Monthly automotive aftermarket magazine
H. FERRUH ISIK
İstmag Magazin Gazetecilik
İç ve Dış Ticaret Ltd. Şti.
Managing Editor (Responsible)
Mehmet Soztutan, Editor-in-Chief
+90 505 577 36 42
International Marketing Coordinator
Digital Assets Manager
Design & Graphics
İstmag Magazin Gazetecilik
İç ve Dış Ticaret Ltd. Şti.
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Export-led growth given impetus
Following a mandatory yet brief break due to the coronavirus outbreak, Turkish factories
located in leading industrial cities of the country, started operating, with new investments
on the way thanks to increasing orders from foreign markets. Besides, the sales of electric
cars, which are expected to replace cars with internal combustion engines in the future,
continued the upward trend of recent years.
Automotive exporters operating in Turkey consistently put an emphasis to tackle the
problems they face in integrating an innovation strategy with planning and execution and
moving at speed to stay ahead of the competition.
As known, the Turkish auto parts industry has recorded a dynamic growth in line with the
automotive industry. From simple components in the mid-1960s, the sector has ascended
to produce high-tech components.
The industry with its large capacity, wide variety of production and high standards, supports
automotive industry production and the vehicles in Turkey and also has ample potential for
The leading foreign automotive parts manufacturers have established their presence in the
country through joint-ventures. There has also been substantial locally-owned investments
by spare parts manufacturers.
To sum up:
- Quality of production of the industry improved dramatically, especially through the
establishment of quality management systems.
- The industry has adapted to the EU regulations and has established an efficient and
exemplary cooperation with public institutions in the transformation of the EU regulations
to national regulations.
- Exports have risen sharply, and Turkish production has been integrated into manufacturers’
-The export potential of the automotive parts sector, coupled with the presence of major
international automotive manufacturers, has attracted an increasing number of foreign
Key factors which attract foreign capital inflows to Turkey mainly include the market size,
consumer composition, friendly investment legislation and banking system together
with other attractiveness arising from highly skilled human resources in production and
management, the unsaturated domestic market with high potential, easy access to
neighboring (regional) emerging markets, and low labor cost.
We wish them lucrative trade for the business people operating in the automotive business.
Punch Powertrain launches
proprietary DCT invention in serial
New and patented way of realizing “dual
clutch principle” with a single lay shaft
resulting in world’s most compact DCT; light
weight and cost effective design rendering
to be more sustainable technology and
affordable for compact car segment
• Tata Motors is the pioneer to introduce
this technology as part of its premium
hatchback Altroz DCA, representing the
“Gold Standard” in automatics in its
• The Altroz DCA launch marks a milestone
in company’s transformation towards DCT,
soon launching hybridized and higher
torque variants on road to affordable
sustainability and electrification
Punch Powertrain launches its innovative
DCT system with a revolutionary, more
compact and affordable design. The DT1
has been launched in India, debuting in the
recent launch Altroz DCA by Tata Motors.
This ingenious design guarantees that DT1
offers reliable performance and improved
driving comfort even under the most
challenging conditions, such as extreme
ambient temperatures, high altitudes, and
challenging driving environment, such as
uneven roads and stop-and-go driving.
Punch Powertrain’s unique and patented
new way of realizing the dual clutch
principle offers seamless comfortable
DCT shifting, while using 35% less shifting
components. In this unique design one of
the two clutches represents an additional
planetary gearset ratio that can be engaged
between the engine and the transmission.
This allows the unit to shift seamlessly
up-to 7 forward ratios*, using only 4 gear
pairs and only one layshaft. This results in
a lighter, more compact powertrain, while
offering a considerable cost reduction.
Through application of a wet-clutch
design, the transmission offers excellent
continued performance on inclines and
in stop-and-go-traffic. This aligns with
Punch Powertrain’s vision to provide
performant products at lower cost, or
offer more functionality and performance
at cost parity with competition. Thanks to
its compactness and design features, the
DT1 enables car manufacturers to offer
additional benefits to drivers, unique to its
segment and vehicle price range.
The DT1 is fitted with machine learning
software that optimizes transmission
behavior, based on its diagnostics and
analysis of thousands of parameters at the
speed of 100 times per second. The shift
by wire ensures smooth shifting, while
the software offers the additional benefit
of automatic missing driver detection and
activation of the park lock mechanism.
Another asset is the self-healing technology
that prevents the build-up of dust or debris
through an automatic vibration system,
decreasing the need of active maintenance.
Because of the extensive in-house software
expertise, Punch Powertrain is able to offer
the most complete and smart solutions
that combine robustness and comfort at no
or limited extra costs.
The DT1 smart design strongly resonates
with Tata Motors’ constant efforts to offer
‘The Gold Standard’ in its Altroz line.
While the invention was created and
developed in the company’s R&D centers in
the Netherlands and Belgium, the company
will localize production and is establishing
a solid support base for its local customer
in India. This is in line with the company’s
‘local for local’ strategy, ensuring short
communication lines and agility towards
the local markets of its global customers.
The launch of its DCT technology in India
signifies the entry into a new market for
the company, largely widening its reach
and potential, while further potential
markets are investigated.
In addition to entering a new market,
the DT1 signifies the first DCT in serial
production for Punch Powertrain, helping
car manufacturers meet the increasingly
tightening CAFE norms for smaller vehicles.
The compact design of this DCT and over
10 years of in-house expertise in the
development of e-motors render the
electrification a natural next step in its
transition to electrified and fully electric
propulsion systems. Within its expanding
product range, the company will launch a
higher torque hybrid DCT variant – DT2 –
later this year for mid-segment vehicles on
European and global markets, rendering
the company the leading hybrid DCT
supplier worldwide as of 2024.
With its inventor legacy in CVT technology,
the new DCT marks the company’s
transformation towards new technologies
as part of its sustainable solutions offering,
such as hybrid and electric propulsion
*OEM is free to use up-to 7 gears to make
it a best fit with their application objective.
May 2022 8
Mercedes profits rise on higher prices
German automaker Mercedes-Benz said
that higher sales prices enabled it to lift
its bottom line slightly in the first three
months of the year, despite a shortage of
semiconductors and fallout from the war in
Mercedes-Benz said in a statement that
it booked net profit of 3.6 billion euros
($3.8 billion) in the period from January to
March, an increase of three percent over
the same period last year.
Underlying or operating profit rose by 11
percent to 5.2 billion euros on a six-percent
increase in revenues to 35 billion euros.
The Stuttgart-based carmaker said its
results were boosted by a “sharpened
focus on top-end vehicles and premium
vans, combined with ongoing cost
discipline... even as the Covid-19 pandemic,
semiconductor supply-chain bottlenecks
and war in Ukraine continued to impact
Mercedes-Benz said unit sales of its cars
were down by 10 percent at around
Over the past year, automakers have been
battling shortages in semiconductors,
electronic components that are used in
both conventional and electric vehicles,
occasionally being made to halt production.
The war in Ukraine has similarly aggravated
the supply-chain disruptions faced by
Like rivals BMW and Volkswagen,
Mercedes-Benz stopped exports to Russia
and closed production sites in the country,
leading to related expenses of 709 million
euros in the first quarter.
Looking ahead, Mercedes-Benz said the
outlook was clouded by “exceptional
degree of uncertainty,” particularly the
impact of the war on “supply chains,
and the development of prices for raw
materials and energy.”
Mercedes said it expected shortages,
including of semiconductors, “to impact
business for the remainder
May 2022 10
Lotus Eletre - the world’s first
hyper-SUV EV - is revealed in London
Coming to Life – the Lotus Eletre – the
world’s first electric hyper-SUV has been
launched in London. On Tuesday 29 March
the car made its global debut in front of
a live audience of several hundred VIP
guests, viewing action inside and outside
the world-famous BBC Television Centre in
The Eletre is an all-new and all-electric
hyper-SUV, a striking and progressive
addition to the Lotus range, and the first of
a new breed of pure electric SUVs. It takes
the core principles and Lotus DNA from
more than 70 years of sports car design
and engineering, evolving them into a
desirable all-new lifestyle car for the next
generation of Lotus customers.
