Automotive Expotrs January 2023

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Monthly automotive aftermarket magazine




İstmag Magazin Gazetecilik

İç ve Dış Ticaret Ltd. Şti.

Managing Editor (Responsible)

Mehmet Söztutan


Advertising Managers

Adem Saçın

+90 505 577 36 42



Mehmet Soztutan, Editor-in-Chief


Enes Karadayı


International Marketing Coordinator

Ayca Sarioglu



Yusuf Okçu


Finance Manager

Cuma Karaman


Digital Assets Manager

Emre Yener


Technical Manager

Tayfun Aydın


Design & Graphics

Sami aktaş



Yusuf Demirkazık



İsmail Özçelik



İstmag Magazin Gazetecilik

İç ve Dış Ticaret Ltd. Şti.

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Tel: 0212 454 30 00


Dynamism prevails…

We know that competitiveness at the domestic level has been replaced with

competitiveness on a global scale, when it comes to automotive industry. The Turkish

automotive industry, which was originally founded for import-substitution purposes and

focused on the domestic market for a long period, transformed itself into a production

base for a number of global models.

In motor vehicles, a large number of EU legislation was adopted. Türkiye has been

continuing efforts to introduce the relevant legal arrangements, and significant progress

has been achieved in this field.

Meanwhile, Türkiye’s first domestically produced electric vehicle brand, Togg will have a

competitive price tag compared to its peers and even cars with combustion engines, once

it hits the roads in the first months of 2023.

The Turkish automotive industry is one of the four largest exporting and leading investor

industries of the Turkish economy. It is an economically strategic sector in terms of its

significant contribution to the national production and development, direct and indirect

employment and level of technology in Türkiye. The automotive parts industry is strong

and competitive. It has developed in parallel with the development of Türkiye's automotive

industry both in quality and production volumes.

Following the shift of the focus on customers, markets, products and competition from

the local level to the global level, Turkish automotive manufacturers and suppliers position

themselves globally rather than locally.

This transformation in the sector urges automotive suppliers to improve their existing

structures in line with the demands of global auto manufacturers.

Turkish producers of parts and components have attained high standards reflected by

large export volumes to the Western countries.

The Turkish automotive parts and components industry has now developed to the stage

where it is at a level ready to take advantage of the globalization and structural changes in

the world automotive industry. A number of firms active in the industry have been named

the "co-designer" in the global vehicles manufactured in Türkiye.

Our publications, by participating in major international fairs and exhibitions, remain at

the service of those businesses people seeking to increase their share in the increasingly

competitive foreign markets.

We are convinced that these events would be instrumental to increase business

opportunities in the automotive industry.

We wish lucrative trade for all participants.



Vehicle sales

may hit 120,000

Total vehicle sales may climb to 120,000 in

December, surpassing the 110,000 mark for

the first time in five years, according to an

executive from carmaker Fiat.

Potential consumers are heading to dealers

to buy new cars before the end of the year

after the government announced the new

price thresholds for a special consumption

tax (SCT) on vehicles.

However, the problem in the market is

the insufficient supply of cars, while some

potential buyers are facing difficulties

obtaining loans for purchasing vehicles in

high segments.Despite those problems, the

combined sales of passenger cars and light

commercial vehicles are expected to climb

to 120,000 in December.

“Demand is strong. Depending on the

availability of vehicles, sales could reach

120,000 vehicles this month,” said Altan

Aytaç, the brand director at Fiat.

After the SCT issue became clear, demand

in the market picked up, he told reporters

at an event in Istanbul, which was

organized to introduce Fiat’s two new light

commercial vehicle models.

“We are expecting sales to be around

110,000 or even 120,000 vehicles in

December. For the whole year, we forecast

780,000 sales,” Aytaç said.

For his company, Aytaç projected that Fiat

will sell 124,000 vehicles this year and that

its market share will be 18.6 percent.

The latest data from the Automotive

Distributors’ and Mobility Association

(ODMD) showed that the combined sales

of passenger cars and light commercial

vehicles increased 37 percent year-on-year

in November to 82,311.

January 2023 10

Automotive exports rise to $2.9 billion

Turkish carmakers increased their exports

by 13.7 percent in November from a

year ago to $2.87 billion, data from the

Uludağ Automotive Industry Exporters’

Association (OİB) have shown.

The share of the automotive industry in

Türkiye’s overall export revenues was 13.2


The country’s exports stood at $21.85

billion, rising 1.9 percent from a year ago.

The supply sector’s exports amounted to

$1.15 billion, rising 12 percent compared

with November 2021, while passenger

car exports increased by 2 percent on an

annual basis to $847 million. The sales

of bus, minibus and midibus to foreign

markets recorded a 33 percent increase

from a year ago to $207 million.

Despite the 2 percent decline in exports

to $387 million, Germany was still the

largest market for local carmakers. Sales

for France grew 2 percent to $296 million,

while exports to Italy, the third largest

market, soared 49 percent year-on-year to

$270 million.

Exports to the U.K, the U.S., and Russia,

other major markets for the Turkish

automotive industry, grew by 10 percent,

28 percent and 39.5 percent, respectively.

From January to November, automotive

exports grew by 5.6 percent from the

same period of 2021, amounting to $27.8

billion. The average monthly export

revenue of the industry was $2.54 billion.

Türkiye’s export revenues increased by

13.9 percent in the first eleven months

of 2022 from a year ago to stand at $231


The $2.87 billion exports recorded in

November was the highest figure this

year, said Baran Çelik, the board chair of

OİB, adding that the automotive industry

managed to increase its exports despite

the slowdown and recession risks in the

global economy.

January 2023 12

Automechanika Dubai - A heartfelt thank

you for the overwhelming response

Nowember 2022 saw a record breaking

edition of Automechanika Dubai which

was held on 22 – 24 November 2022 at the

Dubai World Trade Centre.

43,103 visitors from 153 countries joined

1,145 exhibitors from 53 countries

along with 20 official country pavilions

to discover new opportunities, explore

innovations, engage in serious business

conversations and sign new deals.

The officials of the Fair noted:

We, at Automechanika Dubai, would

like to express our sincere and heartfelt

gratitude to our exhibitors, sponsors,

partners, speakers, visitors and the global

automotive aftermarket community for

the overwhelming response for the 2022

edition of the show.

With the tremendous positive response

that we have received, planning is already

underway for a special 20th Anniversary

Edition of Automechanika Dubai which will

be held on 15 – 17 November 2023 at the

Dubai World Trade Centre.

Automechanika Dubai Awards Celebrates

the Best in Automotive Aftermarket.

The global automotive aftermarket

industry came together on the morning

of the 23rd November to celebrate the

industry’s excellence, achievements and

innovations recognising individuals and

organisations at the Automechanika Dubai


With the world of automotive aftermarket

gathered at Automechanika Dubai, the

exhibition saw a number of contracts and

MoUs signed onsite.

Al Shamali Auto Parts signed a

commemoration certificate marking 30

years of co-operation between them and

PT Edico in the presence of H.E. Husin

Bagis, the Ambassador of Indonesia to

the UAE; while Mineral Circles Bearings

were appointed as official distributors for

Corteco and GMB at the show. Goodyear

also announced their foray into lubricants

at Automechanika Dubai 2022.

January 2023 14

Industrial production growth

gains momentum

The pace of annual growth of industrial

production increased from 0.5 percent in

September to 2.5 percent in October, data

from the Turkish Statistical Institute (TÜİK)

have shown.

In the manufacturing sector, output

growth strengthened from 1.7 percent

to 3.7 percent, while intermediate goods

production, which fell 5 percent in

September, declined again by 5 percent

year-on-year in October.

The annual increase in the durable

consumer goods manufacturing sector

picked up from 0.4 percent from 5.5

percent, but non-durable consumer goods

production grew 2.9 percent year-on-year,

easing from the previous month’s 7.1


The energy sector’s production contracted

3.6 percent in October from a year earlier,

after falling 1.4 percent in September.

The year-on-year production growth in

the capital goods sector leaped from 7.2

percent in September to 26.6 percent.

The mining and quarrying industry’s output

was down 7.4 percent, which came on

top of the 16.5 percent contraction in the

sector’s production in the previous month.

On a seasonally and calendar-adjusted

basis, Türkiye’s industrial production

increased by 2.4 percent in October from

September, when output contracted 1.6

percent month-on-month. Retail sales

January 2023 18

volume TÜİK also reported on Dec. 13

that the retail sales volume index climbed

9.5 percent in October compared with

the same month of 2021.

Food, beverages and tobacco product

sales increased by 10.8 percent on an

annual basis, while non-food retail sales

exhibited a yearly rise of 11.8 percent

and automotive fuel sales were up 1.1


Electronic goods and furniture sales rose

by 11.4 percent and computer, books and

telecommunications equipment sales

increased by 30.5 percent year-on-year.

Retail sales via mail and the internet

grew 26.5 percent, while overall retail

sales increased by 1.4 percent in October

from September.

