Automotive Exports March 2022

Automotive Exports March 2022

Automotive Exports March 2022


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Monthly automotive aftermarket magazine<br />




İstmag Magazin Gazetecilik<br />

İç ve Dış Ticaret Ltd. Şti.<br />

Managing Editor (Responsible)<br />

Mehmet Söztutan<br />

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

Editor<br />

Ali Erdem<br />

ali.erdem@img.com.tr<br />

Advertising Managers<br />

Adem Saçın<br />

+90 505 577 36 42<br />

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

Enes Karadayı<br />

enes.karadayi@img.com.tr<br />

International Marketing Coordinator<br />

Ayca Sarioglu<br />

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

Editor<br />

Yusuf Okçu<br />

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

Finance Manager<br />

Cuma Karaman<br />

cuma.karaman@img.com.tr<br />

Digital Assets Manager<br />

Emre Yener<br />

emre.yener@img.com.tr<br />

Technical Manager<br />

Tayfun Aydın<br />

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

Design & Graphics<br />

Sami aktaş<br />

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

Accountant<br />

Yusuf Demirkazık<br />

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

Subsciption<br />

İsmail Özçelik<br />

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


İstmag Magazin Gazetecilik<br />

İç ve Dış Ticaret Ltd. Şti.<br />

Ihlas Media Center<br />

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

Yenibosna Bahcelievler, Istanbul / TURKEY<br />

Tel: +90 212 454 22 22<br />

www.img.com.tr sales@img.com.tr<br />

KONYA:<br />

Metin Demir<br />

Hazım Uluşahin İş Merkezi C Blok<br />

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

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



Merkez Mahallesi 29 Ekim Caddesi İhlas Plaza<br />

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

Tel: 0212 454 30 00<br />

www.ihlasmatbaacilik.com<br />

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

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

Dynamism prevails as usual<br />

It should be noted that the Turkish automotive sector made $11.8 billion (TL 163.72 billion)<br />

in subindustry exports last year, according to official data.<br />

The automotive sector, which has been the export champion of Turkey for 16 years, made<br />

a total of $29.3 billion in foreign sales in <strong>2022</strong>.<br />

Actually, the last decade has been a turning point for the Turkish automotive industry in<br />

terms of its integration into the world economy. Foreign firms that have been attentive to<br />

the potential that the Turkish automotive industry possesses have been investing in Turkey.<br />

Foreign partners have begun to view their facilities in Turkey as their production center for<br />

the global markets.<br />

The auto parts industry of Turkey has developed rapidly as a consequence of developments<br />

in the automotive industry. The Turkish auto parts industry with its large capacity, wide<br />

variety of production and high standards, supports automotive industry production and<br />

the vehicles in Turkey and also has ample potential for exports.<br />

The Turkish automotive and auto spare parts industry have prospered dynamically in line<br />

with ever increasing demand from abroad. So, business people operating in the industry<br />

have become outward oriented more than ever before. This fact is also reflected through<br />

the pages of our publications.<br />

It is hard to keep its competitive position in the world market full of emerging players.<br />

Thus, manufacturers have shifted their operations to value-added automotive products<br />

and brand names. Currently, Turkish manufacturers have their own designs and brands<br />

in international markets.<br />

In evaluating the future export potential of the automotive industry, using cross-country<br />

statistics, it is possible to indicate that Turkish automotive industry has comparative<br />

advantage regarding labor productivity, labor cost and the share of capital in the value<br />

added, especially with respect to the mature producers in the world. More than half of<br />

these manufacturers compete in international markets and set high standards of export<br />

figures.<br />

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

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

As usual, we convey the message of the Turkish automotive and autospare parts exporters<br />

by participating in major fairs and exhibitions around the world.<br />

We are convinced that the events in which we participate would be instrumental to<br />

