Automotive Exports December 2022

You also want an ePaper? Increase the reach of your titles

YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.


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 / TÜRKİYE<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 />

Reaping the fruits of export-drive<br />

As noted earlier in this column, the exports by Turkish automotive sector have reached<br />

remarkable figures in the last decade. The automotive industry has been active since<br />

the early seventies. Thus, Turkey has become a major production platform for global<br />

automotive manufacturers.<br />

As known, the 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,<br />

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

potential for additional exports.<br />

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

country through joint-ventures, which dominate production and exports. There has also<br />

been substantial locally-owned investment by spare parts manufacturers.<br />

To sum up:<br />

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

quality management systems.<br />

- The industry has adapted to 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 and their implementation.<br />

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

manufacturers’ global planning.<br />

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

consumer composition, friendly investment legislation and liberal 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 />

The industry exhibits its full potential in major specialized fairs both at home and abroad.<br />

By participating in a series of fairs, our publications remain at the service of those<br />

businesses people seeking to increase their share in the increasingly competitive foreign<br />

markets.<br />

This month, we participate in Moroccan <strong>Automotive</strong> Industry Show, Casablanca.<br />

We are fully convinced that the event would pave the way for a series of new business<br />

opportunities. We wish all participants success and lucrative business.<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 />

automotiveexport<br />


Germany ‘on course for<br />

recession’ as industrial<br />

orders drop<br />

German industrial orders have dropped by more than<br />

expected in September as foreign demand slumped, putting<br />

Europe’s largest economy on course for recession, data<br />

shows.<br />

New orders fell by 4.0 percent on the month on a seasonally<br />

and calendar-adjusted basis, the Federal Statistics Office said.<br />

Germany staved off the threat of recession in the third<br />

quarter with unexpected growth, but the economy remained<br />

in choppy waters as high inflation driven by a painful energy<br />

standoff with Russia surged, data showed.<br />

The orders data underlined the headwinds Germany is facing<br />

as the sluggish global economy, materials shortages and the<br />

energy crisis hamper production.<br />

Headed towards recession<br />

“The German economy is on course for recession - that<br />

much can be deduced from the disastrous new orders,” said<br />

Thomas Gitzel, chief economist VP Bank.<br />

While domestic orders increased by 0.5 percent, foreign<br />

orders plunged b y 7.0 percent. Within the euro zone, orders<br />

were down 8.0 percent while orders from outside the euro<br />

zone dropped 6.3 percent.<br />

“The high level of new orders that had set in after the<br />

coronavirus pandemic as a result of catch-up effects appears<br />

to have come to an end,” the economy ministry said.<br />

Decreases in the automotive and mechanical engineering<br />

sectors in particular, down 9.0 percent and 8.1 percent<br />

respectively, dragged down the overall index, according to the<br />

ministry.<br />


Famed Kapadokya most-loved color of<br />

Türkiye’s national car Togg<br />

Türkiye’s first national, fully electric car<br />

Togg, which recently saw the first massproduced<br />

vehicle come off from the<br />

production line, revealed its most-preferred<br />

color through a survey.<br />

The survey was conducted with the<br />

participation of 500,000 people from Togg’s<br />

social media account.<br />

According to the results, the color<br />

“Kapadokya” (Cappadocia in Turkish)<br />

which is among the total of six colors that<br />

“Togg took inspiration from the beauties of<br />

Türkiye” was the most popular color of the<br />

C-SUVs.<br />

The colors include “Anadolu” (Anatolia),<br />

“Gemlik,” “Oltu,” “Kula,” “Kapadokya” and<br />

“Pamukkale.”<br />

Kapadokya is the color representing the<br />

colors of the fairy chimneys in Türkiye’s<br />

famed touristic region of Cappadocia in the<br />

central province of Nevşehir.<br />

Anatolia is a red “reflecting the friendliness<br />

and passion of Anatolian lands.”<br />

Gemlik is a turquoise blue color which<br />

represents the blue waters under the<br />

shade of olive trees in Gemlik located on<br />

the coast of the Marmara sea.<br />

Kula is gray, taking its inspiration from<br />

the “magnificence of Kula, which carries<br />

millions of years of history of Earth to the<br />

present with its natural structure, rocks and<br />

valleys,” in Türkiye’s Aegean region.<br />

The black color of Oltu represents the<br />

eye-catching blackness, shiny texture and<br />

solid structure of the Oltu stone, one of<br />

the rare and fascinating gemstones found<br />

in the eastern Erzurum province. The color<br />

Pamukkale, meanwhile, is a while color,<br />

the dazzling whiteness of Pamukkale’s<br />

travertines in western Türkiye’s Denizli.<br />

In addition to the SUV, Togg will be<br />

manufacturing another four models – a<br />

sedan, C-hatchback, B-SUV and B-MPV –<br />

through 2030.<br />

Mass production of the SUV will be<br />

followed by the sedan. The vehicle is being<br />

produced by a consortium of five Turkish<br />

companies called the Automobile Initiative<br />

Group of Türkiye, or Togg in short, in<br />

cooperation with the Union of Chambers<br />

and Commodity Exchanges of Türkiye<br />

(TOBB).<br />

The brand aims to produce 1 million<br />

vehicles across the five segments by 2030.<br />

<strong>December</strong> <strong>2022</strong> 14

Turkish auto sales jump nearly 15% in October<br />

Sales of passenger cars and light<br />

commercial vehicles in Türkiye rose 14.9%<br />

year-over-year in October, according to<br />

data provided by an industry group.<br />

A total of 65,222 vehicles were sold across<br />

the country, the <strong>Automotive</strong> Distributors<br />

Association (ODD) said in a statement.<br />

Passenger cars accounted for nearly 73% or<br />

47,440 of the sales, an increase of 17.1%<br />

during the same period.<br />

As many as 17,782 light commercial<br />

vehicles were also sold, up 9.5% from<br />

a year earlier. The association said the<br />

automotive market fell 4.6% compared to<br />

the average 10-year October sales.<br />

In the January-October period, Türkiye’s<br />

automotive market narrowed by 4.7% on<br />

an annual basis to 585,752 vehicles.<br />

Passenger car sales fell 6% to 446,664 units<br />

in the first 10 months of <strong>2022</strong> compared to<br />

the same period from a year ago.<br />

<strong>December</strong> <strong>2022</strong> 16

Turkish automotive exports remain robust<br />

despite global headwinds<br />

Turkish automotive exports jumped to<br />

$2.65 billion (TL 49.21 billion) in October,<br />

industry data showed , in an increase<br />

that comes despite global headwinds<br />

dominated by talks of recession and<br />

surging inflation.<br />

<strong>Exports</strong> increased by 1.8% year-over-over,<br />

the Uludağ <strong>Automotive</strong> Industry Exporters’<br />

Association (OIB) said in a statement. At<br />

12.4%, the industry held the largest share<br />

of Türkiye’s overall exports.<br />

Foreign sales were up about 5% from a<br />

year ago in the January-October period to<br />

some $25 billion, the data showed.<br />

“Our automotive exports continue to<br />

increase” despite the growing global<br />

recession risks, contraction in the<br />

eurozone, the industry’s largest market,<br />

and surging inflation, OIB Chairman Baran<br />

Çelik said.<br />

The supply industry, tractors, buses,<br />

minibusses and midibuses all saw a doubledigit<br />

increase in sales in October, Çelik said.<br />

The supply industry topped exports with $1<br />

billion worth of sales, a 13% year-over-year<br />

increase.<br />

Çelik said exports to top markets such<br />

as Germany, Belgium and Russia also<br />

registered double-digit increases in the<br />

month.<br />

Sales to Germany were up 15% year-overyear<br />

in October to $404 million, while<br />

those to the United Kingdom rose 9% to<br />

$285 million, the data showed. <strong>Exports</strong> to<br />

France were down 12% to $252 million.<br />

Sales to Belgium, Russia, Romania and<br />

Portugal increased by 32%, 23%, 21% and<br />

79%, respectively.<br />

<strong>December</strong> <strong>2022</strong> 22

Togg invites citizens to test<br />

SUV model at new Istanbul center<br />

Türkiye’s first indigenous electric<br />

automobile brand Togg is opening its first<br />

experience center in Istanbul, enabling<br />

citizens to get to know its C-SUV model<br />

from a closer perspective.<br />

A total of 20 centers are expected to be<br />

opened across the country.<br />

The first Togg experience center opened<br />

its door in the metropolis’ Zorlu Center,<br />

welcoming citizens to examine the C-SUV<br />

model closely, particularly the parts they<br />

are curious about. The next experience<br />

centers will soon start operating in<br />

southern Adana, the capital Ankara, Gemlik<br />

and western Izmir province.<br />

The opening comes after the inauguration<br />

of Togg’s factory in the Gemlik district<br />

of Türkiye’s automotive capital Bursa,<br />

during which the first mass-produced SUV<br />

model left the production line. Following<br />

the announcement of the vehicle’s mass<br />

production, high interest in the first<br />

domestic electric car was seen both in the<br />

country and abroad.<br />

It has received thousands of orders<br />

coming from the public sector in Türkiye,<br />

including banks that were placed on the<br />

priority list for receiving their models<br />

earlier than others. Togg also received<br />

its first international order recently, from<br />

Azerbaijani President Ilham Aliyev who<br />

stated that he wants to purchase two cars<br />

for himself. Many citizens have also already<br />

listed their existing vehicles for sale on the<br />

internet in order to buy a Togg, which will<br />

hit the road in March 2023. Around 17,000<br />