Separate data from TÜİK showed that the

combined turnover in the construction,

industry, trade and services sectors

exhibited an annual increase of 124.8

percent in October, after rising 135

percent in the previous month. In the

industry sector, the annual increase in

turnover was 121 percent, while it was

114 percent in construction.

In the trade and services sectors,

turnover grew by 126 percent and 155

percent, respectively.

The combined revenues of those four

industries increased by 3.9 percent in

October from September.


19 2023

Equipmake unveils


e-axle for makers

of performance EV

Leading automotive electrification

specialist Equipmake launched the

Ampere-220 e-axle: a compact, lightweight,

high-power electric drive system for

manufacturers of high-performance

electric vehicles.

Debuted at LCV-Cenex, it combines one

of the most advanced 3D-printed electric

motors in the world with all power

electronics, including the company’s own

silicon carbide inverter, and an integrated

transmission system in a compact unit that

directly powers the vehicle’s axle, bringing

a step change in off-the-shelf performance

for electric sports cars and supercars.

At its heart, the e-axle features the Ampere

electric motor, which draws on both

Equipmake’s world-leading expertise in

electric motors - featuring a spoke rotor

design which has recently also featured

in the Ariel HIPERCAR in the form of

Equipmake’s APM motor - and pioneering

knowledge in additive manufacturing and

thermal engineering from Bristol-based


Extremely lightweight yet efficient and

cost-effective, Ampere has peak power

of 220kW and a maximum motor speed

of 30,000rpm. Weighing just under 20kg,

it offers power density of 11kW per kg –

more than twice that of a conventional

electric motor. The key to its performance

is its combination of Equipmake’s spoke

design with additive manufacturing,

allowing Ampere’s metal structure to

be 3D-printed, rather than milled from

a solid billet. Bringing many advantages,

firstly, metal is only put where it is

needed. Secondly, thermally efficient thin

walls and optimised fine surface details

are combined directly with the motor’s

structure, replacing multi-part assemblies

with a single, complex architecture that has

exceptional cooling ability, is lightweight,

has low inertia and allows for greatly

increased rotational speed.

Making its debut in the Ampere-220 e-axle,

the advanced electric motor is combined

with all necessary power electronics,

including Equipmake’s high-performance

silicon carbide-based inverter, and an

integrated transmission system too,

resulting in a

state-of-the-art, highly compact and

lightweight electric drive system that

is ready to be integrated into a highperformance

electric vehicle.

Debuted in twin-motor specification,

Ampere-220 e-axle offers 440kW peak

power per axle with a total unit weight of

just 85kg. Equipmake can also develop a


e-axle application with 220kW of peak

power per axle. The Ampere-220 e-axle is

designed, engineered, and manufactured

at Equipmake’s headquarters in Snetterton,

Norfolk, where the company provides the

complete electric vehicle solution, offering

everything from motors to fully electrified

platforms, supporting primarily the

automotive and aerospace sectors.

Ian Foley, Equipmake CEO, said:

“Equipmake has always been at the

forefront of innovation in electric motors,

with our APM range offering class-leading

power densities thanks to their compact,

lightweight designs. Ampere showcases

the next leap, and combined with our own

power electronics, including our silicon

carbide inverter, and transmission system,

we have created the Ampere-220 e-axle.

With such a huge amount of performance

in a compact, lightweight electric drive

unit, one that is also ISO 26262-compliant

and ASIL-D ready, Ampere-220 e-axle

provides the total off-the-shelf highperformance

electric solution for

manufacturers of electric sports cars

and supercars. It further underlines

Equipmake’s position as a leading provider

of state-of-the-art electrification systems to

the automotive industry.”

January 2023 22

MÜSİAD Expo brought together hundreds of

companies, businesspeople from across globe

Nov. 2-5, including ambassadors from

Developing Eight (D-8) countries – Türkiye,

Bangladesh, Egypt, Indonesia, Iran,

Malaysia, Nigeria, and Pakistan, he added.

Asmali said the expo makes a tangible

impact on international trade, citing the

fact that 17 institutions from 11 countries

signed cooperation agreements.

One of the agreements was signed with

D-8 Secretary General Isiaka Abdulkadir

Imam, under which MUSIAD will enhance

ties with the D-8 and make our cooperation

more comprehensive, he added.

“The participation of Turkish President

Recep Tayyip Erdogan, Parliament Speaker

Mustafa Sentop, Turkish ministers, Turkic

Republic of Northern Cyprus Prime

Minister Unal Ustel among other senior

ministers and representatives of foreign

countries is a testament to the importance

of the expo,” Asmali noted.

During the event, MUSIAD unveiled

two new bodies – MUSIAD Invest and

MUSIAD Trade Office – to further bolster

its international reach and operations, he


The Independent Industrialists’ and

Businessmen’s Association (MUSIAD) Expo

“has turned into a commercial diplomacy

event,” the organization’s head Mahmut

Asmali said.

Some 600 companies from around the

world participated in the 19th MUSIAD

Expo organized in Istanbul, with visitors

coming from countries including Algeria,

Saudi Arabia, Germany, Iraq, Pakistan,

Russia, Egypt, Indonesia, Jordan, Austria,

and Morocco, Asmali said in a statement.

Top officials from several countries also

attended the four-day event held on

January 2023 24

Toyota cuts

output target

amid chip

crunch as profit

tumbles 25%

Toyota Motor Corp. posted a worse-thanexpected

25% drop in quarterly profit

and cut its annual output target, as the

Japanese firm battles surging material costs

and a persistent semiconductor shortage.

The world’s biggest automaker by sales

also warned that it remained difficult to

predict the future after posting its fourth

consecutive quarterly profit decline,

underlining the strength of business

headwinds it faces.

During the coronavirus pandemic, Toyota

fared better than most carmakers in

managing supply chains, but it fell victim

to the prolonged chip shortage this

year, cutting monthly production targets


“We’re out of the worst phase, but... it’s

not necessarily a situation where we’re

fully supplied,” said Kazunari Kumakura,

Toyota’s purchasing group chief. “I don’t

know when the chip shortage will be


Operating profit for the three months

ended September fell to 562.7 billion yen

($3.79 billion), well short of an average

estimate of 772.2 billion yen in a poll of 12

analysts by Refinitiv. Toyota sales reported

a 749.9 billion yen profit a year earlier,

and 578.6 billion yen in profit in the first

quarter. Kumakura said the global auto chip

shortage continues, as chipmakers have

prioritized supplies for electronics goods

such as smartphones and computers, while

natural disasters, COVID-19 lockdowns and

factory disruption have slowed a recovery

in auto chip supplies.

He also said the supply of older-type

semiconductors, which attract little capital

investment currently, would remain tight.

Amid the gloom, shares in Toyota closed

down 1.9%, versus a 0.3% rise in the Nikkei


‘Very unimpressive’

Some analysts were underwhelmed by the

performance, saying other positive factors

beyond the chip shortage should have

provided a boost.

“The yen is weaker in the second quarter,

the volume in the second quarter is much

higher than in the first quarter, and the

(COVID-19) lockdown in China does not

affect (the volume in the second quarter),”

said Koji Endo, an analyst at SBI Securities.

“Considering these points... the absolute

amount of profit in the second quarter

has got to be higher than that of the first

quarter. It is very unimpressive.”

Production rebounded by 30% in the

quarter, but the company warned that

shortages of semiconductors and other

components would continue to constrain

output in coming months.

Toyota said it now expects

to produce 9.2 million

vehicles this fiscal year,

down from the previously

forecast 9.7 million but still

ahead of last financial year’s

production of about 8.6

million units.

Toyota had told several

suppliers it was setting a

global target for the current

business year to 9.5 million vehicles

and signaled that the forecast could be

lowered, depending on the supply of

electromagnetic steel sheets.

Muted yen impact

The yen has plunged around 30% this

year against the U.S. dollar, but the

benefit of the cheap yen - making sales

overseas worth more - has been offset by

soaring input costs.The weak yen boosted

profit by 565 billion yen in the first half

of this financial year, but the gain was

more than wiped out by 765 billion yen

increase in material costs, with the cheap

local currency further inflating import

costs, Toyota said. Toyota retained its

conservative profit outlook, sticking to its

full-year operating forecast of 2.4 trillion

yen for the fiscal year through March 31

– well below analysts’ average forecast

of 3.0 trillion yen. By comparison, South

Korea’s Hyundai Motor raised its revenue

and profit margin guidance to reflect a

foreign exchange lift. Toyota, once a darling

of environmentalists for its hybrid gasolineelectric

models, is also under scrutiny from

green investors and activists over its slow

push into fully electric vehicles (EV).

Just a year into its $38 billion EV plan,

Toyota is already considering rebooting

it to better compete in a market growing

beyond its projections.

In a reputational hit, Toyota had to recall

earlier this year its first mass-produced

all-electric vehicle after just two months

on the market due to safety concerns, and

suspend production. It restarted taking

leasing orders for domestic market.

Toyota reiterated that battery-powered

EVs are a powerful weapon for

decarbonization, but that there are various

other options to achieve the goal.

