong player in the sector. Manufacturers
stopped their contactor orders from China
during the pandemic. A huge demand
arose for those products to be used in
vehicle manufacturing, which should come
from China, and the demand remained
unsolved. This eventually led to container
crisis. Because the containers of the
production lines remained in Europe,
companies had to face a serious container
How did you manage to sort it out?
Firstly, your storage area needs to have
been built with smart systems. It was not
possible to respond to those problems
solely with containers. Our global pooling
is solid enough to respond to fluctuations
as such. Of course, there may be minor
problems that might arise with us, too,
such as delays. Being a company that
operates globally in terms of competition
gives us advantage since we are able to
meet all sorts of needs in 60 countries.
As you know, the manufacturing of the
domestic automobile, TOGG is expected to
start in 2023. Have you considered taking
part in it?
TOGG is a project that excites us like
everyone involved. Of course, we’d love to
be a part of it. For that to happen, TOGG’s
suppliers need to be identified. As we are
experienced through our similar dealings,
we would love to provide support after
details are clarified.
17 August 2021
plans to halt sale
EU by 2035
Volkswagen plans to halt production of cars
with internal combustion engines in Europe
for its eponymous flagship brand between
2033 and 2035, the German automotive
giant announced as it accelerates its drive
toward electric vehicles.
Carmakers around the world have started
setting timetables to phase out combustion
engines in the face of increasingly strict
anti-pollution standards put in place to
fight climate change, with Volkswagen’s
electric push also following lingering
reputational harm from the “dieselgate”
Klaus Zellmer, board member for sales
and marketing at Volkswagen’s passenger
cars brand, told the Bavarian newspaper
Muenchner Merkur that “we will make
our entire fleet CO2 neutral by 2050 at the
“In Europe, we will leave the combustion
engine vehicle market between 2033 and
2035,” he said in an interview published
online. He added that the change will take
place “a little later in the United States
and China. In South America and Africa,
due to the lack of political framework
conditions and infrastructure, it will take a
little longer.” Volkswagen’s flagship brand
had already said in March it was aiming
for electric vehicles to account for 70% of
its European sales by 2030. Zellmer said
that “as a mass-market manufacturer,
VW has to adapt to different speeds of
transformation in different regions.”
“Our competitors who sell vehicles mainly
in Europe, for example, will certainly have
to face a far less complex transformation.”
Audi, a subsidiary of Volkswagen,
announced it would launch only fully
electric vehicles from 2026 and halt
manufacturing cars with internal
combustion engines by 2033.
Sweden’s Volvo has said it plans to sell only
electric models from 2030.
The European Union will unveil tougher
2030 CO2 emissions targets and regulatory
proposals on July 14, which are expected
to force carmakers to speed up the
transition to electric cars. Volkswagen’s
electric push has additionally been
accelerated by its “dieselgate” scandal,
which rocked Germany’s car industry and
cost the company dearly in both cash and
reputational harm. Legal cases grind on
over Volkswagen’s admission in 2015 that
it illegally fitted 11 million diesel vehicles
worldwide with software to make them
appear less polluting.
August 2021 20
EVs to be
vehicles by 2027
Electric vehicles (EVs) will be cheaper to
produce compared to fossil fuel-powered
vehicles by 2027, according to a study
A drop in the cost of making batteries will
make EVs cheaper to buy, while stricter
emissions regulations could enable them to
take a sizeable chunk of the market share
within the next decade.
The manufacturing costs of larger vehicles
such as electric sedans and SUVs will be as
cheap as that of gasoline and diesel models
by 2027, with small cars reaching the
threshold the following year, according to
a study by Bloomberg New Energy Finance
Electric vehicles reaching price parity
with the internal combustion engine is a
significant step in the worldwide transition
away from conventional burning fossil
fuels. The decreasing production costs of
batteries and dedicated production lines
in carmakers’ plants will make electric
vehicles cheaper to buy than conventional
cars within the next six years, even before
any government subsidies, BloombergNEF
found.On average, the current pre-tax
retail price of a medium-sized electric car
is 33,300 euros ($40,133.94) compared
to 18,600 euros for a gasoline car, while
both are expected to cost about 19,000
euros in 2026.By 2030, an electric vehicle
is estimated to cost 16,300 euros before
tax, while a gasoline car would cost 19,900
euros. Forecasters are in agreement that
the cost of new batteries will continue to
fall in the coming years.
New battery prices will decrease by
58% throughout this decade to $58 per
kilowatt-hour, the Transport&Environment
A reduction in battery costs to below $100
per kWh is viewed as a key milestone
towards the greater proliferation of electric
vehicles while it would also mitigate the
financial appeal of hybrid models, which
combine a battery with a conventional
Despite the coronavirus pandemic, electric
vehicle sales boomed in 2020, the first
year in which European consumers bought
more than half a million electric cars, and
the global sales in the first quarter of 2021
were 2.5 times higher year-on-year.
Germany is by far the biggest single
market for battery-electric cars in Europe,
with 64,700 sold in the first quarter.
That performance was helped in part
by generous subsidies to help its auto
industry. Norway in 2020 was the first
country in the world where more electric
cars were sold than fossil fuel cars, thanks
to generous subsidies.
The United Kingdom became the second
largest electric vehicle market in the first
quarter of 2021, surpassing France. Battery
electric comprised 7.5% of U.K. sales in the
first three months of 2021, almost doubling
the market share compared with the same
period in 2020.
While new emissions rules partially
enabled the rise in sales, environmental
campaigners are calling on governments to
introduce tougher regulations.
The U.K. government plans to ban the sale
of new fossil fuel vehicles from 2030, while
European companies have called on the
EU to set 2035 as the end date for selling
The relatively higher previous price of
electric cars was one of the main reasons
preventing more people from buying them.
However, reduced cost is seen as critical to
make them more attractive to consumers.
Increased range and charging infrastructure
would also bolster a higher demand, as is
the case in Norway.
August 2021 22
The rate of domestically produced parts
in the ongoing production of engines that
power the Turkish-built T-70 multi-role
helicopters has surpassed 50%, the head of
Turkish Aerospace Industries’ (TAI) engine
manufacturing subsidiary said.
Mahmut Faruk Akşit, general manager
and CEO of TUSAŞ Engine Industries (TEI),
told that the engines that will power the
T-70 Black Hawk helicopters – based on
the Sikorsky Aircraft S-70i Black Hawk –
are currently being produced in company
facilities in central Eskişehir province within
the scope of the General-Purpose Helicopter
Program (GMHP), one of Turkey’s most
important aviation programs.
Akşit said that within the framework of
the project, the body of the helicopter
was produced by TAI, its engines by TEI, its
avionics by another Turkish defense giant,
Aselsan, and the main gear that turns the
propeller by Alp Aviation.
The T700-TEI-701D engine production
initially started a few years ago and,
according to what Akşit said, they have been
constantly increasing the local utilization
He said they have come to manufacture
almost every part of the engine at the TEI
facilities, including the combustion chamber,
which is the most critical hot zone part.
“We have completed almost all of the
qualification tests. There is a final test, and
when we pass it, we will be able to sell the
combustion chamber to the world market
with a certificate, and if we can make an
agreement with General Electric (GE), we
will be able to sell it to them,” he said.
The company so far has produced 47
domestic helicopter engines of the T700-
TEI-701D type and delivered 36 of them
to TAI. The rest will also be delivered after
completing the qualification tests.
“As of now, we are in a position to
produce an engine almost once a week,”
the company head said. Akşit stated
that producing engines and maintaining
and repairing them require separate
technologies. He emphasized that as TEI
they have both capabilities.
This capability has thrust them into an
important place in terms of the global
market, he said.
“We have become one of the major
maintenance centers for T700 engines in the
world. We also maintain the T700 engines
that we do not manufacture. We have
maintained some Sikorsky engines that care
currently in the fleets of the gendarmerie
August 2021 26
Turkey mulls action plan
on EU green pact to
Turkey’s presidential action plan on the European Green Deal,
which has been on the country’s agenda for a while, was
published in the Official Gazette.