to 18,000 vehicles are planned to be put<br />

up for sale in the first stage, throughout<br />

2023, after some five months of security<br />

procedures the car is set to pass through.<br />

The vehicle is being produced by a<br />

consortium of five Turkish companies called<br />

the Automobile Initiative Group of Türkiye,<br />

or Togg, in cooperation with the Union of<br />

Chambers and Commodity Exchanges of<br />

Türkiye (TOBB).<br />

Togg, which will have “300+” and “500+”<br />

kilometer range options with its inborn<br />

electric modular platform, will be<br />

constantly connected to the center and<br />

will be able to receive updates remotely<br />

via 4G/5G connection. The batteries of the<br />

vehicles which will be integrated into the<br />

model, and are compatible with the Euro<br />

NCAP 5-star level rating system are set to<br />

get 80% full in less than 30 minutes with<br />

fast charging option.<br />

<strong>December</strong> <strong>2022</strong> 24

Türkiye<br />

seeks energy<br />

production<br />

abroad, says<br />

Minister<br />

Dönmez<br />

Türkiye wants to engage in production<br />

activity in counties from which it buys<br />

natural gas or oil, Energy Minister Fatih<br />

Dönmez has said, adding that studies are<br />

underway to identify the location for a<br />

third nuclear plant.<br />

“This is our new energy strategy. We<br />

consider establishing partnerships with<br />

those countries to acquire a share in<br />

the production of natural gas or oil. We<br />

have been receiving offers, particularly<br />

from Africa, since we have increased<br />

our operations capabilities in the seas,”<br />

Dönmez said.<br />

“Those countries look very favorably upon<br />

this idea and we have invited them to our<br />

country. We can act together with friendly<br />

nations,” he said, unveiling the new energy<br />

strategy in a press meeting.<br />

“We traveled to Indonesia and Malaysia.<br />

In Malaysia, we discussed the prospects of<br />

natural gas exploration and cooperation.”<br />

Türkiye has played an important role over<br />

the past years in strengthening energy<br />

supply security for neighboring countries,<br />

Dönmez added.<br />

“While improving our own infrastructure,<br />

we have secured new resources. We are<br />

buying natural gas from Russia, Iran and<br />

Azerbaijan.”<br />

Türkiye has also increased its LNG capacity<br />

bbyputting two FRSUs (Floating Storage<br />

Regasification Unit) in use in addition to<br />

the already existing two LNG land terminals<br />

and a third FRSU will be launched in Saros,<br />

he noted.Dönmez stressed that Türkiye<br />

may further diversify its suppliers of natural<br />

gas.<br />

“The Gulf countries may deliver gas here.<br />

Israeli gas can arrive here, and we may<br />

buy gas from Nigeria. We are in talks with<br />

Libya.”<br />

The minister added that all natural gas<br />

storage facilities were full as of the end of<br />

September and ready for the winter. “They<br />

will be used if problems with deliveries via<br />

pipelines may occur.”<br />

He also said that work is ongoing to<br />

determine the location where the<br />

country’s third nuclear power plant<br />

will be established. “The likely location<br />

is the Thrace region,” Dönmez added.<br />

Construction of the Akkuyu Nuclear Power<br />

Plant continues at “full speed,” he said,<br />

recalling that a second nuclear plant is<br />

planned to be built in the province of<br />

Sinop.<br />

<strong>December</strong> <strong>2022</strong> 26

Russia increases gas exports<br />

to China, reducing market<br />

dependence on Europe<br />

In an attempt to wean the country from its<br />

dependence on the European gas market,<br />

Russia has increased gas exports to China,<br />

using the Siberia pipeline.<br />

The pipeline, also known as the Eastern<br />

Route, delivers energy “via the mega gas<br />

pipeline regularly” and it exceeds daily<br />

“contractual obligations”.<br />

The pipeline became functional in 2019,<br />

spanning 3,000 kilometres, and has the<br />

capacity of carrying 61 billion cubic metres<br />

of gas per year, with 38 billion cubic metres<br />

slated for export.<br />

The two countries are working toward<br />

developing another gas route through<br />

Mongolia called Soyuz Vostok.<br />

Expanding its energy market in China has<br />

been one of its top priorities for Russia. As<br />

Beijing is in the process of phasing down<br />

coal usage, the Kremlin seems eager to<br />

“exploit the opportunity” in light of their<br />

growing alliance.<br />

Gazprom, the Russian energy giant, said<br />

that it supplied 42.6 percent less gas to<br />

countries outside the Commonwealth of<br />

Independent States (CIS), a segment that<br />

includes most of the European Union.<br />

The Gazprom report noted that total<br />

exports had decreased from 158.8 billion<br />

cubic metres (bcm) of gas in the first ten<br />

months of 2021 to 91.2 bcm in the first ten<br />

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

European countries whose gas purchases<br />

from Gazprom remain capped have been<br />

stockpiling gas thanks to unusually mild<br />

autumn weather –– Bloomberg noted that<br />

in the past, Russia had regularly supplied<br />

about a third of Europe’s gas consumption.<br />

Even while EU gas storage sites remain<br />

at a 94 percent capacity, higher than the<br />

past five years’ seasonal average of 89<br />

percent, Bloomberg pointed out the words<br />

of Gazprom Chief Executive Officer Alexey<br />

Miller, who said if the weather were to<br />

get abnormally cold, Europe’s gas reserves<br />

wouldn’t keep citizens warm throughout<br />

the winter.<br />

Bloomberg quoted Miller as adding<br />

“Europe could lack some 800 million<br />

cubic metres of gas a day without Russian<br />

supplies during high demand.”<br />

According to Bloomberg, Gazprom<br />

continues to supply gas flows via Ukraine<br />

at capped levels and “those to Hungary<br />

and Serbia are going through one leg of the<br />

TurkStream pipeline” that runs from Russia<br />

to Türkiye<br />

<strong>December</strong> <strong>2022</strong> 28

More tourists to rush to Türkiye this<br />

winter as European prices soar<br />

Turkish travel companies are expecting a<br />

rush of European tourists in the months<br />

ahead amid higher demand following the<br />

coronavirus pandemic and as energy prices<br />

rocket.<br />

“This winter we expect more tourists<br />

than in previous years,” Cem Polatoğlu,<br />

spokesperson for the travel operators’<br />

association Tur Operatörleri Platformu, told<br />

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

“During the pandemic, people could not go<br />

on holiday for a long time. Now that travel<br />

restrictions have been lifted, many tourists<br />

will feel as though they have ‘broken free<br />

from chains,’” he said.<br />

Additionally, the high costs of energy in<br />

Europe are also leading to an increase in<br />

reservations during the winter season,<br />

particularly for accommodation that costs<br />

less, he said.<br />

Europe faces an acute energy crunch<br />

heading into winter after Russia cut gas<br />

supplies in response to Western sanctions<br />

imposed over its invasion of Ukraine.<br />

“It is positive for the tourism sector that<br />

European tourists – especially pensioners<br />

– prefer long holidays in Türkiye during<br />

the winter months due to the increase in<br />

natural gas prices,” said Ali Onaran, chair of<br />

tour operator Prontotour.<br />

He said his data showed that demand<br />

was particularly high “from countries like<br />

Germany, England and the Netherlands.”<br />

Onaran said it was encouraging that more<br />

people were booking their holidays during<br />

the winter period despite global inflation.<br />

“There are developments such as rising fuel<br />

costs, energy expenses, food crises, which<br />

affect ticket and hotel prices and therefore<br />

people’s overall travel budget,” he said.<br />

Despite those factors, bookings were in line<br />

with tour operators’ expectations.<br />

A further incentive for people to head to<br />

Türkiye on their holidays may be the weak<br />

Turkish lira, according to Polatoğlu.<br />

For tourists, he said that booking a package<br />

holiday at a five-star hotel in Türkiye<br />

currently costs less than spending the time<br />

in Europe. “And with much more comfort<br />

than at home,” Polatoğlu added.<br />

Rebound in Türkiye’s critical tourism<br />

industry this year has been driven by<br />

a major leap in demand from Europe,<br />

spearheaded by Germany and the United<br />

Kingdom, as well as Russia.<br />

The number of holidaymakers more<br />

than doubled in the first eight months<br />

of the year. Around 29.3 million tourists<br />

arrived in Türkiye from January through<br />

August, marking a 108.5% climb from a<br />

year ago, on pace to roughly match the<br />

pre-pandemic levels of 2019, according to<br />

Culture and Tourism Ministry data.<br />

The first eight-month figure stood at 14.1<br />

million in 2021, 7.2 million in 2020 and 31<br />

million in 2019.<br />

The arrivals have been mainly backed by<br />

Russian visitors, who increasingly opted for<br />

Türkiye due to flight restrictions applied<br />

by Western countries after Russia invaded<br />

Ukraine, as well as tourists from Europe.<br />

However, the number of German and<br />

British visitors rose strongly this year.<br />

At 3.85 million, tourists from Germany<br />

topped the list among nations and made up<br />

13% of all visitors in the first eight months,<br />

with arrivals jumping 105.73% from a year<br />

ago. Russians followed with just over 3<br />

million, a 22.8% year-over-year increase,<br />

and Britons ranked third with 2.36 million,<br />

a whopping 2,120% surge from the same<br />

period in 2021, according to the data.<br />

Tourism revenues are vital to Türkiye’s<br />

economy as the government’s new<br />

economic program focuses on flipping<br />

the chronic current account deficits to a<br />

surplus, prioritizing exports, production<br />

and investments, and aiming to lower the<br />

increase in consumer prices.<br />

The government raised its year-end targets<br />

in July to 47 million tourists and $37 billion<br />

in revenues, up from its earlier targets<br />

of 45 million arrivals and $35 billion in<br />

income. The number of foreign visitors<br />

soared 94.1% to 24.71 million last year<br />

when COVID-19 measures were eased<br />

compared to 2020. Tourism revenues<br />

doubled to almost $25 billion but remained<br />

well below the level recorded in 2019.<br />