January 2023 26

Exports in Turkish lira up

182% year-over-year

Exports in Turkish lira increased by 182% in

September compared to the same month

of the previous year, reaching TL 16.3

billion ($877.2 million), according to the

official data.

The overall exports in rose by 9.2% yearover-year,

amounted to $22.6 billion,

according to the report by Anadolu Agency

(AA) which cited data from the Trade


In September, foreign trade volume

increased by 26% compared to the same

period of 2021 and reached $55.6 billion,

while imports reached $33 billion due to

the increase in energy and commodity


While exports in Turkish lira were TL 7.2

billion in January, imports were TL $12.1

billion and the foreign trade volume

increased to TL 19.1 billion.

In this category, exports were TL 8.5

billion, imports were TL 13.5 billion, and

foreign trade volume was TL 22.9 billion in

February. In March, the said exports were

calculated as TL 9.2 billion, imports were TL

17.1 billion, and the foreign trade volume

was TL 26.4 billion.

In April, exports in Turkish lira reached TL

8.4 billion, imports reached TL 17.5 billion,

and foreign trade volume reached TL 26.1

billion. In May, this export amounted to TL

7.4 billion, imports amounted to TL 19.9

billion, and the trade volume was TL 26.5


Exports in Turkish lira reached TL 9.9

billion in June, while imports reached

TL 22.2 billion. Foreign trade volume

was calculated as TL 32.2 billion in the

said month. The aforementioned export

amount was recorded as TL 7.9 billion,

imports as TL 18.5 billion and foreign trade

volume as TL 26.5 billion in July.

Exports in Turkish lira were TL 10.3 billion

in August, and imports were TL 23.8 billion.

Foreign trade volume was determined as TL

34.1 billion in August.

In the January-September period of this

year, the export made in the national

currency increased by 89% compared to

the same period of the previous year and

reached TL 85.2 billion. In this period,

imports in Turkish lira were recorded as TL

172.2 billion and foreign trade volume was

recorded as TL 257.2 billion.

In September, the number of countries to

which exports were made in the national

currency was 170 and the number of

exporting companies was 6,907. In August,

the number of countries was 164 and the

number of exporting companies was 6,439.

January 2023 28

$250B export target reachable despite global headwinds

Türkiye is aiming for $250 billion (TL 4.55

trillion) in exports this year, Trade Minister

Mehmet Muş said, stressing that the

country maintains the goal despite signs

of a global slowdown and inflationary


Muş was speaking at the 4th Türkiye

Export Mobilization summit. The event

was organized by Türkiye’s leading media

group and Daily Sabah’s parent company,

Turkuvaz Media, in the southeastern

province of Gaziantep.

The minister separately wrote on Twitter

that exports in August hit an all-time

monthly high yet again, reaffirming the

views that the annual target would be

achieved even before the year-end.

Foreign sales jumped 13.1% year-over-year

to $21.3 billion, Muş said. Imports rose at a

much faster pace, jumping 40.7% to $32.6

billion Exporters have managed to achieve

record sales in each month so far this year

and in 22 of the last 24 months.

The trade deficit surged by 162% to a

record $11.3 billion in August, data from

the Turkish Exporters Assembly (TIM)

showed. The shortfall in the first eight

months jumped by 146.4% to $73.4 billion,

mainly due to rising energy import costs.

Deteriorating global conditions,

exacerbated by the war in Ukraine, have

raised concerns for the rest of the year.

Russia’s invasion of its neighbor has

sent global commodity prices soaring,

endangering Türkiye’s economic program

that aims to tackle high inflation with a

current account surplus.

Exports had ended 2021 at $225.4 billion,

a figure that government and economists

expected to reach $250 billion this year.

Muş said that they want to diversify the

regions that Turkish businesses export to,

focusing on North and South America and

East Asia, not just Europe.

More than half of Türkiye’s export is

destined for Europe, he said, however,

the uncertainty in the region produces


“Compared to the 2021 period, our exports

to this region increased by 17.2% in the

January-August period,” the minister said,

but this increase “is in a moderate trend

compared to months.”

“The uncertainty and slowdown in Europe

weaken demand. For example, while our

exports to the EU increased by 17.8% in

June compared to the previous year, the

increase was 5.2% in July and 2.7% in


“We are trying to diversify the market. We

want to focus not only on Europe but also

on North America, then on Latin America,

some countries in the Far East. This will

take some time, and expectations such as

the slowdown in the world, the uncertainty

in Europe and whether there will be a

power cut or not inevitably pull down


“The slowing demand there is pushing

down our exports here,” he said.

January 2023 30

Four trends

shaping the


Euromonitor International examines how

automotive industry performs globally

and in the largest countries in terms

of automotive output. The report also

provides data for production, market

size, imports, exports, industry’s costs,

industry’s profitability and number of

companies. The industry and market

overview provide benchmarks against

other countries in the region.


Stricter emission standards and the

technological limitations of internal

combustion engines will drive investments

in electric and hybrid vehicle production.

Manufacturers will have to unlock more

resources for investments and strengthen

battery supply.

Connected vehicles

Changing consumer preferences and

stricter vehicle safety regulations will

require more investments in connected

vehicle technologies. This will gradually

change the supply chain, with electronics

and technology providers gaining greater

share. At the same time, connected

vehicles can help to open up new business

models and revenue streams for car


Supply chain localization

The COVID-19 pandemic had severe effects

on the automotive industry’s global supply

chains. To better shield from similar risks

in the future, manufacturers are planning

to increase supply chain localization. This

would produce regional production hubs

and could benefit Eastern Europe and Latin

America thanks to lower operating costs

and geographic proximity to the largest

automotive markets.

Consolidation of suppliers

Rising operating costs and supply chain

changes will continue to support the

consolidation of suppliers. Suppliers will

need to collaborate as they feel pressure

from OEM and technology companies, and

at the same time must find resources to

invest in electrification programs.

January 2023 32

Inflation to ease soon as Türkiye’s economy

model yields results

Türkiye’s exports are approaching the $300

billion threshold by breaking records every

month, President Recep Tayyip Erdoğan

said as the country tries to navigate

the economic crisis with a model that

promotes growth via exports, employment,

production and a current account surplus.

The president also said that the negative

impact of inflation will begin to ease as of

the beginning of the new year thanks to

the measures taken by the government.

Erdoğan sent a video message to the

Türkiye 2023 Summit and Money Talks

organized by Turkuvaz Media Group in


Expressing his hope that the summit will

be beneficial, Erdoğan congratulated the

media group on the event that saw the

participation of many respected names and

thanked all the participants who enriched

the program with their ideas, presentations

and evaluations.

Stating that the world has been going

through a painful process over the last

three years that started with the pandemic

and then grew more complicated with hot

conflicts and regional tensions, Erdoğan

said that energy, food and raw material

prices, which have reached the highest

levels in recent years, and the subsequent

inflation problem is an issue all economies

are facing.

Meanwhile, he stated that the classical

approach to reducing inflation by raising

interest rates has not met expectations

thus far, adding that many economies that

try to restrain inflation with such policies

are struggling with employment losses and

facing a cost-of-living crisis.

Under the country’s economic program,

dubbed the “Türkiye Economy Model,” the

Turkish government prioritizes low-interest

rates to boost exports, production and

investments, aiming to lower inflation and

flip the country’s chronic current account

deficits to a surplus.

In line with the model, Türkiye’s central

bank in its last meeting in November

lowered its key policy rate, or the one-week

repo rate, by 150 basis points to 9.0%.

The lender said the easing cycle that

started in August has come to an end as it

was assessed that the current policy rate is

at a sufficient level, taking into account the

increasing risks to global demand.

Price increases moderated in Türkiye in

November, recent official data showed,

signaling that inflation pressures that have

been plaguing consumers for about a year

and a half might be finally easing.

The annual consumer price index (CPI)

dipped to 84.39%, the Turkish Statistical

Institute (TurkStat) announced, ending a

17-month-long cycle of rises.

It dropped from a 24-year peak of 85.51%

in October and marked the first time that

January 2023 34

annual inflation has eased since May 2021,

when the CPI stood at 16.6%.

Emphasizing that Türkiye is one of

the countries that went through an

economically troubled period relatively

comfortably thanks to its robust

infrastructure and economic model,

Erdoğan further said, “Our industrial zones,

factories and manufacturing facilities are

working hard. Our roads and highways are

full of trucks and trucks that carry loads

from our country to Europe, Asia and the

Middle East.”

Türkiye’s exports remained buoyant and

rose 15.4% from January through October

this year to $209.5 billion, according to

official data, marking an all-time 10-month


Türkiye has set a $250 billion export target

for this year, after reaching a record $225

billion in 2021.

Erdoğan also noted that Türkiye reached a

new stride by going beyond compensating

for the losses in the tourism sector,

which was hit the most by the pandemic,

highlighting that it succeeded in exceeding

the 31 million mark in employment for the

first time.

Tourism revenues are vital to Türkiye’s

economy in reaching its current account

surplus goals.

