Automotive Exports May 2022

Automotive Exports May 2022

Automotive Exports May 2022


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Monthly automotive aftermarket magazine<br />




İstmag Magazin Gazetecilik<br />

İç ve Dış Ticaret Ltd. Şti.<br />

Managing Editor (Responsible)<br />

Mehmet Söztutan<br />

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

Editor<br />

Ali Erdem<br />

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

EDİToR<br />

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

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

Advertising Managers<br />

Adem Saçın<br />

+90 505 577 36 42<br />

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

Enes Karadayı<br />

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

International Marketing Coordinator<br />

Ayca Sarioglu<br />

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

Editor<br />

Yusuf Okçu<br />

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

Finance Manager<br />

Cuma Karaman<br />

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

Digital Assets Manager<br />

Emre Yener<br />

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

Technical Manager<br />

Tayfun Aydın<br />

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

Design & Graphics<br />

Sami aktaş<br />

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

Accountant<br />

Yusuf Demirkazık<br />

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

Subsciption<br />

İsmail Özçelik<br />

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


İstmag Magazin Gazetecilik<br />

İç ve Dış Ticaret Ltd. Şti.<br />

Ihlas Media Center<br />

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

Yenibosna Bahcelievler, Istanbul / TURKEY<br />

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

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

KONYA:<br />

Metin Demir<br />

Hazım Uluşahin İş Merkezi C Blok<br />

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

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



Merkez Mahallesi 29 Ekim Caddesi İhlas Plaza<br />

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

Tel: 0212 454 30 00<br />

www.ihlasmatbaacilik.com<br />

Export-led growth given impetus<br />

Following a mandatory yet brief break due to the coronavirus outbreak, Turkish factories<br />

located in leading industrial cities of the country, started operating, with new investments<br />

on the way thanks to increasing orders from foreign markets. Besides, the sales of electric<br />

cars, which are expected to replace cars with internal combustion engines in the future,<br />

continued the upward trend of recent years.<br />

<strong>Automotive</strong> exporters operating in Turkey consistently put an emphasis to tackle the<br />

problems they face in integrating an innovation strategy with planning and execution and<br />

moving at speed to stay ahead of the competition.<br />

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

automotive industry. From simple components in the mid-1960s, the sector has ascended<br />

to produce high-tech components.<br />

The industry with its large capacity, wide variety of production and high standards, supports<br />

automotive industry production and the vehicles in Turkey and also has ample potential for<br />

additional exports.<br />

The leading foreign automotive parts manufacturers have established their presence in the<br />

country through joint-ventures. There has also been substantial locally-owned investments<br />

by spare parts manufacturers.<br />

To sum up:<br />

- Quality of production of the industry improved dramatically, especially through the<br />

establishment of quality management systems.<br />

- The industry has adapted to the EU regulations and has established an efficient and<br />

exemplary cooperation with public institutions in the transformation of the EU regulations<br />

to national regulations.<br />

- <strong>Exports</strong> have risen sharply, and Turkish production has been integrated into manufacturers’<br />

global planning.<br />

-The export potential of the automotive parts sector, coupled with the presence of major<br />

international automotive manufacturers, has attracted an increasing number of foreign<br />

investors.<br />

Key factors which attract foreign capital inflows to Turkey mainly include the market size,<br />

consumer composition, friendly investment legislation and banking system together<br />

with other attractiveness arising from highly skilled human resources in production and<br />

management, the unsaturated domestic market with high potential, easy access to<br />

neighboring (regional) emerging markets, and low labor cost.<br />

We wish them lucrative trade for the business people operating in the automotive business.<br />