Guests at the ‘Carved by Air’ event
included F1 world champion and Lotus
customer Jenson Button, who was behind
the wheel of the Eletre as it debuted on
stage from behind a huge TV screen. Also
present were famous faces from the world
of motoring and from the global Lotus
community, including members of the
Chapman family and Elisa Artioli, after
whom the Lotus Elise was named.
Highlights included a parade of Lotus cars
past and present, followed by a five-minute
live-action telling of ‘The Story of Lotus’.
It was all shot in one continuous take,
making full use of the iconic circular Helios
courtyard at the heart of the BBC Studios.
It featured a cast of actors portraying
everyone from Lotus founders Colin and
Hazel Chapman to legendary racing drivers
Jim Clark and Emerson Fittipaldi.
Inside, seated guests were treated to a
stunning aerial ballet and the on-stage
debut of the Lotus Eletre. A bold new
dimension to the Lotus performance car
portfolio, the Eletre delivers a significant
number of firsts for Lotus – the first fivedoor
production car, the first model outside
sports car segments, the first lifestyle EV,
the most ‘connected’ Lotus ever. And yet
it remains a true Lotus, a beautiful car
‘carved by air’, packed with pioneering
technology, genuine sporting performance
and simplicity of purpose, designed and
developed by a passionate and global
The hour-long show was hosted by TV
presenters Andy Jaye and Julia Hardy, and
livestreamed to legions of fans around
the world. Numerous retail partners in
all corners of the globe hosted customer
events in their showrooms to watch live.
Matt Windle, Managing Director, Lotus
Cars, commented: “London is the
birthplace of Lotus and to take over the
iconic BBC Studios, inside and out, to
launch the Lotus Eletre to the world, is
fantastic. The Eletre is a hugely significant
moment in our ongoing transformation
of Lotus; we are delivering on our
commitment to move the business and
brand into completely new segments to
widen our global appeal and accessibility.”
May 2022 14
Test track for Turkey’s 1st electric car TOGG completed
The test track built for Turkey’s first
domestic, fully electric car has been
completed and the debut test run on
the track has been carried out, Turkey’s
Automobile Joint Venture Group (TOGG),
the consortium developing the car, said.
The 1.6-kilometer (1-mile) track was
built at the production facility in the
northwestern Bursa province’s Gemlik
The TOGG said in the statement that the
construction works at the Gemlik facilities,
which started on July 18, 2020, are rapidly
approaching the end.
Industry and Technology Minister Mustafa
Varank, Treasury and Finance Minister
Nureddin Nebati and TOGG board
members, who held their monthly board
meeting in Gemlik, made the first test drive
on the track.
TOGG prototypes will be tested on the
track, designed according to different
needs such as high-speed track, rough road
track and special maneuvering area.
The construction of the track, where
product development and quality
processes will be tested, was completed in
Meanwhile, work on the production units
at the Gemlik facility, built on a total open
area of 1.2 million square meters, will be
completed in May 2022.
At the main facility, 86% of which has been
completed, 185 robots have started partless
rehearsals. While 92% of the paint facility,
where paint tanks and ovens were installed,
was completed, 84% of the assembly facility
The TOGG will be ready for mass production
in the last quarter of 2022. After completing
the homologation tests, the first vehicle in
the C-segment, the SUV, will be launched at
the end of the first quarter of 2023. Then
the sedan and hatchback models in the
C-segment will enter the production line.
In the following years, with the addition
of B-SUV and C-MPV to the family, the
product range consisting of five models
will be completed.TOGG plans to produce a
total of 1 million vehicles by 2030, with the
production of five different models from a
May 2022 18
Nissan is working with the U.S. National
Aeronautics and Space Administration
(NASA) on a new type of battery for electric
vehicles that promise to charge quicker and
be lighter yet safe, the Japanese automaker
said on April 8.
The all-solid-state battery will replace the
lithium-ion battery now in use for a 2028
product launch and a pilot plant launch in
2024, according to Nissan.
The all-solid-state battery is stable enough
to be used in pacemakers. When finished,
it will be about half the size of the current
battery and fully charge in 15 minutes,
instead of a few hours.
The collaboration with the U.S. space
program, as well as the University of
California San Diego, involves the testing of
various materials, Corporate Vice President
Kazuhiro Doi told reporters.
“Both NASA and Nissan need the same
kind of battery,” he said.
The goal is to avoid the use of expensive
materials like rare metals, which are
needed for lithium-ion batteries.
Nissan is also counting on its historical
experience with the Leaf electric car,
which first hit the market in 2010 and
has sold more than half a million units
globally, although the battery technology is
Other automakers, including Japanese rival
Toyota Motor Corp., as well as Volkswagen
of Germany and U.S. automakers Ford
Motor Co. and General Motors Co., are
working on all-solid-state batteries.
Recently, General Motors and Japanese
automaker Honda Motor Co. said they
were working together on next-generation
But Nissan Executive Vice President
Kunio Nakaguro said Nissan is extremely
competitive and that the battery it is
developing promises to be “a gamechanger.
‘EU needs to
to meet green
Police officers protect the access roads
to the Garzweiler open pit mine during a
demonstration near Luetzerath, Germany,
on April 23.
Europe must act fast to secure supplies of
crucial metals required for a green energy
transition and its best bet is to recycle, a
The 27-nation EU aims to be “carbon
neutral” by 2050 and also wants to wean
itself off dependence on Russian oil, coal
To this end, it is seeking not only to use less
energy but also to increase the amount
of energy generated domestically from
But expanding clean technologies will
require substantial inputs of raw metals
and - in initial stages at least - much of
this will probably have to be imported,
according to the study by Belgium’s KU
To bring carbon dioxide emissions down
to “net zero” by 2050, the EU will need
“35 times more lithium” than it uses today
and “seven to 26 times the amount of
increasingly scarce rare earth metals”, the
The energy transition will also require
far greater annual supplies of aluminum,
copper, silicon, nickel and cobalt.
Europe could be self-sufficient for 40 to 75
percent of its clean energy metal needs by
2050 if it invests heavily now in recycling
infrastructure and cuts red tape, said the
For now, the EU remains import-dependent
for much of these metals and, the study
warns, “there is growing concern about the
security of supply”.
“Europe needs to decide urgently how
it will bridge its looming supply gap
for primary metals. Without a decisive
strategy, it risks new dependencies on
unsustainable suppliers,” said lead author
China and India, which rely on coal power
for metal production, are set to dominate
global markets for battery metals and rare
earths. Europe relies on Russia today for
aluminum nickel and copper.
If it is to meet climate and social goals,
Europe will need to find external suppliers
with better environmental and rights
records, the report said.
May 2022 26
hook up solar
panel to Tesla for
15,000 km trip
Two Oregon-based engineers and scientists
in Australia have been testing printed solar
panels they intend to use to power a Tesla
on a 15,100-kilometer (9,400-mile) journey
beginning in September, which they hope
will get the public thinking about steps to
help avert climate change. The “Charge
Around Australia (CAA)” project will power
a Tesla electric car with 18 of the team’s
printed plastic solar panels, each 18 meters
(59 feet) long, rolling them out beside the
vehicle to soak up sunlight when it needs
a charge. Paul Dastoor, the inventor of the
printed solar panels, said the University
of Newcastle team would be testing not
only the endurance of the panels but
their potential performance for other
“This is actually an ideal test bed to give
us information about how we would go
about using and powering technology in
other remote locations, for example, in
space,” Dastoor told Reuters in the town of
Gosforth, north of Sydney.
Printed solar is a lightweight, laminated
PET plastic that can be made at a cost of
less than $10 a square meter.
The panels are made on a commercial
printer originally used for printing wine
Dastoor said using the panels to power a
car would get Australians to think more
about electric vehicles and could help ease
their “range anxiety.”