<strong>December</strong> <strong>2022</strong> 30

10-month<br />

Turkish furniture,<br />

paper exports<br />

outperform 2021<br />

figures<br />

Türkiye’s total exports of furniture, paper<br />

and forestry industry products have<br />

reached $6.92 billion (TL 128.75 billion)<br />

in the January-October period, with an<br />

increase of 24% compared to the same<br />

period of the previous year, data showed.<br />

While the increase in overall exports across<br />

the country was 15% in 10 months, there<br />

was a 24% increase in the furniture sector.<br />

With this rise, the sector almost reached<br />

the exports made throughout 2021 which<br />

was $6.99 billion, the data by the Istanbul<br />

Furniture, Paper and Forest Products<br />

Exporters’ Association (ORSİAD) showed.<br />

The share of the furniture industry,<br />

meanwhile, in this figure amounted to<br />

$3.93 billion with an increase of 13.9%.<br />

Erkan Özkan, head of the ORSİAD, said<br />

that although there were difficulties in<br />

supplying raw material all over the world,<br />

adding, however, that “our exporting<br />

companies were affected by this at a<br />

minimum level with the bilateral relations<br />

they have established.”<br />

He said they aim to reach $5 billion in<br />

furniture exports by the end of this year by<br />

maintaining the current success.<br />

Iraq took the lion’s share with $432.1<br />

million among the countries to which the<br />

furniture industry exported the most,<br />

followed by Germany with $333 million and<br />

Israel with $207.8 million.<br />

Meanwhile, Türkiye’s furniture exports to<br />

Qatar rose by 97% making it the country<br />

with the highest increase in exports this<br />

year.<br />

The most exported products of the sector<br />

in the said period were bedsteads and<br />

cradles for children, wooden furniture for<br />

dining and living rooms, metal furniture<br />

and compact furniture that can be turned<br />

into a bed.<br />

<strong>December</strong> <strong>2022</strong> 32

<strong>Automotive</strong> exports top<br />

$2.6 billion in October<br />

Türkiye’s automotive exports increased<br />

by 1.8 percent in October from a year ago<br />

to $2.65 billion, the Uludağ <strong>Automotive</strong><br />

Industry Exporters’ Association (OİB) has<br />

said.<br />

The industry’s share in the country’s overall<br />

export revenues was 12.4 percent.<br />

“Despite inflation, looming risks from the<br />

global recession and the contraction in<br />

the eurozone, our exports continued to<br />

grow,” said Baran Çelik, board chair of OİB,<br />

noting double-digit increases in sales to the<br />

German, Russian and Belgian markets.<br />

The supply industry’s exports rose by 13<br />

percent in October from the same month<br />

of 2021 to reach $1 billion but passenger<br />

car exports dropped 20 percent year-onyear<br />

to $748 million, according to data<br />

from the OİB.<br />

<strong>Exports</strong> of towing vehicles exhibited an<br />

annual increase of 95 percent to stand at<br />

$214 million.<br />

Germany was the largest market for<br />

local automotive companies. <strong>Exports</strong> to<br />

Germany grew 15 percent from a year ago<br />

to $404 million. The U.K. came second at<br />

$285 million, rising 9 percent on an annual<br />

basis. <strong>Exports</strong> to France increased by 12<br />

percent compared with October 2011 to<br />

$252 million.<br />

Data from the OİB also showed that<br />

exports to other key markets, namely<br />

Belgium, Russia, Romania and Portugal<br />

grew by 32 percent, 23 percent, 21 percent<br />

and 79 percent, respectively.<br />

From January to October, the automotive<br />

industry’s exports reached $25 billion,<br />

exhibiting an annual increase of 5 percent.<br />

Türkiye may become important global<br />

player<br />

Meanwhile, Tuğrul Arıkan, general manager<br />

of carmaker Anadolu Isuzu, said that no<br />

country in the global supply chain has as<br />

strong infrastructure in the automotive<br />

industry as Türkiye has. Türkiye may<br />

become an important global player in<br />

this field, replacing other companies as a<br />

supplier, he added.<br />

“There will be much better developments<br />

for the Turkish automotive sector going<br />

forward in 2023 and 2024. We need to<br />

catch up with the ongoing technological<br />

transformation in the supply and main<br />

automotive ndustries and we need<br />

to encourage the use of domestically<br />

manufactured products,” Arıkan said.<br />

As far as Anadolu Isuzu’s operations are<br />

concerned, Arıkan noted that last year the<br />

company introduced its first 8-meter-long<br />

electric bus to the market. “We are working<br />

to launch the 12-meter and 18-meter long<br />

buses in 2023 and thereafter. We are also<br />

working on an electric minibus,” he said.<br />

Anadolu Isuzu is also looking into hydrogen<br />

technology, Arıkan added.<br />

“Our main focus is electric [cars] but we<br />

have started studies on hydrogen. We have<br />

identified the companies which we are<br />

going to work with. Hopefully, we will be<br />

able to introduce our hydrogen vehicle,<br />

which will be more likely an inner-city bus,<br />

at the end of 2024 or in early 2025,” he<br />

said.<br />

<strong>December</strong> <strong>2022</strong> 36

Turkish Airlines teams up with exporters<br />

Under the deal, the flag carrier will<br />

offer discounts between 5 to 30 percent<br />

for cargo weighing more than 1 ton to<br />

be delivered to 40 destinations in 31<br />

countries.<br />

Turkish Airlines will deliver regular goods as<br />

well as perishable products such as fruits,<br />

vegetables, fish and eggs.<br />

Turkish Cargo was the fastest growing<br />

air cargo carrier in the world in 2021<br />

and <strong>2022</strong> and increased its share in the<br />

market to 5 percent, said Ahmet Bolat, the<br />

chairman of Turkish Airlines’ board and<br />

executive committee, noting that with its<br />

performance Turkish Cargo was ranked<br />

fourth among the top air cargo companies<br />

in the world.<br />

Bolat recalled that the carrier previously<br />

signed two protocols with the TİM during<br />

the pandemic to deliver exporters’ cargos<br />

to different destinations.<br />

The latest agreement inked with the TİM<br />

foresees an export volume of $2.1 billion,<br />

he added.<br />

“Türkiye’s average export range is presently<br />

3,065 kilometers, but we want to increase<br />

this to the world average of 4,744<br />

kilometers,” said Mustafa Gültepe, the<br />

president of the TİM.<br />

This year, exports by air have reached $10.3<br />

billion and 158,000 tons of goods were<br />

delivered by air cargo, he added.<br />

Turkish Airlines reported earlier this month<br />

that its cargo revenues soared 140 percent<br />

in January-September this year from the<br />

same period of 2019 to $2.92 billion.<br />

<strong>December</strong> <strong>2022</strong> 38

Türkiye’s historical record in the<br />

Global Innovation Index<br />

In the Global Innovation Index announced<br />

by the World Intellectual Property<br />

Organization, the Switzerland-based<br />

organization of the United Nations, and<br />

in which 132 countries compete, Türkiye<br />

rose four steps in <strong>2022</strong> to the 37th place.<br />

Rising 14 places in the last two years,<br />

Türkiye managed to enter the top 40 in the<br />

index for the first time. The <strong>2022</strong> Global<br />

Innovation Index was announced by the<br />

World Intellectual Property Organization<br />

(WIPO), the Swiss-based agency of the<br />

United Nations, with the main theme<br />

“What is the Future of Innovation-Driven<br />

Growth?”. In the index, which evaluates<br />

132 countries, Türkiye continued its upward<br />

trend and reached the best position in its<br />

history with 37th place. Türkiye, which has<br />

improved by 14 steps in the last two years,<br />

also maintained its 4th place among the<br />

upper-middle income group countries.<br />

Among the upper-middle income group<br />

countries, Türkiye performed above<br />

the group averages in six of the 7 main<br />

components. Türkiye’s best performing<br />

component was “Innovative Outcomes”.<br />

In this component, Türkiye ranked 15th<br />

with an increase of 20 steps compared to<br />

last year, ranking first among the North<br />

Africa/West Asia group countries. In the<br />

“Versatility of Markets” component, it rose<br />

12 places to 37th. This year, Türkiye, which<br />

outperformed its inputs in innovation<br />

outputs, managed to take place in the<br />

top 10 in 6 indicators. Türkiye ranked first<br />

among 132 countries in the “industrial<br />

designs by origin” indicator.<br />

The report also highlighted that Istanbul<br />

and Ankara are home to two leading<br />

science and technology clusters. Istanbul<br />

moved up four spots to 46th among the<br />

best science and technology clusters,<br />

overtaking Brussels, Barcelona, and Zurich.<br />

Evaluating the Global Innovation Index<br />

<strong>2022</strong> Report, Industry and Technology<br />

Minister Mustafa Varank said, “Türkiye is<br />

at its highest level in its history. We have<br />

moved up 14 places in the last two years,<br />

ranking 37th out of 132 countries. The R&D<br />

and innovation ecosystem that we have<br />

built from scratch in 20 years will continue<br />

to write new success stories.”<br />

Stating that they have implemented<br />

policies and mechanisms that support<br />

innovation with the vision of the National<br />

Technology Move for Türkiye, and that<br />

they have deepened our R&D, innovation<br />

and entrepreneurship ecosystem day by<br />

day, Minister of Industry and Technology<br />

Mustafa Varank emphasized that the index<br />

is an effective policy tool in evaluating and<br />

improving the innovation performance of<br />

countries. Varank said in his statement:<br />

“I think the index has 3 main benefits.<br />

Firstly, it allows to analyze innovation<br />

performance from different angles on<br />

an annual basis and with comprehensive<br />

indicators. Secondly, it allows to discover<br />

potential areas of intervention by seeing<br />

<strong>December</strong> <strong>2022</strong> 40

the strengths and weaknesses of the<br />

ecosystem. Finally, it lays the groundwork<br />

for the development of evidence-based<br />

structural reforms to address these areas of<br />

intervention. In this direction, we have first<br />

established the Türkiye Global Innovation<br />

Index Task Force. Then, we determined<br />

the responsible institutions for the missing<br />