The government raised its year-end tourism

targets for the second time this year in late

October. It now expects 50 million tourists

and $44 billion in revenues, up from the 47

million tourists and $37 billion set in July

and the 45 million arrivals and $35 billion

in income it had estimated at the beginning

of the year.

Energy supply security

The president further expressed that

efforts are continuing to commission the

540 billion cubic meters (bcm) of natural

gas discovered in the Black Sea to reduce

the country’s energy dependency.

Meanwhile, Minister of Energy and Natural

Resources Fatih Dönmez, also delivering

an online speech to the event, stated that

Türkiye has the infrastructure, technical

equipment, international knowledge and

experience to produce, import, trade and

export natural gas.

“Our aim is to become a gas trade center

where reference gas prices are determined

in the region and in the world. Hopefully,

we will clarify our road map on this issue

toward the end of the year,” he said.

Noting that they are looking forward to

bringing domestic gas to the Turkish nation

in 2023 and that nine out of 10 wells have

drilled within the scope of the first phase of

the work, Dönmez said, “85% of our Filyos

Land Gas Processing Facility, which will

separate the gas from the sea, has been


“I hope the Sakarya gas field will be the

world’s fastest offshore field development

project from exploration to first

production,” the minister said.

Dönmez also noted that the 4.6 bcm

expansion phase of the Silivri Natural Gas

Storage Facility has been completed and

“hopefully will open with the participation

of President Erdoğan.”

Apart from the investments made in

the renewables sector, Türkiye aims to

reduce its dependency on foreign energy

and external financing needs to further

ease the pressure on the current account

balance by commissioning the natural gas

discovered in the Black Sea by 2023.


35 2023

China launches WTO dispute over US chip sanctions

China has filed a dispute with the World

Trade Organization over U.S. restrictions on

chip exports, Beijing’s commerce ministry

said in a statement late on Dec. 12,

accusing Washington of threatening global

supply chains. The United States in October

announced new export controls aimed

at restricting China’s ability to buy and

manufacture high-end chips with military

applications, complicating Beijing’s push to

further its own semiconductor industry and

develop advanced military systems.

The moves include export restrictions on

some chips used in supercomputing as

well as stricter requirements on the sale

of semiconductor equipment. The aim is

to prevent “sensitive technologies with

military applications” from being acquired

by China’s military, intelligence and security

services, the US Commerce Department

said in October.

But China’s Ministry of Commerce on

Dec. 12 accused the United States of

“obstructing normal international trade in

products including chips and threatening

the stability of the global industrial supply

chain”, as well as violating international

trade rules and engaging in “protectionist


The WTO dispute is intended to defend

China’s “legitimate rights and interests”,

the ministry said in its statement, urging

Washington to “give up zero-sum thinking”.

The two superpowers have long faced

off over a range of issues including

technology, trade, Hong Kong, Taiwan and

human rights. Chinese leader Xi Jinping

and US President Joe Biden pledged to

repair frayed relations at a summit in

Bali, Indonesia. Days before the latest

chip controls, the Pentagon added 13

more Chinese firms including drone

manufacturer DJI and surveillance firm

Zhejiang Dahua Technology to a blacklist of

military-linked entities.

January 2023 38

Türkiye’s Togg

aims to enter


market in 2024

Türkiye’s first domestically produced electric

car brand Togg aims to enter the European

market by the end of 2024, its CEO Gürcan

Karakaş said.

Speaking to the Turkish-German Economy

Forum in Germany’s capital Berlin, Karakaş

said the firm will “probably enter markets of

Scandinavian countries first.”

He added that Scandinavian countries are

more open to new brands, more open to

electric vehicles, and their infrastructure

is more widespread. He also said that the

Togg vehicle, seen in Berlin and went viral

on social media, was brought to Germany

for testing. Starting the project in 2018,

Togg began the mass production phase in

October as President Recep Tayyip Erdoğan

inaugurated the long-anticipated massive

manufacturing plant in the northwestern

province of Bursa. Togg will debut in the

market in the first quarter of 2023 with the

SUV, its first smart device in the C segment,

after the completion of homologation tests.

The brand’s CEO, who opened the

production plant doors to the group of

reporters at the end of November, said

that the price of the first model would be

announced in February, while Togg will likely

hit the roads as of the end of March.

The electric vehicle produced by a

consortium of five Turkish companies called

the Automobile Initiative Group of Türkiye,

or Togg, will produce five different models

– a SUV, sedan, C-hatchback, B-SUV and

B-MPV – until 2030 and own its intellectual

and industrial property rights.

Industry and Technology Minister Mustafa

Varank, who spoke at the “InovaTIM

Innovation Contest Award Ceremony,”

remarked on Togg’s developments, noting

that it has become the locomotive of the

system transformation, standing at the

forefront of a new industrial revolution that

began with the opening of its plant, which

stands as a first project in the “Century of

Türkiye” showcase.

“Togg, whose intellectual property rights

belong to us 100%, will activate new

technology-based initiatives. It will enable

new unicorns to emerge. It will develop the

battery and charging technologies ecosystem

in our country. It will contribute to the

development of electric motor capacity,”

he added. The car brand aims to produce 1

million vehicles by 2030, with some 30,000

units to be sold for public services through

2035, Karakaş announced earlier.

January 2023 42

Automotive production hits 1.2 million vehicles

The Turkish automotive industry’s

production increased by 6 percent in

the first 11 months from a year ago

to 1.2 million vehicles, data from the

Automotive Manufacturers’ Association

(OSD) have shown.

Local companies’ passenger car output

rose by 2 percent compared to the

January-November period of 2021 to

717,368 units, while commercial vehicle

production grew 13 percent year-on-year.

The capacity utilization rate in the

automotive industry was 68 percent,

with the capacity usage in the passenger

cars and light commercial vehicles

segment standing at 68 percent and in

the trucks segment at 90 percent.

The local automotive industry’s export

revenues increased by 5 percent yearon-year

in January-November to 876,187

vehicles. Passenger car sales to foreign

markets grew 0.4 percent, and the

increase in light commercial vehicle

exports was 12 percent from the first

11 months of 2021. Tractor exports

also exhibited an annual increase of 11


The automotive sector’s share in

Türkiye’s total exports was 12 percent in

January-November 2022, which made it

the second-largest exporting industry.

The latest data from the Uludağ

Exporters’ Assembly, the country’s

automotive sector generated $28.3

billion in export revenues in the first 11

months of 2022, rising 5 percent from a

year ago. In terms of euro, the industry’s

export grew by 19 percent to 26.9 billion

euros. Domestic vehicle sales remained

almost unchanged in the January-

November period compared to the same

period at 705,183 vehicles.

Some 505, 886 passenger cars were sold,

pointing to a 2 percent contraction in

this market, but light commercial vehicle

sales grew 6 percent on an annual basis.

The shares of domestically produced

passenger cars and light commercial

vehicles in total saVles were 38 percent

and 58 percent, respectively.

Multiple challenges occurred

simultaneously in 2022, said Cengiz

Eroldu, the president of the OSD.

As predicted initially, the automotive

industry will close the year with around

1 million vehicle exports and 1.36 million

vehicle production, he added.

“The year 2023 will be difficult to predict

because of uncertainties. There are

issues in global trade that are beyond

our control. It is necessary to produce

an environment which will unleash the

potential in the domestic market, and

to diversify the export markets and

maintain our competitiveness in the

international markets,” Eroldu said.

January 2023 44

More than a car: Togg apps prepare for ‘test drive’

Fresh from rolling out its long-anticipated

first domestically produced automobile

brand, Türkiye has been highlighting not

only the fact that it will be battery-powered

but also all the features that will make it

more than just a car.

CEO Gürcan Karakaş has been stressing

this from the start, dubbing Togg a smart

device full of mobility solutions, nextgeneration

technologies and innovation, all

of which promise to redefine the customer


Calling itself a technology brand that

blends digital and physical experiences,

Togg has joined hands with startups to

produce a new mobility ecosystem and has

been working on experience scenarios.

The vehicle is being produced by a

consortium of five Turkish companies called

the Automobile Initiative Group of Türkiye,

or Togg, in cooperation with the Union of

Chambers and Commodity Exchanges of

Türkiye (TOBB).

If we are to accept the smart, electric

autonomous moving device as the top

of the iceberg, Togg has introduced the

ecosystem that lies beneath for the first


The brand has now launched one of the

most important concepts of this ecosystem

named Trumore.

The software promises to add new

technologies to in-car services, offering

users a one-stop application that

will enable access to all the artificial

intelligence (AI) tech needed when it

comes to a vehicle.

Trumore is an infrastructure that will

enable users to benefit from multiple

new services, including renting a vehicle,

selecting a cost-effective driving route,

accessing in-car payment technologies

and benefiting from discounts on public

transportation and air travel.

It also features calculations on power

consumption and carbon emissions.

Karakaş said the fact that they embarked

on their journey with “artists” who

produce in a digital environment was no

coincidence. He stressed they are trying to

shape the entire mobility experience that

the user will go through while moving from

point A to point B.