“(The) community is seeking these sorts
of answers to the problems it’s being
presented with, day in, day out, around
climate change,” he said.
On their 84-day Tesla journey, the team
plans to visit about 70 schools to give
students a taste of what the future may
hold. Asked what Elon Musk, producer
of the Tesla car and founder of Tesla Inc.,
might say about the CAA project, Dastoor
said he hoped he would be pleased.
CAA was “showing how our innovative
technology is now combining with his
developments to develop new solutions for
the planet,” Dastoor said.
Reuters is publishing a series of
environmental stories to mark Earth Day
2022, which falls on April 22. The Earth
Day theme for this year is “Invest In Our
May 2022 28
fighter jet hits
Turkey’s drone magnate Baykar
announced it has reached a new phase
in its unmanned combat aircraft project,
unveiling that the first prototype has
entered the production line.
“A larger and more agile fish has entered
the production line three and a half
years later,” Selçuk Bayraktar, the chief
technology officer (CTO) at the drone
maker, said on Twitter. Bayraktar was
referring to the period when Baykar started
manufacturing its landmark combat drone
Akıncı, dubbed “the flying fish.”
The National Unmanned Combat Aerial
Vehicle System (MIUS) has been named
Kızılelma (“red apple”), Bayraktar said,
referring to an expression in Turkish
mythology that symbolizes goals, ideas or
dreams that are far away, but are more
attractive the further that distance may be.
The first prototype was earlier said to be
expected to make its maiden flight in 2023,
if not before.
MUIS will be jet-powered and is expected
to be capable of taking off from and landing
on Turkey’s flagship-to-be amphibious
assault ship TCG Anadolu.
The landing helicopter dock (LHD) type
ship is said to be the first of its kind in the
world as a vessel that allows the landing of
unmanned combat aerial vehicles (UCAVs)
on its dock.
It will be used in multipurpose operations
and is set to be delivered this year.
Baykar is currently working on the
Bayraktar TB3 UCAV, an upgraded version
of the company’s famed Bayraktar TB2.
MIUS and TB3 will both extend Turkey’s
drone capabilities from land-based to naval
operations as they will both be able to take
off from TCG Anadolu.
The autonomously maneuvering MIUS will
be capable of operating in tandem with
piloted aircraft, and may carry air-to-air
missiles, the company says.
“With the 5th generation fighters, the
world is witnessing the end of manned
fighters. No new manned combat aircraft
will be developed. Unmanned systems
will increasingly become the strongest
elements on the battlefield in the future,”
Bayraktar earlier said.
“We are also trying to ensure our country’s
presence in future competition,” he added.
The unmanned fighter jet is projected to
conduct a multitude of military actions,
such as strategic offensives, close
air support (CAS), missile offensives,
suppression of enemy air defenses (SEAD)
and destruction of enemy air defenses
Baykar in November signed a contract
with Ivchenko-Progress, one of the leading
Ukrainian companies for the procurement
of engines for the MIUS. Ivchenko-Progress
was projected to supply the AI-322F
Turbofan engine for the jet under the
agreement. The aircraft is set to feature
a high operational altitude and takeoff
weight of 5,500 kilograms (12,125 pounds).
It is envisaged to carry 1.5 tons of useful
It is projected to be capable of flying for
five hours and reaching speeds of up to 800
kph (500 mph or Mach 0.64).
May 2022 30
Capacity usage rate inches up to 77.8 pct in April
The capacity utilization rate (CUR) in
Turkey’s manufacturing industry rose on
a monthly basis in April, data from the
country’s Central Bank have shown.
The economy’s key manufacturing sector
used 77.8 percent of its capacity this
month, up from 77.3 in March.
In April last year, the capacity utilization
rate in the manufacturing industry was 75.9
In the food and drink sector, the capacity
utilization rate was 72.7 percent in April,
rising slightly from the previous month’s 70
Companies operating in the non-durable
consumer goods industry reported a CUR
of 75.7 percent, which was higher than
March’s 76.3 percent. The capacity usage
in the intermediate goods manufacturing
sector climbed from 78.7 percent in March
to 79.7 percent in April.
However, the durable consumer goods
manufacturing sector saw its capacity
utilization decline from 75 percent last
month to 74.2 percent in April, while
the CUR in the consumer goods industry
declined slightly from 75.5 percent to 75.4
The CUR was 74.8 percent in the capital
goods manufacturing sector, down from 76
percent in March.
Separate data the Central Bank released
showed that business morale improved.
The real sector business confidence index
advanced from 108.5 in March to 109.7
percent in April.
The 100-point level on the index separates
optimism from pessimism.
The sub-index, which measures firms’
assessment of the general business
situation, climbed from 79.2 in March to
83.6 percent in April.
The index for fixed investment expenditure
rose from 124.4 to 129 percent, and
the index for the total amount of orders
received in the last three months increased
from 107.6 to 113.2 percent.
The Turkish Statistics Institute (TÜİK) also
released business confidence data for the
retail, construction and retail industries.
The TÜİK data showed that businesses in
those three industries rebounded.
The confidence index in the retail sector
improved 3 percent on a monthly basis in
April, after falling by a sharp 6.2 percent in
May 2022 34
huge Texas plant
Tesla welcomed throngs of electric car
lovers to Texas on April 7 for a huge party
dubbed a “cyber rodeo” to inaugurate
a manufacturing plant the size of 100
As many as 15,000 people were expected
to attend the private event hosted by Tesla
mogul Elon Musk to mark the opening
of the new factory in Travis County that
also serves as the company’s new home
following its move from California.
Bulldozers were still at work near the socalled
“gigafactory,” which signs indicated
was constructed with more steel than New
York City’s famed Empire State Building.
“It’s the equivalent to three Pentagons,”
Tesla’s colorful but controversial founder
and chief executive Elon Musk proudly told
a cheering crowd inside the factory.
“This is the most advanced car factory the
Earth has ever seen; raw materials in one
side, cars out the other side.”
Musk drove on stage in the first production
model Tesla ever built and stepped out
dressed in black complete with a cowboy
hat and sunglasses.
He said ramping up production of existing
models was going to be Tesla’s priority this
The move to a U.S. state known for
conservative Republican politics is seen
by some as Musk stepping away from the
liberal Silicon Valley culture in which he
made his fortune.
The South African-born serial entrepreneur
is now ranked the world’s richest man.
He founded Tesla in Silicon Valley in 2003,
but shifted its headquarters to Texas late
last year. Musk has clashed with California
regulators, particularly when health
precautions mandated at the height of the
pandemic closed Tesla’s Fremont plant.
Musk told the crowd that Tesla was
continuing to expand in California, but was
running out of room there.
“We needed a place where we could be
really big, and there is no place like Texas,”
Musk said. Musk has said the plant, which
would employ up to 10,000 workers, would
build its Cybertruck, Semi, Model 3 and
Model Y sport utility vehicles. Last month,
he also opened another “Gigafactory”
on the outskirts of Berlin to produce the
Model Y SUV.
May 2022 36
sales dip as
Car sales in Europe dropped sharply in
March, industry data showed, as Russia’s
invasion of Ukraine added to the woes of
a sector that has been long struggling with
shortages of semiconductors.
Passenger car registrations fell 20.5%
compared to the same period last year,
with 844,187 units sold, according to the
European Automobile Manufacturers’
Excluding 2020 when the coronavirus
pandemic paralyzed the global economy, it
was the worst performance for a month of
March since statistics began in 1990.
Car production has been hampered
worldwide since last year by a severe
shortage of semiconductors, a key
component for modern cars as they power
everything from antilock braking systems to
airbags to parking assistance technology.