or outdated data in the index, and we<br />

started the cooperation process with the<br />

international organizations that provide<br />

data to the index. In order to monitor the<br />

developments in the indicators, we have<br />

established the Global Innovation Index<br />

Coordination and Monitoring Platform. As a<br />

result of the policies we have implemented,<br />

support mechanisms and initiatives we<br />

have initiated, our country has achieved<br />

this historic success.”<br />

Evaluating the Global Innovation Index<br />

<strong>2022</strong> Report, Minister of Trade Dr. Mehmet<br />

Muş made the following assessment:<br />

“Today, innovation is consolidating its<br />

place among the main determinants of<br />

economic growth and competitiveness<br />

in the international arena day by day.<br />

From the invention of agriculture and the<br />

discovery of the wheel to the present day,<br />

when we have smartphones in our hands<br />

that have millions of times more powerful<br />

operating capacity than the computers<br />

in the control room of Apollo 11, which<br />

carried astronauts to the moon in 1969,<br />

mankind has always been in elbow contact<br />

with innovation. With the beginning of<br />

the 21st century, the innovation that<br />

emerged in many areas such as self-driving<br />

tools, artificial intelligence applications<br />

and blockchain technologies, big data<br />

applications, which we came across<br />

in science fiction novels or films a few<br />

decades ago, has started to rapidly shape<br />

and transform the future of countries and<br />

humanity. In innovation, speed is not our<br />

enemy, on the contrary, it is our closest<br />

friend today, where innovative ideas and<br />

practices are faster than ever before. For<br />

this reason, Türkiye’s reaching the place<br />

it deserves in the world in the innovation<br />

race is perhaps one of the guarantees of<br />

taking firm steps forward to the future as<br />

an existential issue. Moreover, I believe<br />

that it has become impossible to predict<br />

the fate of countries from now on free<br />

from the efforts and outputs of innovation<br />

and technological development.<br />

The effective innovation requires a strong<br />

innovation ecosystem that emerges<br />

with the harmonious cooperation and<br />

interaction of many stakeholders and<br />

elements such as public and private<br />

sector institutions and organizations,<br />

universities, investors, companies,<br />

supportive political and legal<br />

infrastructure, resource allocation.<br />

Here, in addition to what the public<br />

should do, all our companies, especially<br />

our exporter companies, Innovative a<br />

necessity to make a technology-oriented<br />

future planning with a perspective,<br />

innovation I think raising awareness is a<br />

vital issue. As a matter of fact, the fact<br />

that we have started to reap the fruits of<br />

our R&D studies in the defense industry<br />

has proved to all of us how important<br />

this field is. We, as the Ministry, always<br />

work with our companies’ technology<br />

and innovation we see assisting and<br />

consulting with their focused efforts as a<br />

necessity beyond satisfaction.<br />

When we look at the patent application<br />

data of the World Intellectual Property<br />

Rights Organization, we see that there<br />

is a positive trend in Türkiye’s patent<br />

applications and that approximately 10<br />

thousand patent applications have been<br />

filed annually in recent years. I believe<br />

that technology and innovation with<br />

the further increase of focused business<br />

culture and awareness, our country will<br />

rise to much higher ranks in the world<br />

in both our R&D expenditures and<br />

international patent applications and<br />

acceptances.”<br />

TİM Chairman Mustafa Gültepe, who<br />

participated in the introductory meeting<br />

of the Global Innovation Index <strong>2022</strong><br />

with a video message, said that they<br />

lead exporters to adapt to the digital age<br />

with innovation. Emphasizing Türkiye’s<br />

success in innovation, TİM Chairman<br />

Gültepe continued:<br />

“Under the leadership of Mr. President,<br />

with the support of our Ministries and<br />

the contributions of our institutions<br />

in the task force, we rose 10 places<br />

to 41st in the index in 2021. Last<br />

year, we also broke the record in the<br />

history of the Republic by reaching<br />

225 billion dollars in exports. With<br />

TİM’s efforts towards the innovation<br />

and entrepreneurship ecosystem and<br />

the increasing competitiveness of our<br />

companies, Türkiye continued its rise this<br />

year. In <strong>2022</strong>, we broke the record of 15<br />

years in which the index was published<br />

and reached the highest position in our<br />

history with the 37th place. Innovationoriented<br />

growth will increase the<br />

competitiveness of our exporters and<br />

enable them to find a stronger place in<br />

global trade.<br />

Within the scope of the Investment<br />

Environment Improvement Coordination<br />

Board (YOIKK) Action Plan, the “Global<br />

Innovation Index Action Plan” studies<br />

were launched in 2020. At the meeting<br />

held under the chairmanship of Vice<br />

President Fuat Oktay on June 30, 2020, it<br />

was decided to establish a task force to<br />

accelerate the work to increase Türkiye’s<br />

position in the Global Innovation Index.<br />

Global Innovation Index Türkiye Action<br />

Plan and Strategy (2021-2023) was<br />

prepared. The strategy document, which<br />

was prepared with the coordination of<br />

the Ministry of Industry and Technology,<br />

the TİM Secretariat and the contributions<br />

of 20 different public institutions and<br />

organizations, will be presented to WIPO<br />

Director Daren Tang this year.<br />

<strong>December</strong><br />

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


China’s chip<br />

maker to raise<br />

billions amid US<br />

export curbs<br />

Chinese chip manufacturer Hua Hong<br />

Semiconductor has received regulatory<br />

approval for an 18 billion yuan ($2.5 billion)<br />

IPO in Shanghai, according to a Hong Kong<br />

stock exchange filing.<br />

The planned initial public offering (IPO)<br />

comes as China’s chip companies gear up<br />

for steeper competition with the United<br />

States due to geopolitical tensions.<br />

US President Joe Biden introduced<br />

unprecedented export curbs aimed at<br />

stopping Beijing from acquiring advanced<br />

semiconductor technology.<br />

New rules bar American citizens, residents<br />

and green-card holders from working with<br />

China’s chip makers. Hua Hong says it<br />

intends to use the money to invest in a new<br />

fabrication plant – or fab – in the eastern<br />

city of Wuxi, with construction set to<br />

begin in 2023 and an eventual production<br />

capacity of 83,000 wafers per month.<br />

The company currently has four fabs in<br />

total – three 8-inch fabs in Shanghai,<br />

and one 12-inch fab in Wuxi currently<br />

expanding to 95,000 wafers per month.<br />

The proceeds from the IPO will also go<br />

to upgrading the latter fab, according to<br />

its prospectus. Hua Hong’s Shanghai IPO<br />

will follow that of China’s Semiconductor<br />

Manufacturing International Corp (SMIC),<br />

China largest chip manufacturer.<br />

Washington has barred US-based<br />

equipment makers from selling tools to<br />

Chinese foundries for production of logic<br />

chips produced at 14-nanometers and<br />

below. Hua Hong specialises in mature<br />

technology, and generates most of its<br />

revenue making chips using 55-nanometer<br />

process technology.<br />

The company has a global market share<br />

of 3.2 percent of the foundry business,<br />

according to research firm TrendForce.<br />

<strong>December</strong> <strong>2022</strong> 44

Türkiye foresees 5% economic growth for <strong>2022</strong>, 2023<br />

The leading indicators of the economy for<br />

the second half of <strong>2022</strong> point to moderate<br />

growth and Türkiye’s gross domestic<br />

product to grow 5% in <strong>2022</strong>, amid a global<br />

slowdown, Treasury and Finance Minister<br />

Nureddin Nebati said.<br />

Speaking to Parliament’s Planning and<br />

Budget Committee, Nebati said the<br />

economic growth, expected to maintain its<br />

balanced outlook in 2023, is targeted to be<br />

5% again next year.<br />

“In a period when challenging global<br />

conditions are experienced and the global<br />

conjuncture is changing rapidly, the<br />

‘Türkiye Economy Model’ aims to ensure<br />

macroeconomic and financial stability and<br />

price stability simultaneously, to encourage<br />

high value-added production, to turn the<br />

change in supply chains into an opportunity<br />

and to permanently solve the current<br />

account deficit problem,” Nebati reiterated.<br />

Stating that a significant improvement was<br />

achieved in the non-energy current account<br />

balance, significant gains were achieved in<br />

investment, employment, production and<br />

exports, Nebati said, “In this period when<br />

the risk of recession has increased for<br />

many developed and developing countries,<br />

the Turkish economy continues to grow<br />

strongly thanks to our model, and the<br />

composition of the growth also displays a<br />

balanced outlook.”<br />

“Türkiye is the fastest growing country in<br />

the G-20 with a GDP growth of 11.4% in<br />

2021 and recorded the highest growth rate<br />

in the last 50 years,” he said.<br />

Nebati noted that some 6.6 points of this<br />

growth come from domestic demand and<br />

4.8 points from net foreign demand and<br />

the net foreign demand to growth is the<br />

highest figure reached after 2001.<br />

“Despite the uncertainty caused by the<br />

war between Russia and Ukraine and the<br />

weakening global economy, our gross<br />

domestic product grew by 7.5% in real<br />

terms in the first half of <strong>2022</strong>,” he said,<br />

noting: “With a growth rate of 7.6% as of<br />

the second quarter, Turkey was among<br />

the fastest growing countries in the OECD.<br />

In the first half of the year, our economy<br />

maintained its balanced outlook in line<br />

with our sustainable and healthy growth<br />

target.”<br />

Goldman Sachs and Moody’s have also<br />

raised recently their forecast for Türkiye’s<br />

<strong>2022</strong> economic growth. Goldman Sachs<br />

said it revised upward its GDP growth<br />

forecast for Türkiye for this year to 5.5%<br />

from 3.5% while lifting its <strong>2022</strong> current<br />

