Automotive Ekports November 2024

Monthly automotive aftermarket magazine
GROUP CHAIRMAN
H. FERRUH ISIK
PUBLISHER:
İstmag Magazin Gazetecilik
İç ve Dış Ticaret Ltd. Şti.
Managing Editor (Responsible)
Mehmet Söztutan
mehmet.soztutan@img.com.tr
Advertising Sales Consultant
Adem Saçın
+90 505 577 36 42
adem.sacin@img.com.tr
Enes Karadayı
enes.karadayi@img.com.tr
International Marketing Coordinator
Ayca Sarioglu
ayca.sarioglu@img.com.tr
Finance Manager
Cuma Karaman
cuma.karaman@img.com.tr
Digital Assets Manager
Emre Yener
emre.yener@img.com.tr
Technical Manager
Tayfun Aydın
tayfun.aydin@img.com.tr
Graphic & Design Advisor
Sami aktaş
sami.aktas@img.com.tr
Accountant
Yusuf Demirkazık
yusuf.demirkazik@img.com.tr
Subscription
İsmail Özçelik
ismail.ozcelik@img.com.tr
HEAD OFFICE:
İstmag Magazin Gazetecilik
İç ve Dış Ticaret Ltd. Şti.
Ihlas Media Center
Merkez Mah. 29 Ekim Caddesi No: 11B / 21
Yenibosna Bahcelievler, Istanbul / TÜRKİYE
Tel: +90 212 454 22 22
www.img.com.tr sales@img.com.tr
KONYA:
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
PRINTED BY:
İHLAS GAZETECİLİK A.Ş.
Merkez Mahallesi 29 Ekim Caddesi İhlas Plaza
No:11 A/41 Yenibosna–Bahçelievler/ İSTANBUL
Tel: 0212 454 30 00
www.ihlasmatbaacilik.com
Mehmet Soztutan, Editor-in-Chief
mehmet.soztutan@img.com.tr
The dynamic player in global markets…
We know that competitiveness at the domestic level has been replaced with
competitiveness on a global scale. The Turkish automotive industry, which was
originally established for import-substitution purposes and focused on the domestic
market for a long period, transformed itself into a production base for a number of
global models.
The exports by Turkish automotive sector, which is the driving force of Turkish
economy, reached remarkable figures in the last decade. The Turkish automotive
industry has been active since the early seventies. Initially, the majority of the
market development was based on imports and some level of local system
integration. Türkiye has become a major production platform for global automotive
manufacturers.
Türkiye offers a supportive environment on the supply chain of the industry. There
are around 1,300 component suppliers supporting the production of Original
Equipment Manufacturer-OEMs. With the spare parts going directly to the
production lines of vehicle manufacturers, the localization rate of OEMs varies
between 50 and 70 percent. Türkiye is home to many global suppliers. There are
more than 250 global suppliers that use Türkiye as a production base, with 30 of
them ranking among the 50 largest global suppliers.
Currently, there are major multinational vehicle manufacturers with their own
production facilities in Türkiye. While some of these companies are engaged in a
joint venture with Turkish companies, others are operating independently.
Turkish producers of parts and components have attained high standards reflected
by large export volumes to the Western countries. There are numerous producers
of automotive components and services in Türkiye. More than half of these
manufacturers compete in global markets and set high standards of export figures.
Among them are many small and medium manufacturers with advanced
technologies, constant updates and support from outside Türkiye, and a dynamic
company structure. Many companies operating in the Turkish market possess
international certifications, enhancing their global market position.
Our publications remain at the service of those businesses people seeking to
increase their share in the increasingly competitive foreign markets.
This month, we participate in Autotech Cairo 2024. We are convinced that the
event would be instrumental to increase business opportunities in the automotive
industry as usual. We wish all business people success and lucrative business.
automotiveexport
EDİToR
automotiveexports

Türkiye’s automotive shipments
increase to new 9-month high
November 2024
10
Türkiye’s automotive exporters have achieved their
highest January-September sales ever, according to
industry data, driven by shipments to the European
Union and the United Kingdom.
The industry saw a 5.3% increase in exports in the
first nine months to $26.9 billion, data compiled from
the Turkish Exporters Assembly (TIM) showed. In
September alone, the sector’s sales surged by 20.9%
year-over-year to $3.4 billion.
The automotive industry’s share of Türkiye’s total
exports worth $192.8 billion stood at 16.2% for the
January-September period.
Breaking down the sector’s exports, the main
automotive industry contributed $15.7 billion, while the
sub-industry accounted for $11 billion.
Germany remained the top export destination, having
received $3.6 billion worth of Turkish automotive
products, the data showed. The United Kingdom
followed with $3.2 billion, and France with $3 billion.
Italy and Spain rounded out the top five, with $2.5
billion and $1.8 billion, respectively.
The United Kingdom saw the largest growth in Turkish
automotive exports, with an increase of $796.7 million.
Other markets experiencing significant growth were
Romania ($220.4 million), Italy ($220 million), Slovenia
($212.9 million), and the United States ($125.6 million).
In total, sales to Slovenia reached $1.2 billion, to the
U.S. $886 million, and to Romania $819.7 million.
On a provincial level, Kocaeli led the charge in
automotive exports with $6.9 billion in sales during the
first nine months of the year. Istanbul followed with
$6.1 billion, Bursa with $5.3 billion, Sakarya with $4.1
billion, and Ankara contributed $1.1 billion.
Türkiye automotive exports have significantly
recovered from the pandemic-related downturn.
In 2019, the sector’s exports had dropped by 3.7% to
$22.5 billion, followed by a sharp 24% decline in 2020
to $17.1 billion. However, the industry rebounded in
2021 with a 24% increase, reaching $21.2 billion in the
first nine months.
In 2022, as pandemic effects began to wane, exports
continued their upward trend, growing by 5.1% to
$22.3 billion. The following year saw a 14.8% rise to
$25.6 billion.

Chinese carmaker BYD in talks
with Turkish auto suppliers
November 2024
12
Chinese carmaker BYD, which plans to build a factory
in Türkiye, has been holding talks with auto part
suppliers across the country, according to Albert
Saydam, the president of the Automotive Suppliers’
Association (TAYSAD).
BYD’s planned production plant and R&D center is the
first foreign investment in the Turkish automotive sector
in 27 years. Some information in the environmental
impact assessment (EIA) application file the company
submitted to Turkish authorities raised concerns
that the Chinese carmaker won’t work with Turkish
suppliers and that this investment’s contribution to the
Turkish economy will be limited.
The EIA suggested that BYD would produce many car
parts, including seats and pads, at the factory it will
build in the western province of Manisa. The EIA is part
of the requirements needed for going ahead with the
investment. In July, BYD, the world’s largest electric
vehicle producer, signed an agreement with the Turkish
Industry and Technology Ministry to set up a factory
and make R&D investments in Türkiye worth $1 billion.
However, Saydam dismissed such concerns, saying
that BYD officials have been quietly holding talks with
suppliers across Türkiye.
“Among them are local suppliers of seats, plastics,
sheet metal, molds and tires. Contrary to speculation,
they are looking for ways to work with companies in
Türkiye,” Saydam said.
BYD officials are collecting information from local
suppliers, making visits and looking for ways of
working with them, he added.
They will talk to BYD’s top management in the coming
days and organize a large meeting between the
company and suppliers, Saydam said.
The construction phase of the project is planned to
start in 2025 after the necessary permissions and
approvals are obtained, and it will be completed by the
end of the same year or the first quarter of 2026.
The installation of machinery and equipment at
the plant is expected to start in the last quarter of
2025, and production is likely to commence by the
first quarter of 2026. According to the information
contained in the EIA application, BYD Türkiye
Otomotiv will produce 200,000 rechargeable hybrid
and electric cars. The planned project will employ an
average of 2,500 people during the construction phase
and 12,000 people in total in three shifts during the
operation phase. Industry and Technology Minister
Mehmet Fatih Kacır said that Türkiye is in close talks
with Chinese automaker Chery on an automobile
investment and has reached the final stages of the
process.