The war has led to shortages of other
parts, such as the cables used in car
wiring harnesses and of which Ukraine
is a manufacturer. Several factories in
Europe have had to go idle due to the lack
of cables, with Volkswagen temporarily
suspending production at a number of
Europe’s top automaker saw sales fall by
nearly a quarter in March, according to
“The ongoing supply chain disruptions,
further exacerbated by Russia’s invasion of
Ukraine, negatively affected car production,”
the ACEA said. Most countries in Europe
had double-digit drops in car sales in March,
the association said, with a fall of 17.5% in
Germany, the biggest market. There were
even larger falls of around almost 20% in
France, around 30% in Italy and nearly 40%
in Spain.Outside the European Union, sales
fell by 14.3% in Britain.
May 2022 38
African Trade Centers help Turkish
companies expand their footprint in Africa,
the founder of the centers said, adding that
they aim to make Turkey one of the main
contributors in Africa’s industrialization
Around 280 manufacturers and exporters
from Turkey came together with nearly
1,000 businesspeople from Africa, drawing
attention to its 1.5 billion population
and annual import potential of over $1
trillion, at the sixth World Intersectoral
Cooperation Forum held in the capital
African representatives of 741 companies
from 41 countries, which make up 82%
of the country’s population, attended the
event, African Trade Centers founder Utku
Bengisu told Anadolu Agency (AA).
“There are more than 300 organized
industrial zones in Turkey. The point
our industry has reached in the last 20
years is indisputable. We have made
great strides. We also produce high-tech
products. We want to be the country that
makes the main contribution to Africa’s
industrialization journey by sharing this
experience with them,” he said.
Underlining that the population of Nigeria
is 220 million and that it will reach 840
million by 2100, Bengisu added Turkey
wants to be a part of the industrial
transformation where it will also produce
and develop regional trade with a strategic
mind and vision for the future.
Expressing that the organization’s main aim
is to understand the “African policy” that
President Recep Tayyip Erdoğan frequently
emphasizes and to make Turkish companies
turn their route to Africa with the same
motivation, Bengisu said, “We want to
provide new networks for this.”
“When we look at the imports of Africa, we
see that China, the United Arab Emirates
(UAE), India, South Africa and the European
Union countries have a very large share.
The reason for this share is the motivation
of the rising new generation economic
class of Africa, namely the traders, to
constantly sell those goods in the market,”
said Bengisu, pointing out that they invite
African businesspeople to have Turkish
goods as a new option on the table.
Referring to the organization’s history and
its contribution to the companies, Bengisu
said that they held the first event in 2017
in southern Antalya province. Stating that
they aimed to attract producers who had
never worked with each other in Turkey
and Africa to produce a framework for
the future at that time, Bengisu said: “Our
first delegation came from Sierra Leone. At
that time, our trade volume was close to
zero. Every year, we made progress, even
during the COVID-19 pandemic. One of our
companies from Izmir sold 62 containers of
goods to Sierra Leone.”
“Currently, Turkey ranks sixth in this
country’s imports with a share of 6.5%.
This is the benefit of this forum: Bringing
Turkish companies that have never been
to Africa together with it and producing a
Turkish product horizon for African traders
who have never bought Turkish goods,” he
Explaining that a furniture company
participating in the forum first opened an
office abroad in Ethiopia and increased the
number of its offices to six over the years,
Bengisu said that the company transported
its machines from Turkey to Ethiopia to
Stating that many businesspeople want
to invest in Africa, Bengisu said: “Africa’s
population is increasing. You cannot feed
this population just by purchasing.”
African expansion in defense
Meanwhile, Turkey’s defense exports to
African countries in the first two months
of this year jumped by 608% compared
to the same period of the previous year,
contributing to the total defense exports
of the record $138.6 million in the said
The sector, which reshapes export markets
with global developments and fairs,
also continues to deepen its relations
through defense industry cooperation
agreements signed with more than 25
African countries, including Niger, Rwanda,
Senegal, Congo, Mali and Nigeria.
While African countries were the fifthlargest
market in exports in the first 11
months of 2021, they rose to rank second
after North America, which exported $141
million in the first two months of this year.
Global developments and fairs pave the
way for exports in defense. The sector aims
to further strengthen its export network in
the surrounding countries by participating
in the African Aerospace and Defense Fair
in South Africa on Sept. 21-25.
The great interest of African companies in
the fairs in 2021 and 2022 brings with it the
expectation of an increase in exports.
Burkina Faso is one of the countries that
has drawn attention with its increase in
exports, with $386,000 in the first two
months of last year becoming $83.2 million
in the same period this year.
May 2022 40
Turkey e-store launched in China amid
efforts to maximize trade potential
Turkey has turned its focus to reviving its
trade potential with China, with its most
recent efforts resulting in the launching
of an e-commerce store on one of
China’s biggest online platforms, Ankara’s
ambassador to Beijing said.
“We have started the era of e-commerce in
exports to China,” Emin Önen told Anadolu
Önen said they brought together PTTeM
(PTT e-Store), a subsidiary of the staterun
postal service PTT, and Chinese
e-commerce giant JD.com under the
coordination of the Trade Ministry.
“A Turkey e-store has been launched on
JD.com, one of the largest e-commerce
platforms in China,” the ambassador said.
Önen stressed the importance of the
presence of Turkish products in China, an
e-commerce market worth around $2.1
trillion (TL 31.07 trillion) that accounts for
around 55% of global online trade.
China is Turkey’s largest trade partner in
Asia and second in the world. The volume
of bilateral exchange of goods reached a
record $36 billion in 2021, Önen said.
“Our exports to China reached $3.7 billion,
an increase of 28% compared to 2020.
China’s direct investments in Turkey are at
the level of $5 billion as of 2021. We see
that 70% of this has been accomplished in
the last four years.”
Pointing out that there is an imbalance in
trade between Turkey and China, Önen
stressed that they aim to make bilateral
trade more sustainable and balanced by
including high value-added products in
exports. He also added that they aim to
encourage and increase direct investment
Turkey has also focused on agricultural
and food products as it works to increase
and diversify its exports to China, the
ambassador said. Önen recalled permits
granted for exports of many products,
including cherries, peanuts, water products,
milk, dairy products and poultry, which
paved the way for sales worth around $360
million. The official stressed the enormous
size of China’s imports, which amounted to
around $2.7 trillion last year.
“We are going through a period when
Turkey is setting records in exports. But
when we look at our exports to China, we
see that we are in the thousandth tranches
in their imports,” Önen noted.
“This does not coincide with the realities of
China. There is a great potential between
the two countries, but we are still far below
May 2022 42
EV sales break
in 2021, market
The market share of electric vehicles
around the world increased 41 times in
the last 10 years and reached 8.3%. Last
year, electric vehicle sales reached 6.75
million, up 108% from earlier.
Within the scope of the goals of
combating climate change, countries
are accelerating the conversion to low
carbon technologies to reduce their
fossil fuel consumption. While electric
vehicles are critical in reducing emissions
from the transportation sector,
automobile brands’ investments and
brand models in this area are increasing
The transformation in the electric
vehicle market is reflected in sales at
the same pace. Last year, all of the net
growth in the global vehicle market
came from electric vehicles.
Global electric vehicle sales reached 6.75
million in 2021, an all-time high, with
an increase of 108% compared to the
previous year, according to an Anadolu
Agency (AA) report, which cited data
from the EV-volumes.com.
Electric vehicle sales were 3.24 million in
2020 despite the pandemic.
While the market share of electric
vehicles was 0.2% in 2012, it reached
8.3% with the record sales last year.
Last year also saw the biggest annual
growth of the last 10 years in electric
China was the country where the most
electric vehicle sales were recorded last
year, with 3.4 million. Compared to the
previous year, sales in China increased
by 155%, or 2.06 million.
While 2.3 million electric vehicles were
sold in Europe, this figure was up by 66%
compared to 2020. While the U.S. ranks
third with 735,000 electric vehicle sales,
some 114,500 electric vehicles were sold
in South Korea.
Electric vehicle sales in Israel, Australia,
India and Japan were over 10,000.
Meanwhile, according to the
International Energy Agency (IEA) data,
130,000 electric vehicles were sold
throughout the year in 2012, while this
figure was reached in a week in 2021.