increase business opportunities in the automotive industry.<br />

We wish lucrative trade for all participants.<br />

automotiveexport<br />

EDİToR<br />


Turkey’s auto<br />

sub-industry<br />

records over<br />

$11B exports in<br />

2021<br />

The Turkish automotive sector recorded<br />

$11.8 billion (TL 163.72 billion) in<br />

subindustry exports last year, according to<br />

official data.<br />

The automotive sector, which has been the<br />

export champion of Turkey for 16 years,<br />

made a total of $29.3 billion in foreign sales<br />

in 2021, according to an Anadolu Agency<br />

report on that cited data from the Uludağ<br />

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

(OIB).<br />

The automotive sector made the highest<br />

export in the subindustry product group.<br />

This group, which makes sales to more<br />

than 200 countries, free zones and<br />

autonomous regions, increased exports<br />

by approximately 26% compared to 2020<br />

when the sales totaled $9.3 billion.<br />

Subindustry exports accounted for 40.22%<br />

of the total export sales of the automotive<br />

industry.<br />

Germany took the lion’s share in Turkey’s<br />

subindustry exports with 23.23%.<br />

<strong>Exports</strong> to this country last year increased<br />

by 30.62% compared to the same period of<br />

2020 and rose to $2.7 billion.<br />

The second country to which automotive<br />

subindustry manufacturers exported the<br />

most was Italy. <strong>Exports</strong> to Italy in 2021<br />

were recorded as $778.4 million, up<br />

37.47% compared to 2020.<br />

The sector’s exports to the U.S., which<br />

ranks third in the list, increased by 35.07%<br />

compared to the previous year and reached<br />

$728.3 million.<br />

The automotive industry also exported<br />

over $100 million each to France, the<br />

United Kingdom, Russia, Spain, Poland,<br />

Belgium, Romania, Morocco, Slovenia, the<br />

Netherlands, Egypt, Hungary, Israel, Iraq,<br />

Iran, Brazil, Czech Republic and Ukraine.<br />

Meanwhile, local automotive industry<br />

exports jumped some 15% throughout<br />

2021, official data showed, but the sales<br />

of passenger cars and light commercial<br />

vehicles in Turkey fell 4.6%.<br />

The sales of passenger cars and light<br />

commercial vehicles were down to around<br />

737,350 units last year, according to<br />

data from the <strong>Automotive</strong> Distributors<br />

Association (ODD.) Sales in 2020 stood at<br />

nearly 773,000.<br />

In December, sales fell 40.3% year-overyear<br />

to 62,243, the association added,<br />

down from 104,293 units in 2020.<br />

Automobile sales in Turkey have declined<br />

in the past months due to supply issues<br />

caused by the coronavirus pandemic and<br />

high loan rates amid a slide in the Turkish<br />

lira.<br />

The ODD had forecast that sales would<br />

amount to between 825,000 and 875,000<br />

in 2021, before rising to 850,000-900,000<br />

in <strong>2022</strong>.<br />

The industry championed the country’s<br />

annual foreign sales for the 16th<br />

consecutive year. It accounted for 13.3% of<br />

last year’s overall exports, which surged by<br />

more than a third to hit an all-time high of<br />

nearly $225.4 billion.<br />

The European Union market accounted for<br />

64.6% of the total automotive exports, with<br />

$19 billion.<br />

Germany became the largest export<br />

market. Sales to Germany increased by 17%<br />

compared to the previous year, reaching<br />

$4.1 billion.<br />

The industry also saw rises in its exports<br />

to France and the U.K., with 14% and 39%<br />

respectively. There was also a 22% increase<br />

in exports to Morocco.<br />

While exports to the Middle East fell<br />

by 15% last year, they rose 38% to the<br />

Commonwealth of Independent States<br />

(CIS), 28% to the North American Free<br />

Trade Area and 21% to African countries.<br />

<strong>March</strong> <strong>2022</strong> 8

Ford Otosan<br />

beats forecasts<br />

with $646M<br />

profit in 2021<br />

Ford Otosan, the joint venture of U.S.<br />

automotive giant Ford and Turkey’s largest<br />

conglomerate Koç Holding, reported a<br />

net profit of TL 8.8 billion ($646 million),<br />

beating market expectations of TL 6.7<br />

billion, boosted by an upward trend in<br />

overseas sales.<br />

The company increased its sales revenues<br />

by 44% in 2021 compared to the previous<br />

year and reached TL 71.1 billion.<br />

Ford <strong>Automotive</strong> increased its overseas<br />

sales by 57% to TL 54.5 billion and<br />

increased its domestic sales by 12% to<br />

TL 16.5 billion. The company’s operating<br />

profit increased by 96% compared to the<br />

previous year and reached TL 9.4 billion.<br />

Ford, which sold a total of 361,600 cars<br />

in 2021, exported 288,500 of them<br />

abroad. While the company’s capacity<br />

utilization increased by 4 points to 76%,<br />

it decreased by 26 points in the fourth<br />

quarter compared to the same period of<br />

the previous year and became 82%.<br />

An evaluation from the company stated<br />

that profitability in 2021 was strong<br />

thanks to the strong export performance<br />

achieved despite the chip crisis, as well as<br />

pricing discipline, cost-reducing measures<br />

and effective expense management,<br />

exchange rate effect and export<br />

agreements.<br />

While the company expects the total<br />

automotive market size to be between<br />

800,000 or 850,000 in <strong>2022</strong>, it predicts<br />

retail sales to be nearly 100,000. The<br />

company also predicts exports to<br />

reach around 360,000 and investment<br />

expenditures to reach 620 to 670 million<br />

euros ($705-$761 million).<br />

<strong>March</strong> <strong>2022</strong> 10

Supply chain<br />

bottlenecks to<br />

dominate <strong>2022</strong><br />

car industry<br />

agenda<br />

Haydar Yenigün Chairman of the Board<br />

of <strong>Automotive</strong> Industry Association<br />

The automotive sector passed the year<br />

2021 under the shadow of the chip crisis,<br />

logistics bottlenecks and record increases<br />

in raw material costs, while sector<br />

representatives in Turkey say the main<br />

agenda of local automotive manufacturers<br />

this year will be supply chain management,<br />

again.<br />

<strong>Automotive</strong> Industry Association (OSD)<br />

head Haydar Yenigün, evaluating the<br />

course of the sector, said that supply chain<br />

management will continue to be the No. 1<br />

item in the <strong>2022</strong> agenda of the sector.<br />

“The chip crisis will continue in <strong>2022</strong>. We<br />

now hold procurement meetings once a<br />

day, which were previously held once a<br />

month. We have a supply chain meeting<br />

every evening. Every day a new picture<br />

emerges,” he said.<br />

Yenigün stated that on the one hand,<br />

new chip factory investments are being<br />

evaluated for the near future with the hope<br />

that life can return to normal by the end of<br />

the first quarter of 2023.<br />

Stating that the chip is not the only<br />

problem in the supply chain, Yenigün<br />

said there is also a problem in the<br />

transportation of the supply as well.<br />

According to the World Container Index,<br />

container freight on the east-west route,<br />

which was at the level of $5,000 (TL<br />

67,480) at the beginning of 2021, increased<br />

to $9,000 at the end of 2021.<br />

“An increase in freight is expected this year<br />

as well,” Yenigün said, as the prices are<br />

expected to be about two to seven times<br />

higher in <strong>2022</strong>. “With the entry of new<br />

ships into the market, it is foreseen that the<br />

relaxation in freight and reservations will<br />

occur in 2023 at the earliest.”<br />

Expressing that the increase in input costs<br />

will also continue, Yenigün said: “There<br />

have been price increases between 100%<br />

and 300% in raw materials such as sheet<br />

metal, aluminum and rubber in the last<br />

year. In particular, there has been an<br />

increase of 274% in the last year in Turkish<br />

lira terms in the domestic sheet metal<br />

market. All this is reflected in the vehicle<br />

prices,” along with the rising electricity<br />

costs in Turkey.<br />

“There was an increase of 400% in natural<br />

gas and 273% in electricity between<br />

January 2021 and January <strong>2022</strong> on a<br />

Turkish lira basis. This process is no longer<br />

a manageable process for users, producers<br />

and investors,” he said.<br />

According to the data of the OSD, total<br />

vehicle production in 2021 decreased by<br />

2% compared to the previous year to 1.28<br />

million units, while automobile production<br />

decreased by 8% to 782,835 units. With<br />

the tractor production, the total production<br />

reached 1.331 million units. The reason<br />

why the biggest loss on the production side<br />

was on the automobile is that this segment<br />

was most affected by the global chip crisis.<br />

Yenigün stated some 10.3 million vehicles<br />

worldwide were produced incompletely<br />

due to a semiconductor shortage.<br />

“That is a very serious number. At the<br />

beginning of the year, we predicted a loss<br />

of 5 million-6 million units. But with each<br />

passing month, things have progressed a<br />

little more haphazardly,” he said.<br />

Yet, Yenigün also stated that there were<br />

pleasing developments on the export side.<br />

<strong>Automotive</strong> exports increased by 2% on a<br />

unit basis compared to 2020 and amounted<br />

to 937 units. Automobile exports, on the<br />

other hand, decreased by 5% to 565,361<br />

units. The automotive industry, which<br />

made exports worth $29.9 billion last year,<br />

took a 13% share of the total exports.<br />

“There is a slight increase in exports on the<br />

basis of units. There is also a very serious<br />

increase in the number of exports. The<br />

value of exports per kilogram is $10.62. It<br />

reached its highest level ever. But it’s not<br />

enough, we’re working to make it $20,” the<br />

sector official said.<br />

Industry and Technology Minister Mustafa<br />

Varank also shared a statement via his<br />

Twitter account regarding the country’s<br />

automotive sector exports.<br />

“Last year, 772,000 new and commercial<br />

vehicles were sold in Turkey,” he said,<br />

adding: “The Turkish automotive industry<br />

closed the year 2021 with $29.8 billion<br />

exports revenue.”<br />

The sector, which sold to nearly 200<br />

countries, autonomous and free zones<br />

last year, sold the most vehicles to the<br />

European Union with a share of 64.6%.<br />

Foreign sales to the “Other European<br />

countries” group, which the United<br />

Kingdom has been included in since leaving<br />

the EU, increased by 32%.<br />

Meanwhile, the best scenario for <strong>2022</strong><br />

project production is to increase by 15%<br />

and boost exports by 17%.<br />

Yenigün stated that they expect a sale<br />

higher than last year in the domestic<br />

market as well.<br />

<strong>March</strong> <strong>2022</strong> 14

Turkey hikes tax<br />

thresholds for<br />

some vehicles<br />

Turkey has raised price thresholds for<br />

a special consumption tax on vehicles<br />

with small combustion engines, while<br />

adding more categories, according to a<br />

presidential decree published in the Official<br />

Gazette, a move that will help cut vehicle<br />

prices.<br />

A 60% tax rate is to be levied on vehicles<br />

with engines smaller than 1,600 cubic<br />

centimeters (cc) (97.6 cubic inches) in a<br />

price band of TL 150,001 to TL 175,000,<br />

($11,136 to $12,992) after the adjustment.<br />

The rate rises to 70% for vehicles that cost<br />

up to TL 200,000 and 80% for those priced<br />

above TL 200,000.<br />

Previously, all cars that cost more than TL<br />

150,000 were subject to the 80% rate.<br />

The maximum price for the tax rate of 45%<br />

was raised from TL 92,000 to TL 120,000,<br />

and the threshold for the 50% tax rate<br />

was raised to between TL 120,000 and TL<br />

150,000. Passenger vehicles sold in Turkey,<br />

already under a large tax burden, will see<br />

prices decrease as a result of the move,<br />

though the benefit is likely to erode quickly<br />

as sellers are expected to hike prices<br />

because of a depreciation in the Turkish<br />

lira. Sales of passenger cars and light<br />

commercial vehicles in Turkey fell 4.6% to<br />

around 737,350 units throughout 2021,<br />

according to data from the <strong>Automotive</strong><br />

Distributors Association (ODD.). Sales in<br />

2020 stood at nearly 773,000.<br />

In December, sales were down 40.3% yearover-year<br />

to 62,243, down from 104,293<br />

units in 2020. Sales have declined in the<br />

past months due to supply issues caused<br />

by the coronavirus pandemic and high loan<br />

rates, amid a slide in the lira.<br />

<strong>March</strong> <strong>2022</strong> 16

Hisar Elektrik<br />

strengthens<br />

its share in the<br />

foreign market<br />

Serving its distinguished customers in<br />

and out of Turkey, with the sole principle<br />

of unconditional customer satisfaction,<br />

Hisar Elektrik continues to get their feet<br />

on the ground within the sector with their<br />

product quality and competitive prices.<br />

After 19 years of sector experience, HİSAR<br />

ELEKTRİK has been founded by Hacer<br />

SEYREK in 2003 with a very modest budget.<br />

Hisar Elektrik has transformed to a wellknown<br />

company with its product quality<br />

and competitive prices. They are active<br />

in the field of manufacturing Crimping<br />

terminals, terminal insulators, connectors,<br />

Lamp Glasses, mainly for <strong>Automotive</strong> and<br />

Household appliances and goods.<br />

Hacer Seyrek, Founder of Hisar Elektrik,<br />

shared their dealings future export<br />

objectives.<br />

Production and product groups for the<br />

automotive supply industry<br />

Following 20 years of sectoral experience,<br />

Hisar Elektrik was founded by Hacer Seyrek<br />

in 2003 with a fairly modest budget.<br />

Then, the company grew into e wellknown<br />

brand with its product quality and<br />

competitive prices. We are actively dealing<br />

with manufacturing crimping terminals and<br />

connectors at a 1500 sqm closed facility<br />

with 30 qualified personnel. Primarily for<br />

automotive and white goods, Hisar Elektrik<br />

manufactures brass, copper, chromium<br />

nickel, steel, niccolite, phosphor bronze<br />

crimping terminals, V0/V2 non-combustible<br />

plastic connectors, terminal insulators,<br />

headlamp insulators and lamp glasses. We<br />

have got monthly production capacity of<br />

20.000.000 terminals, 2.000.000 plastic<br />

connectors and 250.000, diverse cable<br />

types.<br />

The company has ISO 9001: 2015, ISO<br />

14001: 2015, ISO 45001: 2018 Quality<br />

Certifications, Reach Certification and RoHS<br />

Compliance.<br />

Export markets and objectives<br />

40% of our sales comes from export. Our<br />

main export markets are Russia, Belarus,<br />

Ukraine, Moldova, Greece, Bulgaria,<br />

Poland, Czech Rep, Hungaria, Romania,<br />

Serbia, Macedonia, Israel, UAE, Iran,<br />

Jordan, Lebanon, Egypt, Morocco, Tunisia<br />

and Algeria. We still move on with our<br />

export contacts with those countries even<br />

under pandemic circumstances.<br />

<strong>March</strong> <strong>2022</strong> 18

EU auto sales<br />

likely to rebound<br />

this year<br />

Automobile sales will likely rebound by<br />

7.9% in the European Union in <strong>2022</strong> but<br />

remain far below the 2019 level, industry<br />

figures showed . The European Automobile<br />

Manufacturers’ Association (ACEA) said<br />

it “now forecasts that passenger car<br />

registrations in the EU will return to<br />

growth this year, rising by 7.9% to reach<br />

10.5 million units.” That follows 9.7 million<br />

units sold in 2021. The ACEA based its<br />

forecast on expectations semiconductor<br />

chip supplies will stabilize this year after<br />

shortages severely hurt the industry.<br />

While the European Union launched a plan<br />

to raise tens of billions of euros to boost<br />

semiconductor production in Europe,<br />

the ACEA urged the bloc to reduce its<br />

dependence on non-European suppliers to<br />

avoid damage to the industry in the future.<br />

After a sharp drop in sales in 2020 with the<br />

coronavirus pandemic, the United States<br />

and the EU auto markets were paralyzed<br />

last year by semiconductor shortages,<br />

especially those made in Asia.<br />

However, ACEA said, the share of<br />

rechargeable hybrid and electric vehicles<br />

has continued to increase: They now<br />

account for one out of every five cars sold<br />

in the EU.<br />

“However, we cannot forget that this is still<br />

quite a fragile market,” according to ACEA<br />

President and CEO of BMW Group, Oliver<br />

Zipse.<br />

He added the market “is highly reliant<br />

on support measures such as purchase<br />

incentives and, above all, the widespread<br />

availability of charging infrastructure.”<br />

Yet, the ACEA said the “pace of<br />

infrastructure roll-out is lagging way<br />

behind consumer demand for electricallychargeable<br />

cars.”<br />

While the European Commission has<br />

proposed an end to petrol and dieselpowered<br />

cars for 2035, the European<br />

Parliament and national governments<br />

are discussing continental standards for<br />

recharging points. The ACEA has urged the<br />

parliament and the national governments<br />

to bolster the European Commission<br />

proposal to ensure an adequate recharging<br />

network is set up.<br />

<strong>March</strong> <strong>2022</strong> 20

GQP produces in<br />

European standards<br />

GQP Makine established about 4 years ago, produces exhaust manifolds.<br />

The company partner Ali Karaçobanoğlu, stating that the products they<br />

produce, are at European standards, said that they will make more<br />

progress in the field of export and production.<br />

Karaçobanoğlu, giving information on production and other issues, said<br />

“We established GQP Makine in Konya in 2018 with my partner Eyyüp<br />

Kabadayı and started production. We have been producing exhaust<br />

manifolds since then. Our brand, continuing to develop products in its<br />

field, manufactures according to European standards. Our experienced<br />

staff is in an effort to reach the best in the products we have produced.<br />

We also send our products abroad. African, Russian and American<br />

markets are where we work and care about.”<br />

Company partner Ali Karaçobanoğlu, also gave information about<br />

production, and concluded his words as follows: “The exhaust manifold<br />

is a component of the exhaust system of internal combustion engines.<br />

It collects the exhaust gases and transmits them in the direction of the<br />

exhaust system. The casting quality of the products we produce is GGG,<br />

heat treated and surface coated. Our past vision and our goals, which we<br />

know as a principle, always adopt to be fast, reliable and high quality. We<br />