The circular on the “Green Reconciliation Action Plan” was
prepared by the Trade Ministry and ensures the forming of
the “Green Reconciliation Working Group” to monitor the
implementation of the action plan and make the necessary
In the presidential circular, President Recep Tayyip Erdoğan
stated that the “2030 Agenda for Sustainable Development,”
which came into effect with the unanimous vote of 193 member
states, including Turkey, under the umbrella of the United
Nations, aims to end poverty and increase welfare, as well as to
contribute economically and effectively to the global fight against
The president stated that he envisages making it an integral part
of a socially inclusive development model.
The published circular emphasized that policies to combat
climate change have gained momentum in this direction and that
the goal of achieving sustainable economic growth has brought
climate change to the center of international economic and trade
The EU on Dec. 11, 2019, announced that it will adopt a new
growth strategy that will transform its economy with the
“European Green Consensus,” while Erdoğan pointed out that
other leading actors of the international economy should set
targets for the green transformation of their economies in the
The changes envisaged in EU policies with the European Green
Deal hold great importance in line with the transformation in
international trade and the economy, the circular stressed.
It also stated that Turkey’s 2023 development goals in terms
of protecting and improving the country’s competitiveness in
exports, which is the locomotive of the national economy, and its
contribution to the global economy with the advanced economic
integration established within the scope of the customs union
with the EU will be improved.
To overcome climate change and environmental degradation,
the EU deal is set to transform the bloc into a modern, resourceefficient
and competitive economy, ensuring net-zero emissions
of greenhouse gases by 2050 and economic growth decoupled
from resource use.
All 27 EU member states committed to turning the EU into the
first climate-neutral continent by 2050 and, to achieve this
goal, they pledged to reduce emissions by at least 55% by 2030,
compared to 1990 levels.
The action plan will contribute to Turkey’s transition to a
sustainable, resource-efficient and green economy, while
providing a road map to adapt to the changes included in the
EU pact, “in a way that will preserve and further the integration
provided within the scope of the EU Customs Union with Turkey.”
Meanwhile, to assist the Working Group, specialized working
groups can also be formed in case of need that would include
universities, nongovernmental organizations (NGO), professional
associations and representatives of the private sector.
August 2021 27
Ford Otosan CEO Haydar Yenigün
EBRD, Ford Otosan charge
ahead with big EV lending
The European Bank for Reconstruction
and Development (EBRD) is supporting
the production of a range of next
generation all-electric and plug-in hybrid
variants of one-ton commercial vehicles
for the European market by arranging
a 650 million-euro loan to Ford Otosan,
US automaker Ford’s joint venture with
Turkey’s Koç Holding, according to a
statement from the bank on July 14.
The financing, shared by the EBRD
and commercial lenders, is part of the
bank’s drive to fund the green transition
and supports Ford’s aim of leading the
electrification of the automotive industry
for a climate-friendly, more sustainable
future, said the statement.
Ford Otosan is Europe’s leading commercial
vehicle manufacturer. It announced in
March that it will open the first integrated
electric vehicle (EV) factory of Turkey in
the industrial Kocaeli province in 2022 to
manufacture new-generation commercial
vehicles and batteries. The investment
worth 2 billion euros ($2.4 billion) is
expected to produce 3,000 direct and
15,000 indirect jobs at the first phase of the
factory, according to the firm.
The financial package consists of a 175
million-euro loan for the EBRD’s own
account and 475 million euros in debt
syndicated to other lenders under the
bank’s A/B loan syndication structure.
Participating lenders include Akbank AG,
Bank of China, BNP Paribas, Emirates
NBD Bank, Green for Growth Fund, HSBC,
Industrial and Commercial Bank of China,
Mediobanca, MUFG, QNB and Société
EVs are seen as key to the future of
transport, as more and more governments
move to decarbonise the industry to speed
up reductions in greenhouse gas emissions
and combat climate change.
The new one-ton Ford Transit Custom will
be launched in the first half of 2023. The
battery-powered EVs and plug-in hybrid
variants will substantially reduce harmful
emissions, promoting a more climatefriendly
Arvid Tuerkner, EBRD Managing Director
for Turkey, said: “Electric vehicles are
a promising step towards lowering
greenhouse gas emissions from the
transport sector and I am pleased that
the EBRD is able to support Turkey in
becoming a European hub for commercial
EV production, bringing in know-how,
producing jobs and promoting a lowcarbon
economy. I am also delighted that
we were able to attract sizeable financing
from commercial lenders, reinforcing
our commitment to mobilising private
investment for global priorities.”
Ford Otosan CEO Haydar Yenigün said:
“As Ford Otosan, the leading commercial
vehicle manufacturer in Europe, we
are proud to sign one of the biggest
financing agreements in the automotive
sector with the EBRD within the scope
of our largest automotive investment in
Turkey, as previously announced. With
this strategic investment, as the country’s
leading exporter, not only of vehicles but
also engineering and technology for many
years, we will have the opportunity to
work on advanced technologies that will
contribute to the national economy and
produce more sustainable products for a
Turkey exported more than 900,000
vehicles to 180 countries across five
continents last year and the automotive
industry’s exports in 2020 exceeded $25
billion amid the COVID-19 pandemic.
Ford Otosan generates 25 percent of
Turkey’s total automotive production and
exports, and it employs 12,500 people
currently. Previously, the firm produced
Turkey’s first electric commercial vehicle
- Custom PHEV. The EBRD is a leading
institutional investor in Turkey and, to date,
has invested more than €13 billion in the
country through 341 projects, with 96 per
cent of those in the private sector.
August 2021 28
72% in first 5
months of 2021
Turkey’s automobile and light commercial
vehicle market grew by 72% in the
January-May period compared to the
previous year, official data showed.
According to data from the Automotive
Distributors Association (ODD), the sector
sold 314,882 units during the first five
months of 2021, a marked improvement
over the 183,095 units sold in the first five
months of last year.
Automobile sales increased by 69.2%
year-on-year in the five months this year
to 247,977, while light commercial vehicle
sales jumped by 83% to 66,905 units.
In May, a total of 54,734 vehicles were
sold. The figure, which was 32,235 in May
2020, revealed that the automobile and
light commercial vehicle market grew by
69.8% in May alone.
May automobile sales, when compared
to the same month of the previous year,
increased by 72.1% to 43,138 while the
light commercial vehicle sales increased by
61.9% to 11,596.
According to the average sales figures for
the last 10 years in May, however, this
year’s automobile and light commercial
vehicle market sales shrank by 20.7%,
with an 18.2% drop in the automobile
market and a 28.6% drop in the light
commercial vehicle market. Vehicles in
the A (minicompact), B (subcompact)
and C (compact) segments with low tax
rates constituted 85.8% of the overall
Compact cars had a share of 55.5% with
137,711 units while subcompacts held a
29.6% share with 73,364.
When evaluated according to body types,
it was revealed that the most preferred
body type in the automobile market was
sedans with a share of 41.6% and 103,259
units sold. SUVs and hatchbacks followed
sedans with a 33.9% share and 83,949
sales, and with a 22.5% share and 55,760
sales respectively. In the first five months
of the year, a total of 157,822 gasolinepowered
cars were sold accounting for
a 63.6% share, which was followed by
diesel cars with a share of 23.6% and
sold units of 58,445. Hybrid cars’ share
in the total market was 7.8% and a total
of 19,457 hybrid cars were sold in the
first five months. Autogas (also known as
liquified petroleum gas or LPG) car sales
recorded a share of 4.7% and 11,636 units.
Meanwhile, some 617 electric cars were
also sold in the market in the January-May
period. In terms of engine volume, sales of
cars under 1600cc increased by 61.4% to a
share of 90.4%, sales of cars in the 1600-
2000cc range increased by 4.8% to a share
of 1.2% and sales of cars over 2000cc
increased by 143.5% to a share of 0.3%.
According to the emission levels of the
automobile market, cars between 100-120
g/km had a share of 36.8% with 91,330
units, and automobiles between 120-140
g/km had a share of 32.3% with 80,080
units. The measurement of g/km shows
how many grams of carbon dioxide a car
generates per kilometer driven.
August 2021 30
A supplier to many automobile
brands, Coşkunöz Metal Form
will be a role model for the entire
automotive industry with its zero
waste operations through generating
its own energy.