May 2022 46
After last year’s sales, the total number of
electric vehicles in the world reached 16
The total electricity consumption of electric
vehicles in the world will reach 30 terawatthours
in 2021. This amount is equal to one
year’s electricity production in Ireland.
Tesla ranked first with 936,000 in electric
vehicle sales last year. The highest number
of Tesla vehicles were sold in the U.S. with
352,000 followed by China with 321,000
and Europe with 170,000.
Volkswagen (VW) Group followed Tesla
with 763,000, BYD with 598,000, GM with
517,000 and Stellantis with 385,000.
rate cut, pushes
The Russian central bank Governor Elvira
Nabiullina signaled further interest rate
cuts and a push for digital ruble and
homegrown credit card system to curb
payment issues stemming from Western
sanctions over Moscow’s invasion of
Nabiullina also said Russia is looking
at adjustments to its foreign exchange
controls to avoid situations where the ruble
exchange rate deviates in a shadow market
from official levels. As she begins her new
five-year stint in charge of monetary policy,
Nabiullina will have to deal with a fullscale
economic crisis, tackling uncertainty
stemming from Western sanctions.
“We will consider the possibility of its
further reduction at upcoming meetings,”
Andrei Kostin, head of Russia’s secondlargest
lender VTB , also targeted by
Western sanctions, said he expected the
central bank to cut the key rate to 15% this
month and to 12%-13% by the end of the
year, TASS news agency reported.
Inflation in Russia now stands at 17.6% and
is on track to accelerate to 22% this year,
while the economy is set to shrink by 9.2%
in 2022, according to a poll of economists
conducted by the central bank in April.
Nabiullina warned that Russia, which saw
its strongest economic growth in 13 years in
2021, at 4.7%, will now undergo structural
changes as its access to the global financial
system and trade are limited by tough
“Problems may arise even when there is a
production with a high degree of localization
when there has already been a fairly high
import substitution,” Nabiullina said.
For example, she said, Russia produces
its own paper but uses foreign bleaching
agents, or urgently needs foreign-made
packing materials for foodstuff produced in
“It all takes time,” she said.
The ruble, which has recovered after
plunging to an unprecedented level of 150
to the U.S. dollar following the sanctions, is
expected to trade at 85 rubles this year, 90
rubles in 2023 and 96 rubles in 2024.
The country is facing capital flight while
grappling with a possible debt default after
the West imposed sanctions on banks,
businesses and individuals following what
Moscow calls a “special military operation”
With sanctions cutting off Russia from
large parts of the global financial system,
Moscow is looking for alternative ways
to make key payments both at home and
Nabiullina said the bank plans for realworld
“digital” rouble transactions to
be possible next year, and that the
digital currency could be used in some
“The digital ruble is among the priority
projects,” Nabiullina said. “We have fairly
quicklyproduced a prototype ... now we are
holding tests with banks and next year we
will gradually have pilot transactions.”
Nabiullina also said Russia aims to extend
the number of countries that accept
Russia’s Mir banking cards, an alternative
to VISA and MasterCard, which have joined
other Western firms and suspended their
operations in Russia.
Mir and China’s UnionPay are among
the few options left for Russians to make
payments abroad since Russian banks were
isolated from the global financial system as
part of the sanctions.
Russia, like many other countries around
the world, has been developing digital
money over the last couple of years to
modernize its financial system, speed
up payments and head off the threat
of cryptocurrencies like bitcoin gaining
The Bahamas was the first to launch a
national digital currency back in 2020,
while China is the most advanced among
major economies having carried out a mass
trial of a digital yuan at the Beijing Winter
Olympics this year.
Some central bank experts have also
suggested the new technologies mean
countries would be able to deal more
directly with each other, making them
less dependent on Western-dominated
payment channels such as the SWIFT
Meanwhile, efforts by the West to close
possible routes for circumventing sanctions
The world’s largest cryptocurrency
exchange, Binance, said it was deactivating
the accounts of Russian nationals and
companies based there that hold the
equivalent of more than 10,000 euros
Those affected would still be able to
withdraw their money, but they will now
be banned from making new deposits or
trading, a move Binance said was in line
with European Union sanctions.
May 2022 50
car sales leap
Electric car sales in Turkey increased by
243.9% to 1,073 units in the January-March
period of this year compared to the same
period last year, while hybrid automobile
sales decreased by 17.1% to 11,227.
The total sales of automobiles and light
commercial vehicles in Turkey decreased by
23.5% in the January-March period of 2022
and amounted to 152,050, an Anadolu
Agency (AA) report said , citing data from
the Automotive Distributors Association
When the automobile market is evaluated
according to the engine type, the decline in
the sales of diesel-powered automobiles,
whose production is being reduced
gradually and is planned to be completely
halted in the future, draws attention.
Manufacturers offering fewer dieselpowered
vehicles to the market compared
to previous years is also considered one
of the important factors in the decline in
A decrease was also recorded in the
sales of automobiles with autogas and
hybrid engines. The sales of electric cars,
which are expected to replace cars with
internal combustion engines in the future,
continued the upward trend of recent
In the January-March period of 2021, some
98,100 gasoline, 37,726 diesel, 13,537
hybrid, 6,789 autogas and 312 electric cars
In the January-March period of this year,
sales of gasoline cars decreased by 14.6%,
diesel car sales by 52.4%, autogas car sales
by 58.7% and hybrid car sales by 17.1%
compared to the same period of 2021.
In this period, only the sale of electric cars
The share of diesel cars in sales, which was
24.1% in the January-March period last
year, decreased to 15.4% this year.
In the said period, the share of gasoline
cars increased from 62.7% to 71.7%, while
the share of autogas cars decreased from
4.3% to 2.4%.
Meanwhile, Turkey continues its efforts
toward electric car transformation.
Most recently, the procedures and
principles regarding the establishment of
charging units and stations, the operation
of the charging network and the stations
connected to the charging network, and
the provision of charging service were
According to the “Charging Service
Regulation” published in the Official
Gazette of the Energy Market Regulatory
Authority (EPDK), charging network
operation will be carried out within the
scope of the license obtained from the
EPDK. The license cannot be transferred
under any circumstances.
The charging network operator will
produce a charging network consisting
of at least 50 charging units and charging
stations in at least five different districts
within six months from the effective date
of its license.
Industry and Technology Minister
Mustafa Varank, during a speech at Ford
E-Transit’s inauguration ceremony, said
that they started a TL 300 million ($20.33
million) grant support program for the
establishment of more than 1,500 highspeed
charging stations all over Turkey.
May 2022 52
$23.4B as energy
weighs on trade
Turkey registered the highest monthly
exports ever in April, official data showed
while its trade deficit nearly doubled
mainly due to soaring energy import costs
Exports surged 24.6% year-over-year last
month to $23.4 billion (TL 347.86 billion),
Trade Minister Mehmet Muş said. “This is
the highest ever monthly export figure,” he
It followed monthly records in the first
three months of the year, a period marked
by a widening trade deficit fueled by
increasing energy costs.
Russia’s invasion of Ukraine has sent global
commodity prices soaring, threatening to
impact Turkey’s new economic program
that aims to record a current account
Imports rose 35% on annual basis to $29.5
billion last month, with total trade volume
surging over 30% to $52.8 billion, Muş
told a meeting in the capital Ankara to
announce the preliminary trade figures.
The trade deficit jumped 98% year-overyear
in April to $6.1 billion, the data
showed, for a total of $32.5 billion in the
first four months of 2022.
Energy imports soared 134.1% year-overyear
to $7.7 billion, slightly down from $8.4
billion in March, taking a total to $32.7
billion from January through April – equal
to an annual rise of 173.1%.
“As a matter of fact, excluding energy,
export-import covering ratio increased to
more than 100%,” Muş said. “We see that
the global increases in commodity prices,
especially oil and natural gas, continue to
be effective in the increasing January-April
Energy imports accounted for a $20.7
billion out of the total $33.2 billion increase
in imports from January through April of
2022, Muş said.