Türkiye tightens hybrid car imports
as it seeks Chinese investment
November 2024
16
Türkiye will impose strict conditions on the import of
plug-in passenger and commercial hybrid vehicles
from some countries, according to a notice published
in the Official Gazette, as it intensifies the push for
local production.
The new rules, which experts say will primarily impact
imports from China and Japan, are seen as a message
to foreign automakers engaged in negotiations with
Türkiye to speed up their plans for domestic plants.
The notice, which takes effect in 30 days, follows a
decision in June to limit imports of electric vehicles.
China has faced widespread criticism over its vehicle
exports, which many countries claim are heavily
subsidized by Beijing.
Analysts say Ankara is seeking to increase pressure on
Chinese carmakers with which it is holding talks about
investing in production in Türkiye.
The notice says an importer must meet conditions,
including having 20 authorized service shops in
seven different regions of Türkiye in order to import
chargeable hybrid vehicles not produced in the
European Union or in countries that have a free trade
agreement with Türkiye.
Analysts say no importers meet the conditions.
“All plug-in hybrid vehicles that will come from now
on will be blocked, apart from those in stock already.
Other hybrid cars are already subject to a high
customs tax,” Erol Şahin, founder of EBS Danışmanlık
consultancy, said.
He added the government was “toughening its
message of hurry up” to the Chinese firms with which it
is negotiating over domestic production.
The change, according to Şahin, could complicate
inventory management for Chinese brands that have
recently introduced or planned to introduce plug-in
hybrid vehicles in Türkiye.

The move follows earlier restrictions in June,
when Türkiye imposed additional tariffs on internal
combustion engines and hybrid vehicles imported from
China. The government has justified these measures
on the grounds of consumer safety and the promotion
of investment.
Türkiye “will continue to implement regulatory import
policies effectively in line with the safe supply of
products to the market and the tracking of products
during the life cycle and consumer protection,” the
Trade Ministry said in a statement.
In July, China’s BYD, the largest EV producer in the
world, agreed with the Turkish government to build a
$1 billion plant in Türkiye with an annual capacity of
150,000 vehicles.
BYD’s electric and rechargeable hybrid car production
facility, which is planned to start production in western
Manisa province at the end of 2026, is envisaged to
employ up to 5,000 people directly. Turkish sources
said BYD’s investment process in Türkiye continued
without any problems, after China’s warning to its
companies about the risk of overseas investment.
China’s Chery and state-owned SAIC Motor, which
owns MG Motor, are also in talks. In Europe, sales of
fully electric vehicles have been falling more rapidly
than those of hybrid cars, data has shown .
Türkiye’s domestic car and light vehicle market was
at 762,000 units for the first eight months of the year,
around the same as last year.
Imports of Chinese brands jumped more than twofold
to 63,000 units, taking 8% market share, according to
industry data.
November 2024
17

BYD reaches deal with car parts
supplier Forvia for Türkiye plant
November 2024
22
Chinese electric vehicle giant BYD has agreed to a
deal with Forvia to supply its second European factory
located in Türkiye, the French car parts supplier
announced. The world’s seventh largest car parts
supplier by revenue, whose Chinese sales account
for a quarter of total revenue, Forvia is a long-time
partner of BYD, and has already secured deals with the
automaker’s first European factory in Hungary.
Türkiye and BYD announced in July that the carmaker
would build a $1 billion production plant in Türkiye with
an annual capacity of 150,000 vehicles.
BYD’s electric and rechargeable hybrid car production
facility, which is planned to start production in western
Manisa province at the end of 2026, is envisaged to
employ up to 5,000 people directly.
Forvia produces a range of products that include
interior solutions, safety and lighting systems, mobility
and powertrain systems, software, hardware and
interface products, as well as sustainable composite
components.
The company has also reached deals with Chinese
auto manufacturers Chery, which is also said to be
close to completing a process for a factory investment
in Türkiye, and Li Auto.
During a recent annual conference in Wuhan, Chery
International President Zhang Guibing presented the
carmaker’s latest developments and future strategies,
showcasing its European manufacturing bases, which
included Spain, Italy and Türkiye.
Guibing met with President Recep Tayyip Erdoğan on
the sidelines of an investment event in Istanbul late last
month. Alongside Chery, Türkiye has also been in talks
with state-owned SAIC Motor, which owns MG Motor.
Forvia’s shares jumped nearly 10% as it also
announced it had reached an agreement with another
Chinese automaker, Xiaomi.
The company is hoping new contracts with Chinese
manufacturers will offset ailing auto demand from
domestic manufacturers.
“Forvia’s ability to secure business with BYD outside
China is reassuring as it helps to mitigate the fears that
Chinese automakers will not use international suppliers
such as Forvia in their expansion of their footprint
into Europe,” said Stephen Reitman, an analyst at
Bernstein. The contract with Xiaomi marks Forvia’s first
with the tech group that first announced its entry into
the EV business in 2021 as a diversification from its
core smartphone operations. Xiaomi started shipping
its SU7 electric vehicles in early April.
“Xiaomi is one of the key telecom companies entering
now the EV and car market and it’s very good
that we are able to extend our reach with Chinese
manufacturers also with the latest ones,” Forvia’s
finance chief Olivier Durand said on an investor call.