Manufacturing dozens of components such
as doors, hood covers and chassis that form
the body of an automobile, Coşkunöz Metal
Form is the supplier to many renowned
automobile brands. The brand, which gives
importance to issues such as going green
and zero waste through production, is
committed to becoming a role model for
the entire industry. Informing us of many
details on export and R&D studies, Barış
Murat Karaadak, the GM at Coşkunöz Metal
Form, underlines that Turkey is the country
that the global automotive industry is in
Would you talk a bit about the foundation
of Coşkunöz Metal Form?
The foundation of Coşkunöz Holding dates
back to 1950 by M. Kemal Coşkunöz,
(aka, Kemal, the teacher). Today,
Coşkunöz Holding’s main field of activity,
the automotive supply industry, took
place in the early 60s with the start of
manufacturing steel profiles from sheet
metal. In 1966, Coşkunöz Metal Form’s
factory in Bursa was founded. Coşkunöz
Metal Form, which started operations in
1968, is obviously the flagship of Coşkunöz
Holding. Coşkunöz Metal Form is the
supplier to many automobile brands such
as Ford, Renault, Nissan, Dacia, Hyundai,
Honda, Volkswagen, Mercedes Benz, Türk
Traktör and Stellantis (Fiat, Peugeot and
GM). On the other hand, we strive hard to
becoming a reliable and strategic solution
partner in the global arena.
General Manager of Coşkunöz Metal Form
How about your manufacturing capacity
and the technology benefited?
We manufacture dozens of components
that make up the body of a car, like doors,
hood covers, chassis, exterior and body
sheet metal parts, fuel tanks, glove box
cross members, rear axles, engine cradles,
swinging arms, simply all parts related to
chassis. Over 1,200 people are employed
in our company, which has a closed area
of 60000 sqm. We process 120 thousand
tons of steel per year as raw material. This
amount marks quite something in our
sector. Coşkunöz Metal Form is one of the
market leaders, manufacturing pressed
sheet metal parts for the automotive
industry. In the meantime, we work
either directly or indirectly with almost
August 2021 32
all the original automotive equipment
manufacturers (OEMs), both internationally
Are you planning on new investments?
We have a factory construction that is
solar-powered. We believe the factory will
be a role model, because we want it to fully
operate on solar energy, which will serve
our aim to go fully green.
What does it take for a factory to be
categorized as ‘green’?
First off, we plan to use solar energy. I’m
talking about a factory that is solar-walled,
with the roof covered with solar panels to
generate the energy needed. We already
use some technical features such as heat
pump on the ground. We are determined
to build a green factory by increasing
the capacity of those technologies and
integrating potential others that we do not
have in the factory. The goal is to recycle as
much energy and heat you have emitted as
possible. To be able to do that, you need a
design that is precisely made. If one designs
products using excessive and unnecessary
raw material, it not only harms the nature
but also leads to the depletion of world
resources. Whatever we need in nature is
in abundance. We just need to do our full
share of work and ask of nature for only
what we need for production.
There is a fast-paced change in the sector,
in favor of electric vehicles. How do you
think you will be keeping up?
To be honest, the automotive industry
undergoes a major transition in terms of
production. Of course, change is inevitable,
but no matter what, cars must have a
body, a skeleton, and that’s what we do…
We manufacture what is needed. In the
meantime, different products are on our
agenda, like aluminum high-strength steels,
battery carriers for new-generation cars.
As the use of electric vehicles is increasing,
we are considering AL Battery Carrier,
which will surely make a difference in our
product portfolio in line with our strategies
and developmental goals. We will deal
more with value-added products such as
chassis parts that require more assembly
and labor. In that regard, we carry out our
R&D studies with a team of 80 people, with
a budget of approximately 4 million Euros
Where do you think Turkey is in terms of
this very industry?
Our sub-industry is really strong. We
also have no issues in terms of about
our all personnel. As a country, we have
everything to prepare the meal, so to
speak. I think we should focus more
on software, because in the future, the
software, which is 40% on vehicles now,
seems to increase and vehicles will turn
into robots. We should not miss the train.
To conclude, there is a great need to our
country for this sector in terms of suppliers,
infrastructure, quality and workforce.
Europe needs our resources. We should
take advantage of the situation.
You have been honored with several
awards from MESS (Turkish Metal
Industrialists’ Union). Can you tell us
about what they were for and their R&D
We have been granted with 3 awards
in return for our 3 R&D projects, which
are ‘Human Detection Using Artificial
Intelligence in Press Lines’, ‘Ceiling Crane
Centering Laser Sensor’ and ‘Automatic
Labelling’. Thanks to our R&D studies,
we have developed a system to identify
human and human limbs by using cameras
supported by artificial intelligence. That’s
how we ensured that the press would stop
automatically for all the potential risky
combinations. The other one is that we
developed an automatic device, suggested
by our operators, to reduce the physical load
the operators had to undergo. That’s how
we have managed to minimize the load for
the staff doing sheet marking process. We
prioritize the goal of zero error by constantly
handling all the production processes in
terms of occupational health and safety.
33 August 2021
How would you comment your export
activities and engagements abroad?
As was mentioned, Coşkunöz Metal Form is
the supplier to several automobile brands.
We are one of the largest 100% domestic
companies in its field in Turkey. Our indirect
export is nearly 80%, 25% of which is
We have stepped up the gas pedal to
establish strategic collaborations through
project partnerships in mass production
and automotive mold production across
the automotive markets in Europe,
North Africa, American Continent, Turkic
Republics and Russia in line with our goal
of becoming a globally reliable solution
We began our first investment abroad
in Russia in 2012 to realize our aim of
becoming a global business partner. We
manufacture for Stellantis (Peugeot-
Citroen), Kamaz, Aurus as well as Ford
Sollers, through Coşkunöz Alabuga, one
of our holding companies operating in the
Tatarstan Special Economic Zone Alabuga.
As Coşkunöz Alabuga, we are very proud
to have undertaken the body production
of their first luxury-class, domestic cars
and the Aurus vehicles used by President
Putin himself. With our Alabuga Company,
we are to manufacture all molds and serial
sheet metal parts for limousine, SUV, MPV
models of Aurus. We made our second
investment in Russia in 2016 in partnership
with PJSC MMK Group of Companies, one
of Russia’s largest steel manufacturers.
MMK Coşkunöz Alabuga became the
first company in the region that provides
automobile manufacturers with pressed
sheet body parts. Coşkunöz MA,
established in Romania, whose investment
was completed last year, manufactures
pressed and assembled sheet metal parts
for Renault and Dacia using cold forming
and rollform technologies.
Turkey’s automotive production and
exports posted a strong rebound from
January through May, data showed,
following a dramatic drop a year ago due to
the coronavirus pandemic.
The output, including light commercial
vehicles, tractors and automobiles,
amounted to 532,441 units in the
five-month period, marking a 28.2%
year-on-year increase, the Automotive
Manufacturers Association (OSD) said.
Many Turkish factories halted operations
last March, soon after the first COVID-19
infection was recorded.
After a strong economic rebound in the
second half of 2020, new virus-related
lockdowns were adopted in recent months
but did not affect production.
The automotive production last year
narrowed by 11% versus 2019 and
decreased by 34% year-on-year in the first
While the sector surpassed 2020 figures,
it has yet to reach 2018 and 2019 figures,
when production stood at 712,022 and
625,946 units, respectively.
Passenger car production also soared by
22.7% to 353,580 in the same period.
On the sales side, the auto market,
including light trucks and other vehicles,
expanded by 73.8% compared to the same
period last year, reaching 328,679 units in
the first five months of this year.
Automotive industry exports soared by
37.3% to $12.29 billion (TL 102.9 billion)
during the same period. The sector’s
exports also increased by 18% to reach
391,070 units on a quantity basis year-onyear
in the January-May period.
In May, the automotive output, including
all types of vehicles, increased by 31.2% on
a yearly basis to reach 82,860 units.
Exports surged by 16.8% to 51,873 units
on a quantity basis and by 61.4% to $1.9
billion on a value basis versus the same
month last year, the data showed.
Turkey imposed curfews, weekend
lockdowns and restaurant closures in
December but manufacturing and the
broader economy were unaffected.
Some of the restrictions were eased
in March before a full lockdown was
reimposed at the end of April due to
surging COVID-19 cases.
The country has been gradually easing
measures since mid-May.