Karakaş said all smart devices outside Togg

would be included in the scenario that

will be shaped according to the customer


On the cooperation side, Togg has been

focusing on strategic areas such as mobility

solutions, big data, cybersecurity, FinTech,

blockchain, gamification, smart grids and

mobility services.

Karakaş said Togg has been announcing

cooperations with startups. He cited a

smartphone transformation while speaking

of the ongoing breakthrough.

“Whatever happened years ago when the

mobile phone turned into a smartphone, a

similar transformation is now happening in

the automobile world,” Karakaş noted.

Profitability, user experience, and

everything is changing as cars turn into

smart devices. We are responding with

scenarios that we think will ensure we keep

pace with this change.”

Growing with startups

Speaking of Trumore, the CEO said it

is a digital platform that redefines the

mobility experience by taking it beyond just

traveling from point A to point B.

“Through Trumore, which it positions as

a mobile application with strong business

partnerships and many features, Togg

is offering personalized, user-oriented,

intelligent and empathetic experience

with new generation technologies such as

fintech, insurtech, blockchain, internet of

things (IoT), artificial intelligence, providing

uninterrupted user experience,” said


Trumore is a platform that earns, navigates,

entertains and constantly develops for

users, he noted. User experience is at the

center of the Trumore business model and

technology, he added.

“Togg defines its platform, which can

process data and improve it with artificial

intelligence, as a ‘user empathy platform,’”

said Karakaş.

Underlining that they cooperate more with

startups, Karakaş stated that they will be

announcing the names and details of the

partnerships soon.

Multiple features, concepts

The Trumore application has been

founded based on concepts that include

“Earn, Go, Play, Scale.”

Its Earn.more covers services that help

users gain, and features FinTech solutions

that offer uninterrupted payment and

rewarding experiences.

The e-wallet, which is within the scope of

Earn.more services enable the creation

of in-car payment, mobile payment and

digital asset wallets.

Under digital asset management, various

reward programs (such as points, NFTs),

digital art collections and NFTs that are

linked to the business model are offered

to the users.

It also features a digital magnet

acquisition application that will enable

users to earn many rewards.

The digital magnet is produced specifically

for the person and journey according

to the route produced by the user and

according to the travel conditions at that


Go.more, which provides location-based

smart services that navigate the user and

provide personalized route suggestions,

features mixed mobility services, charging

networks, restaurants and reservation

operations, all of which promise an

uninterrupted mobility experience for


The savings calculator within the

application makes it possible to take

advantage of services such as road tolls,

electricity consumption and carbon

emission calculations.

Play.more will feature smart life services

that will entertain the user, making

everyday life easier and more enjoyable

through gamification.

Play.more’s services comprise smart life

solutions, usage-based insurance services,

in-car and mobile game applications and

smart health applications.

On the other hand, Togg expresses the

concept of USE CASE Mobility, which it

defines as user-centric, smart, emphatic,

connected, autonomous, shared and

electric, through digital art. It makes

the user experience the concepts of

“Human-Technology,” “East-West,”

“Mind-Heart,” “Unity-Multiplicity” and

“Today-Tomorrow” in the world of duality

through its “Digital Art Mode.”

Users can also link the digital art on the

smart device screen to their TVs or digital

screens at home if they want.

January 2023 46

Over 80K


Teslas recalled

over software,

seat belt issues

Tesla Inc. is recalling more than 80,000

China-made and imported cars produced as

early as 2013 due to software and seat belt

issues, a statement by the Chinese market

regulator revealed. The U.S.-based electric

car maker has recalled 67,698 Model S and

Model X cars imported to China between

Sept. 25, 2013 and Nov. 21, 2020, due to

software problems affecting the battery

management system in the vehicles.

Tesla said it will upgrade the software of

recalled vehicles.

Tesla also recalled 2,736 imported Model

3 cars manufactured between January

and November 2019, and 10,127 Chinamade

ones of the same model produced

between Oct. 14, 2019 and Sept. 26, 2022.

This was due to potentially faulty seat

belt installation which Tesla will check and

reinstall, it said.

In April, Tesla recalled a total of 127,785

units of Model 3 cars in China, citing

potential faults in semiconductor

components that might lead to collisions.

January 2023 48

Ambitions high

as Türkiye’s

1st car brand

said to feature


price tag

Türkiye’s first domestically produced

electric vehicle brand will have a

competitive price tag compared to its peers

and even cars with combustion engines

once it hits the roads in the first months

of 2023, its CEO said. Togg began mass

production and sales of its first model, the

C-segment SUV, are set to begin at the end

of the first quarter of the year. It will be the

first electric sport utility vehicle produced

in continental Europe by a nontraditional

manufacturer. It puts Türkiye and President

Recep Tayyip Erdoğan closer to fulfilling a

long-held dream of building the country’s

first national automobile.

Dubbing it a smart device that features

advanced technology, CEO Gürcan Karakaş

said the price of the first model would be

announced in February.

“Togg will have a price that will compete

with vehicles in its class, including internal

combustion engines. All pre-orders will start

to be taken as of February 2023,” Karakaş

told a group of reporters at Togg’s factory in

the northwestern province of Bursa.

“Togg smart device will hit the roads as of

the end of March,” he added.

The vehicle is being produced by a

consortium of five Turkish companies called

the Automobile Initiative Group of Türkiye,

or Togg, in cooperation with the Union

of Chambers and Commodity Exchanges

of Türkiye (TOBB). Karakaş said Togg is a

project that features a 3.5-billion-euro ($3.6

billion) investment that will be spread over

15 years. Around 1.8 billion euros of this

will have been spent by the end of 2023, he


“This resource includes investments for the

development of smart devices, campuses

and technology.”

Besides the SUV, Togg will manufacture

another four models – a sedan,

C-hatchback, B-SUV and B-MPV – through

2030. Mass production of the SUV will be

followed by the sedan.

The brand aims to produce 1 million

vehicles across the five segments by 2030.

Some 30,000 units will be sold for public

services through 2035, Karakaş said.

The current production capacity stands at

around 100,000 vehicles per year, a figure

that Karakaş says is expected to reach

175,000 once the Togg’s factory reaches

its full capacity. The peak output will also

see employment at the plant more than

triple to 4,300, up from the current figure

of 1,400, the CEO said. The 90% automized

facility set up on a 1.2 million square meter

area in Bursa’s Gemlik district will reach a

capacity of manufacturing one vehicle every

three minutes, he noted.

Togg’s SUV is built from 51% locally made

parts, Karakaş noted, saying 75% of

suppliers are based in Türkiye. He cited an

aim to lift the rate of parts made within the

country to 68% in the three years.

Orders placed by individuals will be

prioritized in 2023, throughout which

Karkaş says Togg aims to manufacture and

deliver around 20,000 vehicles.

“Orders will be received with individual

users as a priority and will be delivered

throughout 2023. The first smart device

will be launched to the traffic at the end of


The joint venture plans to export the EVs to

Europe and then the rest of the world after

up to 18 months of only domestic sales,

Karakaş said.

Vehicles that have been rolled out are being

sent to accreditation test centers abroad for

certification and homologation procedures,

the CEO noted.

“The devices are subjected to 92 different

tests, 16 of which are new regulations. The

number of devices sent for the tests will

reach 165 by the end of December,” he


“They will complete their tests and receive

type approvals. After receiving the type

approvals, mass production for the users will

begin with orders.”

The car was designed by Italy’s Pininfarina

design company, which has produced models

for Ferrari and California-based electric

carmaker Karma.

The consortium inked a deal with Farasis, one

of the world’s most prominent companies, to

build a lithium-ion battery factory near Togg’s

production site in Bursa. Togg has already

launched efforts to set up a charging station

network across Türkiye under a brand named

Trugo. Over 1,000 stations that will feature

charging capacities of between 180 kilowatts

(kW) and 300 kW are aimed to be established

at over 600 spots in 81 provinces.

Karakaş said the first stations were set up

at a stopover along the highway between

Istanbul and Ankara. Stressing the company’s

focus on innovative technologies, Karakaş

said the company has held talks with over

300 startups engaged in everything from

blockchain and digital payments to mapping

to date and already works with 19 ventures.

Togg set out with a plan in which smart

device revenues and other revenues are

balanced, the CEO said.

“It will receive revenue from both the sale of

devices and the use of its mobile services. At

the same time, since it can control battery

and software costs, this will also contribute to

its profitability.”

January 2023 52

Demand for

SUVs leaps as

Türkiye awaits

its 1st national

car on roads

The demand for sport utility vehicles

(SUVs) in Türkiye has gained pace in the

first 11 months of this year, according to

industry data, in a trend that comes as

the country’s first domestically produced

electric car brand is set to hit the roads.

Some 208,693 units of SUVs have been

sold from January through November

this year, according to the Automotive

Distributers and Mobility Association

(ODMD) data, up 15.4% versus the same

period of 2021.