automotiveexport<br />


Punch Powertrain launches<br />

proprietary DCT invention in serial<br />

production<br />

New and patented way of realizing “dual<br />

clutch principle” with a single lay shaft<br />

resulting in world’s most compact DCT; light<br />

weight and cost effective design rendering<br />

to be more sustainable technology and<br />

affordable for compact car segment<br />

• Tata Motors is the pioneer to introduce<br />

this technology as part of its premium<br />

hatchback Altroz DCA, representing the<br />

“Gold Standard” in automatics in its<br />

segment<br />

• The Altroz DCA launch marks a milestone<br />

in company’s transformation towards DCT,<br />

soon launching hybridized and higher<br />

torque variants on road to affordable<br />

sustainability and electrification<br />

Punch Powertrain launches its innovative<br />

DCT system with a revolutionary, more<br />

compact and affordable design. The DT1<br />

has been launched in India, debuting in the<br />

recent launch Altroz DCA by Tata Motors.<br />

This ingenious design guarantees that DT1<br />

offers reliable performance and improved<br />

driving comfort even under the most<br />

challenging conditions, such as extreme<br />

ambient temperatures, high altitudes, and<br />

challenging driving environment, such as<br />

uneven roads and stop-and-go driving.<br />

Punch Powertrain’s unique and patented<br />

new way of realizing the dual clutch<br />

principle offers seamless comfortable<br />

DCT shifting, while using 35% less shifting<br />

components. In this unique design one of<br />

the two clutches represents an additional<br />

planetary gearset ratio that can be engaged<br />

between the engine and the transmission.<br />

This allows the unit to shift seamlessly<br />

up-to 7 forward ratios*, using only 4 gear<br />

pairs and only one layshaft. This results in<br />

a lighter, more compact powertrain, while<br />

offering a considerable cost reduction.<br />

Through application of a wet-clutch<br />

design, the transmission offers excellent<br />

continued performance on inclines and<br />

in stop-and-go-traffic. This aligns with<br />

Punch Powertrain’s vision to provide<br />

performant products at lower cost, or<br />

offer more functionality and performance<br />

at cost parity with competition. Thanks to<br />

its compactness and design features, the<br />

DT1 enables car manufacturers to offer<br />

additional benefits to drivers, unique to its<br />

segment and vehicle price range.<br />

The DT1 is fitted with machine learning<br />

software that optimizes transmission<br />

behavior, based on its diagnostics and<br />

analysis of thousands of parameters at the<br />

speed of 100 times per second. The shift<br />

by wire ensures smooth shifting, while<br />

the software offers the additional benefit<br />

of automatic missing driver detection and<br />

activation of the park lock mechanism.<br />

Another asset is the self-healing technology<br />

that prevents the build-up of dust or debris<br />

through an automatic vibration system,<br />

decreasing the need of active maintenance.<br />

Because of the extensive in-house software<br />

expertise, Punch Powertrain is able to offer<br />

the most complete and smart solutions<br />

that combine robustness and comfort at no<br />

or limited extra costs.<br />

The DT1 smart design strongly resonates<br />

with Tata Motors’ constant efforts to offer<br />

‘The Gold Standard’ in its Altroz line.<br />

While the invention was created and<br />

developed in the company’s R&D centers in<br />

the Netherlands and Belgium, the company<br />

will localize production and is establishing<br />

a solid support base for its local customer<br />

in India. This is in line with the company’s<br />

‘local for local’ strategy, ensuring short<br />

communication lines and agility towards<br />

the local markets of its global customers.<br />

The launch of its DCT technology in India<br />

signifies the entry into a new market for<br />

the company, largely widening its reach<br />

and potential, while further potential<br />

markets are investigated.<br />

In addition to entering a new market,<br />

the DT1 signifies the first DCT in serial<br />

production for Punch Powertrain, helping<br />

car manufacturers meet the increasingly<br />

tightening CAFE norms for smaller vehicles.<br />

The compact design of this DCT and over<br />

10 years of in-house expertise in the<br />

development of e-motors render the<br />

electrification a natural next step in its<br />

transition to electrified and fully electric<br />

propulsion systems. Within its expanding<br />

product range, the company will launch a<br />

higher torque hybrid DCT variant – DT2 –<br />

later this year for mid-segment vehicles on<br />

European and global markets, rendering<br />

the company the leading hybrid DCT<br />

supplier worldwide as of 2024.<br />

With its inventor legacy in CVT technology,<br />

the new DCT marks the company’s<br />

transformation towards new technologies<br />

as part of its sustainable solutions offering,<br />

such as hybrid and electric propulsion<br />

systems.<br />

*OEM is free to use up-to 7 gears to make<br />

it a best fit with their application objective.<br />

<strong>May</strong> <strong>2022</strong> 8

Mercedes profits rise on higher prices<br />

German automaker Mercedes-Benz said<br />

that higher sales prices enabled it to lift<br />

its bottom line slightly in the first three<br />

months of the year, despite a shortage of<br />

semiconductors and fallout from the war in<br />

Ukraine.<br />

Mercedes-Benz said in a statement that<br />

it booked net profit of 3.6 billion euros<br />

($3.8 billion) in the period from January to<br />

March, an increase of three percent over<br />

the same period last year.<br />

Underlying or operating profit rose by 11<br />

percent to 5.2 billion euros on a six-percent<br />

increase in revenues to 35 billion euros.<br />

The Stuttgart-based carmaker said its<br />

results were boosted by a “sharpened<br />

focus on top-end vehicles and premium<br />

vans, combined with ongoing cost<br />

discipline... even as the Covid-19 pandemic,<br />

semiconductor supply-chain bottlenecks<br />

and war in Ukraine continued to impact<br />

business.”<br />

Mercedes-Benz said unit sales of its cars<br />

were down by 10 percent at around<br />

487,000.<br />

Over the past year, automakers have been<br />

battling shortages in semiconductors,<br />

electronic components that are used in<br />

both conventional and electric vehicles,<br />

occasionally being made to halt production.<br />

The war in Ukraine has similarly aggravated<br />

the supply-chain disruptions faced by<br />

manufacturers.<br />

Like rivals BMW and Volkswagen,<br />

Mercedes-Benz stopped exports to Russia<br />

and closed production sites in the country,<br />

leading to related expenses of 709 million<br />

euros in the first quarter.<br />

Looking ahead, Mercedes-Benz said the<br />

outlook was clouded by “exceptional<br />

degree of uncertainty,” particularly the<br />

impact of the war on “supply chains,<br />

and the development of prices for raw<br />

materials and energy.”<br />

Mercedes said it expected shortages,<br />

including of semiconductors, “to impact<br />

business for the remainder<br />

of <strong>2022</strong>.”<br />

<strong>May</strong> <strong>2022</strong> 10

Lotus Eletre - the world’s first<br />

hyper-SUV EV - is revealed in London<br />

Coming to Life – the Lotus Eletre – the<br />

world’s first electric hyper-SUV has been<br />

launched in London. On Tuesday 29 March<br />

the car made its global debut in front of<br />

a live audience of several hundred VIP<br />

guests, viewing action inside and outside<br />

the world-famous BBC Television Centre in<br />

west London.<br />

The Eletre is an all-new and all-electric<br />

hyper-SUV, a striking and progressive<br />

addition to the Lotus range, and the first of<br />

a new breed of pure electric SUVs. It takes<br />

the core principles and Lotus DNA from<br />

more than 70 years of sports car design<br />

and engineering, evolving them into a<br />

desirable all-new lifestyle car for the next<br />

generation of Lotus customers.<br />

Guests at the ‘Carved by Air’ event<br />

included F1 world champion and Lotus<br />

customer Jenson Button, who was behind<br />

the wheel of the Eletre as it debuted on<br />

stage from behind a huge TV screen. Also<br />

present were famous faces from the world<br />

of motoring and from the global Lotus<br />

community, including members of the<br />

Chapman family and Elisa Artioli, after<br />

whom the Lotus Elise was named.<br />

Highlights included a parade of Lotus cars<br />

past and present, followed by a five-minute<br />

live-action telling of ‘The Story of Lotus’.<br />

It was all shot in one continuous take,<br />

making full use of the iconic circular Helios<br />

courtyard at the heart of the BBC Studios.<br />

It featured a cast of actors portraying<br />

everyone from Lotus founders Colin and<br />

Hazel Chapman to legendary racing drivers<br />

Jim Clark and Emerson Fittipaldi.<br />

Inside, seated guests were treated to a<br />

stunning aerial ballet and the on-stage<br />

debut of the Lotus Eletre. A bold new<br />

dimension to the Lotus performance car<br />

portfolio, the Eletre delivers a significant<br />

number of firsts for Lotus – the first fivedoor<br />

production car, the first model outside<br />

sports car segments, the first lifestyle EV,<br />

the most ‘connected’ Lotus ever. And yet<br />

it remains a true Lotus, a beautiful car<br />

‘carved by air’, packed with pioneering<br />

technology, genuine sporting performance<br />

and simplicity of purpose, designed and<br />

developed by a passionate and global<br />

team.<br />

The hour-long show was hosted by TV<br />

presenters Andy Jaye and Julia Hardy, and<br />

livestreamed to legions of fans around<br />

the world. Numerous retail partners in<br />

all corners of the globe hosted customer<br />

events in their showrooms to watch live.<br />

Matt Windle, Managing Director, Lotus<br />

Cars, commented: “London is the<br />

birthplace of Lotus and to take over the<br />

iconic BBC Studios, inside and out, to<br />

launch the Lotus Eletre to the world, is<br />

fantastic. The Eletre is a hugely significant<br />

moment in our ongoing transformation<br />

of Lotus; we are delivering on our<br />

commitment to move the business and<br />

brand into completely new segments to<br />

widen our global appeal and accessibility.”<br />

<strong>May</strong> <strong>2022</strong> 14

Test track for Turkey’s 1st electric car TOGG completed<br />

The test track built for Turkey’s first<br />

domestic, fully electric car has been<br />

completed and the debut test run on<br />

the track has been carried out, Turkey’s<br />

Automobile Joint Venture Group (TOGG),<br />

the consortium developing the car, said.<br />

The 1.6-kilometer (1-mile) track was<br />

built at the production facility in the<br />

northwestern Bursa province’s Gemlik<br />

district.<br />

The TOGG said in the statement that the<br />

construction works at the Gemlik facilities,<br />

which started on July 18, 2020, are rapidly<br />

approaching the end.<br />

Industry and Technology Minister Mustafa<br />

Varank, Treasury and Finance Minister<br />

Nureddin Nebati and TOGG board<br />

members, who held their monthly board<br />

meeting in Gemlik, made the first test drive<br />

on the track.<br />

TOGG prototypes will be tested on the<br />

track, designed according to different<br />

needs such as high-speed track, rough road<br />

track and special maneuvering area.<br />

The construction of the track, where<br />

product development and quality<br />

processes will be tested, was completed in<br />

three months.<br />

Meanwhile, work on the production units<br />

at the Gemlik facility, built on a total open<br />

area of 1.2 million square meters, will be<br />

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

At the main facility, 86% of which has been<br />

completed, 185 robots have started partless<br />

rehearsals. While 92% of the paint facility,<br />

where paint tanks and ovens were installed,<br />

was completed, 84% of the assembly facility<br />

was completed.<br />

The TOGG will be ready for mass production<br />