Vestel aims to be global player in EV, mobility ecosystem
November 2024
24
Türkiye’s leading electronic company and appliances
maker Vestel aims to be one of the world’s most
important suppliers in the electric vehicle and mobility
ecosystem, according to its CEO Ergün Güler.
He said that special products are an advantage. “For
instance, with electrical vehicle charging stations, if
you have an AC (alternative current) station, you can
charge a car in five hours. Vestel has exported them
for more than five years – if you have a wall box in
Germany or Spain, it is produced by Vestel,” Güler told
Anadolu Agency.
“But the most important thing is where? We are a
company that is very advanced in DC devices. So, the
fast and ultra-fast charging devices are able to charge
your car just in seven to eight minutes,” he said.
He said some companies may have a small production
for that type of device but in the mass production field,
there are only three companies globally and Vestel is
going to be one of them.
“There is mass production for 720-kilowatt devices.
The good news is that beginning next year, Vestel will
have a 1,000-kilowatt device,” he noted.
He said Vestel is developing and producing all the
screens in the Turkish electrical vehicle, Togg, and is in
talks with international brands to produce screens and
a major airline to produce entertainment screens.
The company’s interest in the sector has extended to
a 23% stake in Togg – the Turkish EV manufacturer
that is headquartered in northern Kocaeli province
and was founded in 2018 by a joint venture of five
Turkish companies. As the biggest television producer
in Europe, Vestel wants to transfer its knowledge to
another field. There are many rivals, especially from
China and Germany. Vestel is an international company
making exports to 163 countries, so it is very close to
almost every country, Güler stressed. It has a revenue
of $3.8 billion where $2.5 billion is coming from
exports, he said.
Güler added that Vestel is not only doing operations
under the Vestel brand but has several brands such as
licensed brands Toshiba and Sharp.
But the company now sees a huge shift to mobility.
Mobility is more about electrical vehicles, electrical
vehicle traffic stations and energy storage systems, he
noted.The entire $3 trillion, 150-year-old automotive
industry is shifting to a connected, electric future.
The Boston Consulting Group estimates electric
vehicles (EVs) are expected to constitute 45% of new
vehicle worldwide sales by 2035.
Saying that Vestel wants to utilize the benefit from this
huge shift by producing in the field, he said production
rules and underlying circumstances are changing.
Güler stressed that automotive brands are also
changing. While there are traditional brands such as
Volkswagen and Renault, there are also new brands
such as Tesla, and BYD which did not exist a couple of
decades ago. While Toyota, Volkswagen and Porsche
were the top three automotive producers in terms
of value, Tesla is now the No. 1 auto manufacturer,
followed by Toyota and Chinese BYD, which was not
there five years ago, he noted.
“As I said, production, underlying circumstances and
players are changing,” he said. “Now there we have
found a place for us to be the tier one supplier of those
great brands, plus to be a leading brand for electrical
vehicle charging stations, plus the leading brand for
energy storage systems, the question is, how and
when.”
He stressed that while Vestel was exporting to Europe
and Japan for more than 30 years, it had operations
with a very high-quality standard.
“Vestel is going to be a player in the mobility
ecosystem,” he said.
Touching on supply chain issues, he said they have
become so fragile recently, and that has made friendshoring
and nearshoring concepts more important.
Friend-shoring refers to trade relations between
countries with similar political, economic and cultural
values, while nearshoring is an approach to trade
relations among neighboring or nearby countries.
Türkiye, because of a nearshoring concept, saw a huge
demand from Europe, Asia and Africa, he said. “Our
plan or aim is to bring Vestal mobility to the markets.
Our target is to have an IPO above $1 billion,” he
added.

Top European auto association
urges action as EV demand slumps
November 2024
26
The top European auto industry association called the
EU for “urgent” assistance as carmakers continue to
struggle with slumping electric vehicle (EV) sales and
stricter emissions regulations due next year.
The European Automobile Manufacturers’ Association
(ACEA) said the industry was trying its best to comply
with decarbonization targets but was hamstrung by
problems, including a shrinking electric car market,
lack of charging infrastructure and the erosion of EU
manufacturing competitiveness. In a formal request
to Brussels, the industry lobby group asked the “EU
institutions to come forward with urgent relief measures
before new carbon dioxide targets for cars and vans
come into effect in 2025.”
Europe has been racing to produce more EVs as part
of its green transition, with the clock ticking on an EU
deadline to phase out the sale of fossil fuel-burning
cars by 2035. But after years of growth, electric car
sales began falling at the end of 2023 and now account
for just 12.5% of new cars sold on the continent.
According to the ACEA, car sales have also stagnated
and remain around 18% lower than pre-pandemic
levels.
“We’re playing our part in this transition,” the ACEA’s
appeal said, pointing to manufacturers’ adoption of EV
technology.
“We are missing crucial conditions to reach the
necessary boost in production and adoption of zeroemission
vehicles: charging and hydrogen refilling
infrastructure, as well as a competitive manufacturing
environment, affordable green energy, purchase and
tax incentives, and a secure supply of raw materials,
hydrogen and batteries,” it added.
“This raises the daunting prospect of either
multibillion-euro fines, which could otherwise
be invested in the zero-emission transition, or
unnecessary production cuts, job losses, and a
weakened European supply and value chain.”
The lobby group asked the commission to bring
forward a planned review of the carbon dioxide
regulations, currently slated for 2026 and 2027.
A separate report by the ACEA revealed that new
car sales in the EU fell 18.3% in August to their
lowest in three years, dragged by double-digit
losses in major markets Germany, France and Italy.
Sales of fully electric cars slumped 43.9% in August,
falling for the fourth consecutive month, as the
bloc’s biggest EV markets, Germany and France,
recorded drops of 68.8% and 33.1%, respectively,
ACEA said. Car sales in Europe have dropped well
below pre-COVID-19 levels, with carmakers such as
Volkswagen warning that the trend might not change
in the foreseeable future.
EV sales growth has also slowed, partly due
to diverging policies on green incentives, while
regulators have imposed hefty tariffs to keep out
cheap Chinese EVs. In August, sales of battery
electric and plug-in cars fell by 43.9% and 22.3%,
respectively, while those of hybrid-electric cars rose
6.6% to a market share of 31.3%.
Registrations at Europe’s three largest carmakers,
Volkswagen, Stellantis and Renault, all fell from
a year earlier by 14.8%, 29.5%, and 13.9%,
respectively. Sales at EV maker Tesla dropped
43.2%, and those for China’s SAIC Motor were
down 27.5%. On the other hand, the market share
of hybrid electric cars has increased in the EU in
recent months as buyers see them as an affordable
compromise between all-combustion and allelectric.To
inject new stimulus into the EV market,
Germany agreed in September on tax deductions of
up to 40% for companies on their sales of electric
cars, after last year ending a subsidy program
designed to help speed up the green transition.
However, campaign group Transport & Environment
said that battery-electric cars sold in the bloc are
set to reach a total market share of between 20%
and 24% by 2025, mostly because of lower selling
prices.

Otokar soars 10% on $940M
Romania contract talks
Shares in Türkiye’s defense giant Otokar jumped 10%
to the top of the BIST 100 index after the military and
commercial vehicle manufacturer said it had been
invited to Romanian military vehicle contract talks for a
deal valued at $940 million (TL 32.20 billion).
Otokar, in a statement on the public disclosure platform
(KAP), said it had been invited to contract negotiations
for an armored vehicle procurement tender held by
Romania, worth some $940 million.
The deal represents one of Otokar’s largest international
contracts and bolsters its growing presence in the
European defense market.
“In our special situation statement dated March
20, 2024, it was announced to the public that our
company submitted an offer to the tender opened
by C.N. Romtehnica S.A. (Romtehnica), a company
of the Romanian Ministry of National Defense, for
the purchase of 4x4 Tactical Wheeled Light Armored
Vehicles,” Otokar said in the KAP statement.
“Following the completion of the technical evaluation,
field tests and commercial evaluation processes, the
official invitation letter for contract negotiations was
sent to our company by the tender authority,” it added.
Furthermore, it disclosed that the tender amounting to
4,263,286,655.66 Romanian leu ($939.8 million) covers
the supply of a total of 1,059 4X4 tactical wheeled light
armored vehicles and some integrated logistics support
services. It added that 278 vehicles are set to be
produced in Otokar facilities, and the remaining part in
Romania, in a structure to be determined in the future.
“The signing of the contract and other important
developments regarding the subject will be shared with
our investors,” the company said.
“This contract represents 82% of the company’s
revenue over the last four quarters, and it is expected
to positively impact the company’s operational
profitability and stock performance,” brokerage Halk
Yatırım said. Otokar’s relationship with Romania has
been growing since 2018 when the company delivered
400 buses under a previous agreement. To support
its increasing operations in the country, Otokar
established a subsidiary, “Otokar Romania,” to manage
its contracts and collaboration with the Romanian
government.
November 2024
30