are struggling with our sensitivity in our production with our workshop<br />

and machines, with great effort to satisfy our customers.<br />

<strong>March</strong> <strong>2022</strong> 24

Solvay Launches New Amodel®<br />

Supreme and Bios Grades to<br />

Support Further Sustainable<br />

Innovation in E-Mobility<br />

Solvay is accelerating the pace of<br />

providing the automotive industry<br />

with an entirely new generation of<br />

Amodel® polyphthalamide (PPA)<br />

materials targeted at higher demands<br />

of performance and sustainability for<br />

advanced electrical and electronic<br />

applications in e-mobility.<br />

In the Supreme range, Amodel® PPA AE<br />

9933 and AE 9950 have been designed for<br />

e-motor and inverter busbars operating<br />

at 800 volts and higher. They combine<br />

best-in-class comparative tracking index<br />

(CTI) ratings with high thermal cycle<br />

shock resistance from -40 to 150 °C. As<br />

a breakthrough vs. conventional PPA<br />

technology, they will also retain their CTI<br />

over time even after temporary exposure<br />

to peak temperatures above 150 °C.<br />

New halogen-free flame retarded Amodel®<br />

Bios HFFR R1-133 and HFFR R1-145 meet<br />

with the growing trend of integrating<br />

the e-motor, power electronics and the<br />

gearbox into one single consolidated<br />

electric drive system. With a CTI of >600<br />

volts, heat resistance of >120 °C and<br />

excellent dimensional stability, these<br />

grades enable the design of highly<br />

compact systems using miniaturized<br />

components. Moreover, they provide UL94<br />

V0 flammability ratings without the need<br />

for halogenated flame retardants. Besides<br />

addressing safety concerns in the event<br />

of uncontrolled thermal excursion, the<br />

halogen-free formulation also minimizes<br />

the risk of electronic corrosion.<br />

In addition, Solvay is offering Amodel®<br />

Bios AE R1-133, an electro-friendly grade<br />

specifically developed for surface mounted<br />

data connectors that can be reflow<br />

soldered without blistering. Compared to<br />

standard PPA, the higher impact resistance<br />

and weld-line strength of the material<br />

allows designers to further reduce the wall<br />

thickness of connectors, saving up to 50<br />

percent in footprint on the printed board<br />

and giving more space for other electronic<br />

devices.<br />

“Amodel® Supreme and Bios are garnering<br />

a high level of interest among designers of<br />

e-propulsion systems, including e-motors,<br />

power electronics, and electronic coolant<br />

pumps. Beyond adding value by improving<br />

the thermal and electrical performance of<br />

e-mobility components in these systems,<br />

the new additions to the Amodel®<br />

polymers family are being more widely<br />

considered as manufacturers are seeking<br />

to meet ambitious sustainability targets,”<br />

states Brian Baleno, Head of Marketing,<br />

<strong>Automotive</strong> at Solvay Specialty Polymers.<br />

Amodel® PPA Supreme is currently<br />

considered the highest performance<br />

thermal and electrical PPA on the market,<br />

while Amodel® PPA Bios features a<br />

partially bio-based long-chain molecular<br />

structure with the highest glass transition<br />

temperature (Tg) as well as the lowest<br />

global warming potential (GWP) compared<br />

to incumbent bio-sourced long-chain PPAs.<br />

As part of the company’s One Planet<br />

commitment to sustainability, Solvay has<br />

reduced the CO2 footprint of Amodel®<br />

PPA by 30 percent since 2013, and uses<br />

100 percent renewable energy in the PPA<br />

production at its global manufacturing<br />

plant in Augusta, Georgia.<br />

<strong>March</strong> <strong>2022</strong> 26

Turkish auto<br />

sector records<br />

$2.2B exports<br />

in January<br />

Turkey’s automotive industry exports,<br />

which have been the export champion of<br />

the Turkish economy for 16 consecutive<br />

years, decreased by 1.6% to $2.2 billion (TL<br />

29.85 billion) in January, according to the<br />

data of the Uludağ <strong>Automotive</strong> Industry<br />

Exporters’ Association (OIB).<br />

Despite the decline, the share of the sector,<br />

which still ranks first in the country’s<br />

exports, in total exports was 12.7%, data<br />

showed.<br />

OIB Chairperson Baran Çelik said that in the<br />

first month of <strong>2022</strong>, the world continued<br />

to face a wide array of problems such as<br />

the semiconductor chip crisis, raw material<br />

supply problems and increasing costs, and<br />

that “the largest product group was again<br />

the supply industry.”<br />

He said while a decrease was experienced<br />

in the passenger car, bus, minibus and<br />

midibus exports, an increase was seen in<br />

auto supply industry sales.<br />

“We recorded high increases of up to 40%<br />

in countries such as the United Kingdom,<br />

the United States and Egypt,” he said.<br />

Based on product group, supply industry<br />

exports increased by 7% to $951 million<br />

in January, while passenger car exports<br />

decreased by 21% to $654 million, and the<br />

exports of motor vehicles for transporting<br />

goods increased by 3% to $440 million and<br />

bus-minibus-midibus exports increased by<br />

39% to $65 million.<br />

While exports to Germany, the country<br />

to which the most exports are made in<br />

the auto supply industry, increased by 3%<br />

in January, a 12% increase was seen in<br />

exports to the U.S.<br />

The auto supply industry raised its foreign<br />

sales to Russia, Poland, Slovenia and the<br />

Netherlands, which are also important<br />

markets, by 32%, 21%, 26% and 29%,<br />

respectively.<br />

The product group’s exports to Morocco<br />

and Hungary, however, decreased 12% and<br />

13%, respectively.<br />

In January, passenger car exports<br />

decreased by 66% to France, which is<br />

one of the most important markets for<br />

this product group. Decreases were also<br />

experienced in sales to Italy by 53%,<br />

Sweden by 55% and Belgium by 41%.<br />

<strong>Exports</strong> of passenger cars increased to the<br />

U.K. by 53%, Egypt by 30% and the U.S. by<br />

259% in the same month. While exports<br />

of motor vehicles for the transportation of<br />

goods increased by 30% to the U.K., which<br />

is the country to which the most exports<br />

are made in the product group, 45% of<br />

increase experienced in sales to Slovenia,<br />

16% to Belgium, 19% to the U.S., 28% to<br />

France and 25% to Italy, a 22% decrease<br />

was seen in exports to Spain. In the busminibus-midibus<br />

product group, there was<br />

a 9% increase in exports to France and<br />

a 48% rise to Italy. Total exports of $325<br />

million were recorded to Germany, which<br />

took the lion’s share, with an increase of<br />

1% in January. While $268 million worth<br />

of products were exported to the U.K.,<br />

which is the second-largest market, with<br />

an increase of 34%, exports to France<br />

decreased by 40% to $182 million. <strong>Exports</strong><br />

increased by 25% to Slovenia, 41% to the<br />

U.S., 40% to Egypt, 37% to Russia, 26.5% to<br />

Romania, 23% to Italy and 23% to Sweden.<br />

<strong>Exports</strong> to the European Union countries,<br />

the largest market based on the country<br />

group, dropped by 11% in January and<br />

became $1.39 billion. EU countries received<br />

a 62% share of expor<br />

<strong>March</strong> <strong>2022</strong> 28

Car spare parts shortage mirrors<br />

rising economic crisis in Sri Lanka<br />

Side mirrors for Suzuki’s compact Wagon R<br />

are reported becoming a prized commodity<br />

in Sri Lanka as dealers of car spare parts in<br />

the island nation’s main city of Colombo<br />

are receiving a steady stream of customers<br />

looking for the humble product.<br />

The scramble highlights rising economic<br />

risks for the South Asian country as imports<br />

slump, foreign exchange reserves plummet<br />

and a potential sovereign default looms.<br />

Suzuki’s boxy, five-seater vehicle is hugely<br />

popular in Sri Lanka, given its low running<br />

costs. With some 30,000 of the cars<br />

sold over the past four years in a nation<br />

that has relatively high road crash rates,<br />

replacement side mirrors are commonly<br />

sought in the spare parts shops scattered<br />

across the suburb of Nugegoda.<br />

“Everyone is looking for Wagon R parts,”<br />

said Supun Deshak, a salesperson at one<br />

store in the district where shop fronts are<br />

piled high with reconditioned spare parts.<br />

The difficulty is that importers are<br />

struggling to source car parts because they<br />

are deemed non-essential imports under<br />

rules drawn up by the government to save<br />

dwindling foreign exchange reserves after<br />

the coronavirus pandemic hit.<br />

Reserves have plummeted to $2.36 billion<br />

from $7.5 billion in January 2020. At the<br />

same time, the government faces a debt<br />

obligation of around $4 billion this year,<br />

and local banks are often unable to provide<br />

dollars that importers need.<br />

“The biggest concern right now is the<br />

difficulty in importing spare parts for<br />

maintaining the existing fleet of vehicles,”<br />

said Yasendra Amerasinghe, chairperson<br />

of the Ceylon Motor Traders Association<br />

(CMTA), which represents the country’s<br />

major vehicle importers.<br />

The CMTA estimates imports of car spare<br />

parts will fall by around 30% in value<br />

terms this fiscal year, compared to prepandemic<br />

levels, primarily because of the<br />

foreign exchange shortages in the past few<br />

months.<br />

Five auto dealers in Colombo told Reuters<br />

many spare parts were already in short<br />

supply, with only a trickle of new stock<br />

coming in from abroad, driving up local<br />

prices. Exacerbating the problem are<br />

thieves looking to make a quick buck by<br />

stealing side mirrors of popular models<br />

like the Wagon R to sell in a thriving grey<br />

market, the dealers said.<br />

The price of reconditioned Wagon R<br />

mirrors has surged by more than 35% from<br />

pre-pandemic levels to at least 30,000<br />

Sri Lankan rupees ($148.5) per piece, the<br />

dealers said.<br />

The economic crisis facing the country – its<br />

worst in a decade – has also triggered an<br />

escalation in second-hand vehicle prices.<br />

Almost all car imports were banned in<br />

<strong>March</strong> 2020, followed by a stop on imports<br />

of other non-essential goods like air<br />

conditioners, refrigerators and video games<br />

consoles, as part of the government’s bid<br />

to deal with the financial strife.<br />

That has pushed the cost of some secondhand<br />

vehicles up by more than 100%,<br />

the CMTA said. Sri Lanka does not mass<br />

produce any cars locally.<br />

A used Wagon R currently costs around 5<br />

million Sri Lankan rupees, well above the<br />

2.8 million Sri Lankan rupees a brandnew<br />

vehicle cost in 2018, said CMTA Vice<br />

Chairperson Virann De Zoysa.<br />

<strong>March</strong> <strong>2022</strong> 30

G-20 should boost tax, development aid<br />

Treasury and Finance Minister Nureddin Nebati<br />

Turkey’s Treasury and Finance Minister<br />

Nureddin Nebati, speaking at the G-20<br />

Finance Ministers and Central Bank<br />

Governors Meeting , called on G-20<br />

members to continue providing capacitybuilding<br />

support to developing countries in<br />

taxation and development.<br />

The minister attended the meeting online,<br />

which is being held in Indonesia’s Jakarta<br />

this year.<br />

“We support the comprehensive agenda in<br />

the international tax field. We welcome the<br />

intention of the Indonesian Presidency to<br />

hold inclusive discussions for the benefit of<br />

all countries,” Nebati said.<br />

He referred the global tax reform as one of<br />

the most important achievements of the<br />

G-20 group.<br />

“With this landmark success, the G-20<br />

has once again proven its credibility<br />

and strength. To fulfill its mandate as<br />

a pioneering platform, the G-20 must<br />

continue to move forward in a responsible<br />

and fair manner,” the minister said.<br />

In October last year, the finance ministers<br />

of G-20 countries agreed on the historic<br />

global tax reform that is to revamp the way<br />

multinational companies are taxed to make<br />

sure they pay their fair share wherever<br />

they operate.<br />

“Emphasizing that they have always<br />

believed that it is very important to reach<br />

a consensus on the international tax issue<br />

in solving the challenges arising from the<br />