in the last quarter of <strong>2022</strong>. After completing<br />

the homologation tests, the first vehicle in<br />

the C-segment, the SUV, will be launched at<br />

the end of the first quarter of 2023. Then<br />

the sedan and hatchback models in the<br />

C-segment will enter the production line.<br />

In the following years, with the addition<br />

of B-SUV and C-MPV to the family, the<br />

product range consisting of five models<br />

will be completed.TOGG plans to produce a<br />

total of 1 million vehicles by 2030, with the<br />

production of five different models from a<br />

single platform.<br />

<strong>May</strong> <strong>2022</strong> 18

Japan’s Nissan<br />

plans ’game<br />

changing’ electric<br />

car batteries<br />

Nissan is working with the U.S. National<br />

Aeronautics and Space Administration<br />

(NASA) on a new type of battery for electric<br />

vehicles that promise to charge quicker and<br />

be lighter yet safe, the Japanese automaker<br />

said on April 8.<br />

The all-solid-state battery will replace the<br />

lithium-ion battery now in use for a 2028<br />

product launch and a pilot plant launch in<br />

2024, according to Nissan.<br />

The all-solid-state battery is stable enough<br />

to be used in pacemakers. When finished,<br />

it will be about half the size of the current<br />

battery and fully charge in 15 minutes,<br />

instead of a few hours.<br />

The collaboration with the U.S. space<br />

program, as well as the University of<br />

California San Diego, involves the testing of<br />

various materials, Corporate Vice President<br />

Kazuhiro Doi told reporters.<br />

“Both NASA and Nissan need the same<br />

kind of battery,” he said.<br />

The goal is to avoid the use of expensive<br />

materials like rare metals, which are<br />

needed for lithium-ion batteries.<br />

Nissan is also counting on its historical<br />

experience with the Leaf electric car,<br />

which first hit the market in 2010 and<br />

has sold more than half a million units<br />

globally, although the battery technology is<br />

different.<br />

Other automakers, including Japanese rival<br />

Toyota Motor Corp., as well as Volkswagen<br />

of Germany and U.S. automakers Ford<br />

Motor Co. and General Motors Co., are<br />

working on all-solid-state batteries.<br />

Recently, General Motors and Japanese<br />

automaker Honda Motor Co. said they<br />

were working together on next-generation<br />

electric vehicles.<br />

But Nissan Executive Vice President<br />

Kunio Nakaguro said Nissan is extremely<br />

competitive and that the battery it is<br />

developing promises to be “a gamechanger.<br />

<strong>2022</strong> 22

‘EU needs to<br />

recycle more<br />

to meet green<br />

energy goals’<br />

Police officers protect the access roads<br />

to the Garzweiler open pit mine during a<br />

demonstration near Luetzerath, Germany,<br />

on April 23.<br />

Europe must act fast to secure supplies of<br />

crucial metals required for a green energy<br />

transition and its best bet is to recycle, a<br />

report said.<br />

The 27-nation EU aims to be “carbon<br />

neutral” by 2050 and also wants to wean<br />

itself off dependence on Russian oil, coal<br />

and gas.<br />

To this end, it is seeking not only to use less<br />

energy but also to increase the amount<br />

of energy generated domestically from<br />

renewable resources.<br />

But expanding clean technologies will<br />

require substantial inputs of raw metals<br />

and - in initial stages at least - much of<br />

this will probably have to be imported,<br />

according to the study by Belgium’s KU<br />

Leuven university.<br />

To bring carbon dioxide emissions down<br />

to “net zero” by 2050, the EU will need<br />

“35 times more lithium” than it uses today<br />

and “seven to 26 times the amount of<br />

increasingly scarce rare earth metals”, the<br />

report said.<br />

The energy transition will also require<br />

far greater annual supplies of aluminum,<br />

copper, silicon, nickel and cobalt.<br />

Europe could be self-sufficient for 40 to 75<br />

percent of its clean energy metal needs by<br />

2050 if it invests heavily now in recycling<br />

infrastructure and cuts red tape, said the<br />

report.<br />

For now, the EU remains import-dependent<br />

for much of these metals and, the study<br />

warns, “there is growing concern about the<br />

security of supply”.<br />

“Europe needs to decide urgently how<br />

it will bridge its looming supply gap<br />

for primary metals. Without a decisive<br />

strategy, it risks new dependencies on<br />

unsustainable suppliers,” said lead author<br />

Liesbet Gregoir.<br />

China and India, which rely on coal power<br />

for metal production, are set to dominate<br />

global markets for battery metals and rare<br />

earths. Europe relies on Russia today for<br />

aluminum nickel and copper.<br />

If it is to meet climate and social goals,<br />

Europe will need to find external suppliers<br />

with better environmental and rights<br />

records, the report said.<br />

<strong>May</strong> <strong>2022</strong> 26

Aussie scientists<br />

hook up solar<br />

panel to Tesla for<br />

15,000 km trip<br />

Two Oregon-based engineers and scientists<br />

in Australia have been testing printed solar<br />

panels they intend to use to power a Tesla<br />

on a 15,100-kilometer (9,400-mile) journey<br />

beginning in September, which they hope<br />

will get the public thinking about steps to<br />

help avert climate change. The “Charge<br />

Around Australia (CAA)” project will power<br />

a Tesla electric car with 18 of the team’s<br />

printed plastic solar panels, each 18 meters<br />

(59 feet) long, rolling them out beside the<br />

vehicle to soak up sunlight when it needs<br />

a charge. Paul Dastoor, the inventor of the<br />

printed solar panels, said the University<br />

of Newcastle team would be testing not<br />

only the endurance of the panels but<br />

their potential performance for other<br />

applications.<br />

“This is actually an ideal test bed to give<br />

us information about how we would go<br />

about using and powering technology in<br />

other remote locations, for example, in<br />

space,” Dastoor told Reuters in the town of<br />

Gosforth, north of Sydney.<br />

Printed solar is a lightweight, laminated<br />

PET plastic that can be made at a cost of<br />

less than $10 a square meter.<br />

The panels are made on a commercial<br />

printer originally used for printing wine<br />

labels.<br />

Dastoor said using the panels to power a<br />

car would get Australians to think more<br />

about electric vehicles and could help ease<br />

their “range anxiety.”<br />

“(The) community is seeking these sorts<br />

of answers to the problems it’s being<br />

presented with, day in, day out, around<br />

climate change,” he said.<br />

On their 84-day Tesla journey, the team<br />

plans to visit about 70 schools to give<br />

students a taste of what the future may<br />

hold. Asked what Elon Musk, producer<br />

of the Tesla car and founder of Tesla Inc.,<br />

might say about the CAA project, Dastoor<br />

said he hoped he would be pleased.<br />

CAA was “showing how our innovative<br />

technology is now combining with his<br />

developments to develop new solutions for<br />

the planet,” Dastoor said.<br />

Reuters is publishing a series of<br />

environmental stories to mark Earth Day<br />

<strong>2022</strong>, which falls on April 22. The Earth<br />

Day theme for this year is “Invest In Our<br />

Planet.”<br />

<strong>May</strong> <strong>2022</strong> 28

Turkey’s<br />

unmanned<br />

fighter jet hits<br />

production line<br />

Turkey’s drone magnate Baykar<br />

announced it has reached a new phase<br />

in its unmanned combat aircraft project,<br />

unveiling that the first prototype has<br />

entered the production line.<br />

“A larger and more agile fish has entered<br />

the production line three and a half<br />

years later,” Selçuk Bayraktar, the chief<br />

technology officer (CTO) at the drone<br />

maker, said on Twitter. Bayraktar was<br />

referring to the period when Baykar started<br />

manufacturing its landmark combat drone<br />

Akıncı, dubbed “the flying fish.”<br />

The National Unmanned Combat Aerial<br />

Vehicle System (MIUS) has been named<br />

Kızılelma (“red apple”), Bayraktar said,<br />

referring to an expression in Turkish<br />

mythology that symbolizes goals, ideas or<br />

dreams that are far away, but are more<br />

attractive the further that distance may be.<br />

The first prototype was earlier said to be<br />

expected to make its maiden flight in 2023,<br />

if not before.<br />

MUIS will be jet-powered and is expected<br />

to be capable of taking off from and landing<br />

on Turkey’s flagship-to-be amphibious<br />

assault ship TCG Anadolu.<br />

The landing helicopter dock (LHD) type<br />

ship is said to be the first of its kind in the<br />

world as a vessel that allows the landing of<br />

unmanned combat aerial vehicles (UCAVs)<br />

on its dock.<br />

It will be used in multipurpose operations<br />

and is set to be delivered this year.<br />

Baykar is currently working on the<br />

Bayraktar TB3 UCAV, an upgraded version<br />

of the company’s famed Bayraktar TB2.<br />

MIUS and TB3 will both extend Turkey’s<br />

drone capabilities from land-based to naval<br />

operations as they will both be able to take<br />

off from TCG Anadolu.<br />

The autonomously maneuvering MIUS will<br />

be capable of operating in tandem with<br />

piloted aircraft, and may carry air-to-air<br />

missiles, the company says.<br />

“With the 5th generation fighters, the<br />

world is witnessing the end of manned<br />

fighters. No new manned combat aircraft<br />

will be developed. Unmanned systems<br />

will increasingly become the strongest<br />

elements on the battlefield in the future,”<br />

Bayraktar earlier said.<br />

“We are also trying to ensure our country’s<br />

presence in future competition,” he added.<br />

The unmanned fighter jet is projected to<br />

conduct a multitude of military actions,<br />

such as strategic offensives, close<br />

air support (CAS), missile offensives,<br />

suppression of enemy air defenses (SEAD)<br />

and destruction of enemy air defenses<br />

(DEAD).<br />

Baykar in November signed a contract<br />

with Ivchenko-Progress, one of the leading<br />

Ukrainian companies for the procurement<br />

of engines for the MIUS. Ivchenko-Progress<br />

was projected to supply the AI-322F<br />

Turbofan engine for the jet under the<br />

agreement. The aircraft is set to feature<br />

a high operational altitude and takeoff<br />

weight of 5,500 kilograms (12,125 pounds).<br />

It is envisaged to carry 1.5 tons of useful<br />

payload.<br />

It is projected to be capable of flying for<br />

five hours and reaching speeds of up to 800<br />

kph (500 mph or Mach 0.64).<br />

<strong>May</strong> <strong>2022</strong> 30

Capacity usage rate inches up to 77.8 pct in April<br />

The capacity utilization rate (CUR) in<br />

Turkey’s manufacturing industry rose on<br />

a monthly basis in April, data from the<br />

country’s Central Bank have shown.<br />

The economy’s key manufacturing sector<br />

used 77.8 percent of its capacity this<br />

month, up from 77.3 in March.<br />

In April last year, the capacity utilization<br />

rate in the manufacturing industry was 75.9<br />

percent.<br />

In the food and drink sector, the capacity<br />

utilization rate was 72.7 percent in April,<br />

rising slightly from the previous month’s 70<br />

percent.<br />

Companies operating in the non-durable<br />

consumer goods industry reported a CUR<br />

of 75.7 percent, which was higher than<br />

March’s 76.3 percent. The capacity usage<br />

in the intermediate goods manufacturing<br />

sector climbed from 78.7 percent in March<br />

to 79.7 percent in April.<br />

However, the durable consumer goods<br />

manufacturing sector saw its capacity<br />

utilization decline from 75 percent last<br />

month to 74.2 percent in April, while<br />

the CUR in the consumer goods industry<br />

declined slightly from 75.5 percent to 75.4<br />

percent.<br />

The CUR was 74.8 percent in the capital<br />

goods manufacturing sector, down from 76<br />

percent in March.<br />

Separate data the Central Bank released<br />

showed that business morale improved.<br />