The European Union initiated imposing
higher duties on imports of electric
vehicles from China
November 2024
32
The European Union started imposing higher duties
on imports of electric vehicles from China after talks
between Brussels and Beijing failed to find an amicable
solution to their trade dispute that has divided Europe
and prompted retaliation from Beijing.
Electric vehicles have become a major flashpoint in a
broader trade standoff over the influence of Chinese
government subsidies on European markets and
Beijing’s burgeoning exports of green technology to the
bloc.
“By adopting these proportionate and targeted
measures after a rigorous investigation, we’re standing
up for fair market practices and for the European
industrial base,” European Commission Executive
Vice-President Valdis Dombrovskis said.
“We welcome competition, including in the electric
vehicle sector, but it must be underpinned by fairness
and a level playing field,” Dombrovskis said.
The duties would stay in force for five years unless an
amicable solution is found.
According to the commission, which manages trade
disputes on behalf of the 27 EU member countries,
sales of Chinese-built electric cars jumped from 3.9%
of the EV market in 2020 to 25% by September 2023,
in part by unfairly undercutting EU industry prices.
Just over a year after launching its anti-subsidy probe,
the European Commission will set out extra tariffs
ranging from 7.8% for Tesla, 17% on cars made by
BYD, 18.8% on those from Geely, to 35.3% for China’s
state-owned SAIC, on top of the EU’s standard 10%
car import duty.
Geely has brands including Polestar and Sweden’s
Volvo, while SAIC owns Britain’s MG, one of Europe’s
bestselling EV brands.
Other EV manufacturers in China, including Western
companies such as Volkswagen and BMW, would be
subject to duties of 20.7%. The commission has an
“individually calculated” rate for Tesla of 7.8%.
Beijing objected to the measures as protectionist and
unfair, saying it did not “agree with or accept” the
tariffs and has filed a complaint under the World Trade
Organization (WTO) dispute settlement mechanism.
“China will continue to take all necessary measures
to resolutely safeguard the legitimate rights and

interests of Chinese companies,” China’s Commerce
Ministry said. The EU’s retaliatory duties have been
controversial, having run into opposition in Germany,
which has Europe’s biggest economy and is home
to major automakers, and Hungary amid fears of
provoking China’s ire and setting off a bitter trade war.
The head of Germany’s auto industry association, VDA,
said the imposition of the tariffs is “a setback for free
global trade and so for prosperity, the preservation of
jobs and Europe’s growth.” Hildegard Muller said the
move increases the risk of a far-reaching trade conflict.
“The industry is not naive in dealing with China, but the
challenges must be resolved in dialogue,” Muller said
in a statement.
Germany opposed tariffs in a vote this month in which
10 EU members backed them, five voted against and
12 abstained.
Volkswagen, which has been hit hard by rising
competition in China, has previously said the tariffs
would not improve the competitiveness of the
European automotive industry.
The measures come as thousands of German industrial
workers, including at the carmakers, strike for higher
wages, with Volkswagen possibly about to announce
shutting plants on home soil for the first time in its 87-
year history.
Hungarian Prime Minister Viktor Orban said the EU was
headed for an “economic cold war” with China.
On the other hand, France, which pushed for the
investigation, welcomed the decision.
“The European Union is taking a crucial decision to
protect and defend our trade interests, at a time when
our car industry needs our support more than ever,”
French Finance Antoine Armand said in a statement.
France’s PFA car association also welcomed duties,
adding it backed free trade as long as it was fair.
The measures were published in the bloc’s legal Official
Journal, meaning duties enter into force as of midnight,
said EU spokesperson Arianna Podesta.
The commission says China boosted its EU market
share with the help of subsidies across the production
chain. These ranged from cheap land for factories
provided by local governments, to cut-price supplies
of lithium and batteries from state-owned enterprises,
to tax breaks and easy financing from state-controlled
banks.
The rapid growth in China’s market share has sparked
concern in the EU that Chinese cars will eventually
threaten the bloc’s ability to produce its own green
technology to combat climate change. Business
groups and unions also fear that the jobs of 2.5 million
auto industry workers could be put in jeopardy, as
well as those of 10.3 million more people whose
employment depends indirectly on EV production.
Talks continue between the EU and China and
the duties can be lifted if they reach a satisfactory
agreement, but officials on both sides have pointed to
differences.
Discussions have been focused on minimum prices
that would replace the duties and force carmakers
in China to sell vehicles at a certain cost to offset
subsidies.
Dombrovskis said the EU remains “open to a
possible alternative solution that would be effective
in addressing the problems identified and WTOcompatible.”
“We also noticed that the EU side indicated it
would continue to negotiate with China on price
commitments,” Chinese Commerce Ministry
said, adding that Beijing hoped to find a “solution
acceptable to both sides as soon as possible to avoid
escalating trade friction.”
The China Chamber of Commerce to the EU said it
was profoundly disappointed by the “protectionist” and
“arbitrary” EU measure and was disheartened by the
lack of substantial progress in negotiations to find an
alternative to tariffs.
It urged Brussels and Beijing “to accelerate talks
on establishing minimum prices and, ultimately, to
eliminate these tariffs.”
The EU, however, faces China’s retaliation. China
already said on Oct. 8 it would impose provisional
tariffs on brandy imported from the EU.
Beijing has also launched probes into EU subsidies of
some dairy and pork products imported into China.
Trade tensions between China and the EU are not
limited to electric cars, with Brussels also investigating
Chinese subsidies for solar panels and wind turbines.
The EU is not alone in levying heavy tariffs on Chinese
electric cars.
Canada and the United States have, in recent months,
imposed much higher tariffs of 100% on Chinese
electric car imports.
It remains to be seen what impact tariffs will have on
consumer prices. Some producers may be able to
absorb them at least partially.
In the first nine months of 2024, China’s EV exports
to the EU were down 7% from a year earlier, but
they have surged by more than a third in August and
September, ahead of the tariffs, data from the China
Passenger Car Association show.
November 2024
33

Autotech 2024 Cairo heralds new
horizons for automotive industry
Autotech is the definitive platform that brings
together the biggest trade professionals in the
automotive aftermarket and feeding industries at Cairo
International Convention Centre.
It is the place to expand your business through
networking with the main industry players and gather
insight into future market trends.
Over the course of 3 days, Autotech unites
top decision makers specializing in all areas of
manufacturing, remanufacturing, distribution, retailing,
and installation of vehicle parts, chemicals, equipment,
accessories, and more.
Whether you are a producer, manufacturer or an
importer interested in the automotive industry,
Autotech will connect you with the right suppliers that
match your needs and offer you the opportunity to
enter an important regional market.
The Fair which covers the full range of automobile,
truck and bus parts, equipment, components,
accessories, tools, and services continues to bring
world renowned manufacturers, suppliers and service
providers in touch with one of the most important
growing markets in the world. The markets targeted by
the Fair are widely recognised as the most attractive in
the world in terms of future potential.
Cairo International Convention Centre is located
in Nasr City, Cairo Governorate, Egypt. It offers
over 20,000 square metres of exhibit space as well
as flexible meeting rooms, ranging from smaller
spaces suitable for events for up to 50 people, to an
auditorium accommodating 2,500 persons.
The Turkish automotive supplier industry, displaying its
diverse range of products during the Fair, manufactures
almost all types of parts, components and spare
parts such as engines and engine parts, power train
parts and components, brake and clutch parts and
components, hydraulic and pneumatic systems,
suspension systems, security systems, rubber and
plastic parts, chassis, frames and parts, casting
and forging, electrical equipment and parts, lighting
systems, accumulator batteries, seats etc.
November 2024
36