Consumer preferences boosted the share

of SUVs in overall car sales to 41.3%, up

from 35% a year ago, according to the data

that showed sedans’ share dropping to

37.2%, down from 39.4%.

Some 188,244 sedan automobiles were

sold in the first 11 months. Hatchbacks

sit third with a 19.7% share, down from

23.7% in 2021, and 99,815 sales, the data

showed. Overall sales of passenger cars

and light commercial vehicles in Türkiye

slipped 1% year-over-year in the January-

November period to 688,063 units, the

ODMD said, driven by soaring prices and

as problems from logistics bottlenecks

to an ongoing chip shortage curbed

production. Passenger car sales were

down 2.4% from a year ago to 505,886

vehicles, while light commercial vehicles

saw a drop of 3.4% to 162,177 according

to the ODD. Yet sales in November

jumped 36.7% year-over-year to 82,311

units, up from 60,216 a year ago. Sales of

both passenger cars and light commercial

vehicles were up 37.8% and 34%,


The share of SUVs is expected to gain

even further pace once Türkiye’s first

domestically produced electric vehicle

brand hits the roads in the first months

of 2023. Togg began mass production in

late October and sales of its first model,

the C-segment SUV, are set to begin at the

end of the first quarter of the year.

It will be the first electric sport utility

vehicle produced in continental Europe by

a nontraditional manufacturer.

The vehicle is being produced by a

consortium of five Turkish companies

called the Automobile Initiative Group

of Türkiye, or Togg, in cooperation with

the Union of Chambers and Commodity

Exchanges of Türkiye (TOBB).

Besides the SUV, Togg will manufacture

another four models – a sedan,

C-hatchback, B-SUV and B-MPV – through

2030. Mass production of the SUV will be

followed by the sedan.

The brand aims to produce 1 million

vehicles across the five segments by 2030.

The current production capacity stands at

around 100,000 vehicles per year, a figure

that is expected to reach 175,000 once

the Togg’s factory reaches its full capacity.

January 2023 54

David Brown Automotive Mini Remastered

Marshall Edition lands in Paris and makes

European Debut

David Brown Automotive has unveiled

its Mini Remastered Marshall Edition – a

classic Mini reimagined in collaboration

with the iconic audio equipment brand

Marshall Amplification – in Paris, making its

European debut.

The modernised take on the classic Mini

– conceived to commemorate Marshall

Amplification’s 60th anniversary – will

be on show until 12th December in the

CITADIUM complex, bringing timeless

British style, and considerable rock and roll

appeal, to the French capital.

The cutting-edge, boutique space –

home to a carefully curated selection

of internationally renowned luxury and

fashion brands - will play host to this 21st

century take on a the classic Mini, which

is on show to the public for the very first


Launched to great fanfare earlier this

year, Mini Remastered Marshall Edition

is handcrafted alongside other Mini

Remastered variants, as well as the

Speedback grand-tourer range, at David

Brown Automotive’s state of the art facility

in Silverstone, UK.

Michelle Gay, Sales & Marketing Director,

January 2023 56

David Brown Automotive, said: “Mini Remastered Marshall

Edition is a stunning example of precision design and

handmade quality, bringing two British brands together.

It is a modern, rock and roll take on one of Britain’s most

iconic shapes and we are delighted to bring it to the heart

of Paris - the world’s fashion and style capital.”

Each David Brown Automotive Mini Remastered is

painstakingly hand-built over thousands of hours, reengineered

from the ground up using a new shell; it’s a

classic Mini reimagined for the 21st century, enhanced

with a sumptuously trimmed interior and comprehensively

remastered mechanicals. Mini Remastered Marshall

Edition is distinguished from the core Mini Remastered

range by unique colour, materials and finishes – all

inspired by the styling of Marshall’s iconic products, as

well as an amazing Marshall 8-speaker sound system and

pull-out amp in the loadspace.

The special colour scheme to Mini Remastered

Marshall Edition is unique to the limited run machines,

finished in exclusive ‘Marshall Black’ paint, which is

complemented by dark-chrome exterior brightwork,

offset by contrasting ‘Marshall Gold’ painted accents. Mini

Remastered Marshall Edition is also packed with unique

audio equipment features, developed in partnership

between David Brown Automotive and the engineers

at Marshall. Mini Remastered Marshall Edition’s special

features include a meaningfully upgraded in-car sound

system, as well as a bespoke Marshall DSL1 Combo

amplifier neatly integrated into in the Mini’s leatherlined

luggage compartment. Arthur Grison, Key Account

Manager, Zound Industries (the distributor of Marshall

Amplification in France), added: “Since revealing Mini

Remastered Marshall Edition earlier this year – a key part

of the celebrations to mark Marshall’s landmark 60th

anniversary. We can’t wait to see the response from the

public during the car’s star turn in Paris in the build-up to

a very busy Christmas shopping period.”


57 2023

Turkish exports

to surpass

year-end target

As 2022 draws to a close, Türkiye’s exports

will not fall below the year-end target that

was set, Trade Minister Mehmet Muş said.

Türkiye has set a $250 billion export target

for this year, after reaching a record $225

billion in 2021.

“We will not fall short of the target we set

for exports,” Muş told a summit organized

by Türkiye’s leading media group and Daily

Sabah’s parent company, Turkuvaz Media,

in Istanbul.

“Our target was set at $250 billion, and we

will exceed that,” he noted.

However, Muş added that there is a

slowdown in foreign demand, especially

due to recent rate hikes, which they will try

to circumvent with minimal impact.

“Our upward trend has continued since the

second half of the year, but now we have a

slower increasing trend due to a decrease

in external demand.”

Muş said an additional target of $80 billion

was added year, with the aim to diversify

the market to reach it.

One of the main drivers of Türkiye’s

economic growth this year, exports hit

record-high volumes throughout the

first 11 months of this year. Yet, a global

slowdown has put a drag on foreign

demand, notably among Türkiye’s largest

trade partners, spearheaded by Europe.

Outbound shipments from January through

November jumped 14% from a year ago to

$231 billion, while imports were up 36.6%

to nearly $331.1 billion, driven mainly by

steep rises in energy and commodity prices

after Russia’s invasion of Ukraine.

Muş previously said there has been a

slowdown in the growth trend of exports,

citing weakening demand in the European

Union, where almost half of the Türkiye’s

shipments go.

“A slowdown there (in Europe), whether

we want it or not, a drop in demand there

affects our exports,” he said.

January 2023 60

Crisis in Europe

touted as

opportunity for

Turkish retailers

The recession risks that are plaguing

Europe have triggered an exodus of brands

from shopping malls, in what seems to

have turned into an opportunity for Turkish


Mall investors have particularly shifted

their focus to Turkish brands that attended

the largest annual international gathering

for retailers, MAPIC 2022.

More than 80 firms and a delegation of 250

people attended the landmark event joined

by the world’s leading retail brands and real

estate players. The fair in Cannes, France

ran from Nov. 29 through Dec. 1.

Companies gathered at the Turkish Brands

booth under the coordination of the

Istanbul Apparel Exporters’ Association

(IHKIB) at the fair, with Alkaş serving as

MAPIC’s Türkiye representative.

The Turkish booth included many

prominent players such as AC&co Altınyıldız

Classics, Chakra, D’S Damat, Ipekyol, Kiğılı,

Madame Coco, NaraMaxx, Nebim, Penti ve

Perspective. Among others, Tavuk Dünyası

and GAGAVA attended the fair with their

own booths.

Hilal Suerdem, deputy chair of Kiğılı,

stressed the fact that the fair was

extremely dynamic this year, also

highlighting what he said was a “warmer

approach” toward Turkish brands.

Haluk Özkarakaşlı, the head of NaraMaxx,

stated that it was important for Turkish

brands to take part in such a fair. “This is

an important platform for brands to show

themselves,” Özkarakaşlı said.

For their part, Osman Çavuşoğlu, Altınyıldız

general manager in charge of international

operations, emphasized that they have

grown abroad and turned the crisis into

an opportunity after the coronavirus

pandemic. Penti International Franchise

Manager Yavuz Mert stressed there has

been a high demand for Turkish brands

from many places after the recession in

Europe. Sabah, the flagship publication

of Turkuvaz Media Group and its sister

newspaper of Daily Sabah gathered the

attending retailers at a dinner event it

organized on the sidelines of MAPIC.

The event at the Hotel Barriere Le Majestic

was attended by Suerdem, Özkarakaşlı and

his wife Yeliz Özkarakaşlı, İpekyol member

of the board Necdet Ayaydın and Alkaş

Consultancy Chairperson of the Board Avi

Alkaş, among others.

Retailers extended their appreciation

for Turkuvaz Media Group’s support

and efforts to promote the Turkish retail

industry. Meanwhile, retailers have started

to open stores in the metaverse as well.

NaraMaxx’s Özkarakaşlı said they have

been continuing their activities in the

women’s clothing sector for more than

10 years. He said the whole world has

seen more clearly with the pandemic that

keeping up with digital transformation is

one of the most powerful ways to increase

brand awareness.

