Automotive Exports May 2022

Automotive Exports May 2022

Automotive Exports May 2022


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Monthly automotive aftermarket magazine




İstmag Magazin Gazetecilik

İç ve Dış Ticaret Ltd. Şti.

Managing Editor (Responsible)

Mehmet Söztutan



Ali Erdem



Mehmet Soztutan, Editor-in-Chief


Advertising Managers

Adem Saçın

+90 505 577 36 42


Enes Karadayı


International Marketing Coordinator

Ayca Sarioglu



Yusuf Okçu


Finance Manager

Cuma Karaman


Digital Assets Manager

Emre Yener


Technical Manager

Tayfun Aydın


Design & Graphics

Sami aktaş



Yusuf Demirkazık



İsmail Özçelik



İstmag Magazin Gazetecilik

İç ve Dış Ticaret Ltd. Şti.

Ihlas Media Center

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

Yenibosna Bahcelievler, Istanbul / TURKEY

Tel: +90 212 454 22 22

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


Metin Demir

Hazım Uluşahin İş Merkezi C Blok

Kat: 6 No: 603-604-605 KONYA

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



Merkez Mahallesi 29 Ekim Caddesi İhlas Plaza

No:11 A/41 Yenibosna–Bahçelievler/ İSTANBUL

Tel: 0212 454 30 00


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

additional exports.

The leading foreign automotive parts manufacturers have established their presence in the

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

by spare parts manufacturers.

To sum up:

- 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’

global planning.

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

international automotive manufacturers, has attracted an increasing number of foreign


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

of 2022.”

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

west London.

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

three months.

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

was completed.

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

single platform.

May 2022 18

Japan’s Nissan

plans ’game

changing’ electric

car batteries

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

electric vehicles.

But Nissan Executive Vice President

Kunio Nakaguro said Nissan is extremely

competitive and that the battery it is

developing promises to be “a gamechanger.

2022 22

‘EU needs to

recycle more

to meet green

energy goals’

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

report said.

The 27-nation EU aims to be “carbon

neutral” by 2050 and also wants to wean

itself off dependence on Russian oil, coal

and gas.

To this end, it is seeking not only to use less

energy but also to increase the amount

of energy generated domestically from

renewable resources.

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

Leuven university.

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

report said.

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

Liesbet Gregoir.

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

Aussie scientists

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

production line

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

with ‘Cyber


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

football fields.

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

European car

sales dip as

Ukraine war

hits struggling


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’

Association (ACEA).

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

German sites.

Europe’s top automaker saw sales fall by

nearly a quarter in March, according to

ACEA figures.

“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



and exporters

see huge

opportunities in


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

manufacture furniture.

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

Agency (AA).

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

in Turkey.

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

this potential.”

May 2022 42

EV sales break

record globally

in 2021, market

share drastically


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.




Russia’s central

bank signals

rate cut, pushes

digital ruble

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

Western sanctions.

“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”

in Ukraine.

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

international settlements.

“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

continued on.

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

Turkey’s electric

car sales leap

243.9% in


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

diesel sales.

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

were sold.

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%.

EV transformation

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

Turkish exports

hit record

$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

Ukraine war

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

in exports.”

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 cheaper,

affordable alternative

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.

May 2022

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

data showed.

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

Russians rush

to open bank

accounts in

Turkey to

protect savings

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

the country.

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

CBRT unveils

website for

converted lira

deposit scheme

for expats

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

conducted in

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

flowing smoothly.

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

international growth.

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.

Output shift

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

investment amount.”

“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,”

Dağlıoğlu noted.

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

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