The real sector business confidence index<br />

advanced from 108.5 in March to 109.7<br />

percent in April.<br />

The 100-point level on the index separates<br />

optimism from pessimism.<br />

The sub-index, which measures firms’<br />

assessment of the general business<br />

situation, climbed from 79.2 in March to<br />

83.6 percent in April.<br />

The index for fixed investment expenditure<br />

rose from 124.4 to 129 percent, and<br />

the index for the total amount of orders<br />

received in the last three months increased<br />

from 107.6 to 113.2 percent.<br />

The Turkish Statistics Institute (TÜİK) also<br />

released business confidence data for the<br />

retail, construction and retail industries.<br />

The TÜİK data showed that businesses in<br />

those three industries rebounded.<br />

The confidence index in the retail sector<br />

improved 3 percent on a monthly basis in<br />

April, after falling by a sharp 6.2 percent in<br />

March.<br />

<strong>May</strong> <strong>2022</strong> 34

Tesla<br />

inaugurates<br />

huge Texas plant<br />

with ‘Cyber<br />

Rodeo’<br />

Tesla welcomed throngs of electric car<br />

lovers to Texas on April 7 for a huge party<br />

dubbed a “cyber rodeo” to inaugurate<br />

a manufacturing plant the size of 100<br />

football fields.<br />

As many as 15,000 people were expected<br />

to attend the private event hosted by Tesla<br />

mogul Elon Musk to mark the opening<br />

of the new factory in Travis County that<br />

also serves as the company’s new home<br />

following its move from California.<br />

Bulldozers were still at work near the socalled<br />

“gigafactory,” which signs indicated<br />

was constructed with more steel than New<br />

York City’s famed Empire State Building.<br />

“It’s the equivalent to three Pentagons,”<br />

Tesla’s colorful but controversial founder<br />

and chief executive Elon Musk proudly told<br />

a cheering crowd inside the factory.<br />

“This is the most advanced car factory the<br />

Earth has ever seen; raw materials in one<br />

side, cars out the other side.”<br />

Musk drove on stage in the first production<br />

model Tesla ever built and stepped out<br />

dressed in black complete with a cowboy<br />

hat and sunglasses.<br />

He said ramping up production of existing<br />

models was going to be Tesla’s priority this<br />

year.<br />

The move to a U.S. state known for<br />

conservative Republican politics is seen<br />

by some as Musk stepping away from the<br />

liberal Silicon Valley culture in which he<br />

made his fortune.<br />

The South African-born serial entrepreneur<br />

is now ranked the world’s richest man.<br />

He founded Tesla in Silicon Valley in 2003,<br />

but shifted its headquarters to Texas late<br />

last year. Musk has clashed with California<br />

regulators, particularly when health<br />

precautions mandated at the height of the<br />

pandemic closed Tesla’s Fremont plant.<br />

Musk told the crowd that Tesla was<br />

continuing to expand in California, but was<br />

running out of room there.<br />

“We needed a place where we could be<br />

really big, and there is no place like Texas,”<br />

Musk said. Musk has said the plant, which<br />

would employ up to 10,000 workers, would<br />

build its Cybertruck, Semi, Model 3 and<br />

Model Y sport utility vehicles. Last month,<br />

he also opened another “Gigafactory”<br />

on the outskirts of Berlin to produce the<br />

Model Y SUV.<br />

<strong>May</strong> <strong>2022</strong> 36

European car<br />

sales dip as<br />

Ukraine war<br />

hits struggling<br />

industry<br />

Car sales in Europe dropped sharply in<br />

March, industry data showed, as Russia’s<br />

invasion of Ukraine added to the woes of<br />

a sector that has been long struggling with<br />

shortages of semiconductors.<br />

Passenger car registrations fell 20.5%<br />

compared to the same period last year,<br />

with 844,187 units sold, according to the<br />

European Automobile Manufacturers’<br />

Association (ACEA).<br />

Excluding 2020 when the coronavirus<br />

pandemic paralyzed the global economy, it<br />

was the worst performance for a month of<br />

March since statistics began in 1990.<br />

Car production has been hampered<br />

worldwide since last year by a severe<br />

shortage of semiconductors, a key<br />

component for modern cars as they power<br />

everything from antilock braking systems to<br />

airbags to parking assistance technology.<br />

The war has led to shortages of other<br />

parts, such as the cables used in car<br />

wiring harnesses and of which Ukraine<br />

is a manufacturer. Several factories in<br />

Europe have had to go idle due to the lack<br />

of cables, with Volkswagen temporarily<br />

suspending production at a number of<br />

German sites.<br />

Europe’s top automaker saw sales fall by<br />

nearly a quarter in March, according to<br />

ACEA figures.<br />

“The ongoing supply chain disruptions,<br />

further exacerbated by Russia’s invasion of<br />

Ukraine, negatively affected car production,”<br />

the ACEA said. Most countries in Europe<br />

had double-digit drops in car sales in March,<br />

the association said, with a fall of 17.5% in<br />

Germany, the biggest market. There were<br />

even larger falls of around almost 20% in<br />

France, around 30% in Italy and nearly 40%<br />

in Spain.Outside the European Union, sales<br />

fell by 14.3% in Britain.<br />

<strong>May</strong> <strong>2022</strong> 38

Turkish<br />

manufacturers<br />

and exporters<br />

see huge<br />

opportunities in<br />

Africa<br />

African Trade Centers help Turkish<br />

companies expand their footprint in Africa,<br />

the founder of the centers said, adding that<br />

they aim to make Turkey one of the main<br />

contributors in Africa’s industrialization<br />

journey.<br />

Around 280 manufacturers and exporters<br />

from Turkey came together with nearly<br />

1,000 businesspeople from Africa, drawing<br />

attention to its 1.5 billion population<br />

and annual import potential of over $1<br />

trillion, at the sixth World Intersectoral<br />

Cooperation Forum held in the capital<br />

Ankara.<br />

African representatives of 741 companies<br />

from 41 countries, which make up 82%<br />

of the country’s population, attended the<br />

event, African Trade Centers founder Utku<br />

Bengisu told Anadolu Agency (AA).<br />

“There are more than 300 organized<br />

industrial zones in Turkey. The point<br />

our industry has reached in the last 20<br />

years is indisputable. We have made<br />

great strides. We also produce high-tech<br />

products. We want to be the country that<br />

makes the main contribution to Africa’s<br />

industrialization journey by sharing this<br />

experience with them,” he said.<br />

Underlining that the population of Nigeria<br />

is 220 million and that it will reach 840<br />

million by 2100, Bengisu added Turkey<br />

wants to be a part of the industrial<br />

transformation where it will also produce<br />

and develop regional trade with a strategic<br />

mind and vision for the future.<br />

Expressing that the organization’s main aim<br />

is to understand the “African policy” that<br />

President Recep Tayyip Erdoğan frequently<br />

emphasizes and to make Turkish companies<br />

turn their route to Africa with the same<br />

motivation, Bengisu said, “We want to<br />

provide new networks for this.”<br />

“When we look at the imports of Africa, we<br />

see that China, the United Arab Emirates<br />

(UAE), India, South Africa and the European<br />

Union countries have a very large share.<br />

The reason for this share is the motivation<br />

of the rising new generation economic<br />

class of Africa, namely the traders, to<br />

constantly sell those goods in the market,”<br />

said Bengisu, pointing out that they invite<br />

African businesspeople to have Turkish<br />

goods as a new option on the table.<br />

Referring to the organization’s history and<br />

its contribution to the companies, Bengisu<br />

said that they held the first event in 2017<br />

in southern Antalya province. Stating that<br />

they aimed to attract producers who had<br />

never worked with each other in Turkey<br />

and Africa to produce a framework for<br />

the future at that time, Bengisu said: “Our<br />

first delegation came from Sierra Leone. At<br />

that time, our trade volume was close to<br />

zero. Every year, we made progress, even<br />

during the COVID-19 pandemic. One of our<br />

companies from Izmir sold 62 containers of<br />

goods to Sierra Leone.”<br />

“Currently, Turkey ranks sixth in this<br />

country’s imports with a share of 6.5%.<br />

This is the benefit of this forum: Bringing<br />

Turkish companies that have never been<br />

to Africa together with it and producing a<br />

Turkish product horizon for African traders<br />

who have never bought Turkish goods,” he<br />

added.<br />

Explaining that a furniture company<br />

participating in the forum first opened an<br />

office abroad in Ethiopia and increased the<br />

number of its offices to six over the years,<br />

Bengisu said that the company transported<br />

its machines from Turkey to Ethiopia to<br />

manufacture furniture.<br />

Stating that many businesspeople want<br />

to invest in Africa, Bengisu said: “Africa’s<br />

population is increasing. You cannot feed<br />

this population just by purchasing.”<br />

African expansion in defense<br />

Meanwhile, Turkey’s defense exports to<br />

African countries in the first two months<br />

of this year jumped by 608% compared<br />

to the same period of the previous year,<br />

contributing to the total defense exports<br />

of the record $138.6 million in the said<br />

period.<br />

The sector, which reshapes export markets<br />

with global developments and fairs,<br />

also continues to deepen its relations<br />

through defense industry cooperation<br />

agreements signed with more than 25<br />

African countries, including Niger, Rwanda,<br />

Senegal, Congo, Mali and Nigeria.<br />

While African countries were the fifthlargest<br />

market in exports in the first 11<br />

months of 2021, they rose to rank second<br />

after North America, which exported $141<br />

million in the first two months of this year.<br />

Global developments and fairs pave the<br />

way for exports in defense. The sector aims<br />

to further strengthen its export network in<br />

the surrounding countries by participating<br />

in the African Aerospace and Defense Fair<br />

in South Africa on Sept. 21-25.<br />

The great interest of African companies in<br />

the fairs in 2021 and <strong>2022</strong> brings with it the<br />

expectation of an increase in exports.<br />

Burkina Faso is one of the countries that<br />

has drawn attention with its increase in<br />

exports, with $386,000 in the first two<br />

months of last year becoming $83.2 million<br />

in the same period this year.<br />

<strong>May</strong> <strong>2022</strong> 40

Turkey e-store launched in China amid<br />

efforts to maximize trade potential<br />

Turkey has turned its focus to reviving its<br />

trade potential with China, with its most<br />

recent efforts resulting in the launching<br />

of an e-commerce store on one of<br />

China’s biggest online platforms, Ankara’s<br />

ambassador to Beijing said.<br />

“We have started the era of e-commerce in<br />

exports to China,” Emin Önen told Anadolu<br />

Agency (AA).<br />

Önen said they brought together PTTeM<br />

(PTT e-Store), a subsidiary of the staterun<br />

postal service PTT, and Chinese<br />

e-commerce giant JD.com under the<br />

coordination of the Trade Ministry.<br />

“A Turkey e-store has been launched on<br />

JD.com, one of the largest e-commerce<br />

platforms in China,” the ambassador said.<br />

Önen stressed the importance of the<br />

presence of Turkish products in China, an<br />

e-commerce market worth around $2.1<br />

trillion (TL 31.07 trillion) that accounts for<br />

around 55% of global online trade.<br />

China is Turkey’s largest trade partner in<br />

Asia and second in the world. The volume<br />

of bilateral exchange of goods reached a<br />

record $36 billion in 2021, Önen said.<br />

“Our exports to China reached $3.7 billion,<br />

an increase of 28% compared to 2020.<br />

China’s direct investments in Turkey are at<br />