“Since 2020, we have added digital

transformation to our brand values,

started to make new investments in the

field of technology and have established

a digitalization team within our company.

In the past two years, we have achieved

projects in the fields of blockchain,

NFTs (non-fungible tokens) and the

metaverse. We have opened a store on

the Decentraland platform, one of the first

metaverse projects,” he noted.

January 2023 62

China’s producer

prices fall,


inflation slows

on soft demand

China’s factory-gate prices showed

an annual fall for a second month in

November, while consumer inflation

slowed, indicating weak activity and soft

demand in an economy that has been held

back by tough pandemic controls.

Analysts said they expected the

government to keep interest rates low and

take measures to boost confidence.

The producer price index (PPI) was down

1.3% from a year earlier, unchanged from

an annual contraction seen in October,

according to National Bureau of Statistics

(NBS) data issued. That was slower than a

1.4% fall tipped in a Reuters poll.

The November consumer price index (CPI)

rose at its slowest pace in eight months,

climbing 1.6% from a year earlier, which

was less than the 2.1% annual rise seen in

October but in line with a Reuters poll.

“These data suggest the economic

momentum (continues) to weaken,” said

Zhiwei Zhang, chief economist at Pinpoint

Asset Management.

A high-level political meeting, a gathering

of the ruling Communist Party’s Politburo,

emphasized that in 2023 the government

would focus on stabilizing growth,

promoting domestic demand and opening

up to the outside world.

Zhang said that, although the government

had eased pandemic controls, it would take

further measures to spur the economy.

“The Politburo meeting ... identified

weak confidence as a major problem

for the economy,” he said. “I expect the

government will do more to boost market

and household confidence. The fast pace

of reopening indicates the government’s

sense of urgency.”

Growth in the world’s second-largest

economy has sagged this year, largely

impacted by the uncompromising

COVID-19 curbs as global demand has also


The producer price deflation and milder

consumer price inflation of November

accompanied record COVID-19 infections

and related curbs that disrupted

production and curbed mobility.

Although markets have cheered the shift

in pandemic policy, economists say it will

likely depress growth over as infections

surge, bringing an economic rebound only

later in 2023.

Producer deflation was led by the steel

industry, in which prices were down 18.7%.

Part of the explanation for slower growth in

consumer prices was in food markets.

Food prices were up 3.7% with a rise

of 7.0% seen in October. Within the

food category, pork was a factor behind

moderating inflation: it was 34.4% more

expensive in November than in the same

month year ago, while in October the

annual rise had been 51.8%.

Underlying core annual inflation, which

excludes volatile food and energy prices

its figure was just 0.6% in November,

unchanged from October.

“The overall inflation pressure remains

benign in China, and we expect the

CPI inflation will be around 1.6% for

2023, down from 2.0% in 2022. Given

this, the monetary policy will remain

accommodative over the coming year,” said

Hao Zhou, chief economist at Guotai Junan


China’s central bank has kept its benchmark

one-year loan prime rate at 3.65% since

August. It expects consumer inflation to

remain moderate.

January 2023 66

Positive effects

of low rates

policy to be

felt more soon:


President Recep Tayyip Erdoğan said

Türkiye would start to see a stronger

positive effect of the government’s

economic policy prioritizing low interest

rates on inflation soon, as he reiterated the

government’s aim to address the soaring

cost of living.

The government has endorsed low interest

rates to boost exports, production,

investment and produce

new jobs as part of an economic program,

eventually aimed at lowering inflation

by flipping the country’s chronic current

account deficit to a surplus.

“We will feel the positive effects of our

low interest rate policy, which prioritizes

production, employment and exports, on

inflation more soon,” Erdoğan told an event

in Istanbul.

To counter the expected economic

slowdown in the second half of this

year, Türkiye’s central bank embarked

on an easing cycle between August and

November, slashing its policy rate by 500

basis points to 9%.

Price increases in Türkiye moderated in

November, according to official data,

signaling that inflation pressures that have

been plaguing consumers for about a year

and a half might be finally easing.

Annual inflation dropped below 85% after

touching a 24-year high in October. It is

expected to decline sharply as a result of

the base effect at the end of the year and

falling energy prices globally.

“We are solving the issue of the cost

of living, which is the biggest source of

distress in the whole world, including

Europe and America, step by step,” Erdoğan

said. Treasury and Finance Minister

Nureddin Nebati said the decline in

inflation will be seen due to the base effect

that will last until the end of May, stressing

that negative rates may be observed in

food along with summer.

“The citizen does not look at the ‘base

effect’ in inflation, but at his pocket. We

will see a mathematical decline, but there

will also be a decline that will be felt,”

Nebati told the Turkish business daily Nasıl

bir Ekonomi.

January 2023 68

Lira not far from ‘optimal point’

Nebati also addressed the recent remarks

by exporters who complained that the

Turkish lira was becoming increasingly

overvalued and that foreign exchange rates

should be directly proportional to inflation


The lira’s current level is not “too far

away from the optimal point” and further

depreciation could fuel consumer inflation,

he said.

“(Exporters) should not complain in vain

about the exchange rate ... The increase

in the foreign exchange will disrupt our

inflation plan,” the minister noted.

Turkish Exporters Assembly (TIM) chair

Mustafa Gültepe said the stability in the

lira, despite soaring inflation, is hurting

exporters’ competitiveness and some

risk losing markets. However, he did not

propose a specific lira level.

Authorities have employed a battery of

regulations to tightly control the exchange

rate in the wake of a deep slide in the lira

in late 2021, a year in which the Turkish

currency lost 44% to the U.S. dollar. The

currency dropped another 29% this year,

but has stabilized since the summer

and held steady near TL 18.6 since early


The earlier lira depreciation gave exporters

of Turkish textiles, white goods and

automobiles a big competitive edge

globally. But since the central bank and

government employed its reservesmanagement

system, those benefits began

to erode.

“2022 will go down in history as the worst

year. There is a foreign trade deficit of $100

billion and a current account deficit of $50

billion, but we are leaving this difficult

period behind,” Nebati said.

One of the main drivers of Türkiye’s

economic growth this year, exports hit

record-high volumes throughout the

first 11 months of this year. Yet, a global

slowdown has put a drag on foreign

demand, notably among Türkiye’s largest

trade partners, spearheaded by Europe.

Outbound shipments from January through

November jumped 14% from a year ago to

$231 billion, while imports were up 36.6%

to nearly $331.1 billion, driven mainly by

steep rises in energy and commodity prices

after Russia’s invasion of Ukraine.

Separate data showed Türkiye posted the

smallest current account deficit in a year,

driven by robust tourism revenues.

The shortfall in the current account, the

broadest measure of trade and investment,

came in at $359 million in October,

according to data from the central bank.

The figure came in versus a revised $2.88

billion deficit in September.

Income from foreign tourists came in at

$5.5 billion, the second-highest monthly

inflow on record, according to central

bank data going back nearly four decades.

Official reserves rose $5.1 billion, the

second biggest jump in 2022 after the

$10.8 billion increase registered in August,

after a Russian state company transferred

funds to Türkiye for the construction of a

nuclear power plant.

Bank accounts set up by Russian tourists

are also contributing to the current buildup

in Türkiye’s foreign currency holdings,

Nebati said.


69 2023

Türkiye drives post-pandemic tourism

recovery in Europe: Report

Türkiye’s tourism sector has achieved

the most significant recovery among

European countries in the post-pandemic

era with a 61% rise in demand compared

to 2019, according to the European Travel

Commission’s (ETC) November report.

The ETC’s “European Tourism Trends and

Prospects” report stated that Türkiye

positioned itself in first place while there

was a rapid recovery in tourism demand

similar to that of 2019 across Europe.

“Europe’s return on travel will continue

through the remaining months of 2022, led

by cost-conscious and value-driven travel,”

the report said.

“All things considered; the European

continent is expected to recover to close to

75% of 2019 inbound travel volumes by the

end of 2022.”

The report said that “travel enthusiasm

persisted this summer with over half

of reporting destinations recovering to

at least 77% of 2019 levels of foreign

arrivals,” highlighting that the rebound was

led mostly by Southern Mediterranean


“Based on data to August, Türkiye, Serbia

and Luxembourg made the strongest

comeback,” it said.

“While Türkiye remains a good value

destination, Serbia is open to Russian

travelers without visa requirements.

Indeed, there has been an influx of

Russians arriving in Serbia,” it added.

The sharpest declines in tourist arrivals,

the report said, were recorded in the Baltic

states, Finland, Romania and Slovakia.

Currently, the Baltic states have a warrelated

ban on Russian travel while Slovakia

has suspended tourist visa applications for


Türkiye’s tourism revenues kept on the

path of growth throughout the year.

In the first 10 months of the year, the

number of foreign visitors climbed 88.1%

to 39.61 million, on pace to roughly match

the pre-pandemic levels of 2019, according

to the latest data.

The 10-month figure stood at 21.1 million

in 2021, 11.2 million in 2020 and 40.7

million in 2019, the Culture and Tourism

Ministry said recently.