The Russia-Ukraine conflict has lifted
energy prices all over the world, a situation
that Muş said has also affected Turkey and
has produced upward pressure on import
Commodity price shock from
Global food and fuel price shocks linked to
the war are set to last until at least the end
of 2024 and raise the risk of stagflation, the
World Bank said in its Commodities Market
Outlook report published.
In its first comprehensive analysis of the
war’s impact on commodity markets, the
bank, which provides loans and grants to
low and middle-income countries, said the
world faces the biggest commodity price
shock since the 1970s.
Russia is the world’s largest natural gas
and fertilizer exporter, and second-largest
crude oil exporter. Together with Ukraine, it
accounts for nearly a third of global wheat
exports, 19% of corn exports and 80% of
exports of sunflower oil exports.
Production and exports of these and other
May 2022 56
commodities have been disrupted since
Russia’s Feb. 24 invasion of Ukraine.
Surging oil prices hit their highest since
2008 at more than $139 a barrel in March
after the war exacerbated supply concerns
that were already fuelling a price rally.
As a result, the World Bank expects energy
prices to rise more than 50% in 2022
before easing in 2023 and 2024, while nonenergy
prices, including agriculture and
metals, are seen climbing by almost 20% in
2022 before moderating.
“The ongoing war, the growing tension in
this context, and the Russian response to
Europe’s efforts to permanently reduce
its energy dependence on Russia do not
reduce the persistence of high prices in
energy commodities and the risk of price
fluctuations off the agenda,” Muş said.
“Therefore, I would like to emphasize once
again that the increase in our imports is
due to the excessive increase in world
energy prices,” he stressed.
“Despite all these negatives in energy
prices, when we evaluate the data, we can
state that our country has shown a fairly
strong export performance compared to
the same period last year.”
January-April exports jumped 21.4% yearover-year
to around $83.6 billion, the data
showed, while imports climbed 40.1%
to nearly $116.1 billion. Turkey’s exports
totaled a record $225.4 billion in 2021 and
the government and economists expect
they will reach $250 billion this year. The
12-month rolling export figure reached
$240 billion as of April, Muş said.
Muş recalled that the World Trade
Organization (WTO) last month revised its
forecast for global trade growth this year to
3%, down from 4.7%.
It attributed it to the impact of the Russia-
Ukraine war and warned of a potential food
crisis caused by surging prices.
The global trade watchdog also lowered its
import growth forecast for the European
Union, Turkey’s biggest trade partner, to
3.7%, down from 6.8%.
+++Germany top market
Turkish Exporters’ Assembly (TIM) head
Ismail Gülle said records were broken in
18 out of the last 20 months, expressing
expectations that the country could reach
the $250 billion target before year-end.
“Based on the figures, excluding energy, we
managed to register a foreign trade surplus
this month,” Gülle said.
“Now we can clearly see that Turkey has
begun to reap the fruits of its breakthrough
Germany remained the biggest export
market in April as it purchased $2 billion
worth of Turkish goods, the data showed.
It was followed by the U.S. with $1.8
billion and the U.K. with $1.2 billion.
Sales to 27 countries, including Germany,
the U.S., Israel and Spain, saw their
highest levels ever, Gülle said.
Exports to the European Union jumped
29% year-over-year to reach $10 billion.
The bloc accounted for 42% of Turkey’s
overall sales last month.
Among others, exports to sub-Saharan
Africa topped $1 billion on monthly basis
for the first time, a 68% year-over-year
increase, Gülle said.
The chemical industry outpaced the
automotive sector as it hit an all-time
high of $3.3 billion in exports to rank
first in April. The automotive industry
followed with $2.7 billion and ready-towear
with $2 billion, the data showed.
Exports made with Turkish lira surged
55% year-over-year to TL 8.7 billion, said
He also informed that some 2,080 new
firms joined the export family in April,
achieving $123.4 million worth of sales.
The number of firms making exports has
thus reached 48,938, Gülle added.
Electric cars offer Turkish
Motorists in Turkey are increasingly turning to electric
vehicles as driving a car has become more costly due to
higher gasoline prices.
Gasoline prices nearly doubled in the past year in Turkey,
which means car owners need to allocate a larger
portion of their income to commute.
The monthly gasoline cost of a car, which travels some
500 kilometers on the roads of the city, is now some
3,660 Turkish Liras (around $247) on average, whereas
an owner of an electric car pays 756 liras to cover energy
cost of the vehicle.
There are presently around 4,000 charging stations
across Turkey, and 1,500 of them are privately owned.
The demand for setting up such stations at homes or
offices has been growing in the last months amid the
rising gasoline prices.
The range of an electric car with a 60kWh battery is
around 350 kilometers. It is calculated that if a car used
in city traffic travels some 2,000 kilometers that means
a monthly power consumption of 400 kWh. If the car
is charged at a station installed at a house, the cost of
the electricity is 1.89 liras/kWh (based on the current
electricity prices), which totals to 756 liras a month.
If a charging station, which is installed at businesses, is
used, the cost increases slightly to around 1,100 liras
since businesses pay 2.74 liras per kilowatts hour of
electricity.The network of charging stations operated by
private companies on the intercity highways and in the
cities is also expanding fast. The charging fees at those
stations are two to three times higher than the stations
at houses because of the costs associated with running
such facilities. To have a charging station installed at a
detached house costs around 17,000 liras, while the
price of a station that serves up to four car owners is
around 70,000 liras, according to experts from Zorlu
Energy Solutions (ZES).
The latest automotive sales data reflect the growing
interest in electric vehicles in Turkey. In March this year,
638 electric vehicles were sold in the country, which
pointed to a 267 percent increase from a year ago. The
share of electric cars in total vehicle sales was still low
at 1.3 percent. In the month, hybrid car sales, however,
declined by 3.4 percent on an annual basis to 6,024
units, accounting for 12 percent of all vehicle sales. In
2021, 2,486 electric vehicles were sold in Turkey, but in
January-March alone this year, 1,073 electric cars were
already sold on the local market, rising 244 percent from
the first quarter of last year. Hybrid car sales fell by 17
percent to 11,227 units, which made up less than 10
percent of all automotive sales.
Gap in Turkey’s net int’l investment
position drops to $224 billion
Turkey’s net international investment
position (NIIP) came in at minus $224
billion at the end of February, data by
the central bank showed . Defined as the
difference between external assets and
liabilities, the gap was minus $229.7 billion
at the end of 2021.
Turkey’s external assets were worth $288.1
billion in February, down 1.6% from the
end of 2021, according to data released by
the Central Bank of the Republic of Turkey
Liabilities against nonresidents fell 2% to
$512.1 billion during the same period, the
Showing a snapshot in time, the NIIP –
which can be either positive or negative
– is the value of overseas assets owned
by a nation, minus the value of domestic
assets owned by foreigners, including
overseas assets and liabilities held by a
nation’s government, the private sector
and citizens.As for sub-items under assets,
reserve assets slipped 0.6% to $110.5
billion, while other investments stood at
$118.2 billion, falling 2.3% from the end of
“Currency and deposits of banks, one
of the sub-items of other investment,
recorded $52.4 billion indicating an
increase of 1.7% compared to the end
of 2021,” the bank said. On the liabilities
side, direct investments – equity capital
plus other capital – at the end of February
amounted to $105.5 billion. The figure was
13.4% lower than the end of last year, with
“changes in the market value and foreign
exchange rates” being contributing factors,
the bank said. The U.S. dollar/Turkish lira
exchange rate was 12.24 at the end of
2021 and had risen to around 14.06 by
the end of February. Nonresidents’ foreign
exchange deposits were up 0.7% to $35.1
billion, while Turkish lira deposits increased
by 26% to $12.2 billion.
“Other investments indicated an increase of
2.8% to $313.1 billion compared to the end
of 2021,” the bank said.
The total external loan stock of banks was
at $65.8 billion, down 1.2% from the end of
2021, while the total external loan stock of
other sectors dropped 0.3% to $96.4 billion.