the level of $5 billion as of 2021. We see<br />

that 70% of this has been accomplished in<br />

the last four years.”<br />

Pointing out that there is an imbalance in<br />

trade between Turkey and China, Önen<br />

stressed that they aim to make bilateral<br />

trade more sustainable and balanced by<br />

including high value-added products in<br />

exports. He also added that they aim to<br />

encourage and increase direct investment<br />

in Turkey.<br />

Turkey has also focused on agricultural<br />

and food products as it works to increase<br />

and diversify its exports to China, the<br />

ambassador said. Önen recalled permits<br />

granted for exports of many products,<br />

including cherries, peanuts, water products,<br />

milk, dairy products and poultry, which<br />

paved the way for sales worth around $360<br />

million. The official stressed the enormous<br />

size of China’s imports, which amounted to<br />

around $2.7 trillion last year.<br />

“We are going through a period when<br />

Turkey is setting records in exports. But<br />

when we look at our exports to China, we<br />

see that we are in the thousandth tranches<br />

in their imports,” Önen noted.<br />

“This does not coincide with the realities of<br />

China. There is a great potential between<br />

the two countries, but we are still far below<br />

this potential.”<br />

<strong>May</strong> <strong>2022</strong> 42

EV sales break<br />

record globally<br />

in 2021, market<br />

share drastically<br />

up<br />

The market share of electric vehicles<br />

around the world increased 41 times in<br />

the last 10 years and reached 8.3%. Last<br />

year, electric vehicle sales reached 6.75<br />

million, up 108% from earlier.<br />

Within the scope of the goals of<br />

combating climate change, countries<br />

are accelerating the conversion to low<br />

carbon technologies to reduce their<br />

fossil fuel consumption. While electric<br />

vehicles are critical in reducing emissions<br />

from the transportation sector,<br />

automobile brands’ investments and<br />

brand models in this area are increasing<br />

rapidly.<br />

The transformation in the electric<br />

vehicle market is reflected in sales at<br />

the same pace. Last year, all of the net<br />

growth in the global vehicle market<br />

came from electric vehicles.<br />

Global electric vehicle sales reached 6.75<br />

million in 2021, an all-time high, with<br />

an increase of 108% compared to the<br />

previous year, according to an Anadolu<br />

Agency (AA) report, which cited data<br />

from the EV-volumes.com.<br />

Electric vehicle sales were 3.24 million in<br />

2020 despite the pandemic.<br />

While the market share of electric<br />

vehicles was 0.2% in 2012, it reached<br />

8.3% with the record sales last year.<br />

Last year also saw the biggest annual<br />

growth of the last 10 years in electric<br />

vehicles.<br />

China was the country where the most<br />

electric vehicle sales were recorded last<br />

year, with 3.4 million. Compared to the<br />

previous year, sales in China increased<br />

by 155%, or 2.06 million.<br />

While 2.3 million electric vehicles were<br />

sold in Europe, this figure was up by 66%<br />

compared to 2020. While the U.S. ranks<br />

third with 735,000 electric vehicle sales,<br />

some 114,500 electric vehicles were sold<br />

in South Korea.<br />

Electric vehicle sales in Israel, Australia,<br />

India and Japan were over 10,000.<br />

Meanwhile, according to the<br />

International Energy Agency (IEA) data,<br />

130,000 electric vehicles were sold<br />

throughout the year in 2012, while this<br />

figure was reached in a week in 2021.<br />

<strong>May</strong> <strong>2022</strong> 46

After last year’s sales, the total number of<br />

electric vehicles in the world reached 16<br />

million.<br />

The total electricity consumption of electric<br />

vehicles in the world will reach 30 terawatthours<br />

in 2021. This amount is equal to one<br />

year’s electricity production in Ireland.<br />

Tesla ranked first with 936,000 in electric<br />

vehicle sales last year. The highest number<br />

of Tesla vehicles were sold in the U.S. with<br />

352,000 followed by China with 321,000<br />

and Europe with 170,000.<br />

Volkswagen (VW) Group followed Tesla<br />

with 763,000, BYD with 598,000, GM with<br />

517,000 and Stellantis with 385,000.<br />

<strong>May</strong><br />

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


Russia’s central<br />

bank signals<br />

rate cut, pushes<br />

digital ruble<br />

The Russian central bank Governor Elvira<br />

Nabiullina signaled further interest rate<br />

cuts and a push for digital ruble and<br />

homegrown credit card system to curb<br />

payment issues stemming from Western<br />

sanctions over Moscow’s invasion of<br />

Ukraine.<br />

Nabiullina also said Russia is looking<br />

at adjustments to its foreign exchange<br />

controls to avoid situations where the ruble<br />

exchange rate deviates in a shadow market<br />

from official levels. As she begins her new<br />

five-year stint in charge of monetary policy,<br />

Nabiullina will have to deal with a fullscale<br />

economic crisis, tackling uncertainty<br />

stemming from Western sanctions.<br />

“We will consider the possibility of its<br />

further reduction at upcoming meetings,”<br />

Andrei Kostin, head of Russia’s secondlargest<br />

lender VTB , also targeted by<br />

Western sanctions, said he expected the<br />

central bank to cut the key rate to 15% this<br />

month and to 12%-13% by the end of the<br />

year, TASS news agency reported.<br />

Inflation in Russia now stands at 17.6% and<br />

is on track to accelerate to 22% this year,<br />

while the economy is set to shrink by 9.2%<br />

in <strong>2022</strong>, according to a poll of economists<br />

conducted by the central bank in April.<br />

Nabiullina warned that Russia, which saw<br />

its strongest economic growth in 13 years in<br />

2021, at 4.7%, will now undergo structural<br />

changes as its access to the global financial<br />

system and trade are limited by tough<br />

Western sanctions.<br />

“Problems may arise even when there is a<br />

production with a high degree of localization<br />

when there has already been a fairly high<br />

import substitution,” Nabiullina said.<br />

For example, she said, Russia produces<br />

its own paper but uses foreign bleaching<br />

agents, or urgently needs foreign-made<br />

packing materials for foodstuff produced in<br />

Russia.<br />

“It all takes time,” she said.<br />

The ruble, which has recovered after<br />

plunging to an unprecedented level of 150<br />

to the U.S. dollar following the sanctions, is<br />

expected to trade at 85 rubles this year, 90<br />

rubles in 2023 and 96 rubles in 2024.<br />

The country is facing capital flight while<br />

grappling with a possible debt default after<br />

the West imposed sanctions on banks,<br />

businesses and individuals following what<br />

Moscow calls a “special military operation”<br />

in Ukraine.<br />

With sanctions cutting off Russia from<br />

large parts of the global financial system,<br />

Moscow is looking for alternative ways<br />

to make key payments both at home and<br />

abroad.<br />

Nabiullina said the bank plans for realworld<br />

“digital” rouble transactions to<br />

be possible next year, and that the<br />

digital currency could be used in some<br />

international settlements.<br />

“The digital ruble is among the priority<br />

projects,” Nabiullina said. “We have fairly<br />

quicklyproduced a prototype ... now we are<br />

holding tests with banks and next year we<br />

will gradually have pilot transactions.”<br />

Nabiullina also said Russia aims to extend<br />

the number of countries that accept<br />

Russia’s Mir banking cards, an alternative<br />

to VISA and MasterCard, which have joined<br />

other Western firms and suspended their<br />

operations in Russia.<br />

Mir and China’s UnionPay are among<br />

the few options left for Russians to make<br />

payments abroad since Russian banks were<br />

isolated from the global financial system as<br />

part of the sanctions.<br />

Russia, like many other countries around<br />

the world, has been developing digital<br />

money over the last couple of years to<br />

modernize its financial system, speed<br />

up payments and head off the threat<br />

of cryptocurrencies like bitcoin gaining<br />

influence.<br />

The Bahamas was the first to launch a<br />

national digital currency back in 2020,<br />

while China is the most advanced among<br />

major economies having carried out a mass<br />

trial of a digital yuan at the Beijing Winter<br />

Olympics this year.<br />

Some central bank experts have also<br />

suggested the new technologies mean<br />

countries would be able to deal more<br />

directly with each other, making them<br />

less dependent on Western-dominated<br />

payment channels such as the SWIFT<br />

system.<br />

Meanwhile, efforts by the West to close<br />

possible routes for circumventing sanctions<br />

continued on.<br />

The world’s largest cryptocurrency<br />

exchange, Binance, said it was deactivating<br />

the accounts of Russian nationals and<br />

companies based there that hold the<br />

equivalent of more than 10,000 euros<br />

($10,900).<br />

Those affected would still be able to<br />

withdraw their money, but they will now<br />

be banned from making new deposits or<br />

trading, a move Binance said was in line<br />

with European Union sanctions.<br />

<strong>May</strong> <strong>2022</strong> 50

Turkey’s electric<br />

car sales leap<br />

243.9% in<br />

January-March<br />

Electric car sales in Turkey increased by<br />

243.9% to 1,073 units in the January-March<br />

period of this year compared to the same<br />

period last year, while hybrid automobile<br />

sales decreased by 17.1% to 11,227.<br />

The total sales of automobiles and light<br />

commercial vehicles in Turkey decreased by<br />

23.5% in the January-March period of <strong>2022</strong><br />

and amounted to 152,050, an Anadolu<br />

Agency (AA) report said , citing data from<br />

the <strong>Automotive</strong> Distributors Association<br />

(ODD).<br />

When the automobile market is evaluated<br />

according to the engine type, the decline in<br />

the sales of diesel-powered automobiles,<br />

whose production is being reduced<br />

gradually and is planned to be completely<br />

halted in the future, draws attention.<br />

Manufacturers offering fewer dieselpowered<br />

vehicles to the market compared<br />

to previous years is also considered one<br />

of the important factors in the decline in<br />

diesel sales.<br />

A decrease was also recorded in the<br />

sales of automobiles with autogas and<br />

hybrid engines. The sales of electric cars,<br />

which are expected to replace cars with<br />

internal combustion engines in the future,<br />

continued the upward trend of recent<br />

years.<br />

In the January-March period of 2021, some<br />

98,100 gasoline, 37,726 diesel, 13,537<br />

hybrid, 6,789 autogas and 312 electric cars<br />

were sold.<br />

In the January-March period of this year,<br />

sales of gasoline cars decreased by 14.6%,<br />

diesel car sales by 52.4%, autogas car sales<br />

by 58.7% and hybrid car sales by 17.1%<br />

compared to the same period of 2021.<br />

In this period, only the sale of electric cars<br />

increased.<br />

The share of diesel cars in sales, which was<br />

24.1% in the January-March period last<br />

year, decreased to 15.4% this year.<br />

In the said period, the share of gasoline<br />

cars increased from 62.7% to 71.7%, while<br />

the share of autogas cars decreased from<br />

4.3% to 2.4%.<br />

EV transformation<br />

Meanwhile, Turkey continues its efforts<br />

toward electric car transformation.<br />

Most recently, the procedures and<br />

principles regarding the establishment of<br />

charging units and stations, the operation<br />

of the charging network and the stations<br />

connected to the charging network, and<br />

the provision of charging service were<br />

revealed.<br />

According to the “Charging Service<br />

Regulation” published in the Official<br />

Gazette of the Energy Market Regulatory<br />

Authority (EPDK), charging network<br />

operation will be carried out within the<br />