digitalization of the economy,” Nebati<br />

further stressed that they believe that the<br />

support given by the G-20 to the Inclusive<br />

Framework is very important for the proper<br />

implementation of the results of the tax<br />

declaration. If G-20 members continue<br />

to provide capacity-building support<br />

and technical assistance to developing<br />

countries, “these countries will be able<br />

to adapt to the new international tax<br />

architecture in a timely manner,” he said.<br />

Nebati went on to say that, as G-20<br />

members, “we must act in synergy to move<br />

towards carbon-neutral economies, taking<br />

into account the principle of ‘common<br />

but differentiated responsibilities and<br />

relative capabilities’ as well as national<br />

circumstances.”<br />

Turkey, US joint venture Ford Otosan introduces new electric cars<br />

Ford Otosan, a joint venture of Koç Holding,<br />

Turkey’s largest conglomerate, and United<br />

States automotive giant Ford introduced<br />

its electric vehicles, Rakun Pro2 and Rakun<br />

Pro3, which it produced by combining knowhow<br />

in electric and commercial vehicle<br />

production with its innovation power.<br />

The vehicles developed under the<br />

company’s new venture, Rakun Mobility<br />

Technology and Trade Inc, aims to provide<br />

services with different business models for<br />

all users looking for innovative and light<br />

mobility solutions.<br />

Haydar Yenigün, general manager of Ford<br />

Otosan, said in a company statement<br />

that today great transformations in the<br />

transportation sector are occurring.<br />

“With the inspiration we received from<br />

our customers, with the knowledge we<br />

have in electric vehicle production and<br />

commercial vehicle production, we dreamed<br />

of producing an environmentally friendly,<br />

electric vehicle with less than four wheels<br />

that will serve end-point delivery,” he said.<br />

“This is how Rakun was born,” Yenigün said,<br />

noting that the company takes its work in<br />

mobility to the next level by integrating<br />

it with product development, innovation<br />

and production capability. Eren Atlı, Rakun<br />

Mobility Inc. general manager, stated that<br />

with the Rakun Pro 2 and Pro 3, businesses<br />

will have the opportunity to deliver orders<br />

in a reliable, durable, and most importantly,<br />

100% electric, therefore in a soundless and<br />

environmentally friendly way.<br />

“As a first step, we will bring our vehicles<br />

together with corporate customers through<br />

the method of rentals and sales. We are<br />

planning to have our individual customers<br />

on the road with Pro2 and Pro3 in the<br />

future,” Atlı said.<br />

The 5 kW/h battery in Pro2 and Pro3 can be<br />

charged comfortably and easily by plugging<br />

the cable into the socket of a regular<br />

electricity network.<br />

<strong>March</strong> <strong>2022</strong> 32

Volvo Cars,<br />

Mercedes<br />

post boosting<br />

revenue despite<br />

supply snarls<br />

Chinese-owned Volvo Cars and Mercedes<br />

said their revenue rose but global supply<br />

chain bottlenecks caused sales and profits<br />

to fall in the last quarter of the year.<br />

Volvo Cars said the global shortage of<br />

semiconductors – an essential tech<br />

component in modern cars – caused sales<br />

and profits to fall in the last quarter of the<br />

year.<br />

Retail sales fell by 20% to 168,000 units in<br />

the fourth quarter of the year.<br />

But revenue fell at a smaller rate, 6%, as<br />

“strong demand had a positive effect on<br />

prices and the sale of more expensive cars,”<br />

while interest in electrified cars continued<br />

to grow globally.<br />

Revenue fell to 80 billion kronor ($8.6<br />

billion) from the same quarter in 2020<br />

while net profit sank by 60% to 2.3 billion<br />

kronor.<br />

Owned by Geely, the Sweden-based<br />

carmaker said the semiconductor shortage<br />

worsened in the second half of 2021.<br />

“The result was a year of two halves,” Volvo<br />

Cars said in an earnings statement.<br />

“During the first half, the market was<br />

up by double digits but abruptly stalled<br />

in the second half due to COVID-19-<br />

related shutdowns in Southeast Asia and<br />

other semiconductor-related production<br />

disturbances,” it said.<br />

The picture was brighter for the full year,<br />

with revenues jumping by 7% to a record<br />

282 billion kronor.<br />

Net profit soared to 14.2 billion kronor,<br />

nearly double the 2020 figure.<br />

Profitability also rose, with its operating<br />

margin rising by four percentage points to<br />

7.2%.<br />

“2021 was a year to be proud of for<br />

Volvo Cars,” said chief executive Hakan<br />

Samuelsson.<br />

“Looking ahead, uncertainty is still high.<br />

While component shortage has eased<br />

somewhat, we expect the supply chain to<br />

remain a restraining factor,” he warned.<br />

Volvo Cars, which plans to sell only fully<br />

electric models by 2030, said the share of<br />

sales of rechargeable vehicles – including<br />

plug-in hybrids – grew to 34% in the<br />

fourth quarter.<br />

‘Solid net pricing’<br />

In Germany, Mercedes-Benz beat<br />

expectations with a record profitability<br />

margin of 15% in the final quarter of<br />

2021 “driven by solid net pricing” – or<br />

the ability to sell its cars for higher prices.<br />

To some extent, automakers were able to<br />

use chips in their most profitable cars.<br />

If Mercedes-Benz’s overall sales slid 5%<br />

last year, those of its S-Class sedans rose<br />

by 40% and its luxurious Maybach brand<br />

by 50% to a new record.<br />

“Our focus on profitable growth and cost<br />

discipline combined with a desirable<br />

product lineup translated into strong<br />

financial performance,” chief executive<br />

Ola Kallenius said in a statement.<br />

Operating profits at the company’s car<br />

and vans division is expected to come in<br />

around 14 billion euros, compared to 6.8<br />

billion in 2020 and 6.2 billion in 2019.<br />

<strong>March</strong> <strong>2022</strong> 36

Turkey’s<br />

automotive<br />

exports nearing<br />

pre-pandemic<br />

level<br />

Baran Çelik, Chairman of the Board, OIB<br />

Turkish automotive exports rose 16 percent<br />

to $26.4 billion in the first 11 months<br />

of this year, according to the Uludağ<br />

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

(OİB).<br />

With $29 billion at the end of this year, the<br />

sector aims to get closer to the three-year<br />

pre-pandemic period annual average, OİB<br />

said in a press release on Dec. 5.<br />

However, automotive exports sank 6<br />

percent year on year to $2.5 billion.<br />

Despite the contraction, the automotive<br />

sector’s exports were above the 11-month<br />

average of $2.4 billion in November, OİB<br />

Head Baran Çelik said.<br />

“While auto supply industry exports<br />

jumped in double digits, exports of<br />

passenger cars and goods transport motor<br />

vehicles declined in double digits. We also<br />

recorded double-digit growths in exports<br />

to countries such as Germany, the United<br />

States and Egypt,” he added.<br />

In the three years before the pandemic<br />

crashed the global supply chains at the<br />

beginning of 2020, the average of Turkey’s<br />

automotive exports was $30 billion<br />

annually.<br />

“In 2020, our exports slipped to $25.5<br />

billion due to the pandemic. We are<br />

planning to end this year with $29 billion in<br />

exports,” Çelik said.<br />

Turkish automotive exports’ share in the<br />

country’s overall exports is around 11.8<br />

percent, according to his remarks.<br />

Germany, Turkey’s top exports market,<br />

imported automotive products of $392<br />

million in November, up 12 percent year<br />

on year. In the same month, automotive<br />

exports to Russia, Egypt, Romania<br />

and the United States jumped by 44<br />

percent, 31 percent, 25 percent and 11<br />

percent, respectively. On the other hand,<br />

automotive exports to France dropped by<br />

11 percent to $291 million and exports<br />

to the United Kingdom contracted by 16<br />

percent to $223 million. <strong>Exports</strong> to Italy,<br />

Slovenia, Belgium, the Netherlands and<br />

Sweden also decreased in double digits<br />

year on year in November.<br />

In the first 11 months of this year,<br />

automotive exports to Russia soared 50<br />

percent to $642.7 million, while exports<br />

to the United Kingdom ($2.7 billion) and<br />

United States ($1.1 billion) jumped by 42<br />

percent and 31 percent, respectively.(HH)<br />

Domestic market narrowing<br />

Affected by semiconductor shortage,<br />

depreciation in the value of the Turkish<br />

Lira and complicated special consumption<br />

tax base system, passenger car and light<br />

commercial vehicle sales dropped by 24.9<br />

percent to 60,216 units in November,<br />

according to <strong>Automotive</strong> Distributors<br />

Association (ODD).<br />

In the same month, passenger car sales<br />

declined by 33.2 percent to 42,982, while<br />

light commercial vehicle sales increased by<br />

9.2 percent to 17,234. Compared to the 10-<br />

year November sales average, passenger<br />

car and light commercial vehicle sales<br />

narrowed by 24.7 percent this year.<br />

<strong>March</strong> <strong>2022</strong> 38

Investments in<br />

Turkey’s rapid<br />

charging stations<br />

for EVs gain pace<br />

As transitioning to electric vehicles gains<br />

pace around the world and Turkey plans to<br />

put its domestic electric car on the market<br />

soon, investments regarding the necessary<br />

infrastructure, namely charging stations,<br />

are also on the rise.<br />

Turan Şakacı, senior manager at the<br />

Istanbul-based engineering firm Üçay<br />

Group, told Anadolu Agency that the<br />

company aims to increase the number of<br />

rapid electric charging stations with an<br />

investment of $1 million (TL 13.56 million)<br />

initially this year.<br />

“We have the technical infrastructure,<br />

service support, product and opportunity<br />

that will enable the establishment of<br />

stations all over Turkey, starting with our<br />

big cities,” he said.<br />

Şakacı stated that they have completed the<br />

necessary preparations for the expansion<br />

of electric charging stations throughout<br />

the country, following the agreement they<br />

signed with Eaton, a global manufacturer<br />

of electricity and industrial power<br />

management systems, in October.<br />

Pointing out that with this agreement Üçay<br />

Group has become the sole authority in<br />

the sale and service of charging stations<br />

for electric vehicles, Şakacı said that with<br />

the unveiling of the country’s first fully<br />

electric and domestic vehicle, Togg, the<br />

infrastructure of fast charging stations<br />

came to the fore. He noted that they have<br />

56 branches and hundreds of dealers in<br />

81 provinces of Turkey, adding that Turkey<br />

does not need foreign resources for its<br />

electric charging station investments.<br />

“We see that foreign investors see the<br />

electric vehicle potential in Turkey and are<br />

preparing to invest in it. However, Turkey<br />

uses its own resources to invest in the<br />

country’s electric charging stations,” he<br />

said. Electric vehicle giant Tesla included<br />

Turkish city names on its website for Tesla<br />

Supercharger stations with the phrase<br />

“coming soon.”<br />

The cities currently include Istanbul, the<br />

capital Ankara, southern Antalya, the<br />

western cities of Aydın, Balıkesir and Izmir,<br />

the northwestern cities of Bursa, Edirne<br />

and Sakarya, and central Konya. Charging<br />

stations will be installed at points that<br />

everyone can easily access, such as main<br />

roads or shopping malls.<br />

Turkey’s Automobile Joint Venture<br />

Group, known as Togg, is the consortium<br />

developing the country’s indigenous car<br />

and will launch its first mass-produced<br />

vehicle, an all-electric SUV, by the end<br />

of <strong>2022</strong>. Togg was most recently named<br />

among one of the top 20 brands that<br />

participated at the <strong>2022</strong> Consumer<br />

Electronics Show (CES) by the U.S.-based<br />

Exhibitor magazine.<br />

<strong>March</strong> <strong>2022</strong> 40

Turkish factory<br />

output beats<br />

forecasts to<br />

jump 14.4%<br />

Turkey’s industrial production jumped more<br />

than expected in December and registered<br />

the highest rate of growth in six months,<br />

official data showed. The output surged<br />