August 2021 38
100% ‘Made in
buses ready for
Turkey’s first 100% locally-manufactured
and fully electric bus, Avenue EV is
ready for mass production, one of the
manufacturers said in a statement.
The vehicle will be jointly produced by
Turkish automotive company Temsa – a
venture of Sabancı Holding and the
Netherlands-based PPF Group – and
Turkish defense giant Aselsan.
As part of an agreement between the
two manufacturers, the Avenue EV, the
first domestic electric bus of the Turkish
automotive industry, will be equipped with
Aselsan’s electric traction systems.
Avenue EV, which was locally designed
by Aselsan and developed with an
environmental perspective considering
global needs, can reach a full charge in
15 minutes thanks to its short charging
feature. It can travel 80 kilometers (59
miles) on single charge and can provide 24-
hour uninterrupted service with short-term
charging at stops.
The environmentally friendly bus, with zero
carbon emissions and an electric traction
system, is also a silent, comfortable, highperformance
vehicle and equipped with
the latest technology.
Some components of the vehicle, such as
the electric motor, traction inverter, main
computer and the instrument panel, which
were usually imported from abroad by
Turkish companies before, were designed
and manufactured locally by the defense
giant, giving Avenue EV the highest
localization rate in Turkey’s automotive
Temsa CEO Tolga Kaan Doğancıoğlu
said, Temsa has been making a series of
investments in electric vehicles, smart
vehicles and autonomous vehicles with the
vision of “Smart Mobility” for a long time.
The transformation produced by electric
vehicles, which depend on sustainable
energy sources, is critical for them.
“We are proud of where we are today,”
he said, adding that they are “happy to
have the Avenue EV, a high-performance,
efficient and environmentally friendly
electric bus developed as part of Temsa’s
vision with Aselsan’s technological knowhow
and is ready for mass production.”
The project, which was launched in 2015,
is a historical step for both the country and
the industry, as well as being a big move
in terms of supporting and encouraging
domestic and technology, Doğancıoğlu said.
“At Temsa, we will continue to have a say in
every field of electrification in the future,”
For his part, Aselsan Deputy General
Manager Ibrahim Bekar said the company
has transferred its proven defense sector
knowledge and experience, like commandcontrol,
power electronics, engine control
and mission computer systems, to the
electric vehicle sector with this project.
Emphasizing that they set out with the aim
of contributing to the country’s economy
with products with high added value,
Bekar said, “We have developed Avenue
EV, a high-tech product that is suitable for
Bekar said that adding value to the country,
the environment, business partners and
employees in every field they operate in is
their top priority.
“We are proud of this successful
cooperation with Temsa, which is among
the most important players in the
automotive industry, and have the same
approach as us,” he said.
August 2021 40
union to work for
both Turkey and EU
Turkey once again reiterated the view
that an expanded European Union-Turkey
Customs Union deal with its largest market,
Europe, would be in the best interest of
Launching negotiations to update its
content offers a set of fresh opportunities
and would carry even further the
commercial and economic relations
between Turkey and the EU, Trade Minister
Mehmet Muş said, following his visit to
“Updating the customs union is
economically beneficial for both Turkey and
the EU. Everyone agrees here,” Muş told
His remarks came after he met with the
EU’s trade commissioner and European
Commission vice president, Valdis
Dombrovskis, and EU Commissioner for
Economy Paolo Gentiloni.
“We held very fruitful negotiations in which
we discussed trade and economic relations
and the positive agenda between Turkey
and the EU with the two most important
names responsible for the economy and
trade of the EU,” the minister said.
The host of disagreements between
Ankara and Brussels over recent years
has been stalling the negotiations for the
modernization of the customs union. A
deeper 1990’s-era trade agreement would
be expanded to services, farm goods and
The customs union expansion would bring
Turkey, an EU candidate for membership
of the bloc, fully into the internal market
of the world’s largest trading bloc, allowing
almost all goods and services to flow
Trade Minister Mehmet Muş (L) and EU
Commissioner for Economy Paolo Gentiloni
elbow bump as they meet in Brussels,
Belgium, June 14, 2021.
Muş said making the deal suitable for
today’s commercial and economic
conditions constitutes an important
element of the positive agenda between
“There are hitches, problems in application.
This is also accepted by the EU,” the
minister said. “The process of updating
the customs union will further improve
relations between Turkey and the EU in
the trade and economic area, offering
economic benefits for both sides.”
He emphasized that challenges brought
along by the coronavirus pandemic, as well
as the uncertainties in the global trade and
economy in recent years have showcased
a larger-than-ever need for Turkey-EU
cooperation to be developed based on
Following a turbulent year in 2020, Ankara
and Brussels have been voicing their
intent to readjust relations and return to a
positive track in bilateral ties.
Yet the process remains highly fragile. EU
leaders declared in March that they are
prepared to boost trade and extend a 2016
migration pact with Ankara, but warned of
sanctions if Turkey resumes what the bloc
perceives as “illegal” energy exploration in
the Eastern Mediterranean.
EU member states Greece and the Greek
Cypriot administration have been clashing
with Turkey over maritime boundaries
and natural gas reserves in the Eastern
Turkey, the country with the longest
coastline on the EasterMediterranean,
has sent drillships with a military escort to
explore for energy on its continental shelf
to enforce its and the Turkish Republic
of Northern Cyprus’s (TRNC) rights in
the region.rance, Greece and the Greek
Cypriot administration have bee the biggest
advocates of taking a hard line against
Turkey, yet other EU states led by economic
powerhouse Germany have leaned toward
a more diplomatic approach so far.
Following their latest summit in late March,
EU leaders said that their experts can work
on a mandate for the modernization of the
Trade Minister Mehmet Muş
customs union. No major breakthrough has
been disclosed yet.
EU leaders are to gather again in Brussels
June 24-25 and Muş said Ankara expects
it to yield a positive outcome, particularly
regarding the customs union.
Muş noted that during his talks, there was
a strong determination on the EU side to
further develop economic relations with
“The future of economic relations with our
country will be discussed at this summit,
among others. During these contacts held
before the summit, we observed that
there is a consensus on the importance of
strategic cooperation between the EU and
our country and that it is in the interest
of both Turkey and the EU to establish a
positive agenda,” the minister said.
Turkey is the only non-EU country with
a customs union agreement with the
bloc. The deal was struck in 1995. In its
Dec. 21, 2016 assessment, the European
Commission proposed revamping the deal.
The current customs union agreement
only covers a limited range of industrial
products and excludes agriculture, public
procurement, e-commerce and services.
The inclusion of these sectors is estimated
to lift bilateral trade between Turkey and
the EU to over $300 billion, a substantial
increase from the current $165 billion.
Muş further noted that it is in the interest
of both sides to work together and
cooperate in solving global and regional
In terms of diversifying and strengthening
global supply and value chains, the minister
said Turkey is the “most important partner
for the EU with its production and export
capacity, dynamic economy and strategic
“A stronger Turkey-EU integration provides
important opportunities for strengthening
supply chains in our region and further
increasing their competitiveness,” he
August 2021 42
Many Turkish factories temporarily halted
operations last year, soon after the first
COVID-19 infection was recorded.
Turkey has been gradually easing
coronavirus restrictions since mid-May
after the end of a so-called “full lockdown”
from which millions of workers and tourists
A partial lockdown in mid-April was
extended to a nearly three-week stay-athome
order after daily cases hit a record
high of more than 63,000. In the most
extensive relaxation since the beginning of
the pandemic, the nation has eased nearly
all restrictions on businesses and events,
and lifted nighttime and Sunday curfews
as new infections remain steadily below
record high levels registered in April. The
rise through June could be attributed to the
fact that Turkey’s virus-related lockdowns
adopted this year did not affect production.
The automotive supply industry’s foreign
sales soared nearly 50% from a year ago
to around $1.1 billion in June, the OIB
data showed. Exports to its top market,
Germany, were up 83% year-on-year, in
addition to increases of 115%, 28%, 73%
and 77% in sales to Italy, France, the U.S.
and Russia, respectively.
Automobile exports were down 22% yearon-year
to $609 million, driven by a fall in
sales to France, Germany, Slovenia, Israel
and Belgium of 32%, 48%, 40%, 64% and
72%, respectively. Sales of motor vehicles
for transporting goods surged 74% to $454
million, lifted by a 319% increase in exports
to the U.K., as well as 129% and 202%
increases in shipments to France and Italy.