Hyundai begins producing
electric SUVs at Georgia plant
Hyundai has begun producing electric SUVs in
Georgia less than two years after breaking ground on
its sprawling, $7.6 billion manufacturing plant west
of Savannah. Hyundai’s factory in Georgia held an
“employee-focused celebration” as its first EV for
commercial sale rolled off the assembly line, said Bianca
Johnson, spokesperson for Hyundai Motor Group
Metaplant America.
“After validating its production processes to ensure
its vehicles meet Hyundai Motor Group’s high quality
standards, HMGMA has started initial production of
customer vehicles ahead of schedule,” Johnson said.
Hyundai has said it will produce up to 300,000 EVs per
year in Georgia, as well as the batteries that power them.
The first vehicles being produced at the Georgia site are
2025 models of Hyundai’s Ioniq 5 electric SUVs .
Johnson said those American-made EVs will arrive at
U.S. dealerships before the end of this year.
During the first half of 2024, the Ioniq 5 was America’s
second-best-selling electric vehicle not made by industry
leader Tesla.
Hyundai rushed to start making EVs in Georgia within
two years of groundbreaking, spurred by federal electric
vehicle incentives that reward domestic production.
The Inflation Reduction Act, passed in 2022 with
provisions intended to combat climate change, includes
a tax credit that saves EV buyers up to $7,500, but
only on cars made in North America with domestic
batteries. Though Hyundai executives complained the
law was unfair, Hyundai President and Global Chief
Operating Officer Jose Munoz has also said it caused
the automaker to push to open sooner in Georgia.
November 2024
38

Swedish battery maker
Northvolt to cut 1,600 jobs
Sweden’s cash-strapped electric car battery maker
Northvolt said it would cut a quarter of its staff in the
country, as it struggles with strained finances and a
slowdown in demand.
The loss of 1,600 jobs in Sweden comes as electric
car sales slump in Europe and the continent lags far
behind China in battery production.
“While overall momentum for electrification remains
strong, we need to make sure that we take the right
actions at the right time in response to headwinds in
the automotive market, and wider industrial climate,”
Northvolt CEO Peter Carlsson said in a statement.
He added that Northvolt needed to “focus all energy
and investments into our core business.”
Northvolt, which warned on Sept. 9 that cuts were
coming, said that following “initial steps” of a strategic
review it estimated that proposed cost-saving
measures would result in about 1,000 redundancies
at its primary Skelleftea plant – where an expansion
project would be suspended – another 400 in the city
of Vasteras and 200 in the Swedish capital Stockholm.
“The rescoping of operations is critical to ensure a
sustainable operation and cost base,” Northvolt said.
It added that “to achieve this a workforce reduction
of approximately 20% at a global level, and 25% in
Sweden is required.”
The company employs 6,500 people, according to its
website.
In mid-September, Swedish Prime Minister Ulf
Kristersson said the government had no plans to
intervene to rescue Northvolt.
The Swedish company has secured $15 billion of credit
and capital.
Northvolt has been seen as a cornerstone of European
attempts to catch up with China and the United States
in the production of battery cells, a crucial component
of lower-emission cars.
Europe accounts for just 3% of global battery cell
production but has set its sights on 25% of the market
by the end of the decade.
November 2024
40

Auto industry revises forecasts
due to weak demand in Europe
The Automotive Manufacturers’ Association (OSD) has
revised downward its production and export forecasts
for 2024 due to the contraction in the European
market, says Cengiz Eroldu, the association’s
president. “We are aiming to end 2024 with 1 million
units of exports, while our production projection for
this year is between 1.3 million and 1.5 million units,”
Eroldu said.
Turkish carmakers’ total production declined by 6.9
percent year-on-year in January-September from a
year ago to 1 million units, according to data from
OSD. The automotive sector is Türkiye’s largest
exporting industry, directly employing 500,000 people.
In terms of production, the Turkish automotive industry
is one of the largest in the European Union.
In the first nine months of 2024, 657,148 passenger
cars were manufactured, down 4.5 percent compared
with the same period of 2023. Passenger car
production fell 4.5 percent from August.
The auto market shrank 1.5 percent annually in the first
nine months, when a total of 881,442 vehicles were
sold, with passenger car sales rising 0.9 percent yearon-year
to 673,000.
In September alone, vehicle sales were down 12
percent to 89,000, while passenger car sales were
down nearly 15 percent annually to 67,434 units.
The share of domestically produced passenger cars in
total sales declined below 30 percent in September for
the first time in 10 years, said Eroldu.
Pointing out the some 7 percent decline in production,
November 2024
42

Eroldu said this was mostly due to the fact that local
producers “are loosing ground” in the domestic
market. Local carmakers have been going through
difficult times in the last couple of months in the face of
weak demand.
The combined net income of eight listed automotive
companies plunged 40 percent year-on-year in the first
half of 2024 to 28.1 billion Turkish Liras ($820 million).
Local carmakers shipped nearly 730,000 vehicles to
foreign markets in January-September, marking a 0.6
percent decline annually, showed OSD data. Their
export revenues, however, rose 2 percent to $26.7
billion.
Passenger car deliveries to foreign markets fell 1.4
percent year-on-year to 467,000 units, generating
$7.8e billion in export revenues, down 1.3 percent.
In September alone, the industry’s total production
dropped 5.4 percent from a year ago to 123,445 units,
with passenger car output falling 2.7 percent to 86,000
units.
This followed the 40 percent decline in auto production
in August, when passenger car production was down
26.7 percent annually.
Meanwhile, Eroldu suggested establishing a “green
fund” to assist consumers in disposing of their
old cars, which account for 95 percent of vehicle
emissions.
There were more than 30 million registered motor
vehicles in Türkiye as of August, and a third of them
— around 10 million — are vehicles older than 13
years. Instead of offering a reduction in the special
consumption tax to encourage people to replace
scrap cars with new vehicles, a “green fund” may
be produced by the Environment Ministry to provide
financial support, Eroldu said.
November 2024
44