14.4% year-over-year in December, the<br />

Turkish Statistical Institute (TurkStat) said,<br />

rising for the 18th consecutive month in a<br />

sustained burst of economic activity since<br />

the lifting of coronavirus measures.<br />

The reading exceeded forecasts of 11.2%<br />

and 10.8% projected in Reuters and<br />

Anadolu Agency (AA) polls, respectively.<br />

The production remained strong despite<br />

high volatility in the Turkish lira that month,<br />

which deterred company and household<br />

budgets and sent inflation soaring via<br />

import prices.<br />

Analysts expect jumps in utility prices and<br />

scattered curbs to power use to weigh on<br />

industrial production in January, after Iran<br />

had cut gas flows to Turkey for up to 10<br />

days due to a technical failure.<br />

While the mining and quarrying sector<br />

posted negative results, the manufacturing<br />

industry and the electricity, gas, steam and<br />

air conditioning supply indices were on the<br />

positive side, the data showed.<br />

The mining and quarrying sector index<br />

dropped 1.4% year-over-year in December.<br />

The manufacturing industry and the<br />

electricity, gas, steam and air conditioning<br />

supply indices were up 16.2% and 8%,<br />

respectively, over the same period.<br />

Enver Erkan, a chief economist at Istanbulbased<br />

Tera Yatırım, said they expect a loss<br />

of momentum in January.<br />

“Iran’s cessation of gas supply and<br />

consequent electricity and gas cuts in the<br />

industry led to suppression of production.<br />

<strong>March</strong> <strong>2022</strong> 42

We take into account that we will see the<br />

effect of this in the January data. Due to<br />

supply problems, the upward trend in raw<br />

material prices continues,” Erkan said in a<br />

note.<br />

In April of 2020, output plummeted<br />

more than 31% in the face of the initial<br />

coronavirus wave, but it has since made a<br />

strong recovery since subsequent measures<br />

largely skirted the manufacturing sector. All<br />

virus measures were lifted in July last year.<br />

Turkey’s economy is expected to have<br />

grown around 10% in 2021, rebounding<br />

powerfully after a sharp slowdown a year<br />

earlier driven by COVID-19 restrictions.<br />

Erkan said the latest data reaffirmed the<br />

double-digit growth in 2021.<br />

“Our growth expectation for 2021 is 10.8%.<br />

In <strong>2022</strong>, we will consider factors such as<br />

the developments in the exchange rate, the<br />

economic slowdown caused by the global<br />

supply shortage, and the problems that the<br />

omicron variant may cause, especially in<br />

our export partners,” he said.<br />

“We expect the growth to normalize<br />

towards the 4% band this year.”<br />

Month-over-month, industrial output<br />

rose 1.6% in December on a calendar and<br />

seasonally adjusted basis, TurkStat said.<br />

The mining and quarrying sector index<br />

dropped by 3.4% month-over-month.<br />

The manufacturing, and gas, steam and<br />

air conditioning supply indices were up<br />

by 1.8% and 0.6%, respectively, versus<br />

November.<br />

The Turkish government has been<br />

endorsing a model based on lower<br />

borrowing costs, which it says will boost<br />

production, employment and exports,<br />

and also eventually help Turkey solve the<br />

chronic current account deficit problem<br />

and contribute to stabilizing the Turkish<br />

lira.<br />

To support the drive, Turkey’s central bank<br />

has slashed its interest rates by 500 basis<br />

points since September to 14%, before<br />

pausing the easing cycle.<br />

The lira had weakened 44% last year<br />

and hit a record low of 18.4 against the<br />

United States dollar in late December but<br />

rebounded after President Recep Tayyip<br />

Erdoğan’s announcement of a scheme<br />

to boost lira deposits by protecting them<br />

against depreciation.<br />

The initiative had helped the lira rally<br />

sharply to just over 10 and then settle at<br />

current levels just under 14 to the dollar.<br />

The decline in the lira stoked prices and<br />

caused inflation to jump to 48.7% in<br />

January.<br />

A central bank survey of market<br />

participants’ expectations showed<br />

consumer price inflation was seen ending<br />

<strong>2022</strong> at 34.06%, up from 29.755 in the<br />

previous survey, with gross domestic<br />

product (GDP) growth forecast to be 3.7%.<br />

The lira, which has traded steadily so far<br />

this year, was flat at 13.54 against the<br />

dollar. The central bank survey showed it<br />

was seen ending the year at 16.04, down<br />

from the previous forecast of 16.13.<br />

Separately, Turkey’s retail sales volume,<br />

a marker of growing consumer spending,<br />

surged 15.5% year-over-year in December,<br />

TurkStat data showed, with all sub-indices<br />

posting increases.<br />

Non-food (except automotive fuel) sales<br />

increased by 28.2% in December, compared<br />

to the same month in 2020. <strong>Automotive</strong><br />

fuel sales were up by 2.8%, while that of<br />

food, drinks and tobacco increased by 1.7%<br />

over the same period.<br />

Among non-food items, textile, clothing<br />

and footwear sales rose the most, climbing<br />

77.3% from December 2020, followed by<br />

medical goods and cosmetics (16%) and<br />

computers, books and telecommunications<br />

equipment (13.1%). Sales by mail order and<br />

the internet soared 34.1% year-over-year in<br />

December.<br />

On a monthly basis, the retail sales volume<br />

dropped by 2.7% over the month.<br />

Separate TurkStat data showed that the<br />

economy posted an 82.4% annual jump in<br />

total turnover in December.<br />

The biggest change came in industry, which<br />

shot up 101.4% on an annual basis, the<br />

institute said. The construction sector saw<br />

an annual rise of 46.4%, while the services<br />

and trade indices climbed by 82.9% and<br />

77.6%, respectively. On a monthly basis,<br />

the seasonally and calendar-adjusted total<br />

turnover index was up 12.8% in December.<br />

“Industry increased by 20.1%, trade<br />

increased by 11.0%, services increased<br />

by 7.6% and construction decreased by<br />

4.6% on monthly basis in December 2021,”<br />

TurkStat said.<br />

43 <strong>March</strong> <strong>2022</strong>

Hybrid cars<br />

outsell diesel in<br />

Europe for first<br />

time<br />

Hybrid cars, which operate on both an<br />

internal combustion engine and an electric<br />

motor, outsold diesel vehicles in Europe<br />

for the first time in 2021, albeit by just 48<br />

vehicles, data showed.<br />

One in 11 cars sold were battery-electric,<br />

the data from the European Automobile<br />

Manufacturers’ Association (ACEA) showed,<br />

totaling just under 880,000 vehicles.<br />

Self-charging hybrid cars contain a battery<br />

charged by an internal combustion engine,<br />

and generally can only drive a limited<br />

distance on electric power.<br />

Plug-in hybrids are powered primarily by a<br />

battery charged externally and thus seen<br />

as more environmentally friendly, but<br />

are backed up by an internal combustion<br />

engine, while battery-electric cars run on<br />

the battery alone.<br />

A total of 1,901,239 million self-charging<br />

hybrid cars were registered in the European<br />

Union throughout the year, a significant<br />

jump from the 1.1 million registered in<br />

2020.<br />

Diesel registrations, which have cratered<br />

since the Dieselgate scandal in 2015, fell<br />

by a third from last year’s 2.77 million to<br />

1,901,191. New government subsidies for<br />

low- or zero-emission vehicles that took<br />

effect as part of the pandemic recovery<br />

program trebled sales of plug-in hybrid<br />

and battery-electric vehicle sales in 2020<br />

to over 1 million, with a roughly even split<br />

between the two types.<br />

The plug-in hybrids are seen by carmakers<br />

as a technology of transition to fullyelectric<br />

cars, but their green credentials<br />

have been criticized by environmental<br />

groups as studies have shown drivers<br />

rely more than hoped on the internal<br />

combustion engine over the battery,<br />

pushing up the vehicles’ emissions.<br />

In 2021, battery-electric vehicle sales grew<br />

by 63.1% to nearly 878,500 cars, the data<br />

showed, while plug-in hybrid sales grew<br />

70.7% to nearly 867,100.<br />

Petrol remained the most common fuel<br />

type but by a lower margin than last year,<br />

constituting 40% of new registrations,<br />

down from 48% in 2020<br />

<strong>March</strong> <strong>2022</strong> 46

Turkey’s car<br />

brand Togg<br />

launches first<br />

office abroad in<br />

Germany<br />

Togg CEO Mehmet Gürcan Karakaş<br />

Turkey’s first homegrown automobile<br />

brand, Togg, has made its initial foray into<br />

the European market by opening its first<br />

representative office abroad in Germany.<br />

Togg is due to launch mass production<br />

later this year. Togg CEO Mehmet Gürcan<br />

Karakaş in August last year said the<br />

company would start sales with Germany,<br />

followed by other markets in Europe.<br />

Germany aims to have at least 15 million<br />

electric cars on the roads by 2030 in its<br />

shift towards climate neutrality, according<br />

to a coalition agreement of the country’s<br />

new government.<br />

Turkey’s Automobile Joint Venture<br />

Group, known as Togg, is the consortium<br />

developing the country’s indigenous car.<br />

Due to launch its first mass-produced<br />

vehicle, an all-electric SUV, by the end of<br />

<strong>2022</strong>, Togg opened its first foreign office in<br />

Stuttgart, according to a report by public<br />

broadcaster TRT Haber.<br />

The SUV in the C-segment will be launched<br />

in the first quarter of 2023 and will be the<br />

first electric sport utility vehicle produced<br />

in continental Europe by a nontraditional<br />

manufacturer, Karakaş said earlier this<br />

month.<br />

“I believe that if attention is paid to its<br />

quality, both Germans and the Turks will<br />

be buying it,” said Durmuş Yılmaz, an<br />

automotive parts supplier in Germany.<br />

“We see that the Germans pay close<br />

attention to everything. If we do the same,<br />

it depends on the quality, discipline; when<br />

they buy it, they will realize that it is a good<br />

car,” Yılmaz told TRT Haber.<br />

The brand aims to produce 1 million<br />

vehicles across five different segments by<br />

2030.<br />

Togg was named among one of the top<br />

20 brands that participated at the <strong>2022</strong><br />

Consumer Electronics Show (CES) by the<br />

U.S.-based Exhibitor magazine.<br />

Togg showed off the “Transition Concept<br />

Smart Device,” an all-electric fastback<br />

concept car during one of the world’s<br />

largest technology and gadget fairs, held in<br />

Las Vegas earlier this month.<br />

It was not immediately clear if the fastback<br />

is intended to replace the previously seen<br />

compact sedan or was produced just<br />

for CES. Togg was launched on June 25,<br />

2018. President Recep Tayyip Erdoğan, in<br />

December 2019, unveiled prototypes for<br />

the SUV and a sedan, both fully electric and<br />

C-segment models.<br />

Togg said it would produce five different<br />

models – an SUV, sedan, C-hatchback,<br />

B-SUV and B-MPV – through 2030. Mass<br />

production of the SUV will begin by the end<br />

of this year, with the sedan to follow.<br />

Construction of Togg’s engineering, design<br />

and production facilities began in mid-<br />

2020. Built on an area of 1.2 million square<br />

meters (12.9 million square feet) in the<br />

Gemlik district of northwestern Bursa<br />

province, the facility is scheduled to be<br />

complete in the coming months.<br />

Togg has opted for advanced lithium-ion<br />

battery technology company Farasis as<br />

its business partner for the battery. The<br />

homegrown car can reach 80% charge in<br />

under 30 minutes with fast charging. It will<br />

have a range of between 300 kilometers to<br />

500 kilometers (186 miles to 310 miles).<br />

<strong>March</strong> <strong>2022</strong> 48

Turkey supports<br />

foreign firms as<br />

global supply<br />

crunch bites<br />

There is a silver lining to the global supply<br />

chain crunch for Turkey: The country is<br />

becoming an attractive alternative at the<br />

gates of Europe for foreign firms.<br />

Turkey is seizing its geographic advantage<br />

to woo companies as the skyrocketing<br />

cost of sea freight and pandemic-related<br />

disruptions to supply chains push some<br />

European companies to reduce their<br />