May 2022 60
Turkey’s foreign trade gap jumps over
75% on energy import costs
Turkey’s foreign trade deficit widened by
75.1% year-over-year in March, official data
showed , propelled by a surging energy bill.
The gap jumped to nearly $8.17 billion in
March, according to data by the Turkish
Statistical Institute (TurkStat), up from
$4.66 billion a year ago.
Exports climbed by 19.8% to nearly $22.71
billion versus imports of around $30.88
billion, a 30.7% year-over-year increase,
according to the general trade system, data
from the TurkStat showed.
Russia’s invasion of Ukraine has sent global
commodity prices soaring, threatening to
impact Ankara’s new economic program
that aims to record a current account
Turkey’s energy import bill increased by
154.7% to $8.41 billion in March versus the
same month a year ago, the TurkStat said.
The import bill soared due to an increase
in global energy prices and a revival in
economic activity post-COVID-19.
“Foreign trade deficit, excluding energy
products and non-monetary gold, was $136
million in March 2022,” TurkStat said.
Energy accounted for 27.2% of the overall
import figure in March, the data showed.
Turkey imported 2.66 million tons of crude
oil last month, up from 2.39 million tons
in March of 2021. The country’s crude oil
imports showed an 11.2% increase compared
to March 2021. The January-March foreign
trade deficit reached $26.4 billion, up 138.5%
on a yearly basis, the statistical authority
noted. Exports and imports were up by
20.6% and 42% on annual basis to $60.2
billion and $86.6 billion, respectively, in the
first three months.
May 2022 64
to open bank
Russian nationals in Turkey who left their
country are now rushing to open bank
accounts in Turkey to put their savings
into the global system and finance their
livelihoods, as both citizens and businesses
struggle with international sanctions
following the Kremlin’s invasion of Ukraine.
Many Russians flocked to Turkey to escape
compulsory military service, due to
losing their jobs or expectations that the
sanctions will get worse.
Flag carrier Turkish Airlines (THY) currently
conducts reciprocal Istanbul-Moscow
flights five times a day as the airliner has
not yet joined others in halting flights to
Turkey has also not yet joined the West
on sanctioning Russia as Ankara continues
its diplomatic efforts to de-escalate the
Ukraine conflict, urging all sides to exercise
restraint while maintaining its neutral
and balanced stance. While Ankara has
opposed international sanctions designed
to isolate Moscow, it also closed the
Bosporus and Dardanelles under a 1936
pact, allowing it to prevent some Russian
vessels from crossing the Turkish Straits.
Since the beginning of the conflict, Ankara
has offered to mediate between the two
sides and host peace talks, underlining its
support for Ukraine’s territorial integrity
and sovereignty. The country also hosted
both country’s foreign ministers for talks
in southern Antalya during a diplomacy
forum, marking the first such talks since
Russia invaded its neighbor.
Turkey’s neutral attitude makes the country
a preferred destination for Russians who
generally adopt the country as the first
option for holidays
According to a report that cited sources
from the banking sector, there is a
significant increase in demand from
Russian citizens seeking to open bank
accounts in Turkey.
The Russian central bank has already
limited money transactions abroad and has
suspended forex sales against the ruble
until Sept. 9. The lender has also put a
$10,000 limit on the amount that can be
withdrawn from forex accounts in Russian
banks, allowing amounts surpassing this
to only be withdrawn in rubles. All these
measures have been making it difficult for
the Russian citizens leaving the country.
In order for foreign country citizens to
open bank accounts in Turkey, they need
a residency address, tax number, passport
number and mobile phone number. But
since the ruble doesn’t seem to be a
convertible currency anymore, they need
to open Turkish lira accounts.
Sources told that Turkish lira accounts
benefit Russians in two ways. One is
that they can maintain their livelihood in
Turkey and the other is that they can open
forex accounts after opening a TL account
and subsequently, participate in the
international system with their savings. The
sources also added that the demand for
Turkish bank accounts is expected to grow
more since the expectancy that sanctions
will worsen for Russia has been prevailing.
Another method for Russians to seemingly
make transactions or savings is through
the cryptocurrency market. Analysts
interpreted the record-breaking crypto
trading volume in Russia as a reflection
of this demand. The world’s largest
cryptocurrency exchange Binance and
Europe’s largest, Kraken, have not yet closed
their platforms to Russians. And it is still
possible for them to trade with rubles on
these systems. The credit card giants, Visa
and Mastercard, also banned Russian banks,
and the Russian MIR system has become
controversial again. In Turkey, Vakıfbank,
Ziraat Bankası and Iş Bank have options for
making transactions with MIR cards.
May 2022 68
The Central Bank of the Republic of Turkey
(CBRT) launched an informational website
regarding the recently unveiled scheme
to encourage expats to repatriate their
savings to Turkey.
The scheme, “Deposit and Participation
Scheme for Nonresident Turkish Citizens”
and known as YUVAM in short, was
announced earlier in February and came
amid efforts to safeguard Turkish lira
savings against exchange rate volatility.
On “yuvam.tcmb.gov.tr,” visitors can
access informational videos, booklets
and legislation about the application. In
addition to the yield calculator, the site
also provides answers to frequently asked
questions from users.
The YUVAM account enables nonresidents
and their companies abroad to invest their
savings in Turkish liras at banks in Turkey.
The central bank provides YUVAM accounts
with an additional return guarantee in
addition to the exchange rate protection
Flexibility comes to the fore in the account
application. Accordingly, there is no upper
or lower limit on the amount when opening
a YUVAM account, and people can open a
YUVAM account whenever they want.
It is part of a scheme unveiled by President
Recep Tayyip Erdoğan to encourage foreign
currency holders to convert their funds to
lira and keep their savings in the national
The initiative was unveiled after the lira fell
to a record low of 18.40 to the U.S. dollar
on Dec. 20 last year before rallying sharply
to just over 10 and then settling at current
levels of just under 14 to the U.S. currency.
May 2022 70
Trade can be
ruble, yuan, gold
Conducting trade in national currencies
was among the topics discussed during
President Recep Tayyip Erdoğan’s phone
call with his Russian counterpart Vladimir
Putin, according to recently revealed
In a phone call, Erdoğan told Putin that
Turkey is ready to contribute to the
solution of the Ukraine crisis through
peaceful means as soon as possible.
Meanwhile, according to the information
obtained from ruling Justice and
Development Party (AK Party) sources, the
issue of trade payments between the two
countries was also discussed.
Sources say Erdoğan told Putin that, apart
from the euro and dollar, trade between
the two countries can be carried out using
the Russian ruble and Chinese yuan.
“We can do it with gold,” he was quoted as
Moscow is likely to seek alternatives as
Western sanctions have removed several
Russian banks from the SWIFT international
payments network. Russia could in theory
try to replace SWIFT’s communications
system that keeps international trade
During the conversation, Erdoğan brought
up the issue of the 30 ships loaded with
sunflower oil raw material and wheat en
route to Turkey currently waiting in the Sea
of Azov, the sources said.
Meanwhile, after phone call between
Erdoğan and Putin, the Directorate of
Communications said in a statement that
“Russia’s attack on Ukraine was discussed,
Turkey-Russia relations were evaluated.”
Stressing that an urgent general cease-fire
would not only alleviate humanitarian
concerns in the region but also provide an
opportunity to seek a political solution,
Erdoğan reiterated his call to “pave the way
for peace together.”
Maintaining its neutral and balanced
stance, Turkey continues its diplomatic
efforts to de-escalate the Ukraine conflict,
urging all sides to exercise restraint. While
Ankara has opposed international sanctions
designed to isolate Moscow, it also closed
the Bosporus and Dardanelles under a
1936 pact, allowing it to prevent some
Russian vessels from crossing the Turkish
NATO ally Turkey borders Ukraine and
Russia in the Black Sea and has good ties
with both. Since the beginning of the
conflict, Ankara has offered to mediate
between the two sides and host peace
talks, underlining its support for Ukraine’s
territorial integrity and sovereignty.