In addition to the influx from Russia, the

rebound this year has been driven by

a major leap in demand from Europe,

spearheaded by Germany and the United


Istanbul, Türkiye’s most famous province

and the largest one by population, was the

top draw for foreign visitors, welcoming

13.4 million tourists from January through

October this year.

It was followed by the Mediterranean

resort city of Antalya with 12.2 million

visitors, while Edirne, a northwestern

province bordering Bulgaria and Greece,

welcomed nearly 4 million tourists, the

data showed.

Germans made up 13.3% of all visitors

in the 10-month period with 5.3 million,

followed by Russians with 4.6 million,

Britons 3.2 million, Bulgarians 2.3 million

and Iranians with 2 million.

If Turkish citizens living abroad are added

to the count, the 10-month figure reaches

45 million.

The ETC report, meanwhile, further showed

that the January-September data relative

to 2021 features a strong performance in

the European hotel industry compared to

other regions.

“Driven by strong occupancy rates, up 62%

over prior-year levels and a 30.1% rise in

ADR (average daily rate) alongside surging

travel demand, Europe recorded a 111%

increase in RevPAR (Revenue Per Available

Room),” it said.

It said European airlines held up well this

summer with August flight volumes down

just 11% relative to 2019.

January 2023 72

Tourism revenue

target revised

to $46 billion:


Türkiye has revised its targets upwards for

tourist arrivals and tourism revenue for

2022 to 51.5 million and to $46 billion,

Culture and Tourism Minister Mehmet Nuri

Ersoy has announced.

Some 60 million visitors and $56 billion

in tourism revenues are expected, Ersoy

said, speaking at the parliament where he

presented his ministry’s budget for 2023.

“All those numbers point to the fact that

Türkiye is now in the super league in the

global tourism industry. Our competitors

are the top countries [in tourism]. We are

moving toward meeting our targets,” Ersoy


Türkiye at the start of 2022 set tourist

arrival and tourism revenue targets at 42

million and $35 billion. In the face of the

rebound in tourism activity, those targets

were revised upwards first in July to 47

million and $37 billion. In October, Ersoy

announced another revision for the 2022

targets to 50 million tourist arrivals and $44

billion in tourism revenues.

In the January-October period, 39.6 million

foreign tourists visited Türkiye, marking an

88 percent increase from the same period

of 2021. Including Turkish citizens residing

abroad, tourist arrivals exceeded 45 million


In the third quarter of 2022, tourism

revenues rose by 27 percent year-on-year

to $17.95 billion. In the first nine months

of the year, tourism revenues amounted to

$35 billion, exhibiting a 68 percent increase

from a year ago.

Türkiye successfully managed the crisis

in the global tourism industry, which was

triggered by the COVID-19 pandemic,

engaging in very effective campaigns

abroad to promote the country, Ersoy said.

Under the “Safe Tourism Program,” more

than 12,000 facilities and vehicles received

a certificate as of June, according to the


“Presently, we are carrying out special

promotion campaigns through digital and

conventional means of communication in

200 countries.”

Ersoy also noted that Türkiye signed a

three-year cooperation agreement with

the Global Sustainable Tourism Council and

prepared a “Türkiye Sustainable Tourism


This program sets out sustainability

criteria for accommodation facilities, the

minister explained. Under the sustainability

program, which covers the years 2023,

2025 and 2030, all accommodation

facilities will gradually become

environment friendly, Ersoy said.

The government provided a total of 2.3

billion Turkish Liras in financial support

between 2002 and 2022 to improve

infrastructure and as part of sustainability

efforts, according to Ersoy.

January 2023 74

M&A volume hits

$11 billion

The volume of merger and acquisition (M&A) deals in Türkiye

increased in 2022 to stand at $11 billion, according to a report

by Deloitte.

The M&A volume in 2022 was below the last 10-year average

but still rose by 8 percent this year from 2021, the report noted.

The top 10 deals accounted for around 50 percent of the total

M&A volume this year. Some 295 with a deal value of less than

$10 million made up for 73 percent of all M&As, while those

deals’ share in total was only 4 percent.

The largest deal was the Türkiye Wealth Fund’s (TVF) purchasing

of shares in Türk Telekom. This deal alone accounted for 15

percent of all M&A volume in 2022, according to the report.

TVF announced in March this year that it signed a share

purchase agreement to acquire 55 percent of shares of the

telecom giant. Following the deal, TVF became the majority

shareholder of Türk Telekom with a 61.68 percent stake.

The size of the average deal was $27 million, similar to the

same levels seen in the past years, the reports said.

At a time when the global M&A volume contracted, the

transactions in Türkiye gained momentum, said Özlem Ulaş

from Deloitte Türkiye.

“Foreign investors accounted for half of all deals, but foreign

investor deal volume declined,” she added.

War, energy security and global inflationary pressures are the

new challenges and risks, Ulaş said.

“Despite all those challenges in the investment environment,

the M&A activities remained robust,” she added.

January 2023 75

Türkiye to invest

$21.6 bln in the

maritime sector

by 2053

Türkiye will invest $21.6 billion more in its

maritime sector by 2053, Transport and

Infrastructure Minister Adil Karaismailoğlu

has said.

Those investments will contribute around

$180 billion to the Turkish economy, the

minister added.

“Our contribution to production will

be $300 billion, while adding 5 million

jobs over the next 30 years,” said

Karaismailoğlu, recalling that total

investments in the country’s infrastructure

and communications will amount to $198

billion in the next three decades.

Some 93 percent of imported goods and

81 percent of exports in Türkiye were

transported by ships in 2021, the minister

said, noting that the Turkish fleet ranks

15th in the world with a total of 31.3

million deadweight tonnage.

“We are expecting the deadweight tonnage

to increase to 36 million at the end of the

year, which will help Türkiye climb up in the

ranking to the 14th spot.”

The number of shipyards in the country

increased from 37 in 2022 to 84, while the

number of ports rose from 149 to 217,

Karaismailoğlu said.

Despite the challenges from the pandemic,

the Turkish maritime sector continued to

grow in 2020 and 2021, according to the


“While global container handling and total

cargo handling contracted 1.2 percent and

3.8 percent, the number of containers

handled at the Turkish ports increased by

8.3 percent from a year ago to 12.6 million

TE. Total cargo handled also grew 6 percent

to 526 million tons.”

From January to October, cargo handling at

the Turkish ports increased by 5 percent on

an annual basis and total cargo handling is

expected to reach 545 million tons at the

end of this year, Karaismailoğlu said.

January 2023 76

Turkish Airlines wins best design award in Europe

National flag carrier Turkish Airlines has

been honored as Europe’s best-designed

airline for 2022, it announced.

TheDesignAir awards selected the carrier

as the “Design Airline of the Year” for

its touch points such as lounge, check-in

islands, ticket offices and in-flight design

and products.

Ahmet Olmuştur, the carrier’s chief

marketing officer, said: “From the entrance

to the check-in counters and lounges at

Istanbul Airport, and to the new cabin and

seat designs on board, we meticulously

inject our Turkish Airlines brand identity at

every touch point.

“With our traditional hospitality, we strive

to make our passengers’ experience

privileged by providing service beyond

their expectations.”

“Turkish has continued to excel at

passenger experience, brand and customer

service, and where some carriers have

been cutting back, Turkish has continued

to invest in enhancements both on the

ground and in the skies,” said TheDesignAir.

“The use of a consistent brand image, color

palette and design language throughout

the digital and physical experiences has

helped produce a powerful airline brand

that continues to impress against its

European counterparts. Turkish Airlines has

once again this year reaffirmed its position

as a leading design airline of the world,

taking the crown for the European region

once more.”

Founded in 1933 with a fleet of five aircraft,

Turkish Airlines now flies to 342 points in

129 countries with a fleet of 395 aircraft.

Erdoğan, Gazprom chief discuss Turkish gas hub project

President Recep Tayyip Erdoğan and Alexei Miller, the head of

Russian energy giant Gazprom, discussed the project to make

Türkiye a gas hub and Russian gas supplies, in a meeting held in


Putin first proposed producing a gas base in Türkiye in October

as a means to redirect supplies from the damaged Nord Stream

pipelines and export them on to the European market, an idea that

Erdoğan has supported.

Putin has repeatedly said that a natural gas hub could be set up in

Türkiye fairly quickly, forecasting many European customers would

emerge in such a marketplace.

Erdoğan previously said Russian and Turkish energy authorities

would work together to designate the best location for the

potential gas distribution center, adding that Türkiye’s Thrace

region, bordering Greece and Bulgaria, appeared to be the best

spot. Türkiye is home to seven international natural gas pipelines

and one of the ways Russian gas reaches Europe is through the dual

TurkStream natural gas pipeline. With a total capacity of 31.5 billion

cubic meters (bcm), each line has an annual capacity of 15.75 bcm.

The European Union, which previously turned to Russia for about

40% of its gas needs, is seeking to wean itself off Russian energy

following Moscow’s invasion of Ukraine.

January 2023 78

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