scope of the license obtained from the<br />

EPDK. The license cannot be transferred<br />

under any circumstances.<br />

The charging network operator will<br />

produce a charging network consisting<br />

of at least 50 charging units and charging<br />

stations in at least five different districts<br />

within six months from the effective date<br />

of its license.<br />

Industry and Technology Minister<br />

Mustafa Varank, during a speech at Ford<br />

E-Transit’s inauguration ceremony, said<br />

that they started a TL 300 million ($20.33<br />

million) grant support program for the<br />

establishment of more than 1,500 highspeed<br />

charging stations all over Turkey.<br />

<strong>May</strong> <strong>2022</strong> 52

Turkish exports<br />

hit record<br />

$23.4B as energy<br />

weighs on trade<br />

deficit<br />

Turkey registered the highest monthly<br />

exports ever in April, official data showed<br />

while its trade deficit nearly doubled<br />

mainly due to soaring energy import costs<br />

<strong>Exports</strong> surged 24.6% year-over-year last<br />

month to $23.4 billion (TL 347.86 billion),<br />

Trade Minister Mehmet Muş said. “This is<br />

the highest ever monthly export figure,” he<br />

noted.<br />

It followed monthly records in the first<br />

three months of the year, a period marked<br />

by a widening trade deficit fueled by<br />

increasing energy costs.<br />

Russia’s invasion of Ukraine has sent global<br />

commodity prices soaring, threatening to<br />

impact Turkey’s new economic program<br />

that aims to record a current account<br />

surplus.<br />

Imports rose 35% on annual basis to $29.5<br />

billion last month, with total trade volume<br />

surging over 30% to $52.8 billion, Muş<br />

told a meeting in the capital Ankara to<br />

announce the preliminary trade figures.<br />

The trade deficit jumped 98% year-overyear<br />

in April to $6.1 billion, the data<br />

showed, for a total of $32.5 billion in the<br />

first four months of <strong>2022</strong>.<br />

Energy imports soared 134.1% year-overyear<br />

to $7.7 billion, slightly down from $8.4<br />

billion in March, taking a total to $32.7<br />

billion from January through April – equal<br />

to an annual rise of 173.1%.<br />

“As a matter of fact, excluding energy,<br />

export-import covering ratio increased to<br />

more than 100%,” Muş said. “We see that<br />

the global increases in commodity prices,<br />

especially oil and natural gas, continue to<br />

be effective in the increasing January-April<br />

imports.”<br />

Energy imports accounted for a $20.7<br />

billion out of the total $33.2 billion increase<br />

in imports from January through April of<br />

<strong>2022</strong>, Muş said.<br />

The Russia-Ukraine conflict has lifted<br />

energy prices all over the world, a situation<br />

that Muş said has also affected Turkey and<br />

has produced upward pressure on import<br />

prices.<br />

Commodity price shock from<br />

Ukraine war<br />

Global food and fuel price shocks linked to<br />

the war are set to last until at least the end<br />

of 2024 and raise the risk of stagflation, the<br />

World Bank said in its Commodities Market<br />

Outlook report published.<br />

In its first comprehensive analysis of the<br />

war’s impact on commodity markets, the<br />

bank, which provides loans and grants to<br />

low and middle-income countries, said the<br />

world faces the biggest commodity price<br />

shock since the 1970s.<br />

Russia is the world’s largest natural gas<br />

and fertilizer exporter, and second-largest<br />

crude oil exporter. Together with Ukraine, it<br />

accounts for nearly a third of global wheat<br />

exports, 19% of corn exports and 80% of<br />

exports of sunflower oil exports.<br />

Production and exports of these and other<br />

<strong>May</strong> <strong>2022</strong> 56

commodities have been disrupted since<br />

Russia’s Feb. 24 invasion of Ukraine.<br />

Surging oil prices hit their highest since<br />

2008 at more than $139 a barrel in March<br />

after the war exacerbated supply concerns<br />

that were already fuelling a price rally.<br />

As a result, the World Bank expects energy<br />

prices to rise more than 50% in <strong>2022</strong><br />

before easing in 2023 and 2024, while nonenergy<br />

prices, including agriculture and<br />

metals, are seen climbing by almost 20% in<br />

<strong>2022</strong> before moderating.<br />

“The ongoing war, the growing tension in<br />

this context, and the Russian response to<br />

Europe’s efforts to permanently reduce<br />

its energy dependence on Russia do not<br />

reduce the persistence of high prices in<br />

energy commodities and the risk of price<br />

fluctuations off the agenda,” Muş said.<br />

“Therefore, I would like to emphasize once<br />

again that the increase in our imports is<br />

due to the excessive increase in world<br />

energy prices,” he stressed.<br />

“Despite all these negatives in energy<br />

prices, when we evaluate the data, we can<br />

state that our country has shown a fairly<br />

strong export performance compared to<br />

the same period last year.”<br />

January-April exports jumped 21.4% yearover-year<br />

to around $83.6 billion, the data<br />

showed, while imports climbed 40.1%<br />

to nearly $116.1 billion. Turkey’s exports<br />

totaled a record $225.4 billion in 2021 and<br />

the government and economists expect<br />

they will reach $250 billion this year. The<br />

12-month rolling export figure reached<br />

$240 billion as of April, Muş said.<br />

Muş recalled that the World Trade<br />

Organization (WTO) last month revised its<br />

forecast for global trade growth this year to<br />

3%, down from 4.7%.<br />

It attributed it to the impact of the Russia-<br />

Ukraine war and warned of a potential food<br />

crisis caused by surging prices.<br />

The global trade watchdog also lowered its<br />

import growth forecast for the European<br />

Union, Turkey’s biggest trade partner, to<br />

3.7%, down from 6.8%.<br />

+++Germany top market<br />

Turkish Exporters’ Assembly (TIM) head<br />

Ismail Gülle said records were broken in<br />

18 out of the last 20 months, expressing<br />

expectations that the country could reach<br />

the $250 billion target before year-end.<br />

“Based on the figures, excluding energy, we<br />

managed to register a foreign trade surplus<br />

this month,” Gülle said.<br />

“Now we can clearly see that Turkey has<br />

begun to reap the fruits of its breakthrough<br />

in exports.”<br />

Germany remained the biggest export<br />

market in April as it purchased $2 billion<br />

worth of Turkish goods, the data showed.<br />

It was followed by the U.S. with $1.8<br />

billion and the U.K. with $1.2 billion.<br />

Sales to 27 countries, including Germany,<br />

the U.S., Israel and Spain, saw their<br />

highest levels ever, Gülle said.<br />

<strong>Exports</strong> to the European Union jumped<br />

29% year-over-year to reach $10 billion.<br />

The bloc accounted for 42% of Turkey’s<br />

overall sales last month.<br />

Among others, exports to sub-Saharan<br />

Africa topped $1 billion on monthly basis<br />

for the first time, a 68% year-over-year<br />

increase, Gülle said.<br />

The chemical industry outpaced the<br />

automotive sector as it hit an all-time<br />

high of $3.3 billion in exports to rank<br />

first in April. The automotive industry<br />

followed with $2.7 billion and ready-towear<br />

with $2 billion, the data showed.<br />

<strong>Exports</strong> made with Turkish lira surged<br />

55% year-over-year to TL 8.7 billion, said<br />

Gülle.<br />

He also informed that some 2,080 new<br />

firms joined the export family in April,<br />

achieving $123.4 million worth of sales.<br />

The number of firms making exports has<br />

thus reached 48,938, Gülle added.<br />

<strong>May</strong><br />

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


Electric cars offer Turkish<br />

motorists cheaper,<br />

affordable alternative<br />

Motorists in Turkey are increasingly turning to electric<br />

vehicles as driving a car has become more costly due to<br />

higher gasoline prices.<br />

Gasoline prices nearly doubled in the past year in Turkey,<br />

which means car owners need to allocate a larger<br />

portion of their income to commute.<br />

The monthly gasoline cost of a car, which travels some<br />

500 kilometers on the roads of the city, is now some<br />

3,660 Turkish Liras (around $247) on average, whereas<br />

an owner of an electric car pays 756 liras to cover energy<br />

cost of the vehicle.<br />

There are presently around 4,000 charging stations<br />

across Turkey, and 1,500 of them are privately owned.<br />

The demand for setting up such stations at homes or<br />

offices has been growing in the last months amid the<br />

rising gasoline prices.<br />

The range of an electric car with a 60kWh battery is<br />

around 350 kilometers. It is calculated that if a car used<br />

in city traffic travels some 2,000 kilometers that means<br />

a monthly power consumption of 400 kWh. If the car<br />

is charged at a station installed at a house, the cost of<br />

the electricity is 1.89 liras/kWh (based on the current<br />

electricity prices), which totals to 756 liras a month.<br />

If a charging station, which is installed at businesses, is<br />

used, the cost increases slightly to around 1,100 liras<br />

since businesses pay 2.74 liras per kilowatts hour of<br />

electricity.The network of charging stations operated by<br />

private companies on the intercity highways and in the<br />

cities is also expanding fast. The charging fees at those<br />

stations are two to three times higher than the stations<br />

at houses because of the costs associated with running<br />

such facilities. To have a charging station installed at a<br />

detached house costs around 17,000 liras, while the<br />

price of a station that serves up to four car owners is<br />

around 70,000 liras, according to experts from Zorlu<br />

Energy Solutions (ZES).<br />

The latest automotive sales data reflect the growing<br />

interest in electric vehicles in Turkey. In March this year,<br />

638 electric vehicles were sold in the country, which<br />

pointed to a 267 percent increase from a year ago. The<br />

share of electric cars in total vehicle sales was still low<br />

at 1.3 percent. In the month, hybrid car sales, however,<br />

declined by 3.4 percent on an annual basis to 6,024<br />

units, accounting for 12 percent of all vehicle sales. In<br />

2021, 2,486 electric vehicles were sold in Turkey, but in<br />

January-March alone this year, 1,073 electric cars were<br />

already sold on the local market, rising 244 percent from<br />

the first quarter of last year. Hybrid car sales fell by 17<br />

percent to 11,227 units, which made up less than 10<br />

percent of all automotive sales.<br />

<strong>May</strong> <strong>2022</strong>

Gap in Turkey’s net int’l investment<br />

position drops to $224 billion<br />

Turkey’s net international investment<br />

position (NIIP) came in at minus $224<br />

billion at the end of February, data by<br />

the central bank showed . Defined as the<br />

difference between external assets and<br />

liabilities, the gap was minus $229.7 billion<br />

at the end of 2021.<br />

Turkey’s external assets were worth $288.1<br />

billion in February, down 1.6% from the<br />

end of 2021, according to data released by<br />

the Central Bank of the Republic of Turkey<br />

(CBRT).<br />

Liabilities against nonresidents fell 2% to<br />

$512.1 billion during the same period, the<br />

data showed.<br />

Showing a snapshot in time, the NIIP –<br />

which can be either positive or negative<br />

– is the value of overseas assets owned<br />

by a nation, minus the value of domestic<br />

assets owned by foreigners, including<br />

overseas assets and liabilities held by a<br />

nation’s government, the private sector<br />

and citizens.As for sub-items under assets,<br />

reserve assets slipped 0.6% to $110.5<br />

billion, while other investments stood at<br />

$118.2 billion, falling 2.3% from the end of<br />

2021.<br />

“Currency and deposits of banks, one<br />

of the sub-items of other investment,<br />

recorded $52.4 billion indicating an<br />

increase of 1.7% compared to the end<br />