dependence on Asia.<br />

President Recep Tayyip Erdoğan has<br />

promoted a new slogan for exports: “Made<br />

in Turkiye,” marketing products in Turkish<br />

instead of the internationally known “Made<br />

in Turkey.”<br />

The country’s exports reached a record<br />

$225.4 billion (TL 3.07 trillion) last year,<br />

with a target of $300 billion set for 2023.<br />

“Many international companies are taking<br />

action to supply more from Turkey,”<br />

Burak Dağlıoğlu, head of the presidency’s<br />

investment office, told Agence France-<br />

Presse (AFP).<br />

He said the country offers automakers<br />

or textile companies a “competitive<br />

talent pool, sophisticated industrial<br />

competencies, well-developed services<br />

industries, perfect geographic location and<br />

state-of-the-art logistic infrastructure.”<br />

Furniture retail company Ikea announced<br />

last year it wanted to move part of its<br />

production to Turkey.<br />

The Italian clothing group Benetton told<br />

AFP it wants to “increase its production<br />

volumes in countries closer to Europe,<br />

including Turkey.”<br />

Peter Wolters, vice-chairperson of<br />

the Netherlands-Turkey Chamber of<br />

Commerce, said the business group<br />

received “requests from the household and<br />

garden sector, textile and fashion and also<br />

yacht building industry who search for new<br />

partners in Turkey.”<br />

Japanese electronics contractor Kaga<br />

Electronics is going to build a factory in<br />

Turkey, shifting a portion of the production<br />

from China and Southeast Asia, it also said<br />

back in December.<br />

The company said it hopes to take<br />

advantage of Turkey’s strategic location and<br />

expand the Middle East and Europe orders.<br />

“Kaga hopes to leverage its new production<br />

base to win orders related to auto-related<br />

parts as well,” it said.<br />

It has become extremely expensive to ship<br />

goods from Asia.<br />

As a result of container shortages, the cost<br />

of freight between China and northern<br />

Europe has increased ninefold since<br />

February 2020, according to the Freightos<br />

Baltic Index.<br />

While a cargo ship can take weeks to travel<br />

from Asia to Europe, Turkey is only three<br />

days away by truck.<br />

A study by the McKinsey consulting group<br />

published in November placed Turkey in<br />

the third position among countries with the<br />

best potential for textile supplies by 2025,<br />

behind Bangladesh and Vietnam but ahead<br />

of Indonesia and China.<br />

“Apparel companies are also looking to<br />

change their sourcing-country mix ...<br />

to secure the supply chain,” the global<br />

report’s authors wrote.<br />

The report said Turkey offers “cheaper<br />

production costs due to a declining lira.”<br />

The lira has fallen by 44% against the dollar<br />

since 2021.<br />

Erdoğan has been endorsing a model based<br />

on lower borrowing costs, which he says<br />

will boost production, employment and<br />

exports, and also eventually help Turkey<br />

solve its chronic current account deficit<br />

problem and contribute to stabilizing the<br />

Turkish lira.<br />

The declining lira is, however, problematic<br />

for several industries due to the country’s<br />

dependence on imports for energy and raw<br />

materials.<br />

“It’s not like Russia, for example, which<br />

has extensive raw materials,” said Roger<br />

Kelly, leading regional economist covering<br />

Turkey and Russia at the European Bank for<br />

Reconstruction and Development (EBRD).<br />

He said Turkey also faces competition from<br />

countries within the European Union.<br />

“I don’t think we should ignore those<br />

countries in southeast Europe like Romania<br />

or Bulgaria, which are actually in the EU –<br />

which helps them to a certain degree – and<br />

also have low production costs and strong<br />

production bases as well.”<br />

<strong>March</strong> <strong>2022</strong> 52

S. Korea weighs<br />

penalizing Tesla<br />

for exaggerating<br />

battery features<br />

South Korea’s antitrust watchdog is<br />

considering imposing penalties against the<br />

United States’ electric car giant Tesla over<br />

its findings the company exaggerated the<br />

specifications of its batteries, according to<br />

an official.<br />

The Korea Fair Trade Commission (KFTC)<br />

had sent a report to the electric vehicle<br />

(EV) maker stating that it had exaggerated<br />

the mileage of some of its models,<br />

including Model 3, in violation of the Act<br />

on Fair Labeling and Advertising, the official<br />

said.<br />

“We plan to hold a general meeting to<br />

review and determine the extent to which<br />

the automaker has violated the law and<br />

decide the level of sanctions,” an official<br />

at the KFTC told Reuters, asking not to be<br />

named due to the sensitivity of the matter.<br />

Tesla, on its website, says its Model 3 can<br />

travel 528 kilometers (328 miles) on a<br />

single charge. The KFTC says however that<br />

the range may fall short of that should the<br />

temperature drop below freezing.<br />

Analysts said most electric vehicles could<br />

generally experience some loss of driving<br />

range in cold weather. Separately, the<br />

KFTC is also weighing whether to impose<br />

penalties against Tesla for not refunding<br />

deposits to customers who canceled online<br />

purchases before their vehicle orders were<br />

put in place for release.<br />

In South Korea, Tesla requires customers to<br />

pay a deposit of 100,000 won ($84) when<br />

purchasing Tesla cars online, but deposits<br />

were not refunded upon cancellations of<br />

orders by customers, according to Yonhap<br />

news agency.<br />

<strong>March</strong> <strong>2022</strong> 54

Chip shortage<br />

continues to hamper<br />

VW car production<br />

Germany’s leading car manufacturer Volkswagen<br />

continues to suffer from the global shortage of<br />

semiconductors, with a senior employee representative<br />

calling the cut in working hours “hard to bear.”<br />

The possible prolonged cut in shifts from April onward<br />

will be limited to the main plant in Wolfsburg for the<br />

time being, but the works council is applying pressure<br />

for the company to improve its chip purchasing.<br />

“We have had to phase out temporary work at almost<br />

all locations and have thus already made changes at<br />

the turn of the year,” human resources board member<br />

Gunnar Kilian told Deutsche Presse-Agentur (dpa).<br />

Plants like the one in the north-western city of Emden<br />

on the Dutch border are already geared to two-shift<br />

instead of three-shift operation.<br />

Daniela Cavallo, head of the works council, emphasized:<br />

“We have full order books. But the semiconductors are<br />

missing. It doesn’t add up, and it’s hard to bear.”<br />

At the Wolfsburg headquarters, VW is cutting night<br />

shifts on three out of four important lines in the spring.<br />

Last year, 330,000 fewer vehicles were built in<br />

Wolfsburg, meaning just under 400,000 cars were<br />

produced, a low since 1958.<br />

In addition to financial compensation for the loss of shift<br />

bonuses, the employee representatives are demanding<br />

a reorganization of the procurement of central supplier<br />

parts.<br />

According to Cavallo, some companies are further ahead<br />

than VW in securing sufficient quantities.<br />

“Certainly, a lot has already happened. We have the<br />

task force on semiconductor supply. But it’s also about<br />

building strategic, long-term supply management – not<br />

just for microchips, by the way.”<br />

<strong>March</strong> <strong>2022</strong> 55

SABIC study on rear quarter windows<br />

underscores LEXANTM resin’s value<br />

SABIC, a global leader in the chemical<br />

industry, announced the results of a<br />

recent design study on automotive rear<br />

quarter windows that explored the distinct<br />

advantages of LEXANTM polycarbonate<br />

(PC) resins for developing differentiated<br />

styling, consolidating components,<br />

integrating functions and enhancing<br />

aerodynamics. These concepts reveal<br />

multiple new opportunities to significantly<br />

expand design freedom, control costs and<br />

reduce weight by replacing traditional glass<br />

with transparent, impact-resistant LEXAN<br />

resins. The detailed study, conducted by<br />

SABIC designers and engineers, builds<br />

on the company’s deep, decades- long<br />

history in automotive glazing technology.<br />

In addition to rear quarter windows,<br />

the SABIC team produced stylish design<br />

concepts for rear side windows. The data<br />

is available to support the feasibility of<br />

these designs, all of which can use wellestablished<br />

processing methods and<br />

secondary operations.<br />

“As industry trends such as vehicle<br />

electrification continue to evolve, SABIC<br />

is seeing major new opportunities for our<br />

materials to radically change automotive<br />

styling, while simultaneously addressing<br />

the longstanding challenges of weight-out,<br />

cost-out and sustainability,” said Abdullah<br />

Al-Otaibi, general manager, ETP & Market<br />

Solutions, SABIC. “The latest concepts<br />

from our study aim to inspire exciting new<br />

window designs that address these needs<br />

by combining beautiful aesthetics with<br />

practical performance and established<br />

processing methods. SABIC’s LEXAN resins<br />

have a proven track record in automotive<br />

glazing applications, and we continue to<br />

work with our customers to proactively<br />

deliver cutting-edge ideas and innovations<br />

that can benefit OEMs, tier suppliers and<br />

consumers alike.”<br />

Wraparounds, Panel Swaps, Integrated<br />

Lighting and More<br />

Many of the new SABIC concepts feature<br />

LEXAN resin used in curved wraparounds<br />

that seamlessly flow into other portions<br />

of the vehicle, while integrating rear<br />

lighting, door latches, D-pillar trim and<br />

even sunroofs. Integrations and complex<br />

curvatures like these typically cannot be<br />

achieved with glass. Part and function<br />

integrations can enhance aerodynamics to<br />

improve fuel economy and electric vehicle<br />

(EV) battery efficiency and range. They also<br />

create a highly streamlined look for the<br />

vehicle.<br />

One rear quarter window concept (1A)<br />

integrates an airflow separator feature<br />

for increased aerodynamic efficiency and<br />

incorporates styling strokes to add visual<br />

appeal. Another concept (1D) integrates<br />

a backlit EV charge level indicator within<br />

the window. Alternatively, the rear quarter<br />

window could integrate a different or more<br />

distinctive type of indicator or an animated<br />

welcome light display.<br />

In another case (1F), SABIC created a rear<br />

quarter window with an expressive 3D<br />

curvature that smoothly wraps around<br />

the D-pillar, into the sunroof and down<br />

the back side. This concept combines the<br />

window with the taillights. A variation<br />

(1H) on this rear quarter window design<br />

features a raised panel covering the D-pillar<br />

area. This window enhancement can be<br />

created in the same color as the body to<br />

establish a floating-pillar effect, and can<br />

even be swapped by the consumer for a<br />

different panel if a special color or effect is<br />

desired. The new SABIC study also includes<br />

innovative design concepts for the rear<br />

side window. For example, one unique<br />

design (2D) features a window and a door<br />

latch that are mated to a trim insert in the<br />

D-pillar. The result is a sleek, aerodynamic<br />

design.<br />

Clear Advantages over Glass<br />

Although glass has dominated the<br />

automotive glazing sector for years, due<br />

mainly to its low cost for simple curved<br />

components, disruptors such as EVs are<br />

prompting the industry to re-imagine<br />

vehicle design. In the process, traditional<br />

materials like glass have come under<br />

scrutiny and are increasingly being<br />

replaced by safer, lighter, higher performing<br />

engineered plastics. SABIC’s PC glazing<br />

offers exceptional advantages over glass,<br />

beginning with significantly lighter weight.<br />

With PC, designers gain the freedom to<br />

create curved forms, sharp angles and<br />

other configurations that cannot be<br />

achieved with glass. Proven technologies<br />

such as 2K and 3K injection molding<br />

can be used to produce these shapes.<br />

SABIC has invested in the development<br />

of a 3K injection molded sunroof to build<br />