Exports increase most to Australia,
New Zealand in 8 months
Türkiye’s exports to Australia and New Zealand soared
26 percent in the January-August period from a year
ago, marking the biggest increase among all country
groups, while Europe remained the largest export
market.
Shipments to Australia and New Zealand amounted
to $828 million in the first eight months of 2024, a 0.5
percent share in Türkiye’s overall export revenues.
South America came second with an annual increase
of 18.1 percent to $1.96 billion, according to a study
by the Trade Ministry on the geographical analysis of
export markets.
Exports to Asia rose 10.8 percent year-on-year in
the January-August period in 2024, the third highest
increase, to $1.32 billion.
Europe absorbed 56.9 percent of Türkiye’s exports
in January-August. In the first 8 months of 2024,
the country’s exports to European nations grew 2.5
percent annually to $97.2 billion.The annualized
exports to European countries amounted to $146.3
billion as of August. The share of the Near and Middle
East region in exports was 16.8 percent, or $28.7
billion, while Africa came third at 8.1 percent or $13.8
billion. Asia and North America ranked fourth and fifth
at 7.9 percent ($13.55 billion) and 6.8 percent ($11.65
billion) of increases from a year ago, respectively.
The ministry said that exports to countries with which
Türkiye has a free trade agreement surged 14.1
percent year-on-year to $25.1 billion.
Exports to neighboring countries increased by 10.8
percent to $22 billion.
Türkiye’s overall exports rose by 3.9 percent year-onyear
in January-August to $170.8 billion. The 12-month
trailing exports amounted to $262 billion as of August.
November 2024
46

Biden seeks to ban sale of vehicles
using Chinese, Russian technology
November 2024
48
The Biden administration proposed a ban on the sale
of connected and autonomous vehicles in the U.S. that
are equipped with Chinese and Russian software and
hardware, with the stated goal of protecting national
security and American drivers.
The measure is proactive but critical, the U.S.
Commerce Department said, given that all the bells
and whistles in cars, like microphones, cameras,
GPS tracking and Bluetooth technology, could
make Americans more vulnerable to bad actors and
potentially expose personal information, from the home
address of drivers, to where their children go to school.
In extreme situations, a foreign adversary could shut
down or take simultaneous control of multiple vehicles
operating in the United States, causing crashes and
blocking roads, U.S. Secretary of Commerce Gina
Raimondo told reporters.
“This is not about trade or economic advantage,”
Raimondo said. “This is a strictly national security
action. The good news is right now, we don’t have
many Chinese or Russian cars on our road.”
But Raimondo said Europe and other regions in
the world where Chinese vehicles have become
commonplace very quickly should serve as “a
cautionary tale” for the U.S.
Security concerns around the extensive softwaredriven
functions in Chinese vehicles have arisen in
Europe, where Chinese electric cars have rapidly
gained market share.
“Who controls these data flows and software updates
is a far from trivial question, the answers to which
encroach on matters of national security, cybersecurity,

and individual privacy,” Janka Oertel, director of the
Asia program at the European Council on Foreign
Relations, wrote on the council’s website.
Vehicles are now “mobility platforms” that monitor
driver and passenger behavior and track their
surroundings.
A senior administration official said that it is clear
from the terms of service contracts included with the
technology that data from vehicles ends up in China.
The rules, if confirmed, would mark the latest
escalation of a simmering trade row between the U.S.
and China.
Shortly after the announcement, China warned the U.S.
not to take “discriminatory actions” against its firms.
China urged “the U.S. to respect market principles
and provide an open, fair, transparent, and nondiscriminatory
business environment for Chinese
enterprises,” Foreign Ministry spokesperson Lin Jian
said.
“China opposes the U.S.’s broadening of the concept
of national security and the discriminatory actions
taken against Chinese companies and products,” Lin
said.
“China will resolutely safeguard its legitimate rights and
interests,” he added.
Raimondo said that the U.S. won’t wait until its roads
are populated with Chinese or Russian cars.
“We’re issuing a proposed rule to address these new
national security threats before suppliers, automakers
and car components linked to China or Russia become
commonplace and widespread in the U.S. automotive
sector,” Raimondo said.
It is difficult to know when China could reach that
level of saturation, a senior administration official said,
but the Commerce Department says China hopes to
enter the U.S. market, and several Chinese companies
have already announced plans to enter the automotive
software space.
The Commerce Department added Russia to the
regulations since the country is trying to “breathe new
life into its auto industry,” senior administration officials
said on the call.
The proposed rule would prohibit the import and
sale of vehicles with Russia and China-manufactured
software and hardware that would allow the vehicle to
communicate externally through Bluetooth, cellular,
satellite, or Wi-Fi modules.
It would also prohibit the sale or import of software
components made in Russia or the People’s Republic
of China that collectively allow a highly autonomous
vehicle to operate without a driver behind the wheel.
The ban would include vehicles made in the U.S. using
Chinese and Russian technology.
The proposed rule would apply to all vehicles, but
would exclude those not used on public roads, such as
agricultural or mining vehicles.
Commerce officials met with all the major auto
companies around the world while it drafted the
November 2024
49

proposed rule to better understand supply chain
networks, according to senior administration officials,
and also met with a variety of industry associations.
While there is minimal Chinese and Russian software
deployed in the U.S, the issue is more complicated
for hardware. That’s why Commerce officials said the
prohibitions on the software would take effect for the
2027 model year and the prohibitions on hardware
would take effect for the model year of 2030, or Jan. 1,
2029, for units without a model year.
The Commerce Department is inviting public
comments, which are due 30 days after publication of
a rule before it’s finalized. That should happen by the
end of the Biden administration.
The new rule follows steps taken by the Biden
administration to crack down on cheap products sold
out of China, including electric vehicles, expanding
a push to reduce U.S. dependence on Beijing and
bolster homegrown industry.
In May, Washington unveiled steep tariff hikes
on Chinese imports like electric vehicles and
semiconductors.
The tariff hikes hit $18 billion worth of Chinese imports,
targeting strategic sectors like EVs, batteries, critical
minerals and medical products.
The tariff rate on EVs is set to quadruple to 100% this
year, while the tariff for semiconductors will surge from
25% to 50% by next year.
Those plans were finalized, ahead of November’s
presidential election, where both Democrats and
Republicans are seeking to show a tough stance
on China as competition between both countries
intensifies. The tariff hikes on the $18 billion worth of
goods were taken after a review of levies imposed
under then-president Donald Trump, which impacted
some $300 billion in goods from China.
Apart from tariff increases, including those on solar
cells, the U.S. Trade Representative’s office confirmed
that a 50% duty on semiconductors – a sharp rise from
before – would start in 2025.
Biden has accused Beijing of “cheating” rather than
competing on trade.
November 2024
50

Tesla unveils long-awaited robotaxi,
self-driving bus
November 2024
52
Tesla revealed its much-anticipated robotaxi at a
Hollywood studio, but fans eager to get their hands on
the new electric vehicle will need to wait until at least
2026 before it becomes available.
CEO Elon Musk pulled up to a stage at the Warner
Bros. studio lot in one of the company’s “Cybercabs,”
telling the crowd that the sleek, artificial intelligencepowered
vehicles don’t have steering wheels or pedals.
He also expressed confidence in the progress the
company has made on autonomous driving technology
that makes it possible for vehicles to drive without
human intervention.
Tesla began selling the software, which is called “Full
Self-Driving,” nine years ago. But there are doubts
about its reliability.
“We’ll move from supervised Full Self-Driving to
unsupervised Full Self-Driving. where you can fall
asleep and wake up at your destination,” he said. “It’s
going to be a glorious future.”
Tesla expects the Cybercabs to cost under $30,000,
Musk said. He estimated that the vehicles would
become available in 2026, then added “before 2027.”
The company also expects to make the Full Self-
Driving technology available on its popular Model 3
and Model Y vehicles in Texas and California next year.
“If they’re going to eventually get to robotaxis, they
first need to have success with the unsupervised FSD
at the current lineup,” said Seth Goldstein, equity
strategist at Morningstar Research.
“Tonight’s event showed that they’re ready to take that
step forward.”
When Tesla will actually take that step, however, has
led to more than a little anxiety for investors who see
other automakers deploying similar technology right
now. Shares of Tesla Inc. tumbled 9% at the opening
bell.
Waymo, the autonomous vehicle unit of Alphabet
Inc., is carrying passengers in vehicles without human
safety drivers in Phoenix and other areas. General
Motors’ Cruise self-driving unit had been running
robotaxis in San Francisco until a crash last year
involving one of its vehicles.
Also, Aurora Innovation said it will start hauling freight
in fully autonomous semis on Texas freeways by year’s