account deficit forecast to $45 billion from<br />

$36 billion. Moody’s also said in a report<br />

in September that it raised its <strong>2022</strong> growth<br />

estimate to 4.5%, up from 3.5%.<br />

Nebati further commented that total<br />

employment in the country rose above<br />

the pre-pandemic period and reached<br />

historically high levels.<br />

Emphasizing that exports continue to<br />

break historical records, Nebati stated that<br />

with the steps taken within the scope of<br />

the Turkish Economy Model, exporters<br />

succeeded in turning the disruptions in the<br />

global supply chain into opportunities and<br />

made exports the locomotive of growth.<br />

“Our exports broke a record in every month<br />

of <strong>2022</strong> and reached the highest level in<br />

the history of the republic, exceeding the<br />

annualized $253 billion in October.”<br />

Nebati stated that total imports increased<br />

with energy imports, which remained high<br />

due to rising global energy prices.<br />

Pointing out that tourism has grown<br />

at a rate above the world average and<br />

outperformed its pre-pandemic levels,<br />

Nebati noted that they expect the course of<br />

tourism to continue for the rest of the year<br />

and a performance well above the record<br />

revenue in 2019.<br />

Nebati said, “While the current account<br />

balance gives a deficit due to energy<br />

imports, the current account balance<br />

excluding energy continues to have a<br />

surplus.”<br />

Nebati stated that the country aims to<br />

permanently improve the current account<br />

balance in the medium and long term with<br />

the policies implemented.<br />

Apart from the investments made in the<br />

renewables sector, the country aims to<br />

reduce foreign dependency on energy<br />

and to further reduce the pressure on<br />

the current account balance and external<br />

financing needs by commissioning the<br />

natural gas discovered in the Black Sea by<br />

2023, he added.<br />

Speaking on the fight against inflation,<br />

Nebati stated that they gave up TL 276.8<br />

billion ($14.89 billion) of tax revenue this<br />

year as part of this. Drawing attention<br />

to the tax cuts aimed at increasing the<br />

purchasing power and welfare of the<br />

citizens, Nebati said that they also support<br />

the most basic expenditures of the citizens.<br />

Reminding that they provide an 80%<br />

subsidy for natural gas used in households<br />

and 50% subsidies for electricity, Nebati<br />

said, “We provide electricity consumption<br />

support up to 150 kilowatt-hours to 2.1<br />

million households. Our target is to increase<br />

this support to 4 million households.”<br />

<strong>December</strong> <strong>2022</strong> 48

Winter eurozone recession looms as inflation hangs on<br />

The eurozone economy will slide into<br />

recession over the winter and will<br />

grow less than expected next year, the<br />

European Union’s executive commission<br />

said.The warning comes as peak inflation<br />

hangs on for longer than expected<br />

and high fuel and heating costs erode<br />

consumer purchasing power.<br />

High energy prices, the rising cost of<br />

living, higher interest rates and slowing<br />

global trade “are expected to tip the EU,<br />

the euro area, and most member states<br />

into recession in the last quarter of the<br />

year,” the forecast highlighted.<br />

The growth forecast for all of 2023 was<br />

lowered to 0.3% from the 1.4% expected<br />

in the previous forecast from July.<br />

“The EU economy is at a turning<br />

point,” said Paolo Gentiloni, European<br />

commissioner for the economy.<br />

“After a surprisingly strong first half of the<br />

year, the EU economy lost momentum in<br />

the third quarter and recent survey data<br />

point to a contraction for the winter,” he<br />

told reporters in Brussels. “The outlook<br />

for next year has weakened significantly.”<br />

The worst performer next year is likely to<br />

be Germany, Europe’s largest economy<br />

and one of the most dependent on<br />

Russian natural gas before the war in<br />

Ukraine. Germany was expected to see<br />

the output shrink by 0.6% over the next<br />

year.<br />

Gas and electricity prices have soared as<br />

Russia has dialed back supplies to Europe<br />

to a mere trickle of what they were before<br />

the invasion of Ukraine. European officials<br />

say the cutbacks are energy warfare by<br />

Russia to punish EU member countries<br />

for their support for Ukraine, while<br />

state-owned supplier Gazprom has cited<br />

technical reasons and a refusal by some<br />

customers to pay for gas in rubles.<br />

Inflation will peak later than expected,<br />

near the end of the year, and will lift the<br />

average rate to 8.5% for <strong>2022</strong> and to<br />

6.1% for 2023 in the eurozone. That is an<br />

upward revision of nearly 1 percentage<br />

point for <strong>2022</strong> and over 2 points for 2023.<br />

Two consecutive quarters of falling output<br />

is one common definition of recession,<br />

although the economists on the eurozone<br />

business cycle dating committee use a<br />

broader set of data including employment<br />

figures.<br />

“We are approaching the end of a year<br />

in which Russia has cast the dark shadow<br />

of war across our continent once again,”<br />

Gentiloni said.<br />

But apart from the expected technical<br />

recession, the eurozone’s unemployment<br />

rate, aggregated deficit, and debt or<br />

the current account balance will not<br />

deteriorate much, if at all, the forecasts<br />

showed. The commission indicated that<br />

the job market was likely to hold up<br />

relatively well despite shrinking output<br />

over the winter, forecasting an increase<br />

in the unemployment rate from 6.8% this<br />

year to 7.2% next and a decrease to 7% in<br />

2024.<br />

“The EU economy has shown great<br />

resilience to the shockwaves this has<br />

caused. Yet soaring energy prices and<br />

rampant inflation are now taking their<br />

toll and we face a very challenging period<br />

both socially and economically,” Gentiloni<br />

added.<br />

<strong>December</strong> <strong>2022</strong> 50

Europe could face gas<br />

shortage next year: IEA<br />

Europe must act immediately to prevent<br />

a shortage of natural gas next year as<br />

Russia slashes deliveries in the wake of<br />

the Ukraine war, the International Energy<br />

Agency warned.<br />

The IEA said the shortfall would occur if<br />

Russia stops pipelines deliveries completely<br />

and China steps up its imports of liquefied<br />

natural gas, which Europe has relied upon<br />

to replace Russian supplies.<br />

The region could lack 30 billion cubic<br />

metres that it needs “to fuel its economy<br />

and sufficiently refill storage sites during<br />

the summer of 2023, jeopardising its<br />

preparations for the winter of 2023-<br />

24,” the Paris-based agency said in a<br />

report. “We believe Europe needs to take<br />

immediate action to avoid risks of natural<br />

gas shortage next year,” EA Executive<br />

Director Fatih Birol told reporters.<br />

“We’re ringing alarm bells for the European<br />

governments and for the European<br />

Commission for next year,” he said.<br />

Russia has drastically cut supplies to Europe<br />

in suspected retaliation against Western<br />

sanctions over its<br />

invasion of Ukraine,<br />

but the region<br />

was able to fill<br />

storage sites for this<br />

upcoming winter.<br />

The IEA said Moscow delivered 60 billion<br />

cubic metres of gas to Europe this year but<br />

that it was “highly unlikely” that Russia<br />

would provide the same amount in 2023<br />

and could cease deliveries entirely.<br />

And while Chinese LNG imports were<br />

lower in the first 10 months of this year,<br />

the world’s second biggest economy could<br />

grab 85 percent of the expected increase in<br />

global LNG supplies if its purchases recover<br />

next year.<br />

European Union governments have urged<br />

business and households to conserve<br />

energy this winter in efforts to lower<br />

demand and scrambled to find alternative<br />

suppliers.<br />

Norway has overtaken Russia as Europe’s<br />

main natural gas supplier. The region has<br />

also shipping LNG from other countries at<br />

a rate that has caused bottlenecks at ports.<br />

Gas prices, meanwhile, have fallen sharply.<br />

But Birol said Europe’s gas storage sites<br />

may only be 65 percent full in 2023,<br />

compared to 95 percent this year.<br />

“With the recent mild weather and<br />

lower gas prices, there is a danger<br />

of complacency creeping into the<br />

conversation around Europe’s gas supplies,<br />

but we are by no means out of the woods<br />

yet,” Birol said in a separate statement.<br />

Birol warned that Europe will face “an even<br />

sterner challenge” next winter.<br />

“This is why governments need to be<br />

taking immediate action to speed up<br />

improvements in energy efficiency and<br />

accelerate the deployment of renewables<br />

and heat pumps -- and other steps to<br />

structurally reduce gas demand,” he said.<br />

<strong>December</strong> <strong>2022</strong> 52

Türkiye eyes wider share in<br />

global services exports’<br />

Türkiye wants to expand its share in global<br />

services exports with newly-developed<br />

incentives, Deputy Trade Minister Özgür<br />

Volkan Ağar said at the Services Export<br />

Summit, held under the scope of the<br />

Türkiye Export Campaign, launched by the<br />

Sabah daily.<br />

Noting that Türkiye only had a 1% share<br />

in the global services sector in 2021, with<br />

$61 billion worth of services exported,<br />

Ağar said the country’s new support and<br />

incentive package announced by the<br />

government in <strong>2022</strong> will boost these<br />

numbers.<br />

Meanwhile, associate professor Mustafa<br />

Aydın, the deputy president of the services<br />

export association, noted that the sector,<br />

which includes 10 sub-categories, including<br />

education, health and port services, makes<br />

great contributions to the Turkish economy<br />

and the current account deficit.<br />

“It is crucial to produce paths for new<br />

initiatives, new fields and markets in the<br />

services export sector,” he told the panel.<br />

<strong>December</strong> <strong>2022</strong> 56

Moroccan <strong>Automotive</strong> Industry Show<br />

International Automobile Spare Part Fair<br />

organized by Global Fairs & Events within<br />

the Office des Changes of Casablanca<br />

attracts global interest.<br />