competencies in molding large transparent<br />

and semi-transparent parts.<br />

Polycarbonate is also much easier to<br />

recycle than glass, which faces roadblocks<br />

due to its high transportation costs,<br />

potential for contaminating single-stream<br />

recycled content with broken fragments,<br />

and shrinking end markets for the material,<br />

particularly automotive. SABIC is interested<br />

in pursuing supply chain collaboration with<br />

industry partners to explore the chemical<br />

upcycling of PC materials used in rear<br />

quarter windows and rear side windows.<br />

<strong>March</strong> <strong>2022</strong> 56

Autopromotec <strong>2022</strong>: international promotion has<br />

kicked off in view of next year’s event<br />

The strategic plan to achieve maximum<br />

incoming attendance for the edition<br />

scheduled on 25-28 May in Bologna has<br />

been implemented: the aim is to involve,<br />

with an innovative format, the entire world<br />

of automotive after-sales at a global level<br />

Attractiveness and business. These are<br />

the keywords of the strategic plan for<br />

international promotion developed<br />

by Autopromotec for the next edition<br />

<strong>March</strong> <strong>2022</strong> 58

scheduled on 25-28 May <strong>2022</strong> in Bologna.<br />

The organisers of the biennial international<br />

automotive equipment and aftermarket<br />

exhibition have launched a series of<br />

large-scale promotional activities with the<br />

aim of attracting the largest number of<br />

buyers, decision-makers and stakeholders<br />

at an international level. On the one<br />

hand, thanks to contributions from the<br />

“Strategic Fund for Made in Italy” of the<br />

Ministry of Foreign Affairs and International<br />

Cooperation and the ICE Agency (Italian<br />

trade & investment agency), Autopromotec<br />

will work to bring in operators from distant<br />

and high-potential markets. On the other<br />

hand, through its network of agents and<br />

representatives, the organisers are working<br />

to welcome, during the next edition of the<br />

exhibition, groups of professional operators<br />

from numerous markets in Central and<br />

Eastern Europe, North Africa, the Middle<br />

East and South America. The aim is to<br />

offer the greatest number of business<br />

opportunities to exhibiting companies,<br />

but also to put buyers in touch with all<br />

the product innovations, which in many<br />

cases will be previewed at Autopromotec<br />

<strong>2022</strong>, the first international showcase for<br />

the industry after the long pause imposed<br />

by the pandemic. Particular attention has<br />

also been paid to foreign associations,<br />

for which the organisers of the event are<br />

working on a calendar of workshops on<br />

the main themes and challenges of the<br />

automotive aftermarket sector. Attendees<br />

at the next edition will be faced with an<br />

innovative format that will allow them to<br />

learn about innovations and new products,<br />

meet both their regular suppliers and find<br />

new ones, access services and participate<br />

in conferences and seminars both in person<br />

and virtually. The trend that is projected<br />

is that of an even more specialised edition<br />

with a strong component of professional<br />

visitors with even higher specific qualities.<br />

Absolute priority, therefore, will be given<br />

to face-to-face activities. However, they<br />

will be complemented with a series of<br />

hybrid activities, should the contingent<br />

pandemic situation require it. Over the<br />

years, Autopromotec has confirmed its<br />

international vocation, reaching remarkable<br />

figures: during the 2019 edition, 119,108<br />

professional operators from 136 countries<br />

visited Autopromotec, a figure that highlights<br />

the great effort made by the organisers in<br />

terms of international promotion in the last<br />

editions of the Exhibition. The attendance<br />

percentages of foreign professional operators<br />

have in fact outlined a map of reference<br />

market areas that sees, in the first line,<br />

Europe (with 37%), Asia (24%), Americas<br />

(18%) and Africa (15%), followed by Oceania<br />

(6%). This is also the result of agreements<br />

that Autopromotec has made with<br />

institutions, in particular the Emilia-Romagna<br />

Region, the Ministry of Foreign Affairs and<br />

International Cooperation and the ICE<br />

Agency (Italian trade & investment agency),<br />

which support the event’s initiatives aimed at<br />

international promotion and the incoming of<br />

foreign operators.<br />

59 <strong>March</strong> <strong>2022</strong>

Katmerciler<br />

to Deliver<br />

118 Units of<br />

Hızır Vehicles<br />

Equipped<br />

with Allison<br />

Transmissions to<br />

Kenya<br />

Katmerciler won Kenya’s military vehicle procurement tender and<br />

will start the delivery of Hızır vehicles equipped with Allison fully<br />

automatic transmissions in <strong>2022</strong>.<br />

Allison Transmission, a leading designer<br />

and manufacturer of conventional and<br />

electrified vehicle propulsion solutions<br />

for tactical wheeled and tracked defense<br />

vehicles, and medium- and heavy-duty<br />

commercial vehicles, and Katmerciler,<br />

the Turkish vehicle manufacturer which is<br />

aspired in defense industries from all over<br />

the world, will reinforce 118 Hızır vehicles<br />

with Allison fully automatic transmissions<br />

which will be delivered to Kenya’s Ministry<br />

of Defense beginning in <strong>2022</strong>. Katmerciler<br />

recently won the military vehicle tender<br />

organized in line with Kenya’s military<br />

needs. The final delivery of the vehicles is<br />

to be completed in 2023.<br />

The Hızır 4x4 Tactical Wheeled Armoured<br />

Vehicle is designed and optimized for high<br />

performance under extreme operational<br />

conditions in rural and urban areas with<br />

a nine personnel capacity. Katmerciler’s<br />

Hızır vehicle is exceptionally reinforced and<br />

has a high level of ballistic and landmine<br />

protection, developed according to NATO<br />

standards. Hızır vehicles come equipped<br />

with Allison 3200 Specialty SeriesTM fully<br />

automatic transmissions as standard and<br />

are used effectively in Turkey’s local and<br />

international operations. While the vehicle<br />

is in high demand by other countries due<br />

to its competitive features and successful<br />

performance in operations, Kenya has<br />

signed one of the biggest vehicle deliveries.<br />

The Katmerciler Hızır 4x4 is agile,<br />

dynamic, versatile, cost effective and<br />

maintenance friendly and is available in<br />

various configurations such as command<br />

control vehicle, CBRN vehicle, weapon<br />

carrier,ambulance vehicle, border security<br />

vehicle and reconnaissance vehicle.<br />

Allison’s patented torque converter ensures<br />

the extremely high torque is transferred<br />

to the driveline gradually and supports the<br />

efficiency of the Katmerciler Hızır in field<br />

operations in all applications, road and<br />

terrain conditions.<br />

Allison transmissions add value to military<br />

operations worldwide with by means of<br />

various advantages such as shifting at the<br />

right time automatically to provide greater<br />

protection for the driveline and ensure<br />

faster acceleration, better control, and<br />

better maneuverability.<br />

Allison’s torque converter enables less<br />

wear and tear on the driveline and<br />

conforms with Katmerciler’s lower repair<br />

costs strategy for its vehicles. Despite<br />

challenging operation conditions, any<br />

requirement for maintenance and repair<br />

costs are reduced.<br />

“Allison Transmission has been providing<br />

propulsion solutions for military vehicles<br />

for nearly 80 years and stands out as the<br />

standard equipment of many vehicles<br />

serving in the defense industry, said Berk<br />

Gönenç, Allison Transmission Turkey Sales<br />

Manager. “More than 600,000 military<br />

vehicles globally use Allison fully automatic<br />

transmissions for their field operations.”<br />

“Katmerciler is one of the key vehicle<br />

manufacturers in Turkey’s defense industry<br />

and its vehicles attract great attention from<br />

different areas of the world,” said Gönenç.<br />

“Therefore, we will keep on supporting<br />

the high performance and success of<br />

these vehicles equipped with Allison fully<br />

automatic transmissions as they go about<br />

their demanding work.”<br />

<strong>March</strong> <strong>2022</strong> 62

Morgan shares early design sketches<br />

of all-new three-wheeled model<br />

The Morgan Motor Company has<br />

showcased the design direction of its allnew<br />

three-wheeled model with the release<br />

of a series of never-before-seen design<br />

sketches. Taken from the drawing boards<br />

of Morgan’s design team, the illustrations<br />

demonstrate the aesthetic intent of the<br />

new model, as well as the inspirations that<br />

underpin it.<br />

No single sketch in isolation reveals<br />

the exact look of the new model, yet in<br />

culmination they demonstrate some of the<br />

key design features that will be revealed in<br />

full when the new three-wheeled model<br />

is launched in <strong>2022</strong>. Sketches show a<br />

technical front end trailed by a fluid form,<br />

the vehicle ‘visually towed’ by its leading<br />

front wheels. The visual mass resides<br />

behind the centre line of the front wheels<br />

and never on top of them, a theme that<br />

has remained prevalent from the earliest<br />

sketches. Further design tenets include the<br />

celebration of mechanical honestly and<br />

the communication of function through<br />

design, hallmarks of previous Morgan three<br />

wheelers.<br />

As demonstrated in the sketches, the<br />

design of the new model is bold and<br />

eccentric, taking inspiration from midcentury<br />

jet planes, motorcycles, historic<br />

Morgan models and modern industrial<br />

product design — images of which<br />

adorn the walls of Morgan’s design and<br />

engineering offices.<br />

Complementing this personality will be<br />

an extensive list of specification items<br />

and accessories available from the outset,<br />

making it Morgan’s most configurable<br />

vehicle ever. The model can be tailored to<br />

assume multiple identities and cater for<br />

every adventure.<br />

Steve Morris, Chairman and CEO of<br />

Morgan Motor Company, said: “Morgan<br />

was founded on the production of threewheeled<br />

cars, and when the 3 Wheeler<br />

was re-introduced in 2011 it became a firm<br />

pillar of the company’s product range. We<br />

recognise the importance of evolving this<br />

bloodline and continuing to provide our<br />

growing community of enthusiasts with<br />

new, exciting, and unforgettable motoring<br />

experiences. Creating the all-new threewheeled<br />

model has been a ground-up<br />

project, throughout which safety, durability,<br />

and character have been at the forefront<br />

of our focus. It has been an absolute joy<br />

seeing the new vehicle take shape, and we<br />

cannot wait to present it to the world next<br />

year, continuing the legacy of the model.<br />

Jonathan Wells, Head of Design, Morgan<br />

Motor Company, said: “Morgan cars are<br />

often described as ‘analogue’, despite<br />

exhibiting industry standard technologies.<br />

We believe that in a world of technology,<br />

making art of a car’s mechanical elements<br />

serves as an antidote to typical vehicle<br />

design. Throughout design studies it<br />

became quickly apparent that the vehicle<br />

must celebrate the model’s mechanical<br />

honesty. The sketches demonstrate<br />

how these will form a focal point of the<br />

new vehicle. The ground-up design is<br />

simultaneously a reflection of Morgan’s rich<br />

past, relevant to the present, and provides<br />

a firm vision of Morgan’s design future.”<br />

The illustrations shown today follow<br />

the previous information released in<br />

September, confirming the car’s all-new<br />

design, defined by significant engineering<br />

enhancements and a spirit of adventure.<br />

The model will be powered by an internal<br />

combustion engine at launch, specifically<br />

an inline three-cylinder naturally aspirated<br />

engine from Ford, continuing Morgan’s<br />

relationship with Ford which began in<br />

1933.<br />

<strong>March</strong> <strong>2022</strong> 66

Panda Auto Textile products will be all over the world<br />

Panda Seat Covers will bring all the products of textile group, which drivers dream<br />