Bus-minibus-midibus sales dropped 24.5%
to $87 million, driven by a noteworthy fall
of 70% in exports to Germany, and a 97%
drop in Morocco. Yet, sales to Hungary and
France posted a 712% and 80% increase,
August 2021 44
The World Bank has raised its growth
projection for the Turkish economy by 0.5
percentage points to 5 percent for 2021.
“In Turkey, following three years of
subdued growth amid recurring financial
market pressures and the COVID-19 crisis,
growth is projected to rise to 5 percent
in 2021, as exports benefit from firming
external demand, particularly in the euro
area,” the bank said in its latest Global
Economic Prospects report on June 8.
“The expansion is then set to moderate
to 4.5 percent in 2022, with activity
supported by a gradual pick up in domestic
demand,” it said. The forecast masks
growing vulnerabilities, read the report,
adding: “Economy’s vulnerabilities include
reoccurring COVID-19 outbreaks and a
slowdown in vaccination progress, weak
international tourism, sharp tightening
of external financing conditions, and a
recent rise in policy uncertainty, especially
about monetary policy.” The World Bank
also increased its global economic growth
forecast to 5.6 percent for this year, up
1.5 percentage points from its previous
forecast. The bank forecast the global
economy will grow by 4.3 percent next
year and 3.1 percent in 2023. As the global
economy contracted 3.5 percent in 2020
due to the pandemic, the world is expected
to see the strongest post-recession pace in
80 years, said the bank.
“The recovery is underpinned by steady but
highly uneven global vaccination and the
associated gradual relaxation of pandemiccontrol
measures in many countries, as well
as rising confidence,” it said.
The rebound will mainly come from major
economies such as the United States (6.8
percent) and China (8.5 percent).
The GDP in the eurozone is expected to
increase by 4.2 percent this year, the bank
August 2021 46
4G patent deal
for VW cars
China’s tech giant Huawei has struck
a patent deal allowing the use of its
4G technologies in connected vehicles
manufactured by Volkswagen Group, the
firm said. The deal is its largest yet in the
automotive industry, it added.
It comes as the company moves
aggressively into intelligent vehicles and
other new sectors after U.S. sanctions
imperiled its traditional network
equipment and smartphone business lines.
Huawei did not provide financial terms
or identify the VW supplier but it said
the agreement included a license under
Huawei’s 4G patents which covers
Volkswagen vehicles equipped with
VW later released a statement which
said: “We welcome that a leading ICT
(Information Communication Technology)
company has granted one of our suppliers
a license to standard-essential mobile
“This licensing in the supply chain is
a model of how the increasingly close
cooperation between the mobility industry
and the information and communications
industry can succeed.
“Branding Huawei a security threat, the
United States has barred the company from
the huge American market, cut it off from
global supply chains, and pressured allies
to ban or remove Huawei gear from their
national telecoms systems.
Huawei has denied the accusation and
said no supporting evidence has ever been
provided by the United States.
In response, the firm, the world’s largest
supplier of telecom networking gear and
formerly a top-three smartphone supplier,
has pivoted to other business segments for
survival. Besides supplying technologies
to manufacturers of intelligent cars, it has
tipped plans to move into the software
sector, as well as enterprise and cloud
computing. It also launched its own
homegrown mobile operating system after
U.S. sanctions barred it from using Google’s
Android system on its smartphones.
August 2021 48
Murat Barın, the CEO at Vector Otomotiv
Exporting bellows, boots and relevant
spare parts for heavy vehicles and
automobiles for more than 40 years,
Vector Otomotiv is committed to focus
more on its operations in 120 countries.
Vector is determined to exceed previous
year’s sales and get in contact with more
countries each year. Taking advantage of
the notorious pandemic period by working
ever harder, the company exceeded the
export figures in that period and finalized
the year with records.
Murat Barın, the CEO at Vector Otomotiv,
told us about their export activities and
their strategic plan of actions on target
Can you tell us about your company’s
main engagements, services you offer for
the automotive sector and product range?
Vector Otomotiv Ticaret A.Ş. (Inc.) was
established in 1981 in Istanbul, the export
capital of Turkey.
With our expertise of more than 40 years,
Vector Otomotiv Ticaret A.Ş. exports
bellows, boots and relevant spare parts for
heavy vehicles and automobiles to more
than 120 countries.
We mainly work in close cooperation with
Turkish manufacturers, provide them
with mandatory audits of all our partners,
and bring our manufacturers and clients
together to finalize supply and demand for
the best interest of both parties.
With the experience we have gained over
the years, we have been honored with
numerous awards so far. We are among the
exemplary and pioneering companies of
our sector both in and out of our country.
We’re pleased to have added a new one
to those achievements, the “2020 Bronze
Our company offers a wide range of
products such as air springs, shock
absorbers, leaf springs, V-Arms, brake
boots, rods, compressors, brake discs,
filters, clutches center, headlamps for
heavy vehicles, clutch pads, axle repair kits.
What’s the percentage of your export
performance within your overall sales?
What about your additional goals
regarding potential markets?
We export all that we manufacture. Today,
we are proud that we export to more than
120 countries on all continents. As for our
target for 2021, it certainly is to increase
our share in the target markets where we
How have you been affected by the
pandemic? Have you observed any
changes or diversions in your current
The pandemic severely disrupted proper
functioning of global supply chains. The
August 2021 50
automotive sector was also adversely
affected. As of March 31, 2020, global
automotive industry almost came to a
standstill due to the fact that 80% of the
world’s supply chain volume was to and
The uncertainty of the first two months of
the pandemic all over the world caused our
company’s export sales to follow a negative
course during the first quarter of 2020.
Afterwards, things came back on track and
we managed to exceed our export figures
in previous years and finalized the year
Thanks to the fact that our technological
infrastructure is easily adjustable to
working online, we were able to adapt to
the process quickly. We were one of the
first companies that initiated home office
working. As Vector Otomotiv, we had the
chance to implement our clients’ demands
and expectations without any disruption,
as we believe permanence of business
processes was one of the main factors that
made the difference during pandemic.
That’s what we are proud of.
A lot of companies focused on
digitalization to meet with potential
buyers as fairs were canceled due to the
pandemic. How did you manage your
business during the pandemic? How and
how much did you get digitalized?
Vector Otomotiv has a proactive course
of action that closely keeps track of each
and every technological, scientific and
sociological development, thanks to
its innovative corporate structure. The
importance we attach to digitalization
dates back to the pre-pandemic period as
we are aware that over time, the global
demand for digitalization will be sectorbased.Thanks
to our profoundly-equipped
infrastructure and solid network, our
company had already been prepared for
crises like the pandemic. We were able
to follow all processes such as receiving
orders, tracking stocks, manufacturing
steps and shipment through our system
and make instant notifications to our
clients. In terms of digital transformation,
we acted in favor of our customers. As a
result, we received very positive feedback
in terms of customer satisfaction.
What have you been up to regarding
2021? Are you planning to take part in any
local or international fairs?
Our immediate plans are to grow, to
increase our turnover, to expand our
product range, to improve customer
services and to open up to new regional
markets. We are capable of delivering our
products to the address on the right date,
thanks to our fast and diversified shipping
Another piece of our plan for 2021 is to pay
visits to our existing overseas customers
and to pursue potential customers
The logic of international trade justifies
that fairs are significant for businesspeople
to reach the right market, the right
customer and the right product. For this
reason, Vector Otomotiv pays attention to
being active parts of fair organizations. We
participated and are committed to further
participate in Automechanika that has been
held in many parts of the world so far. We
aim to take part in Aapex Fair, one of the
largest fair organizations, which will be held
in 2021 in LA, USA.
Have you got anything you’d like to
highlight in the news?
We are focused to exceed our sales in new
markets compared to the previous year, in
line with our targets this present year.
What makes Vector Otomotive stand out
is to be employing qualified personnel and
providing clients with quality and reliable
service. All those positive qualities enabled
us to get out of the pandemic crisis with
advantages, let alone suffer.
51 August 2021
out all cars but
electric by 2030
Henrik Green, Volvo’s chief technology officer (CTO)
Swedish automaker Volvo said that it will
make only electric vehicles by 2030, but
the customers will have to purchase the
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
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
“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.