During the last decade, the automotive<br />

industry has been constantly rising to<br />

sustainable levels of growth in Morocco.<br />

Its outstanding performance allowed<br />

the country to become the number 1<br />

Manufacturer in Africa, and generated<br />

more than 72 billion MAD in export,<br />

making the automotive industry the<br />

top exporting sector in the country.<br />

Additionally, it is expected to grow even<br />

more in the upcoming 5 years and is<br />

expected to register a CAGR of 5.6% by<br />

2025.<br />

As an international industrial trade show<br />

dedicated to the spare parts sector and<br />

automotive industry, MATS strives to<br />

assemble the best and widest range<br />

on offer from product and equipment<br />

manufacturers and distributors. MATS<br />

fulfils its role both as a major industry<br />

event and as a decision-making tool<br />

to choose the right solutions for car<br />

repairs, servicing and equipment or for<br />

sourcing new suppliers for importers and<br />

distributors. You will be able to meet your<br />

suppliers in international manufacturers<br />

of auto parts and components seminars<br />

dedicated to localization plans and hold<br />

negotiations with domestic and foreign<br />

suppliers<br />

Major products to be exhibited are:<br />

Parts and Components • Engine and<br />

mechanical systems • Gearbox, exhaust,<br />

axle, steering brakes and suspension<br />

• Electrical and electronic systems<br />

• Tires, Wheels and batteries. Accessories<br />

and spare parts • Interior lining<br />

• Car audio and video systems<br />

• Navigation and telecommunications<br />

systems<br />

• Air conditioning systems • Vehicle safety<br />

and security systems Repair & maintenance<br />

• Equipment and tools • Body repair<br />

• Protection against corrosion • Disposal<br />

and recycling<br />

• Lubricants, oils and auxiliary materials.<br />

Car wash, service station and car care •<br />

Washing facilities and accessories<br />

• Cleaning and maintenance products<br />

• Charging station and equipment<br />

<strong>December</strong> <strong>2022</strong> 58

Türkiye says on course to achieve<br />

$250B exports despite challenges<br />

Trade Minister Mehmet Muş said Türkiye<br />

remained on course to achieve its year-end<br />

exports target, despite global uncertainties<br />

spearheaded by deteriorating demand in<br />

Europe. Demand in the country’s largest<br />

market is expected to weaken even further<br />

in the coming period, constituting a serious<br />

risk for Türkiye’s trade. The gloomy outlook<br />

was affirmed by data that showed demand<br />

in Türkiye’s key export markets continued<br />

to weaken in October.<br />

“As of now, we think we will achieve<br />

this (<strong>2022</strong>) goal. There is no question of<br />

any deviation from this goal,” Muş told<br />

the sixth edition of the Türkiye Export<br />

Mobilization Summit.<br />

The event was organized by Türkiye’s<br />

leading media group and Daily Sabah’s<br />

parent company, Turkuvaz Media, in<br />

Istanbul. Türkiye’s exports remained<br />

buoyant and rose 15.4% from January<br />

through October this year to $209.5 billion,<br />

according to official data, marking an<br />

all-time 10-month high. Türkiye has set a<br />

$250 billion export target for this year, after<br />

reaching a record $225 billion in 2021.<br />

Regarding 2023, Muş said they would<br />

“reflect all our energy on the field” to<br />

ensure exports stay on the upward path.<br />

Muş said there has been a slowdown<br />

in the growth trend of exports, citing<br />

weakening demand in the European<br />

Union, where almost half of the Türkiye’s<br />

shipments go.<br />

“A slowdown there (in Europe), whether<br />

we want it or not, a drop in demand there<br />

affects our exports,” he said.<br />

Shipments to the EU jumped 13.5% in the<br />

first ten months, with Türkiye enjoying a<br />

$9.7 billion surplus in trade with the bloc.<br />

Muş stressed Türkiye’s efforts to diversify<br />

markets and cited the government’s<br />

strategy to boost sales to remote<br />

countries.<br />

“The share we have in the world exports is<br />

1%, but the share we hold in the countries<br />

we identify as distant countries is 0.25%.<br />

Therefore, we have a goal to raise it to the<br />

same level,” he added.<br />

“We want to increase our share here to<br />

the average level of 1%, which is the share<br />

we receive from the world. This means<br />

an increase in exports to us with today’s<br />

figures of an additional $80 billion.”<br />

This is a difficult process, Muş said, citing<br />

challenges regarding logistics, planning<br />

and distribution channels. But he noted<br />

the expanded trips, fairs and organizations<br />

in the targeted markets.<br />

Muş expressed that the image of Türkiye<br />

and Turkish products in remote countries<br />

is “very positive,” stressing that they<br />

would focus very intensively on them in<br />

the coming period and that these studies<br />

may take up to four months.<br />

He stated that the EU would retain its<br />

weight in this period but said markets of<br />

similar importance may emerge in the<br />

period ahead.<br />

Muş said the uncertainty was the main<br />

factor triggering the slowdown in demand<br />

for exports, warning that 2023 would be<br />

an even more challenging year for the<br />

world.<br />

“Costs are financed in some way, the<br />

size of financial costs or the size of<br />

investment costs are somehow endured,<br />

but the negativity of expectations about<br />

the future, the expectation of what will<br />

happen, stops everything,” the minister<br />

said.<br />

“In other words, another development<br />

can happen in a country when you never<br />

expect it. Therefore, this expectation<br />

inevitably reduces investment decisions<br />

and demand incredibly.”<br />

Muş cited downward revisions by<br />

international organizations for the global<br />

economy, including the EU.<br />

“They are revising downward their growth<br />

expectations for trade for 2023. Therefore,<br />

the year 2023 will be more difficult for the<br />

world than <strong>2022</strong>,” he said.<br />

<strong>December</strong> <strong>2022</strong> 60

Turkish Airlines receives sustainability award<br />

Turkish Airlines has been awarded the<br />

“Airline Sustainability Innovation of the<br />

Year” award by the Centre for Aviation<br />

(CAPA).<br />

“Turkish Airlines, which puts sustainability<br />

at the center of its business model, won<br />

this award within the scope of sustainable<br />

innovation with the ‘Microalgae Based<br />

Sustainable Bio-Jet Fuel Project [MICRO-<br />

JET],’ in which it worked closely with<br />

scientists to develop the world’s first<br />

carbon negative sustainable aviation fuel<br />

[SAF],” the flag carrier said in a statement.<br />

Micro-Jet, jointly carried out with Boğaziçi<br />

University, aims to produce biofuels from<br />

microalgae using hydro-processed fatty<br />

acids and hydrothermal liquefaction<br />

methods. Turkish Airlines plans to use<br />

this biofuel, which will be obtained from<br />

sustainable sources and is a project output<br />

that contributes to nine of the United<br />

Nations Sustainable Development Goals,<br />

in its flights after the engine tests to be<br />

carried out by Turkish Technic.<br />

When the national flag carrier uses this<br />

fuel, it will be one of the few global<br />

companies that can use the cleanest type<br />

of biofuel, the statement added.<br />

“As the airline that flies to more countries<br />

than any other airline in the world, we<br />

appreciate the sustainable aviation fuel as<br />

a key element in our sustainability strategy<br />

on reducing aviation’s environmental<br />

impact,” said Levent Konukçu, chief<br />

investment and technology officer at<br />

Turkish Airlines.<br />

“We will continue to invest and support<br />

sustainable aviation fuels and focus on the<br />

future of our world.”<br />

Turkish Airlines said it received APEX World<br />

Class and 2023 Five Star Global Airline<br />

awards with its service standard from the<br />

Airline Passenger Experience Association<br />

(APEX ), one of the world’s most trusted<br />

and prominent aviation organizations.<br />

<strong>December</strong> <strong>2022</strong> 62

Europe’s Electric vehicle <strong>2022</strong> sales grow in<br />

Q3 despite economic challenges<br />

Following a series of economic downturns, the European electric<br />

vehicle (EV) market is showing resilience despite the prevailing<br />

macroeconomic factors that have impacted consumer spending.<br />

In particular, data acquired and calculated by Finbold on November<br />

29 indicates that as of Q3 <strong>2022</strong>, the total number of Battery Electric<br />

(BEV) and Plug-in Hybrid Electric (PHEV) new passenger vehicles<br />

registrations in Europe stood at 571,377. The value represents<br />

a quarterly increase of about 1.98% from Q2’s value of 560,266.<br />

During Q1, the region recorded a registration of 562,276 units.<br />

A breakdown of the car types indicates that BEVs stood at 355,336<br />

in Q3, slightly increasing from Q2’s figure of 322,144, while in the<br />

first quarter, the registration was 325,285. Elsewhere, during the<br />

third quarter of <strong>2022</strong>, the total registered PHEVs was 216,041, a<br />

drop from Q2’s 238,122. During Q1, the region had 236,991 new<br />

PHEV units.<br />

Notably, the total number of new passenger car registrations across<br />

Europe with an alternative fuel type recorded a quarterly drop<br />

of 2.47% to 1,265,947 in Q3. In Q2, the cars stood at 1,297,966,<br />

representing a drop of 2.88% from Q1’s 1,336,523.<br />

Drivers of Europe’s EV market growth<br />

The research acknowledged that the European EV market had<br />

grown significantly while highlighting some key drivers. According<br />

to the research report:<br />

“In general, the European EV market’s previous growth has<br />

been attributed to factors like increased income levels within a<br />

climate-conscious population, robust government support for the<br />

EV industry, and an extensive public-private partnership for EV<br />

charging infrastructure.”<br />

Despite the growth, the EV space still faces several hurdles, with<br />

the cost factor emerging as a critical obstacle. At the same time,<br />

how the prevailing economic conditions will impact the sector is yet<br />

to be seen.<br />

Read the full story with statistics here: https://finbold.com/<br />

europes-electric-vehicle-<strong>2022</strong>-sales-grow-in-q3-despite-economicchallenges/<br />