November 2024
end. Another autonomous semi company, Gatik, plans
to haul freight autonomously by the end of 2025.
“Tesla yet again claimed it is a year or two away from
actual automated driving – just as the company has
been claiming for a decade. Indeed, Tesla’s whole
event had a 2014 vibe, except that in 2014 there
were no automated vehicles actually deployed on
public roads,” Bryant Walker Smith, a University of
South Carolina law professor who studies automated
vehicles, told The Associated Press (AP) in an email.
“Now there are real AVs carrying real people on real
roads, but none of those vehicles are Teslas. Tonight
did not change this reality; it only made the irony more
glaring.”
Tesla had 20 or so Cybercabs on hand and offered
event attendees the opportunity to take rides inside the
movie studio lot – not on Los Angeles’ roads.
At the presentation, which was dubbed “We, Robot”
and was streamed live on Tesla’s website and X, Musk
also revealed a sleek minibus-looking vehicle that, like
the Cybercab, would be self-driving and can carry up
to 20 passengers.
The company also trotted out several of its black and
white Optimus humanoid robots, which walked a few
feet from the attendees before showing off dance
moves in a futuristic-looking gazebo.
Musk estimated that the robots would cost between
$28,000-$30,000 and would be able to babysit, mow
lawns, fetch groceries, among other tasks.
“Whatever you can think of, it will do,” he said.
The unveiling of the Cybercab comes as Musk tries to
persuade investors that his company is more about AI
and robotics as it labors to sell its core products, an
aging lineup of electric vehicles.
Tesla’s model lineup is struggling and isn’t likely to be
refreshed until late next year at the earliest, TD Cowen
analyst Jeff Osborne wrote in a research note.
Osborne also noted that, in TD Cowen’s view, the
“politicization of Elon” is tarnishing the Tesla brand
among Democrat buyers in the U.S.
Musk has endorsed Republican presidential candidate
Donald Trump and has pushed many conservative
causes. He joined Trump at a Pennsylvania rally.
Musk has been saying for more than five years that
a fleet of robotaxis is near, allowing Tesla owners to
make money by having their cars carry passengers
while they’re not in use by the owners. Musk said that
Tesla owners will be able to put their cars into service
on a company robotaxi network.
But he has acknowledged that past predictions for the
use of autonomous driving proved too optimistic. In
2019, he promised the fleet of autonomous vehicles by
the end of 2020.
The announcement comes as U.S. safety regulators
are investigating Full Self-Driving and Autopilot based
on evidence that it has a weak system for making sure
human drivers pay attention.
In addition, the U.S. National Highway Traffic Safety
Administration (NHTSA) forced Tesla to recall Full Self-
Driving in February because it allowed speeding and
violated other traffic laws, especially near intersections.
Tesla was to fix the problems with an online software
update. Last April in Snohomish County, Washington,
near Seattle, a Tesla using Full Self-Driving hit and
killed a motorcyclist, authorities said. The Tesla
driver told authorities that he was using the system
while looking at his phone when the car rear-ended
the motorcyclist. The motorcyclist was pronounced
dead at the scene, authorities said. NHTSA says it’s
evaluating information on the fatal crash from Tesla and
law enforcement officials.
The Justice Department also has sought information
from Tesla about Full Self-Driving and Autopilot, as well
as other items.
54

Türkiye pitches inflation, current
account progress to investors
Türkiye’s top economy official used a trip to New York
to reassure business leaders and investors that the
country’s disinflation process had begun in earnest,
while affirming that the government had no plans for
additional taxes.
Treasury and Finance Minister Mehmet Şimşek
pitched the progress of Türkiye’s economic program
during a series of meetings with businesspeople and
major investors on the sidelines of the United Nations
General Assembly.
Addressing an event, Şimşek acknowledged that
inflation was still high but reiterated expectations it
would see a significant decline by 2025, as tighter
monetary policy begin to show its delayed effects.
“The disinflation process has now begun in a
sustained manner. On one hand, inflation will decrease
significantly in 2025, supported by the delayed effects
of monetary policy. On the other hand, fiscal policy and
income policies will become more supportive,” said the
minister.
Annual inflation dipped below 52% in August,
compared to its peak of 75% this May. The
government forecasts it will fall below 42% by yearend.
The central bank has lifted its key policy rate by 4,150
basis points since June 2023 to counter overheated
demand, the main driver of inflation.
It has held the one-week repo rate unchanged at 50%
since this March. It said it remained highly attentive
to inflation risks but dropped a reference to potential
tightening. The wording change provided the first
guidance signaling that rate cuts will eventually come.
Şimşek said inflation is expected to fall to between
40%-42% this year, before dropping below 20% next
year and to single digits by 2025.
“We have drawn a path for inflation this year, and
even in a year marked by elections and geopolitical
turbulence, we met many of our targets,” said the
minister.
In his meeting with top executives from leading U.S.
investment banks such as Goldman Sachs, Citigroup,
and Morgan Stanley, Şimşek emphasized the
government’s focus on fiscal discipline and tackling the
informal economy without resorting to new taxes.
November 2024
58

He also met with Nick Clegg, global affairs head
of Meta Platforms, and Makhtar Diop, chair of the
International Finance Corporation (IFC), to discuss
further collaboration.
At a roundtable hosted by Goldman Sachs, Şimşek
addressed 15 portfolio managers from some of the
world’s largest funds, highlighting Turkey’s progress in
reducing the current account deficit.
“Our current account deficit, once a source of fragility,
has shrunk from $57 billion to under $20 billion due
to the measures we’ve taken,” Şimşek said. He
also noted that further steps would be necessary to
permanently eliminate this concern.
Şimşek underscored that the government’s efforts to
reduce the budget deficit were showing results, having
brought it down to 5.2% of gross domestic product
(GDP).
Looking ahead, he said the government would prioritize
combating the informal economy to produce a fairer
business environment.
“From now on, rather than focusing on increasing tax
rates, we will prioritize the fight against the informal
economy. Informality means injustice. It prevents
access to finance, keeps businesses small-scale, and
leads to inefficiency,” Şimşek noted.
“Therefore, to ensure a fair, competitive environment,
we will intensify efforts against informality. If you’re
operating informally, know that sooner or later, the tax
authorities will come knocking on your door.”
Şimşek also recalled improvement in the central bank’s
foreign exchange reserves, which stood at around $95
billion.
“This improvement reflects the strong confidence in
our program both domestically and internationally,” he
stated.
“Türkiye has moved beyond seeing reserves as a
source of concern.”
Şimşek also highlighted an improvement in access to
external financing.
“We are solidifying the foundations for healthier,
sustainable growth. While there is a temporary
slowdown in growth, Türkiye’s structure will strengthen.
Our ultimate goal is sustainable high growth in Türkiye,
and we will steer back toward that path,” he said.
Şimşek stressed the government was initiating
a structural transformation process to make the
improvement in the current account permanent.
“The production of natural gas and oil in Türkiye will
help reduce our current account deficit. Progress in
this area, along with green transformation and new
industrial policies, could potentially lead Türkiye from a
current account deficit to a surplus,” he noted.
“We aim to significantly reduce not only inflation but
also external vulnerabilities.”
November 2024
60