August 2021 54
Alican Mutluşan, Export area manager of UCM Company
UCM Automotive stands for
variety and quality in spare parts
for truck and buses
UCM Company aims to provide and
produce various required goods by the
automotive industry. Export area manager
Alican Mutluşan introduced his company
and their success story.
“Our Company was founded by Ali
Mutluşan in 1976 on Millet Caddesi in
Istanbul as Şan Ticaret in order to market
Deutz parts. Till 1990, we imported parts
from Yugoslavia where many Germen
automotive industry companies like Iskra
- Tam - Torpedo - Papfeda Tesanj - Ricard
Benciç and Fap Famous were based.
Because of civil war in Yugoslavia in 1991,
we began to export parts instead of
importing parts from this country where
the production stopped because of the war.
In 1993, we founded Ucem Company
and began to produce gaskets for famous
companies such as Deutz - Man - Mb -
Volvo - Scania -Renault - Iveco according to
the German quality standards.
In 2007, we moved to our current factory
with 6,000 sqm closed area where we
increased the production capacity and
raised our quality by using auxiliary
products and raw materials like Victor
Reinz, Dph, Fisher, Plath, Frenzelit, Carteco
etc. In 2011, we registered our brand Euro
Gasket so that we could produce for world
market by raising day by day quality of our
gaskets especially according to European
heavy vehicle OEM quality standards.
In addition, we supplied our products
under trademark Euro Truck to world
market as a product of the Turkish
automotive industry, which has an
important place in world market according
to the demands of our customers.
We produce to fit Daf, Deutz, Iveco, Man,
Mercedes, Renault RVI, Scania, Volvo, ZF
brands productions. For instance; full set
gasket, conversion set, head set gasket,
cylinder head gasket, oil pan gasket, turbo
gasket and compressor gaskets.
On the other hand we sell for Deutz FL
413/FL 513 FL511, FL912, FL913, FL914,
FL1011, BFM 1012, BFL/BFM 1013, BFM
1015, BFM/TCD 2011, BFM/TCD 2012,
BFM/TCD/TCG 2015, Tractor parts.
We supply for Meco Diesel brand and
Daf, Iveco, Man, Mercedes, Renault RVI,
Scania, Volvo, for these engines Eurotruck
brand for instance bearings, piston ring,
piston, cylinder linet, valve guide, tappet,
crankshaft, flywheel gear, oil pump, water
pump, bolts, switches, etc..
Our Gasket production factory is located in
Büyükçekmece, Istanbul. We plan to buy
new injection press and laser cutting at the
same we buy new OEM samples. We will
think to produce new products.
Our factory is in Büyükcekmece Istanbul
but our call center and showroom are in
Ikitelli Dolapdere 20th industry area. Our
location is very close to other sellers and
the factory in Buyukcekmece is not far from
Muratbey Customs. Turkey is in the center
of world transportation. So, we change
disadvantageous to advantage by our
location. We attend Istanbul and Frankfurt
Automechanica fairs every year. We want
to participate in Automechanica Moscow
and Automechanica Shangai as well.”
August 2021 56
to EU top $40
bln in first half
Turkish Trade Minister Mehmet Mus
Turkey’s exports to EU countries this January-June soared 42 percent on a yearly
basis to reach $40.86 billion, according to official figures.
The country’s overall exports were up 39.9 percent to $104.98 billion in the same
period, according to data compiled by Turkish Exporters’ Assembly (TİM) figures.
The main sectors in exports to the EU during the first half of the year were
automotive ($9.5 billion), apparel ($5.65 billion), chemical ($4.77 billion), and
steel ($3.27 billion).
The EU’s share of Turkey’s exports in the six-month period was 38.92 percent.
Germany was the main destination for Turkish exports over the same period with
$1.57 billion, a jump of 33.2 percent on a yearly basis. İsmail Gülle, head of the
exporters’ group, said the country also reached $8.2 billion in exports to the EU,
up 49.4 percent on an annual basis. Thanks to Turkish Trade Minister Mehmet
Mus’ critical meetings with EU representatives, Turkey’s exports to the union will
continue to rise, Gülle added.
August 2021 58
Türk Eximbank signed a loan agreement
worth 120 million euros ($146.2 million)
with a consortium of international banks,
under the guarantee of the World Bank
Group’s lending arm, the International
Bank for Reconstruction and Development
(IBRD). Including a two-year grace period,
a 10-year term loan was provided by
Deutsche Bank AG, London Branch and ING
European Financial Services PLC, according
to Eximbank’s statement.
The IBRD provided a guaranteed limit
of 250 million euros in June 2020 for
Eximbank, and 190 million euros of this
limit was used in the next month alone.
The remaining 60 million euros were used
for this most recent transaction.
All of these loans will be utilized for the
bank’s sustainability targets, and at least
10% of the total amount will be allocated
towards majority female-owned exporting
companies and private companies
that contribute to women’s labor force
Some 70% of the total loan will also be
used for financing small and medium-sized
Ali Güney, the general manager of
Eximbank, said this 10-year term
transaction during the pandemic is a result
of the trust Turkey attracts in international
Türk Eximbank took steps last year to
enhance international cooperation with
several organizations. In December, it
signed a memorandum of understanding
(MoU) with the Eastern and Southern
African Trade and Development Bank
(TDB), one of Africa’s major regional
financial institutions to promote bilateral
trade with its 22 member countries.
It also focuses on increasing the number
of reinsurance deals to pave the way for
Turkish companies to undertake more
It inked a reinsurance cooperation
agreement with Denmark’s export credit
agency, EKF Danmarks Eksportkredit
(EKF), in August 2020 and Austria’s official
export support institution OeKB Gruppe in
F1 Turkish Grand
Prix could inject
$120M into local
Turkey once again being put back onto this
year’s Formula One calendar – after first
initially replacing Canada, then having that
race pulled, and now replacing Singapore
– has given fresh hope to the country’s
tourism and accommodation sector, as
representatives now expect the event to
bring some 100 million euros in revenue
(TL 1.05 billion), compensating for part of
the country’s earlier tourism losses.
The hotels on Istanbul’s Anatolian side
– where the races will be hosted – are
expected to operate at 100% capacity while
those on the European side are forecast to
have an occupancy rate of at least 50%.
Such a development was the result of
a speedy and successful nationwide
vaccination campaign, which saw a
significant drop in the number of new
COVID-19 cases recently. Müberra Eresin,
the chairperson of the Turkish Hoteliers
Association (TÜROB), said “the cancellation
August 2021 62
of a very important event like Formula 1,
which we expected to lead to a revival in
terms of both the number of tourists and
positive perception, was disappointing.
But we were hopeful that it would be
held in Turkey again. As a matter of fact, it
“Whether it is with or without an audience,
it will give morale to the sector,” she added.
“If there is an audience, it will further
have a positive effect on hotel occupancy,”
Eresin said, adding that this will also
have a positive impact on the meetings,
incentives, conferences and exhibitions
(MICE) industry which organizes
congresses, meetings, fairs and events
“that we did not expect to revive before
the end of the year.”
Hagia Sofia Mansions Curio Collections by
Hilton General Manager Ahmet Arslan,
meanwhile, said that the return of the race
to the country has provided the industry a
Describing F1 as one of the most
prestigious competitions in the world,
Arslan said, “This event makes a great
contribution to the hotels of every
country. Because both the teams and the
technical team go to the place where the
competition will take place about 20 days
before the event. An average of 100 rooms
is reserved for a team. Usually, 5-star hotels
are preferred. Also, many global channels
follow the competition. For example, the
owner of a large company brings the best
30 business partners and welcomes them
to the best hotels, renting helicopters to
the race. This profile spends an average of
5,000 euros in three days.”
Ibrahim Halil Korkmaz, CEO of MOLTON
Hotels, echoed others in the industry,
calling F1 an incredible motivator for the
Explaining that hotels that are currently
closed will open their doors during this
period, Korkmaz said, “with the high
vaccination numbers, we started to see a
movement in the tourism sector. Russian
and German tourists started to flock into
the country, again.”