Find one of the charts below:<br />

<strong>December</strong> <strong>2022</strong> 64

Renault unveils<br />

major revamp,<br />

internalcombustion<br />

JV<br />

with Geely<br />

French automaker Renault announced<br />

a major reorganization, splitting its<br />

operations into a new electric vehicle unit<br />

and a separate internal combustion engine<br />

division with China’s Geely.<br />

The flagship division of its revamp, electric<br />

vehicle and software entity Ampere, was<br />

being prepared for an initial public offering<br />

(IPO) on the Euronext Paris in the latter<br />

half of next year at the earliest, it said in a<br />

statement.<br />

The new entity will employ around 10,000<br />

staff in France and produce the R5 and 4L<br />

electric vehicles in the north of the country,<br />

the carmaker said as it outlined the revamp<br />

for investors.<br />

The electric vehicle market is expected to<br />

grow rapidly in response to consumers’<br />

worries about climate change, putting<br />

pressure on manufacturers to develop less<br />

polluting products.<br />

The European Union agreed to phase out<br />

new carbon dioxide-emitting vehicles<br />

by 2035, a move set to turbo-charge the<br />

production of electric prototypes on the<br />

continent.<br />

Renault said it plans to invite investment<br />

in Ampere but would remain the majority<br />

shareholder with “the support of potential<br />

strategic cornerstone investors.”<br />

Renault also intends to combine its<br />

technological, manufacturing and research<br />

and development activities for its hybrid<br />

and internal-combustion vehicles with<br />

Chinese automaker Geely in a new entity,<br />

“Horse.”<br />

The groups will share the division to design,<br />

develop, produce and sell components and<br />

systems for hybrid and internal-combustion<br />

vehicles, employing 19,000 people at 17<br />

powertrain factories and three research<br />

and development hubs across Europe,<br />

China and South America.<br />

In 2020, Renault suffered a historic loss<br />

and its recovery was destabilized by its<br />

withdrawal from Russia following Moscow’s<br />

invasion of Ukraine. The value of traditional<br />

car manufacturers pales in comparison to<br />

new players on the market specializing in<br />

electric vehicles such as Elon Musk’s Tesla<br />

or Chinese firm BYD.<br />

Renault still needs a large investment<br />

to accelerate its electric transformation<br />

according to plans it presented in 2020.<br />

U.S. giant Ford has taken similar steps,<br />

announcing the the “Ford Model E”<br />

earlier this year. The announcement<br />

comes as the sales of traditional internalcombustion<br />

vehicles fall. In the first nine<br />

months of <strong>2022</strong>, hybrid and electric<br />

vehicles represented 38% of the brand’s<br />

registrations in Europe, a year-on-year<br />

increase of 12%.<br />

The separation of Renault’s activities<br />

has concerned trade unions after several<br />

waves of job cuts. Investors expressed their<br />

interest in Renault’s transformation, with<br />

the group’s stock value climbing 3.77% on<br />

the Paris stock market.<br />

<strong>December</strong> <strong>2022</strong> 68

Wiesmann reveals next generation technologies for<br />

latest Project Thunderball – the world’s first<br />

all-electric convertible roadster<br />

Wiesmann, the luxury sports car marque,<br />

has revealed further technical details of<br />

its highly-anticipated all-electric vehicle<br />

codenamed Project Thunderball – a<br />

vehicle that represents a return for the<br />

iconic brand with the world’s first electric<br />

convertible roadster. Designed with<br />

Wiesmann’s DNA running throughout, the<br />

car is an evolution of the exclusive German<br />

brand’s history combining the distinctive,<br />

sleek, looks of a Wiesmann with a modern,<br />

highly engineered, electric powertrain<br />

providing breath-taking performance.<br />

The two-seater, rear-wheel drive Project<br />

Thunderball sees twin electric rear-mid<br />

mounted motors delivering up to 500kW<br />

(680hp) to the rear wheels and 1100 Nm<br />

of torque, bringing phenomenal straightline<br />

performance and a targeted 0-62mph<br />

(0-100km/h) sprint acceleration time of 2.9<br />

seconds. Wiesmann’s precise engineering<br />

of the cutting-edge electric powertrain<br />

is key to delivering an emotional driving<br />

experience that is a trademark of<br />

Wiesmann sports car, embodied in timeless<br />

design that befits a performance EV of the<br />

modern era.<br />

Platform and packaging<br />

Project Thunderball has been built on<br />

a bespoke chassis architecture with its<br />

powertrain components cleverly packaged<br />

to provide the lowest possible centre<br />

of gravity. To keep the typical roadster<br />

proportions, the position of the driver and<br />

passenger are positioned as far backward<br />

as possible, presenting a challenge to<br />

integrate the drivetrain and large battery<br />

into the vehicle’s small footprint.<br />

The challenge was welcomed by its<br />

engineers who have pushed the limits<br />

of architecture configuration by locating<br />

the drivetrain behind the driver’s seat<br />

and battery modules in a T-shape along<br />

the centre tunnel and into the front of<br />

the vehicle along with the twin Axial flux,<br />

PMSM e-motors. With lightweighting key<br />

to efficiency, the vehicle’s powertrain<br />

combined with its carbon fibre body<br />

astonishingly weighs in at little more than<br />

1700kg (3747lb), providing an outstanding<br />

2.5kg per HP of performance.<br />

Battery power<br />

At the heart of the vehicle lies one of the<br />

most energy and power-dense battery<br />

packs available, providing a target range<br />

of 500km (310 miles). The 92kWh (83kWh<br />

available), Li-ion NMC, “module-to-pack”<br />

technology is based on series modules with<br />

<strong>December</strong> <strong>2022</strong> 70

integrated pouch cells, which in total weigh<br />

a very lightweight 500kg,<br />

The impressive battery capacity is uniquely<br />

high for a roadster and more akin to that<br />

of a sedan or SUV. Installing this capacity<br />

into a roadster will bridge the gap from<br />

a pure short-trip leisure car to a serious<br />

weekend car. In addition to this, owners<br />

can forget about charging anxiety thanks<br />

to its state-of-the-art 800V high-voltage<br />

architecture enabling ultra-rapid 300kW<br />

DC fast charging at a public charger<br />

or charging domestically via its 22kW<br />

onboard charger. Charging is provided via<br />

a standard Type-2 charging port with ACand<br />

DC charge ports. To keep the battery<br />

performing at such a high level, Wiesmann<br />

engineers have developed a sophisticated<br />

thermal management system for the<br />

battery module. Using a water-glycol mix,<br />

the modules are cooled via a bespoke<br />

designed, flow-simulated and optimized<br />

cooling plate, which transfers the heat<br />

to the base of the module as quickly as<br />

possible.<br />

A bespoke Battery Management System<br />

[BMS] has also been developed, which has<br />

given Wiesmann engineers the freedom to<br />

adjust, calibrate and fine-tune the vehicle’s<br />

drivability that is optimised for all driving<br />

states and ambient conditions.<br />

Regenerative braking system<br />

Wiesmann’s mission with Project<br />

Thunderball is to imbue its sports car<br />

with the emotion and immersive feel so<br />

many modern EVs lack. To create that<br />

incomparable driver-orientated Wiesmann<br />

experience, and to implement their own<br />

idea of how an emotional EV drives, a<br />

unique Intelligent Regenerative Braking<br />

System has been specifically developed.<br />

With five setting levels available, the<br />

steering wheel-mounted paddles allow<br />

instant adjustment of the car’s regenerative<br />

braking power, much like the shifting of<br />

gears on an ICE car, so drivers are more<br />

involved.<br />

As well as providing driving pleasure, the<br />

driver can change the twin electric motors’<br />

feel to give a powerful engine braking<br />

effect when going downhill or braking<br />

into corners, which recharges the battery<br />

to regain additional range, and allowing<br />

optimum use and minimal waste of energy.<br />

The return of Wiesmann<br />

Roheen Berry, CEO of Wiesmann said,<br />

“The continued development of Project<br />

Thunderball is bringing Wiesmann ever<br />

closer to the goal of producing what<br />

will be the world’s most exciting electric<br />

sports car. Thanks to endless research and<br />

testing, the roadster will blend our bespoke<br />

cutting-edge powertrain technology with<br />

Wiesmann’s trademark German engineering<br />

excellence. We are putting the emotion<br />

back into EVs. Which is why technology has<br />

been a key part of this project, creating a<br />

vehicle that not only has the stunning looks<br />

of a true Wiesmann, but also drives like a<br />

world-class sports car. Iam equally pleased<br />

to say that we have had an enthusiastic<br />

response from customers. Since opening the<br />

reservations list at the end of September,<br />

we have ¾ of the first year of production<br />

slots allocated, proof that they are just as<br />

excited about the new technology in Project<br />

Thunderball as we are.”<br />

<strong>December</strong><br />

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


The goal is to<br />

build a global<br />

brand!<br />

Osman Öğüten, General Manager of MC Filter<br />

MC Filter, which has succeeded in being the 46th of Türkiye’s Top 100 Fastest Growing<br />

Companies in 2021, continues its production with the dream of building a global brand.<br />