Waymo ramps up robotaxi
push with $5.6 bln in funding
Waymo has raised $5.6 billion from investors to
expand a robotaxi program now operating in Los
Angeles, Phoenix and San Francisco. The investment
round was led by Google-parent Alphabet, which
spun the company off from a research unit and
retains controlling interest, Waymo said. The list of
Waymo backers includes Silicon Valley venture capital
powerhouse Andreessen Horowitz, along with Fidelity
and Silver Lake.
Waymo declined to disclose the value placed on the
company during the investment round. It raised $3.2
billion in 2020 and $2.5 billion in 2021.
Waymo started as a “moonshot” project in Google’s X
lab in 2009 and was spun off into a separate company
in 2016. Waymo One ride-hailing services operate in
San Francisco, Phoenix, and Los Angeles, with the
company saying it plans to expand to the cities of
Austin and Atlanta as part of a partnership with rideshare
platform Uber. While Waymo competitors include
General Motors subsidiary Cruise, as well as Amazonowned
Zoox, it has been moving steadily along the
road to making robotaxis more common.
Elon Musk recently unveiled what he said was a
robotaxi capable of self-driving, predicting it would
be available by 2027 -- about a decade after he first
promised an autonomous vehicle.
Waymo, on the other hand, said its robotaxi service
already provides 100,000 paid rides weekly. The
National Highway Traffic Safety Administration early
this year launched an investigation into Waymo after
reports some self-driving cars hit stationary objects.
Robotaxis in San Francisco have also been targeted by
vandals and activists opposed to the innovation.
November 2024
62

New medium-term program sees
3.5 percent growth this year
November 2024
64
Türkiye’s economy is expected to grow by 3.5 percent
this year before the GDP expansion accelerates to 4
percent in 2025 and 4.5 percent in 2026, according
to the government’s medium-term economic program
revealed on Sept. 5.
Unveiling the program, Vice President Cevdet Yilmaz
said the growth projection for 2024 was revised
downward by a 0.5 percentage point from the previous
program due to rising geopolitical tensions in the
region. The government’s economic growth target
for 2027 is 5 percent. Several ministers, including
Finance Minister Mehmet Şimşek as well as Central
Bank Governor Fatih Karahan, were also present at
the launch of the program which covers the 2025-27
period.
“These targets aim to ensure that the economy reaches
its potential growth capacity and achieves a stable
growth trend in the long term,” Yilmaz said, stressing
that the growth path aligns with the disinflation course.
The GDP at current prices is expected to increase to
44.2 trillion Turkish liras ($1.33 trillion) this year, up from
26.5 trillion ($1.13 trillion) last year, he said.
The program targets an 83.1 trillion liras ($1.77 trillion)
GDP at current prices in 2027 and a $20,420 GDP per
capita at current prices, Yilmaz noted. Stressing that
the main objective of the program is to ensure price
stability, Yilmaz said the government targets to bring
consumer inflation down to 17.5 percent in 2025 from
a projected inflation rate of 41.5 percent at the end of
2024.
In the previous program, the inflation targets for
2024 and 2025 were 33 percent and 15.2 percent,
respectively. Türkiye’s new economic program
forecasts that inflation rate would fall down to single
digits, 9.7 percent in 2026 and 7 percent in 2027, he
said. According to the latest data from the Turkish
Statistical Institute (TÜİK), Türkiye’s annual consumer
inflation rate eased to 51.97 percent in August, the
lowest since July 2023.
“The main macroeconomic projections and targets set
out in the economic program, which we launched in
September last year have been met to a great extent…
This demonstrates the effectiveness and predictability
of our program,” Yılmaz said.
According to the new program, the budget deficit is
projected to decrease from 4.9 percent of GDP in 2024
to 3.1 percent in 2025. It is income in 2026 and down
to 2.5 percent in 2027.

Türkiye’s crude
steel output
increases 4 percent
Türkiye produced 3.1 million tons of crude steel,
marking a 4 percent increase compared with July 2023,
according to data from the World Steel Association.
In June, the annual increase in the country’s steel
output was 4.3 percent to 3.1 million tonnes.
From January to July, the country’s steel output
amounted to amounted to 21.7mn tons, pointing to a
robust 14.9 percent increase from the same period of
last year. Türkiye retained its position as the world’s
eighth largest producer of crude steel after Germany,
which increased its production by 4.5 percent annually
to 22.5 million tons in the same period.
World crude steel production for the 71 countries
reporting to the World Steel Association was 152.8
million tons, a 4.7 percent decrease compared to July
2023. China was the top producer at 82.9 million tons,
down 9 percent year-on-year, followed by India, which
boosted its crude steel production by 6.8 percent yearon-year
to 12.3 million tons.
Japan’s production was down 3.8 percent to 7.1
million tons, while the U.S.’s steel output increased 2.1
percent to 6.9 million tons.
In the first eight months of 2024, global crude steel
production amounted to 1.1 billion tons, exhibiting
an annual decline of 0.7 percent, according to
the association. The 71 countries reporting to the
association accounted for approximately 98 percent of
total world crude steel production in 2023.
November 2024
68

Energy policies yielding results
in boosting local production
November 2024
70
Türkiye’s National Energy and Mining Policy is yielding
results in reducing the country’s dependency on
imported energy and boosting local production, Energy
Minister Alparslan Bayraktar has said.
Speaking at a gathering in the province of Osmaniye,
the minister recalled the policy document was unveiled
in 2016 and said: “We started to reap its fruits.”
“In 2020, the gas that we searched for and found in
the Black Sea with our own ships and engineers has
started to be delivered to our homes. We meet the
natural gas needs of 2.6 million households from the
natural gas we produce in the Black Sea alone,” he
said. The minister reminded that a floating production
facility will arrive in the Sakarya Gas Field in the Black
Sea at the end of this month, which will boost the
output there to 20 million cubic meters.
The floating facility will produce natural gas for 20
years, he said, adding that production from the
field will meet the natural gas needs of 10 million
households.
“We need to increase production and make other
discoveries in the Black Sea,” Bayraktar said.
Türkiye is a major importer not only of natural gas but
also of oil, and is dependent on foreign oil, he stressed.
The oil find in the Gabar region was the biggest
discovery ever in the country, the minister said, noting
that the production from Gabar is currently 47,000
barrels/day.
“We aim to increase the production there to 100,000
barrels within the next year, and Türkiye will produce
200,000 barrels by 2025. For that, we need more
exploration,” Bayraktar said.