Having recently called Russia’s invasion an
unacceptable violation of international law,
Turkey has carefully formulated its rhetoric
not to offend Moscow, with which it has
close energy, defense and tourism ties.
May 2022 72
The international standing of Autopromotec 2022 has been
reasserted by the preliminary “incoming” figures
As the early figures for foreign exhibitors, buyers and professional operators arriving in Bologna would seem
to bear out, the 2022 edition of Autopromotec will be an international event, with a strong European bias
With a percentage of international exhibitors close to
25%, a significant number of buyers from more than 30
different countries and t many professional operators
expected to come to Bologna, the next edition of
Autopromotec will certainly be an international event,
with a decided European flavour. The preliminary data
recorded by the trade fair provides ample proof of the
strong international presence at the upcoming edition of
Autopromotec, scheduled to take place between 25 and
28 May at the Bologna Trade Fair District. This is even
more significant given the current global context.
Autopromotec has always considered its international
profile as one of its strongpoints. The strategic leverage
behind Autopromotec’s international success is based
on a well-established network of institutional relations.
A considerable contribution has been provided by the
Emilia-Romagna Region, which, through its funding for
the international promotion of trade fairs within the
May 2022 76
egion, will bring about 50 delegates from different countries in
South America and others from India, the United Arab Emirates,
Turkey and the Balkans.
Thanks also to the support of ICE Agency, a government agency
supporting the business development of Italian companies abroad
and promoting the attraction of foreign investment in Italy, under
the aegis of the Italian Ministry of Foreign Affairs and International
Cooperation, Autopromotec has been included among Italy’s major
international trade fairs. The upshot of this accolade is that 90
delegates from over 30 high-potential markets in various continents
will be landing in Bologna.
The renewed agreement with Enterprise Europe Network, a
worldwide network supporting the promotion of companies
internationally, will also be contributing in terms of foreign
professional visitors for Autopromotec 2022, with about 20
delegates expected to arrive from Eastern Europe and the Baltic
countries area. Alongside institutional support, the international
standing of Autopromotec 2022 is also bolstered by its close
relationship with trade associations, both in Italy and on a global
level, which has always been one of the fundamental drivers of the
The percentages of foreign exhibitors would seem to point to
a reference market with a strong European footprint headed
by Germany, Poland and Turkey with Spain, France and the
Netherlands also represented.
To promote the interaction between the companies and the
delegations of buyers present at the Fair, once again the Exhibition
can rely on its business matching platform that during the 2019
edition of Autopromotec coordinated close to 630 qualified
B2B meetings with the Italian exhibitors. This tool will facilitate
meetings between sector professionals, with the option of shifting
to a digital format if needed.
At Autopromotec 2022, the meetings will be organised in a special
area inside Hall 22. Autopromotec’s innovative format will enable
the upcoming edition’s participants to learn about innovations
and new products, meet their usual suppliers and help them find
new ones, access services and attend conferences and seminars
both in person and in virtual mode. w To keep up to date with
Autopromotec and the events at the show, we recommend you
to check the information on the website www.autopromotec.com
and follow all the news on Facebook, LinkedIn, Twitter and IG (@
Autopromotec and #Autopromotec2022).
ABOUT AUTOPROMOTEC: Autopromotec is an international
exhibition for automotive equipment and aftermarket products
that takes place every two years at the Bologna Exhibition
Centre. Founded in 1965, the event is organised by Promotec,
a services company owned by AIRP - Associazione Italiana
Ricostruttori Pneumatici (Italian Tyre Retreaders Association) and
AICA - Associazione Italiana Costruttori Autoattrezzature (Italian
Automotive Equipment Manufacturers Association). Its unique
formula is based on the specialisation, professionalism and quality
of the exhibition, a true meeting point between manufacturers
and users. The trade show - which includes over 580 product
categories, covering all sub-sectors of the aftermarket - takes the
form of a selection of specialised fairs, where visitors can easily
plan personalised itineraries based on their professional interests.
Through intensive promotional activities supported both at an
institutional level and by trade associations, over the course of 28
editions Autopromotec has experienced a continued increase in
77 May 2022
FDI in Turkey
hits $14.2B in
2021 to exceed
Asignificant increase in the flow of foreign
investments was witnessed in Turkey in
2021, in a rebound that even exceeded
levels prior to the coronavirus pandemic, a
senior official said .
Foreign direct investments (FDI) surged
81% year-over-year last year to $14.2
billion, said Burak Dağlıoğlu, the head of
Presidency Investment Office.
“This figure is above the FDI inflows that
came to our country since 2016,” Dağlıoğlu
told Anadolu Agency.
The figure is up from around $8 billion in
FDI in 2020, marked by a global economic
fallout from the pandemic. Dağlıoğlu said
investments had dropped 18% in 2020,
compared to a 35% decline on the global
Global FDI slipped to around $929 billion
in 2020, according to the United Nations
Conference on Trade and Development
(UNCTAD). But the flows strongly
rebounded to an estimated $1.65 trillion in
2021, a 77% year-over-year surge, UNCTAD
said last month.
Turkey seems to have also surpassed the
annual average of FDI inflow in the years
before the outbreak, Dağlıoğlu said.
The country last year particularly came to
the fore as many companies announced
plans to move part of their production to
Turkey to minimize problems with global
supply chains and increased shipping costs.
Straddling Europe and the Middle East,
Turkey says it is well placed to benefit from
changes to global supply chains. And its
strategic location and strong manufacturing
base are seen as a plus.
The disruptions to the global economy
during the pandemic upset supply chains
across continents, leaving the world short
of a plethora of goods and services from
car parts and microchips to container
vessels that transport goods across the
“Our country is strengthening its position
in global supply chains and international
investors are increasing their assets in
Turkey,” said Dağlıoğlu.
Some 60% of the FDI in 2021 came from
Europe, he noted, with Asia accounting for
24% and Americas for 16%.
The United Kingdom was Turkey’s number
one investor last year, he noted, followed
by the United States, the Netherlands,
Switzerland, the United Arab Emirates
(UAE), Germany, Luxembourg, South Korea,
Japan and Ireland.
“Wholesale and retail trade, manufacturing
industry, information and communication
technologies, financial services and
transportation-storage activities were
among the sectors that received the most
investment,” Dağlıoğlu said.
“The wholesale and retail trade sector
consisted of investments in our successful
technology startups operating in this area,”
he added. “Looking at the sub-divisions of
manufacturing, which is another important
sector in investments, we see that the
production of transportation vehicles,
chemicals, computers, electronics and
optical equipment, food and beverage
products stood out.”
Mergers and acquisitions (M&A) in Turkey
totaled TL 42.6 billion in 2021 in addition
to the seven privatization transactions
that totaled TL 95 billion, the Competition
Board (RK) said last month.
Most deals took place in the electricity
production and distribution sector,
followed by the plastic packaging
production sector, the board said.
Dağlıoğlu said there were 309 M&A
transactions in 2021, 50% of which
constituted purchases of stocks in
local companies by foreign entities and
envisaged an investment of around TL 22
“Turkey is attracting significant investments
from global players thanks to its
entrepreneurial business culture, young
and tech-savvy population, talented pool
of engineers and competitive products and
services,” he said.
“Our ecosystem received about $1.6 billion
in 294 investment rounds in early-stage
investments. With this amount, Turkey
became one of the 10 most invested
European countries,” he added.
“International investors participated in
44 of the 294 investment rounds, while
they accounted for 89% of the overall
“Startups that are rapidly growing their
scale in areas such as e-commerce,
financial technology, gaming, logistics
technologies, life sciences and deep
technologies will complete significant
investment rounds in the coming years,”
Turkey aims to lift its share in global FDI
to 1.5%, according to the government’s
Foreign Direct Investment Strategy
Document for 2021-2023.
The country’s share in global FDI rose to
some 1% in 2020, while it was around 0.6%
the previous year.
May 2022 78