of for their own vehicles, to consumers.<br />

Panda Seat Covers, which has been<br />

producing seat covers for automobiles for<br />

many years, has gone about to produce<br />

all the products that its customers need<br />

in automobile textiles. The brand, which<br />

currently has 4 warehouses in different<br />

countries in order to eliminate the logistics<br />

problem when sending products abroad,<br />

will increase this number to 10 by the<br />

end of <strong>March</strong>. Panda Seat Covers General<br />

Manager Orhan Ebem stating that they<br />

are the best brand of Turkey in terms of<br />

production, R&D and investment, stated<br />

that they will continue production in an<br />

area of 10,000 square meters with their<br />

new production facility and produce the<br />

highest quality auto textile products.<br />

++First of all, can we hear from you<br />

about the process of your brand from its<br />

establishment to the present?<br />

Panda Seat Covers is an international<br />

brand focused on auto textile production<br />

since 1986. Our goal is to become a<br />

solution partner of the companies we<br />

work with by working together. We are<br />

aiming to maintain the market leadership<br />

by combining technology and aesthetic<br />

understanding in our products. For this,<br />

we have conducted serious research in<br />

the international arena in the last 10<br />

years. How can we optimize quality? What<br />

kind of products does Europe use? We<br />

did research on questions like those. We<br />

started to take returns from that in a short<br />

time.<br />

What are the features of your<br />

products? What materials do you use<br />

while producing auto covers?<br />

We are using special products such as<br />

leather, velvet, linen, and jacquard and<br />

foal hair in production. The leathers we<br />

use are easy to clean and long lasting. It is<br />

waterproof and liquid-proof, fully wrapping<br />

the original seats and protecting them in<br />

first-class quality. Our velvet fabrics made<br />

of cotton make a silky touch with a special<br />

weaving technique. The product makes you<br />

feel special with its soft and comfortable<br />

structure. It is the first choice of our<br />

customers who want to make a luxury<br />

perception in their vehicle. Linen is a very<br />

strong fiber. It is brighter than cotton fiber<br />

and has an excellent resistance to heat.<br />

<strong>March</strong> <strong>2022</strong> 70

Thanks to its hard structure, it provides<br />

long-term use. It does not sweat or stretch.<br />

Jacquard fabric is a type of fabric made<br />

with patterns obtained by weaving threads<br />

on a special loom. Its source is cotton and<br />

it is the most preferred type of fabric for<br />

vehicle manufacturers in car seat cover<br />

upholstery. Because of its cotton structure,<br />

it does not sweat and shows long-term<br />

durability. Our foal fleece fabrics, which<br />

are made of cotton, are a high quality<br />

and thick-structured product due to the<br />

density of weaving. It has a unique texture.<br />

It is highly resistant to wear and tear. In<br />

addition, it does not sweat, has dirt and<br />

stain-proof properties.<br />

What kind of innovations have you<br />

brought to this sector as Panda Seat<br />

Covers?<br />

Our industry has always remained in the<br />

status we call under the counter. We<br />

opened the first factory in this sector in<br />

Düzce. We took care to ensure that the<br />

production is of maximum quality by<br />

giving trainings to our employees there. It<br />

is because, when you export, the brands<br />

abroad are looking at the documents you<br />

have such as ISO and Airbag. It was difficult<br />

to do this in Turkey. It is because we started<br />

to produce in an unconventional way. We<br />

have developed our machinery purchases<br />

in accordance with these standards. As a<br />

result, we started to sell to countries such<br />

as Romania, Moldova, Russia, Ukraine and<br />

Belarus.<br />

What other work do you have<br />

regarding export?<br />

Beside these countries, we started to gain<br />

returns abroad by selling to Germany 4<br />

years ago. We saw that there is a serious<br />

trailer market there. We have achieved<br />

positive results by starting production in this<br />

segment as well.<br />

For the American market, we sent a team<br />

to examine the work done there. We saw<br />

that there was a virgin market here, and<br />

as a result of our work, we agreed with a<br />

company and started to send our standard<br />

products there. We both send truck covers<br />

here by making an agreement with a foreign<br />

company, and we also deliver our products<br />

to the American market via Poland.<br />

71 <strong>March</strong> <strong>2022</strong>

So, how is this situation in the<br />

domestic market?<br />

We also made researches to see how we<br />

can deliver our products directly to our<br />

customers in the domestic market. Because<br />

the product we sell for 600 TL goes up to<br />

1500 TL until it reaches the customer. For<br />

this, we have activated our E-Commerce<br />

channel. Apart from our own E-Commerce<br />

site, we also took our place in all of the<br />

market places. In fact, we broke a record<br />

by reaching a turnover of 2 million in a<br />

short time like 8 months in a market place<br />

in 2020. As a result of our efforts, we have<br />

reached 1600 different sales points. We<br />

made a selection based on this figure, and<br />

now our products are being sold at around<br />

800 sales points on average. We have a<br />

field team regularly visiting these outlets<br />

and evaluating customer feedback. We will<br />

continue our efforts to deliver problem-free<br />

and quality products to end consumers.<br />

Could you give information about your<br />

production facilities? Do you have<br />

R&D studies?<br />

We are using 2500 different molds. We are<br />

the only company carrying out R&D and<br />

P&D studies in this sector in Turkey. We<br />

allocate 25% of our turnover only to these<br />

activities. We produce 22 thousand new<br />

products every month. We bought a new<br />

machine from Italy for my new products.<br />

In this way, decorative stitches began to<br />

take place in our products. Customers can<br />

already design their own covers on the<br />

internet with the products and colors they<br />

want.<br />

<strong>March</strong> <strong>2022</strong> 72

What are your new investments and<br />

goals for the upcoming period?<br />

First of all, we are starting to produce a<br />

new series for women. We have designed<br />

22 new products just for this catalogue. We<br />

will have different products such as stoned,<br />

digitally printed and knitted. At the end of<br />

<strong>March</strong>, we will also invest in the production<br />

of steering wheel covers, pillows and<br />

mats for the truck group. Our concern is<br />

to produce more various products. Now<br />

we want to be known as Panda Auto<br />

Textile, not just Panda Seat Covers. We will<br />

produce anything that people dream of for<br />

their vehicles. In addition, we will establish<br />

new warehouses in order to increase<br />

our logistics power in the coming period.<br />

Currently, we have 1 warehouse each in<br />

Germany and England, and 2 warehouses<br />

in Iraq. In addition to these, we will<br />

increase this number to 10 by putting<br />

into service 3 warehouses in Europe and<br />

1 warehouse each in America, Dubai and<br />

Ukraine as of the end of <strong>March</strong>. Especially<br />

countries like Saudi Arabia and Qatar love<br />

the covers. We will turn this demand into<br />

an opportunity with quality products.<br />

We currently have a production site<br />

of 4,600 square meters. We will start<br />

production in the entire building we are<br />

in this month. As a result, we will have a<br />

production facility of 10,000 square meters<br />

in the center of Istanbul.<br />

73 <strong>March</strong> <strong>2022</strong>

Nissan commits<br />

$17.6B spending<br />

for electric cars<br />

over 5 years<br />

Japanese carmaker Nissan will spend 2 trillion yen ($17.59 billion) over the next five years to accelerate<br />

vehicle electrification, the company announced, aiming to catch up with rivals in one of the fastest growth<br />

areas for the automobile industry.<br />

This is the first time Japan’s No.3<br />

automaker, one of the world’s first massmarket<br />

electric vehicle (EV) makers with<br />

its Leaf model more than a decade ago, is<br />

unveiling a comprehensive electrification<br />

plan.<br />

Nissan will be spending twice as much as<br />

it did in the previous 10 years for a share<br />

of the EV market as rivals, including Toyota<br />

and newer entrants such as Tesla, move<br />

ahead with their electric-car plans.<br />

Nissan said it will introduce 23 electrified<br />

vehicles by 2030, including 15 electric<br />

vehicles and wants to reduce lithium-ion<br />

battery costs by 65% within eight years. It<br />

also plans to introduce potentially gamechanging<br />

all solid-state batteries by <strong>March</strong><br />

2029.<br />

Those commitments, Chief Executive<br />

Makoto Uchida said, would make EVs<br />

affordable to more drivers.<br />

“We will advance our effort to democratize<br />

electrification,” he said in an online<br />

presentation.<br />

Some analysts were unimpressed with<br />

Nissan’s plan, noting it was already behind<br />

rivals in the electrification game.<br />

Masayuki Otani, senior analyst at Securities<br />

Japan Ltd, also said auto stocks were falling<br />

because of market concerns about a new<br />

coronavirus variant and the impact it could<br />

have on production plans.<br />

“Nissan’s long-term vision comes at a time<br />

when the market is perhaps not receptive<br />

to it. It can be said that it represents a huge<br />

increase in investment, it feels cautious,”<br />

he said.<br />

Shares of Nissan fell as much as 5.1%,<br />

underperforming its major rivals. They<br />

were down 3.8% in afternoon trading.<br />

Although still only a small portion of<br />

vehicles on the road, global electric car<br />

registrations in 2020 grew 41% even as the<br />

overall car market contracted by almost a<br />

sixth, according to the International Energy<br />

Agency (IEA).<br />

At the U.N. climate summit in Glasgow this<br />

month, major carmakers, including General<br />

Motors and Ford, signed a declaration that<br />

committed them to phase out fossil fuel<br />

vehicles by 2040.<br />

Nissan, however, has not committed to<br />

abandoning gasoline vehicles. It said on<br />

half of its vehicles mix will be electrified<br />

by 2030, including EVs and its e-Power<br />

hybrids. As it readies to compete for the<br />

growing demand for EVs, Nissan in July<br />

pledged $1.4 billion with its Chinese<br />

partner Envision AESC to build a giant<br />

battery plant in Britain that will power<br />

100,000 vehicles a year including a new<br />

crossover model. Rivals, including Toyota,<br />

which also declined to sign the Glasgow<br />

pledge, are also ramping up their battery<br />

production. The world’s biggest automaker<br />

by production volume plans to have 15<br />

battery electric vehicle (BEV) models<br />

globally by 2025 and will spend $13.5<br />

billion by 2030 to develop cheaper, more<br />

powerful EV batteries and their supply<br />

system. Toyota said it is aiming to introduce<br />

solid-state batteries by the mid-2020s.<br />

Those power packs are attractive to<br />

automakers because they are more energy<br />

dense and less prone to catching fire than<br />

liquid lithium-ion power packs. They are,<br />

however, prone to cracking and currently<br />

are more expensive to produce.<br />

Nissan said its goal is to bring the cost<br />

of solid-state batteries down to $75 per<br />

kilowatt-hour (kWh) in 2028 and further<br />

cut it to $65 per kWh in the future to make<br />

them competitive with gasoline vehicles.<br />

<strong>March</strong> <strong>2022</strong> 76

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