Founded in Samsun in 2008 by<br />

two brothers, MC Filter produces<br />

approximately 2000 types of filters in<br />

the <strong>Automotive</strong> and Industrial group<br />

with its professional staff. Declaring<br />

that they continue their activities<br />

in their new production facilities<br />

in March, Osman Öğüten, General<br />

Manager of MC Filter answered our<br />

questions about production, export<br />

and other their activities.<br />

In line with this goal, with the<br />

understanding of quality, continuous<br />

improvement and after-sales support;<br />

it produces filters for Industrial use<br />

and automotive industry with its<br />

expert staff.<br />

First of all, can you tell us about<br />

your brand?<br />

The primary goal of MC Filter is<br />

to ensure customer satisfaction<br />

and gain the trust of the customer.<br />

<strong>December</strong> <strong>2022</strong> 76

What distinguishes yourself from your<br />

competitors?<br />

MC Filter aims to offer quality products to<br />

its customers at competitive prices. In this<br />

direction, MC Filter has a rapidly increasing<br />

product variety with its molding workshop,<br />

metal forming workshop and plastic<br />

injection workshop, quality reliability<br />

thanks to its laboratory, professional<br />

production techniques with a staff of 36<br />

engineers and with its innovation skills<br />

through 15-person R&D team.<br />

MC Filter distinguishes itself from its<br />

competitors by delivering quality products<br />

to its customers in the fastest way with<br />

competitive prices.<br />

What about your export activities?<br />

What are your goals?<br />

Our company exports to 35 countries,<br />

especially European countries. We export<br />

approximately 35% of our production. Our<br />

goal is to proudly represent our country all<br />

over the world as a strong global brand.<br />

Could you inform us about your new<br />

production facility?<br />

Our company produces approximately 2000<br />

types of filters with its 2 facilities of 7500<br />

m² and a staff of 340 people in a total open<br />

area of 15.000 m².<br />

We now have a more integrated facility by<br />

using the technological investments we<br />

made with our new facility. We are also<br />

in the approval phase for our R&D Center<br />

application. In order to become an original<br />

equipment manufacturer, we quickly make<br />

up for our shortcomings.<br />

Our approximate production capacity in<br />

the fields we describe as <strong>Automotive</strong> and<br />

Industrial is 700,000 units/month.<br />

In order to increase customer satisfaction,<br />

product diversity, product and process<br />

quality and production capacity, we serve<br />

with the amateur spirit of the first day,<br />

with the principle of “no excuses, only<br />

solutions” in our new facility.<br />

<strong>December</strong><br />

77 <strong>2022</strong>

Deteriorating<br />

European<br />

demand flagged<br />

as risk for<br />

Turkish exports<br />

Trade Minister Mehmet Muş warned of<br />

uncertainties for the period ahead as<br />

he said the demand that is expected to<br />

deteriorate further in Europe constituted a<br />

serious risk for Türkiye’s trade.<br />

“Uncertainties are likely to increase even<br />

more in the coming period,” Muş said<br />

during budget talks at Parliament’s Plan<br />

and Budget Commission.<br />

The gloomy outlook was affirmed by<br />

data measuring conditions in key export<br />

markets, showing demand in Türkiye’s key<br />

export markets continued to weaken in<br />

October.<br />

Türkiye’s Manufacturing Export Climate<br />

Index dropped to 47.9, a survey by the<br />

Istanbul Chamber of Industry (ISO) showed,<br />

marking a fall for the third consecutive<br />

month.<br />

The reading had run above the threshold<br />

level of 50 separating growth from<br />

contraction for 19 months before slipping<br />

to 48.8 in August. It was unchanged in<br />

September.<br />

The deterioration in October was the<br />

highest since June 2020 when Türkiye<br />

was plagued by the first wave of the<br />

coronavirus pandemic, ISO said.<br />

Muş cited the growing risk stemming from<br />

weakening demand in the European Union,<br />

Türkiye’s biggest export market.<br />

“This is why we are carrying out the<br />

necessary studies to strengthen our market<br />

diversification by directing our exporters to<br />

alternative markets,” said the minister.<br />

“Uncertainties are likely to increase even<br />

more in the coming period. A difficult<br />

period is ahead facing all countries on a<br />

global level.”<br />

The survey by ISO said output in Germany,<br />

the largest export market for Turkish<br />

manufacturers in Europe, declined for<br />

the fourth month in a row, with the fall<br />

accelerating compared to September.<br />

The United Arab Emirates (UAE) was the<br />

only country of Türkiye’s top 18 export<br />

markets that registered an increase in<br />

economic activity in October, the survey<br />

said.<br />

“The fact that only the UAE remains in<br />

the growth zone among the main export<br />

markets ... clearly shows that the slowdown<br />

in the global economy is widespread,” said<br />

Andrew Harker, economics director at S&P<br />

Global Market Intelligence.<br />

“Current trends suggest that manufacturers<br />

will continue to have difficulty obtaining<br />

new orders from export markets at least for<br />

the rest of <strong>2022</strong>,” Harker noted.<br />

Türkiye’s exports remained buoyant and<br />

rose 15.4% from January through October<br />

this year to $209.5 billion, according to<br />

official data, marking an all-time 10-month<br />

high.<br />

Türkiye has set a $250 billion export target<br />

for this year, after reaching a record $225<br />

billion in 2021.<br />

Shipments to the EU jumped 13.5% in the<br />

said period, Muş said, stressing Türkiye<br />

enjoyed a $9.7 billion surplus in trade with<br />

the bloc.<br />

“This successful performance was achieved<br />

despite the negative factors on a global<br />

scale, as well as the serious negative effects<br />

of the decline in (foreign exchange) parity<br />

on our foreign trade,” he added.<br />

Muş said exports would have been $12<br />

billion higher and the trade deficit some<br />

$2.8 lower in the first 10 months had the<br />

euro not declined against the dollar.<br />

Imports, on the other hand, surged<br />

39.5% from January through October to<br />

$300.55 billion, the data showed, driven by<br />

rocketing energy costs and a jump in gold<br />

purchases.<br />

Energy imports leaped 118.4% year-overyear<br />

to $43.7 billion, while gold purchases<br />

soared 198.4% to $10.1 billion.<br />

Approximately 63% of the increase in<br />

imports stemmed from energy and gold,<br />

Muş said. Muş also said the volume of<br />

e-commerce that gained major pace with<br />

the pandemic more than doubled in the<br />

first half of this year.<br />

“The e-commerce volume that stood at TL<br />

161 billion in the first six months of 2021<br />

increased to TL 348 billion in the same<br />

period of <strong>2022</strong>,” the minister said.<br />

Muş informed that TL 13.3 billion out of<br />

the TL 17.12 billion budget estimated for<br />

the ministry in 2023 would be used for<br />

rearrangement and development of trade.<br />

<strong>December</strong> <strong>2022</strong> 78

Firms’ FX assets<br />

at $171 billion<br />

Foreign exchange assests of non-financial<br />

companies declined by $260 million from<br />

July to $171.4 billion in August, data from<br />

the Central Bank have shown.<br />

Liabilities of those companies, on the other<br />

hand, fell by $2.3 billion in the same period<br />

to $260.5 billion.<br />

“Net foreign exchange deficit was $89.1<br />

billion indicating a decrease of $2.02<br />

million compared to July,” the Central<br />

Bank said. On the asset side, deposits held<br />

by domestic banks decreased by $970<br />

million, while export receivables and direct<br />

investments abroad increased by $446<br />

million and $259 million, respectively.<br />

“On the liability side; while domestic<br />

loans decreased by $4.3 billion, external<br />

loans -excluding trade credits- and import<br />

payables increased by $1.1 billion and $993<br />

million, respectively,” the bank said.<br />

Short-term external loans were down by<br />

$733 million, but longterm external loans<br />

increased by $1.3 billion over the same<br />

period.<br />

Foreign trade in Turkish Lira leap 110 percent<br />

Türkiye’s foreign trade volume in the<br />

Turkish Liras increased by 110 percent in<br />

the first 10 months of <strong>2022</strong> from a year ago<br />

to stand at 297 billion liras, the latest data<br />

from the Trade Ministry have shown.<br />

<strong>Exports</strong> in the local currency amounted to<br />

98 billion liras in January-October, rising<br />

from 51.25 billion liras in the same period<br />

of last year, while imports increased from<br />

90 billion liras to 199 billion liras.<br />

The number of countries that Türkiye sold<br />

its products in Turkish lira was 164, while<br />

the number of local companies engaged<br />

in exports in local currency reached nearly<br />

6,900 in September. The country’s exports<br />

increased by 2.8 percent year-on-year for<br />

an all-time-high October figure of $21.3<br />

billion. Imports grew nearly 32 percent on<br />

an annual basis to $29.3 billion.<br />

Türkiye’s foreign trade gap consequently<br />

widened more than 430 percent month<br />

from a year ago to $8 billion.<br />

Data from the ministry also showed that<br />

exports of high-tech products exhibited<br />

an annual decline of 3.2 percent to $2.2<br />

billion, while exports of medium hightech<br />

production rose by 12 percent to<br />

$9.2 billion. Medium low-tech products<br />

generated $9.5 billion in revenues, leaping<br />

72 percent from October last year.<br />

Nissan, Mitsubishi considering to invest in<br />

Renault’s new electric car brand<br />

Nissan Motor and Mitsubishi Motors may invest in Renault’s<br />

new electric vehicle company Ampere, the French automaker<br />

said Tuesday.<br />

“Renault Group revolutionizes itself focusing resources on the<br />

value chains arising from the transformation of the automotive<br />

and mobility industry: electric vehicles (EV), software, new<br />

mobility services, circular economy, in addition to ICE (internal<br />

combustion engine) & hybrid vehicles,” it said in a statement.<br />

The French automaker said it aims to list the new company<br />

in Europe in the second half of 2023, opening to external<br />

investors to hasten R&D and ecosystem development.<br />

Ampere, which will be based in France and employ about<br />

10,000 people, will also develop software for cars besides<br />

manufacturing and selling fully electric passenger vehicles,<br />

according to Renault.<br />

<strong>December</strong> <strong>2022</strong> 82

Caliskan Dokum started its production in Istanbul in 1983<br />

by producing cast iron fittings. In 2017, it continued the<br />

production on the DİSA Matic vertical molding line in its<br />

foundry located in Tekirdag-Cerkezkoy.<br />

Caliskan Dokum meets the needs of the market with high<br />

volume casting requirements by producing pig, nodular and<br />

tempered cast iron parts in its new modern facility.<br />

Caliskan Dokum is a manufacturer of fittings and operates its<br />

own brand, Caliskan Fittings. Thus, as a company culture, it<br />

has the opportunity of higher quality and more professional<br />

production in small figure parts. Our company, which makes<br />

the machining of its own products, gives the products<br />

that are poured in its own machining track as threaded<br />

according to the customer demand.<br />

Caliskan Dokum molding line is DISA Matic 2013 MK 4 and its<br />

molding size is 480 x 600 mm. Our casting cooling line is 50<br />

meters, which gives us an advantage in competition.<br />

In our foundry, we cast products with a part weight between<br />

50 gr and 30 kg as ductile iron<br />

or temper, with or without<br />

cores. Cores are produced by<br />

hot box, cold box or shell core<br />

processes, depending on the<br />

requirements and complexity of<br />

the parts being manufactured.<br />

Caliskan Dokum casts EN-<br />

GJL-150 (200-250-300), EN-<br />

GJS-400 (450-500-600) and<br />

EN-GJMB-350-10 according<br />

to customer demand and<br />

product structure.<br />

Caliskan Dokum melting facility;<br />

the inductothermy is a 2000 kg Duel-Track, with a double<br />

crucible melting furnace that melts 600 tons per month. Our<br />

company, which attaches importance to the sand process,<br />

aims to make castings of even better quality with different<br />

recipes and different sand processes for each poured<br />

product. Each poured product is tested in the laboratory,<br />

accompanied by spectral analysis, both after casting and<br />

after casting.<br />

Our company, which adopts customer satisfaction as a<br />

principle, provides services to the construction, automotive<br />

and agriculture sectors. As Caliskan Dokum, our primary<br />

mission is to be the first choice of our valued customers with<br />

our products, solutions, after-sales confidence and business<br />

ethics. In our company, where customer satisfaction is the<br />

top priority, our customers are provided with after-sales<br />

support in all matters.

Trade Ministry working to diversify export markets<br />

The Trade Ministry is working to diversify<br />

Türkiye’s export markets as demand from<br />

the European Union is expected to weaken,<br />

Trade Minister Mehmet Muş has said.<br />

Global risks and uncertainties are likely<br />

to heighten for Türkiye too in the period<br />

ahead and demand from the European<br />

Union, which is foreseen to lose<br />

momentum further produces risks for<br />

the country’s exports, Muş said, speaking<br />

at the parliament’s budget and planning<br />

commission.<br />

“That’s why we are working on plans,<br />

which are designed to diversity markets<br />

by channeling our exporters to alternative<br />

markets,” the minister added.<br />

Muş noted that 328 actions which targets<br />

18 nations, have already been taken under<br />

the “distant countries” strategy, which<br />

aims to increase Türkiye’s exports to those<br />

countries fourfold.<br />

The minister recalled that Türkiye’s exports<br />

increased by 15.4 percent in the first ten<br />

months of <strong>2022</strong> compared with the same<br />

period of last year to $209.5 billion, with<br />

sales to the Americas recording the highest<br />

increase.<br />

“<strong>Exports</strong> to the European Union, our<br />

largest trading partner rose by 13.5<br />

percent,” said Muş, noting that Türkiye’s<br />

trade surplus with the bloc reached $9.7<br />

billion.<br />

The trade surplus with the U.K amounted<br />

to $6 billion, he added.<br />

“This success was achieved despite the<br />

adverse impacts from the U.S dollar to euro<br />

exchange rate.”<br />

Muş also stressed the effects of high<br />

energy prices on Türkiye’s import bill.<br />

Some 63 percent of the increase in the<br />

country’s imports stemmed from the<br />

energy and gold imports, he explained.<br />

“Our energy imports grew by 118.4 percent<br />

or by $43.7 billion in the first ten months<br />

of <strong>2022</strong> from a year ago. This increase<br />

was due to the [energy] prices. Our gold<br />

imports rose by 198.4 percent or $10.1<br />

billion over the same period compared<br />

with the ten months of 2021,” Muş<br />

explained.<br />

Türkiye’s overall imports amounted to<br />

$300.6 billion in January-October, rising<br />

39.5 percent year-on-year, according to the<br />

latest data from the Trade Ministry.<br />

The country’s foreign trade deficit soared<br />

168.5 percent to $91.1 billion.<br />

In October alone, exports increased by 2.8<br />

percent on an annual basis to $21.3 billion,<br />

while the increase in imports was 31.9<br />

percent to $29.3 billion. The foreign trade<br />

gap widened more than 430 percent yearon-year<br />

to $8 billion.<br />

Meanwhile, the Istanbul Chamber of<br />

Industry’s (ISO) Türkiye manufacturing<br />

export climate index dropped to 47.9 in<br />

October from 48.8 in September.<br />

“Demand conditions in export markets<br />

have now deteriorated in three successive<br />

months, with the latest moderation the<br />

sharpest since the initial wave of the<br />

COVID-19 pandemic in June 2020,” the<br />

chamber said in a statement.<br />

<strong>December</strong> <strong>2022</strong> 86

Hooray! Your file is uploaded and ready to be published.

Saved successfully!

Ooh no, something went wrong!