of 2021,” the bank said. On the liabilities<br />

side, direct investments – equity capital<br />

plus other capital – at the end of February<br />

amounted to $105.5 billion. The figure was<br />

13.4% lower than the end of last year, with<br />

“changes in the market value and foreign<br />

exchange rates” being contributing factors,<br />

the bank said. The U.S. dollar/Turkish lira<br />

exchange rate was 12.24 at the end of<br />

2021 and had risen to around 14.06 by<br />

the end of February. Nonresidents’ foreign<br />

exchange deposits were up 0.7% to $35.1<br />

billion, while Turkish lira deposits increased<br />

by 26% to $12.2 billion.<br />

“Other investments indicated an increase of<br />

2.8% to $313.1 billion compared to the end<br />

of 2021,” the bank said.<br />

The total external loan stock of banks was<br />

at $65.8 billion, down 1.2% from the end of<br />

2021, while the total external loan stock of<br />

other sectors dropped 0.3% to $96.4 billion.<br />

<strong>May</strong> <strong>2022</strong> 60

Turkey’s foreign trade gap jumps over<br />

75% on energy import costs<br />

Turkey’s foreign trade deficit widened by<br />

75.1% year-over-year in March, official data<br />

showed , propelled by a surging energy bill.<br />

The gap jumped to nearly $8.17 billion in<br />

March, according to data by the Turkish<br />

Statistical Institute (TurkStat), up from<br />

$4.66 billion a year ago.<br />

<strong>Exports</strong> climbed by 19.8% to nearly $22.71<br />

billion versus imports of around $30.88<br />

billion, a 30.7% year-over-year increase,<br />

according to the general trade system, data<br />

from the TurkStat showed.<br />

Russia’s invasion of Ukraine has sent global<br />

commodity prices soaring, threatening to<br />

impact Ankara’s new economic program<br />

that aims to record a current account<br />

surplus.<br />

Turkey’s energy import bill increased by<br />

154.7% to $8.41 billion in March versus the<br />

same month a year ago, the TurkStat said.<br />

The import bill soared due to an increase<br />

in global energy prices and a revival in<br />

economic activity post-COVID-19.<br />

“Foreign trade deficit, excluding energy<br />

products and non-monetary gold, was $136<br />

million in March <strong>2022</strong>,” TurkStat said.<br />

Energy accounted for 27.2% of the overall<br />

import figure in March, the data showed.<br />

Turkey imported 2.66 million tons of crude<br />

oil last month, up from 2.39 million tons<br />

in March of 2021. The country’s crude oil<br />

imports showed an 11.2% increase compared<br />

to March 2021. The January-March foreign<br />

trade deficit reached $26.4 billion, up 138.5%<br />

on a yearly basis, the statistical authority<br />

noted. <strong>Exports</strong> and imports were up by<br />

20.6% and 42% on annual basis to $60.2<br />

billion and $86.6 billion, respectively, in the<br />

first three months.<br />

<strong>May</strong> <strong>2022</strong> 64

Russians rush<br />

to open bank<br />

accounts in<br />

Turkey to<br />

protect savings<br />

Russian nationals in Turkey who left their<br />

country are now rushing to open bank<br />

accounts in Turkey to put their savings<br />

into the global system and finance their<br />

livelihoods, as both citizens and businesses<br />

struggle with international sanctions<br />

following the Kremlin’s invasion of Ukraine.<br />

Many Russians flocked to Turkey to escape<br />

compulsory military service, due to<br />

losing their jobs or expectations that the<br />

sanctions will get worse.<br />

Flag carrier Turkish Airlines (THY) currently<br />

conducts reciprocal Istanbul-Moscow<br />

flights five times a day as the airliner has<br />

not yet joined others in halting flights to<br />

the country.<br />

Turkey has also not yet joined the West<br />

on sanctioning Russia as Ankara continues<br />

its diplomatic efforts to de-escalate the<br />

Ukraine conflict, urging all sides to exercise<br />

restraint while maintaining its neutral<br />

and balanced stance. While Ankara has<br />

opposed international sanctions designed<br />

to isolate Moscow, it also closed the<br />

Bosporus and Dardanelles under a 1936<br />

pact, allowing it to prevent some Russian<br />

vessels from crossing the Turkish Straits.<br />

Since the beginning of the conflict, Ankara<br />

has offered to mediate between the two<br />

sides and host peace talks, underlining its<br />

support for Ukraine’s territorial integrity<br />

and sovereignty. The country also hosted<br />

both country’s foreign ministers for talks<br />

in southern Antalya during a diplomacy<br />

forum, marking the first such talks since<br />

Russia invaded its neighbor.<br />

Turkey’s neutral attitude makes the country<br />

a preferred destination for Russians who<br />

generally adopt the country as the first<br />

option for holidays<br />

According to a report that cited sources<br />

from the banking sector, there is a<br />

significant increase in demand from<br />

Russian citizens seeking to open bank<br />

accounts in Turkey.<br />

The Russian central bank has already<br />

limited money transactions abroad and has<br />

suspended forex sales against the ruble<br />

until Sept. 9. The lender has also put a<br />

$10,000 limit on the amount that can be<br />

withdrawn from forex accounts in Russian<br />

banks, allowing amounts surpassing this<br />

to only be withdrawn in rubles. All these<br />

measures have been making it difficult for<br />

the Russian citizens leaving the country.<br />

In order for foreign country citizens to<br />

open bank accounts in Turkey, they need<br />

a residency address, tax number, passport<br />

number and mobile phone number. But<br />

since the ruble doesn’t seem to be a<br />

convertible currency anymore, they need<br />

to open Turkish lira accounts.<br />

Sources told that Turkish lira accounts<br />

benefit Russians in two ways. One is<br />

that they can maintain their livelihood in<br />

Turkey and the other is that they can open<br />

forex accounts after opening a TL account<br />

and subsequently, participate in the<br />

international system with their savings. The<br />

sources also added that the demand for<br />

Turkish bank accounts is expected to grow<br />

more since the expectancy that sanctions<br />

will worsen for Russia has been prevailing.<br />

Another method for Russians to seemingly<br />

make transactions or savings is through<br />

the cryptocurrency market. Analysts<br />

interpreted the record-breaking crypto<br />

trading volume in Russia as a reflection<br />

of this demand. The world’s largest<br />

cryptocurrency exchange Binance and<br />

Europe’s largest, Kraken, have not yet closed<br />

their platforms to Russians. And it is still<br />

possible for them to trade with rubles on<br />

these systems. The credit card giants, Visa<br />

and Mastercard, also banned Russian banks,<br />

and the Russian MIR system has become<br />

controversial again. In Turkey, Vakıfbank,<br />

Ziraat Bankası and Iş Bank have options for<br />

making transactions with MIR cards.<br />

<strong>May</strong> <strong>2022</strong> 68

CBRT unveils<br />

website for<br />

converted lira<br />

deposit scheme<br />

for expats<br />

The Central Bank of the Republic of Turkey<br />

(CBRT) launched an informational website<br />

regarding the recently unveiled scheme<br />

to encourage expats to repatriate their<br />

savings to Turkey.<br />

The scheme, “Deposit and Participation<br />

Scheme for Nonresident Turkish Citizens”<br />

and known as YUVAM in short, was<br />

announced earlier in February and came<br />

amid efforts to safeguard Turkish lira<br />

savings against exchange rate volatility.<br />

On “yuvam.tcmb.gov.tr,” visitors can<br />

access informational videos, booklets<br />

and legislation about the application. In<br />

addition to the yield calculator, the site<br />

also provides answers to frequently asked<br />

questions from users.<br />

The YUVAM account enables nonresidents<br />

and their companies abroad to invest their<br />

savings in Turkish liras at banks in Turkey.<br />

The central bank provides YUVAM accounts<br />

with an additional return guarantee in<br />

addition to the exchange rate protection<br />

guarantee.<br />

Flexibility comes to the fore in the account<br />

application. Accordingly, there is no upper<br />

or lower limit on the amount when opening<br />

a YUVAM account, and people can open a<br />

YUVAM account whenever they want.<br />

It is part of a scheme unveiled by President<br />

Recep Tayyip Erdoğan to encourage foreign<br />

currency holders to convert their funds to<br />

lira and keep their savings in the national<br />

currency.<br />

The initiative was unveiled after the lira fell<br />

to a record low of 18.40 to the U.S. dollar<br />

on Dec. 20 last year before rallying sharply<br />

to just over 10 and then settling at current<br />

levels of just under 14 to the U.S. currency.<br />

<strong>May</strong> <strong>2022</strong> 70

Trade can be<br />

conducted in<br />

ruble, yuan, gold<br />

Conducting trade in national currencies<br />

was among the topics discussed during<br />

President Recep Tayyip Erdoğan’s phone<br />

call with his Russian counterpart Vladimir<br />

Putin, according to recently revealed<br />

details.<br />

In a phone call, Erdoğan told Putin that<br />

Turkey is ready to contribute to the<br />

solution of the Ukraine crisis through<br />

peaceful means as soon as possible.<br />

Meanwhile, according to the information<br />

obtained from ruling Justice and<br />

Development Party (AK Party) sources, the<br />

issue of trade payments between the two<br />

countries was also discussed.<br />

Sources say Erdoğan told Putin that, apart<br />

from the euro and dollar, trade between<br />

the two countries can be carried out using<br />

the Russian ruble and Chinese yuan.<br />

“We can do it with gold,” he was quoted as<br />

suggesting.<br />

Moscow is likely to seek alternatives as<br />

Western sanctions have removed several<br />

Russian banks from the SWIFT international<br />

payments network. Russia could in theory<br />

try to replace SWIFT’s communications<br />

system that keeps international trade<br />

flowing smoothly.<br />

During the conversation, Erdoğan brought<br />

up the issue of the 30 ships loaded with<br />

sunflower oil raw material and wheat en<br />

route to Turkey currently waiting in the Sea<br />

of Azov, the sources said.<br />

Meanwhile, after phone call between<br />

Erdoğan and Putin, the Directorate of<br />

Communications said in a statement that<br />

“Russia’s attack on Ukraine was discussed,<br />

Turkey-Russia relations were evaluated.”<br />

Stressing that an urgent general cease-fire<br />

would not only alleviate humanitarian<br />

concerns in the region but also provide an<br />

opportunity to seek a political solution,<br />

Erdoğan reiterated his call to “pave the way<br />

for peace together.”<br />

Maintaining its neutral and balanced<br />

stance, Turkey continues its diplomatic<br />

efforts to de-escalate the Ukraine conflict,<br />

urging all sides to exercise restraint. While<br />

Ankara has opposed international sanctions<br />

designed to isolate Moscow, it also closed<br />

the Bosporus and Dardanelles under a<br />

1936 pact, allowing it to prevent some<br />

Russian vessels from crossing the Turkish<br />

Straits.<br />

NATO ally Turkey borders Ukraine and<br />

Russia in the Black Sea and has good ties<br />

with both. Since the beginning of the<br />

conflict, Ankara has offered to mediate<br />

between the two sides and host peace<br />

talks, underlining its support for Ukraine’s<br />

territorial integrity and sovereignty.<br />

Having recently called Russia’s invasion an<br />

unacceptable violation of international law,<br />

Turkey has carefully formulated its rhetoric<br />

not to offend Moscow, with which it has<br />

close energy, defense and tourism ties.<br />

<strong>May</strong> <strong>2022</strong> 72

The international standing of Autopromotec <strong>2022</strong> has been<br />

reasserted by the preliminary “incoming” figures<br />

As the early figures for foreign exhibitors, buyers and professional operators arriving in Bologna would seem<br />

to bear out, the <strong>2022</strong> edition of Autopromotec will be an international event, with a strong European bias<br />