However, they mostly go to coastal
provinces, so organizations like this one
help metropolis hotels get their fair share
Istanbul was listed in April as a replacement
for Canada’s canceled June grand prix,
only to drop off again due to travel
restrictions, with a majority of the teams
based in Britain.Turkey is on the British
government’s “red list” of countries that
require 10 days of hotel quarantine for
However, organizers confirmed that they
will make a second attempt to hold the
Turkish Grand Prix after adding it as a
replacement for Singapore’s canceled race
in October Singapore’s Oct. 1-3 night race
was canceled earlier this month because
of immigration restrictions related to the
COVID-19 pandemic. Vural Ak, chairperson
of Istanbul circuit operator Intercity who
brought F1 to Turkey last year after a nineyear
hiatus, said that nearly 4,000 race
teams will come to Turkey for the Turkish
Grand Prix, with nearly 450 large trucks and
seven to eight jumbo trucks.
He added that materials will be transported
by jet cargo plane.
“We expect 15-16,000 foreign visitors.
Tourists will stay in the nearby hotels, and if
you take into account their food, beverage
and shopping expenditures, they will have
left a foreign currency income of around
100 million euros to our country,” he said.
The event will be held in Istanbul Park on
Oct. 1-3. Many of the closed hotels in the
metropolis are set to open their doors on
the occasion. The teams are to arrive 20
days before the race to their hotels mostly
located in Tuzla and Istanbul’s Anatolian
side initially, though tourism professionals
say all of Istanbul hotels will get their share
during race week.
63 August 2021
Honda to build
own electric vehicles
as carmaker changes
Although General Motors (GM) will build
Honda’s first two fully electric vehicles (EVs)
for North America, the Japanese automaker
plans to change course and manufacture its
own later this decade.
Company officials say they are developing
their own EV architecture, and after two
GM-made EVs go on sale in 2024, Honda
will start building its own.
“It’s absolutely our intention to produce
in our factories,” Honda of America
Executive Vice President Dave Gardner said,
adding that Honda has developed battery
manufacturing expertise from building gaselectric
hybrids. “We absolutely intend to
utilize that resource.”
Honda and GM have been partners on
hydrogen fuel cell and electric vehicles.
Earlier this year they announced that GM
would build one Honda SUV and one Acura
SUV using its Ultium-branded electric
vehicle architecture and battery system.
The company said the Honda SUV would
be named the Prologue, and that both
SUVs will have bodies, interiors and driving
characteristics designed by Honda.
But after those two, Honda plans its
own manufacturing for most of a series
of electric vehicles, although it hasn’t
determined if it will use GM components.
Gardner says sales projections for the
Prologue are between 40,000 and 150,000
per year, but he didn’t say when those
numbers would be reached.
In April, the company said it plans to phase
out all of its gasoline-powered vehicles
in North America by 2040, making it the
latest major automaker with a goal of
becoming carbon neutral. Honda wants
40% of North American vehicle sales to be
battery or fuel-cell powered by 2030, and
80% of all vehicles sold to run on batteries
or hydrogen by 2035. Honda initially had
planned to meet stricter government fuel
economy and pollution standards by adding
hybrids to improve internal combustion
engines. But regulatory actions across the
world to combat climate change, including
proposals from U.S. President Joe Biden,
have moved the company more toward
electric vehicles, Gardner said.
Battery-electric vehicles accounted for less
than 2% of U.S. new-vehicle sales last year,
but analysts are predicting huge growth as
automakers roll out new models.
The consulting firm LMC Automotive
expects nearly 359,000 to be sold this year,
passing 1 million in 2023 and hitting over 4
million in 2030. Still, that’s roughly onequarter
of annual new vehicle sales.
August 2021 66
Energy and Natural Resources Minister Fatih Dönmez
explore for oil
in East Med
Turkey’s state energy company has applied
for a license to explore for crude oil in
the Eastern Mediterranean, the Energy
and Natural Resources Ministry said in a
statement in the country’s Official Gazette.
According to a map database, the three
areas where the Turkish Petroleum
Corporation (TPAO) plans to carry out the
exploration are in Turkish territorial waters
off the coast of Silifke in Mersin province.
Turkey has been at odds with European
Union members Greece and the Greek
Cypriot administration over energy
resources and jurisdiction in the region,
and tensions flared last year when Turkish
and Greek navy frigates escorted vessels
exploring for hydrocarbons.
Turkey, which has the longest continental
coastline in the Eastern Mediterranean,
has rejected maritime boundary claims
made by Greece and the Greek Cypriot
administration, stressing that these
excessive claims violate the sovereign
rights of both Turkey and the Turkish
Republic of Northern Cyprus (TRNC).
Erdoğan said Turkey had been receiving
“signals of natural gas” in the Eastern
Mediterranean and vowed to continue
defending Turkey’s rights in the region.
“Whatever our rights are, we will take
them one way or another. And we will
carry out our oil exploration operations in
the Eastern Mediterranean, Cyprus, and all
those seas,” he said.
Meanwhile, Energy and Natural Resources
Minister Fatih Dönmez in late May
said Turkey may drill more boreholes
in its search for gas in the Eastern
Turkey has already opened eight boreholes
in the region, the minister had said. While
there were signs of natural gas, there had
been no economically significant discovery.
“Our experts are checking data after
each drill with the seismic data obtained
previously. We could have several more
drills close to the ones (boreholes) where
we see signs of gas,” Dönmez noted.
“Time will tell, but we are hopeful. We
evaluate that there is a potential,” he said.
Three of the eight opened boreholes are
in the areas where Turkey was granted
licenses from the TRNC, Dönmez said.
“The others are in the areas of our own
continental shelf. Seismic studies are also
continuing,” Dönmez noted.
“We have our own rights and interests in
accordance with international maritime
law, and we will make no compromise.”
The island of Cyprus has been mired in
a decadeslong struggle between Greek
and Turkish Cypriots, despite a series of
diplomatic efforts by the U.N. to achieve a
The island has been divided since 1964,
when ethnic attacks forced Turkish Cypriots
to withdraw into enclaves for their safety.
In 1974, a Greek Cypriot coup aiming at
Greece’s annexation led to Turkey’s military
intervention as a guarantor power. The
TRNC was founded in 1983.
The Greek Cypriot administration, backed
by Greece, became a member of the
European Union in 2004, although in a
referendum that year most Greek Cypriots
rejected a U.N. settlement plan that
envisaged a reunited Cyprus joining the EU.
August 2021 68
car sales in
over 200% in 4
Sales of diesel-powered automobiles in
Turkey have decreased in the first four
months of the year while electric and
hybrid car sales were on the rise, indicating
a changing course in the sector in line with
During the period in question, the sales of
diesel cars, the production of which has
been gradually reduced in the world and is
planned to be phased out completely in the
future, decreased by 10.3% year-on-year
according to data from the Automotive
Distributors Association (ODD). Sales of
electric and hybrid cars meanwhile surged
by more than 200% year-on-year.
With 260,148 units sold, the overall market
for automobiles and light commercial
vehicles in the country grew by 72.4% in
the first four months of this year compared
to the same period of the previous year.
In the said period, automobile sales
increased by 68.7% to reach 204,839 and
light commercial vehicle sales jumped by
88.1% to 55,309, the ODD data shows.
According to the engine types in the
automobile market, it was noteworthy that
diesel-engine automobile sales were on
the decline for the past year. The fact that
manufacturers are offering fewer dieselpowered
vehicles to the market compared
to previous years is considered to be one
of the important factors in the decrease in
The sales of hybrid and electric cars,
which are expected to replace internal
combustion engine cars in the future,
continued to increase, as has been the
case in recent years. Despite the ongoing
change, gasoline-powered cars ranked first
with sales of 131,463 units in the January-
April period while diesel car sales ranked
second at 48,417 units.
While hybrid car sales reached 15,101,
autogas (liquified petroleum gas, or LPG)
car sales were recorded as 9,414 and the
number of electric cars sold during the
period in question was 444. As of the end
of April 2020, a total of 58,142 gasoline
cars were sold along with 54,003 diesel
cars, 5,361 autogas cars, 3,834 hybrid and
115 electric cars.
Thus, as of the end of April, gasoline
automobile sales increased 126.1%
and autogas vehicle sales increased by
75.6% compared to the same period of
the previous year, while diesel car sales
decreased by 10.3%.
Hybrid car sales increased by 293.9%
and electric car sales surged by 286.1%.
This high rate of increase was due to the
relatively low sales of hybrid and electric
cars in the January-April 2020 period.
Shares of hybrid, electric cars
The share of diesel cars in sales, which was
44.5% in the first four months of 2020,
decreased to 23.6% in the same period
of 2021. The share of gasoline-powered
cars increased from 47.9% to 64.2% during
this period, and the share of autogas cars
rose from 4.4% to 4.6%. The share of
electric cars in total sales increased from
0.1% to 0.2% and the share of hybrid cars
from 3.2% to 7.4%. Data for the first four
months of 2021 indicates that although
the increasing trend in the sales of electric
and hybrid cars continues, the share of
electric and hybrid cars, which have just
become widespread in the world, is still
low, and that the increase in the special
consumption tax on electric cars has not
had a downward effect on sales.
August 2021 70
Turkish auto aftermarket industry gears up
for investment in 3rd quarter
The rise of the automotive aftermarket in
the first quarter of the year continued in
the second quarter. The positive trend in
employment, along with the increase in
domestic sales and exports in the second
quarter of the year, also stimulated the
investment plans of the third quarter.
According to the “Second Quarter
2021 Sectoral Evaluation” survey of the
Automotive After Sales Products and
Services Association (OSS); It has been
revealed that nearly half of the participants
are planning to invest in the third quarter.
This rate had decreased to 38 percent in
the previous survey. In the second quarter
of the year, there was a remarkable
increase in the problems experienced in
the sector. In the first quarter of this year,
the “volatility in exchange rates” was
the leading problem in the sector, while
“supply problems” appeared to be on the
rise in the second quarter. While the rate
of those experiencing supply problems
was approximately 73 percent in the first
quarter of the year, this rate rose to 82,5
percent in the second quarter of the year.
Automotive After-Sales Products and
Services Association (OSS) evaluated the
second quarter of the year with a survey
study organized with the participation of its
August 2021 72
members. According to OSS Association’s
Second Quarter 2021 Sectoral Evaluation
survey; There were increases in domestic
sales and exports, and these increases
were reflected in the third quarter as
an investment plan. While the industry
approached its investment plans more
cautiously at the beginning of the year,
it was revealed that nearly half of the
participants planned investments in the
third quarter. According to the survey;
There was an average of 8 percent increase
in domestic sales compared to the first
quarter. Work; It also revealed that there
was an increase in sales compared to
the same period of the previous year.
According to the survey; In the second
quarter of the year, members’ domestic
sales increased by approximately 24
percent on average compared to the same
period of the previous year.
Expected increase in sales in the third
Expectations for the third quarter of
the year were also asked in the survey.
Participants, on the other hand, stated
that they expect an average of 16 percent
increase in domestic sales compared to the
second quarter of the year. According to
the survey, the sector; It has also emerged
that in the third quarter of this year, an
average of 18 percent increase is expected
in domestic sales compared to the same
period of the previous year.
There is a positive trend in employment!
In the survey; In terms of collection
process, the second and first quarters of
the year were compared. More than half
of the participants stated that there was
no change in collection processes in the
second quarter of the year compared to
the first quarter. According to the study,
which also focuses on the employment
policies of the sector; It was revealed that
in the second quarter of the year, the
total employment of members followed
a similar and positive course compared
to previous periods. To the question
about employment, 44 percent of the
respondents answered “increased”, about
51 percent “no change”, and about 5
Currency increase problem gave priority to
The problems faced by the industry were
also identified in the survey. Among the
priority problems of the sector were the
“volatility in exchange rates” and “cargo
cost/delivery problems”. While the rate
of members who said that exchange rate
increases were the most important problem
in the first quarter of the year approached
94 percent, the said rate was approximately
67 percent in the second quarter. While the
rate of members who stated that they had
“cargo cost and delivery problems” was 65
percent in the first quarter of the year, this
rate decreased to 55 percent in the second
While the rate of participants who stated
that they experienced “loss of business and
turnover” was approximately 29 percent,
the said rate was 30 percent in the second
quarter of the year. While the rate of those
who drew attention to “problems in cash
flow” was 29 percent in the first quarter of
this year, this rate increased to approximately
35 percent in the second quarter. The rate of
those who experienced “loss of motivation
due to the pandemic” decreased from 38
percent to 36 percent. The percentage of
respondents who stated that their primary
problem was “problems at customs”
decreased from 40 percent to 33 percent.
The biggest increase was experienced
in supply problems. While the rate of
those experiencing supply problems was
approximately 73 percent in the first quarter
of the year, this rate increased to 82,5
percent in the second quarter of the year.
73 August 2021
highest in over a
year in June
The Turkish manufacturing industry’s
capacity utilization rate rose to its highest
level in one and a half years in June on a
monthly basis, according to official data
The industry used 76.6% of its capacity this
month, up 1.3 percentage points from last
month, a Central Bank of the Republic of
Turkey (CBRT) survey revealed.
The bank said the monthly data, gathered
from 1,746 companies in June, does not
reflect its own views or predictions.
The capacity utilization figures are based
on the responses given to its business
tendency survey by local units operating in
the manufacturing industry, it said.
Among the main industrial groups, the
capacity utilization rate was highest in
intermediate goods with 79.8%, while
the lowest capacity usage was 72.2% in
On the sectoral side, the highest capacity
usage was in the manufacturing of wood
and wood/cork products – excluding
furniture – with 85.6% this month, while
the lowest rate was seen in leather
production with 62.5%.
August 2021 76
Industry 4.0 and Automotive Industry in Turkey
Industry 4.0, which was first mentioned at the Hannover Fair in
Germany in 2011, includes concepts such as Smart Factory, Internet
of Things (IoT), cloud (Cloud) and big data (Big Data). The Industry 4.0
Revolution, which stands out especially in the manufacturing industry,
aims to achieve output by using high technology at every stage of
Gamze AYTUN Ege University
Regional Development Economics Master’s Program
Such that the basis of the concept of Industry 4.0; It is based on
the communication of all units involved in the industrial production
process with each other, the real-time access to all relevant data, and
the provision of as much added value as possible thanks to these data.
In this context, it is an inevitable fact that developing countries such
as Turkey should turn to industries with intensive technology and
high added value in order to increase their income. The automotive
industry is undoubtedly one of these sectors. In order to adapt to the
developments brought by Industry 4.0, which provides significant
advantages not only in the production but also in the planning and
design stages, the workforce level is tried to be increased, the training
given to the employees shows how to intervene in the machines from
the inside and outside, improvements are made in the infrastructure
of digitalization, both in the sub-industry and in the main R&D studies
are carried out in this direction in the industry.
The automobile market increased by 255.9% in April 2021 compared
to April 2020 and totaled 1,039,810 units. In April 2020, the European
automobile market was 292,153 units. At the end of April 2021, Turkey
ranked 6th in European automobile sales with an increase of 68.7%.
As can be seen in the table, Germany, where the concept of Industry
4.0 first emerged, is the leading country in the automobile industry.
By evaluating its R&D activities, innovation and innovation steps in
the automotive industry, it achieves high value-added outputs and
increases its income.
The use of Industry 4.0 and investments in this area are critical
for Turkey’s growth in line with its 2023 targets. As a matter of
fact, Turkey, which ranks 6th in automobile sales among European
countries, will direct its investments in R&D and technology to
the automotive industry, which has a high demand rate, and if the
production is realized in its own country, it will produce high valueadded
products and will be able to provide the supply-demand
balance. Therefore, there is no doubt that there will be significant
increases in income and welfare.
Original equipment manufacturers operating in the automotive
industry in Turkey are expected to become “Industry 4.0 companies”
in the future. Industry 4.0, which gave its first output as a significant
decrease in the time to market of products in Turkey, promises a lot of
hope for the automotive industry.
Such that the automotive industry affects the economy by creating
a multiplier effect for Turkey, as in many countries. This is why;
digitalization in the industry should be followed closely, more efficient
and customized production should be made. On the other hand, the
number of national R&D centers in the automotive main industry and
sub-industry should be increased and innovation studies should be
emphasized. In this way; It will be ensured that the sector can achieve
sustainable growth in the short and long term.
August 2021 78