With a percentage of international exhibitors close to<br />

25%, a significant number of buyers from more than 30<br />

different countries and t many professional operators<br />

expected to come to Bologna, the next edition of<br />

Autopromotec will certainly be an international event,<br />

with a decided European flavour. The preliminary data<br />

recorded by the trade fair provides ample proof of the<br />

strong international presence at the upcoming edition of<br />

Autopromotec, scheduled to take place between 25 and<br />

28 <strong>May</strong> at the Bologna Trade Fair District. This is even<br />

more significant given the current global context.<br />

Autopromotec has always considered its international<br />

profile as one of its strongpoints. The strategic leverage<br />

behind Autopromotec’s international success is based<br />

on a well-established network of institutional relations.<br />

A considerable contribution has been provided by the<br />

Emilia-Romagna Region, which, through its funding for<br />

the international promotion of trade fairs within the<br />

<strong>May</strong> <strong>2022</strong> 76

egion, will bring about 50 delegates from different countries in<br />

South America and others from India, the United Arab Emirates,<br />

Turkey and the Balkans.<br />

Thanks also to the support of ICE Agency, a government agency<br />

supporting the business development of Italian companies abroad<br />

and promoting the attraction of foreign investment in Italy, under<br />

the aegis of the Italian Ministry of Foreign Affairs and International<br />

Cooperation, Autopromotec has been included among Italy’s major<br />

international trade fairs. The upshot of this accolade is that 90<br />

delegates from over 30 high-potential markets in various continents<br />

will be landing in Bologna.<br />

The renewed agreement with Enterprise Europe Network, a<br />

worldwide network supporting the promotion of companies<br />

internationally, will also be contributing in terms of foreign<br />

professional visitors for Autopromotec <strong>2022</strong>, with about 20<br />

delegates expected to arrive from Eastern Europe and the Baltic<br />

countries area. Alongside institutional support, the international<br />

standing of Autopromotec <strong>2022</strong> is also bolstered by its close<br />

relationship with trade associations, both in Italy and on a global<br />

level, which has always been one of the fundamental drivers of the<br />

Event.<br />

The percentages of foreign exhibitors would seem to point to<br />

a reference market with a strong European footprint headed<br />

by Germany, Poland and Turkey with Spain, France and the<br />

Netherlands also represented.<br />

To promote the interaction between the companies and the<br />

delegations of buyers present at the Fair, once again the Exhibition<br />

can rely on its business matching platform that during the 2019<br />

edition of Autopromotec coordinated close to 630 qualified<br />

B2B meetings with the Italian exhibitors. This tool will facilitate<br />

meetings between sector professionals, with the option of shifting<br />

to a digital format if needed.<br />

At Autopromotec <strong>2022</strong>, the meetings will be organised in a special<br />

area inside Hall 22. Autopromotec’s innovative format will enable<br />

the upcoming edition’s participants to learn about innovations<br />

and new products, meet their usual suppliers and help them find<br />

new ones, access services and attend conferences and seminars<br />

both in person and in virtual mode. w To keep up to date with<br />

Autopromotec and the events at the show, we recommend you<br />

to check the information on the website www.autopromotec.com<br />

and follow all the news on Facebook, LinkedIn, Twitter and IG (@<br />

Autopromotec and #Autopromotec<strong>2022</strong>).<br />

ABOUT AUTOPROMOTEC: Autopromotec is an international<br />

exhibition for automotive equipment and aftermarket products<br />

that takes place every two years at the Bologna Exhibition<br />

Centre. Founded in 1965, the event is organised by Promotec,<br />

a services company owned by AIRP - Associazione Italiana<br />

Ricostruttori Pneumatici (Italian Tyre Retreaders Association) and<br />

AICA - Associazione Italiana Costruttori Autoattrezzature (Italian<br />

<strong>Automotive</strong> Equipment Manufacturers Association). Its unique<br />

formula is based on the specialisation, professionalism and quality<br />

of the exhibition, a true meeting point between manufacturers<br />

and users. The trade show - which includes over 580 product<br />

categories, covering all sub-sectors of the aftermarket - takes the<br />

form of a selection of specialised fairs, where visitors can easily<br />

plan personalised itineraries based on their professional interests.<br />

Through intensive promotional activities supported both at an<br />

institutional level and by trade associations, over the course of 28<br />

editions Autopromotec has experienced a continued increase in<br />

international growth.<br />

77 <strong>May</strong> <strong>2022</strong>

FDI in Turkey<br />

hits $14.2B in<br />

2021 to exceed<br />

pre-pandemic<br />

levels<br />

Asignificant increase in the flow of foreign<br />

investments was witnessed in Turkey in<br />

2021, in a rebound that even exceeded<br />

levels prior to the coronavirus pandemic, a<br />

senior official said .<br />

Foreign direct investments (FDI) surged<br />

81% year-over-year last year to $14.2<br />

billion, said Burak Dağlıoğlu, the head of<br />

Presidency Investment Office.<br />

“This figure is above the FDI inflows that<br />

came to our country since 2016,” Dağlıoğlu<br />

told Anadolu Agency.<br />

The figure is up from around $8 billion in<br />

FDI in 2020, marked by a global economic<br />

fallout from the pandemic. Dağlıoğlu said<br />

investments had dropped 18% in 2020,<br />

compared to a 35% decline on the global<br />

level.<br />

Global FDI slipped to around $929 billion<br />

in 2020, according to the United Nations<br />

Conference on Trade and Development<br />

(UNCTAD). But the flows strongly<br />

rebounded to an estimated $1.65 trillion in<br />

2021, a 77% year-over-year surge, UNCTAD<br />

said last month.<br />

Turkey seems to have also surpassed the<br />

annual average of FDI inflow in the years<br />

before the outbreak, Dağlıoğlu said.<br />

Output shift<br />

The country last year particularly came to<br />

the fore as many companies announced<br />

plans to move part of their production to<br />

Turkey to minimize problems with global<br />

supply chains and increased shipping costs.<br />

Straddling Europe and the Middle East,<br />

Turkey says it is well placed to benefit from<br />

changes to global supply chains. And its<br />

strategic location and strong manufacturing<br />

base are seen as a plus.<br />

The disruptions to the global economy<br />

during the pandemic upset supply chains<br />

across continents, leaving the world short<br />

of a plethora of goods and services from<br />

car parts and microchips to container<br />

vessels that transport goods across the<br />

seas.<br />

“Our country is strengthening its position<br />

in global supply chains and international<br />

investors are increasing their assets in<br />

Turkey,” said Dağlıoğlu.<br />

Some 60% of the FDI in 2021 came from<br />

Europe, he noted, with Asia accounting for<br />

24% and Americas for 16%.<br />

The United Kingdom was Turkey’s number<br />

one investor last year, he noted, followed<br />

by the United States, the Netherlands,<br />

Switzerland, the United Arab Emirates<br />

(UAE), Germany, Luxembourg, South Korea,<br />

Japan and Ireland.<br />

“Wholesale and retail trade, manufacturing<br />

industry, information and communication<br />

technologies, financial services and<br />

transportation-storage activities were<br />

among the sectors that received the most<br />

investment,” Dağlıoğlu said.<br />

“The wholesale and retail trade sector<br />

consisted of investments in our successful<br />

technology startups operating in this area,”<br />

he added. “Looking at the sub-divisions of<br />

manufacturing, which is another important<br />

sector in investments, we see that the<br />

production of transportation vehicles,<br />

chemicals, computers, electronics and<br />

optical equipment, food and beverage<br />

products stood out.”<br />

Mergers and acquisitions (M&A) in Turkey<br />

totaled TL 42.6 billion in 2021 in addition<br />

to the seven privatization transactions<br />

that totaled TL 95 billion, the Competition<br />

Board (RK) said last month.<br />

Most deals took place in the electricity<br />

production and distribution sector,<br />

followed by the plastic packaging<br />

production sector, the board said.<br />

Dağlıoğlu said there were 309 M&A<br />

transactions in 2021, 50% of which<br />

constituted purchases of stocks in<br />

local companies by foreign entities and<br />

envisaged an investment of around TL 22<br />

billion.<br />

“Turkey is attracting significant investments<br />

from global players thanks to its<br />

entrepreneurial business culture, young<br />

and tech-savvy population, talented pool<br />

of engineers and competitive products and<br />

services,” he said.<br />

“Our ecosystem received about $1.6 billion<br />

in 294 investment rounds in early-stage<br />

investments. With this amount, Turkey<br />

became one of the 10 most invested<br />

European countries,” he added.<br />

“International investors participated in<br />

44 of the 294 investment rounds, while<br />

they accounted for 89% of the overall<br />

investment amount.”<br />

“Startups that are rapidly growing their<br />

scale in areas such as e-commerce,<br />

financial technology, gaming, logistics<br />

technologies, life sciences and deep<br />

technologies will complete significant<br />

investment rounds in the coming years,”<br />

Dağlıoğlu noted.<br />

Turkey aims to lift its share in global FDI<br />

to 1.5%, according to the government’s<br />

Foreign Direct Investment Strategy<br />

Document for 2021-2023.<br />

The country’s share in global FDI rose to<br />

some 1% in 2020, while it was around 0.6%<br />

the previous year.<br />

<strong>May</strong> <strong>2022</strong> 78

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