Automotive Ekports December 2023

Monthly automotive aftermarket magazine
GROUP CHAIRMAN
H. FERRUH ISIK
PUBLISHER:
İstmag Magazin Gazetecilik
İç ve Dış Ticaret Ltd. Şti.
Managing Editor (Responsible)
Mehmet Söztutan
mehmet.soztutan@img.com.tr
Advertising Sales Consultant
Adem Saçın
+90 505 577 36 42
adem.sacin@img.com.tr
Enes Karadayı
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International Marketing Coordinator
Ayca Sarioglu
ayca.sarioglu@img.com.tr
Advisory Editor
Yusuf Okçu
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Finance Manager
Cuma Karaman
cuma.karaman@img.com.tr
Digital Assets Manager
Emre Yener
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Technical Manager
Tayfun Aydın
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Yusuf Demirkazık
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EDİToR
Mehmet Soztutan, Editor-in-Chief
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Dynamism prevails as usual
The Turkish automotive industry, which was originally founded for
import-substitution strategy and focused on the domestic market for a long period,
transformed itself into a production base for a number of global brands.
Competitiveness at the domestic level has been replaced with competitiveness on a
global scale. In motor vehicles, a large number of the EU legislation was adopted.
The Turkish automotive industry is one of the 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.
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.
There are numerous producers of automotive components and services. More than
half of these manufacturers compete in international markets and set high standards
of export figures.
Turkish automotive supplier industry produces almost all types of parts,
components and spare parts such as engines and engine parts, power train parts
and components, brake and clutch parts and components, hydraulic and pneumatic
systems, suspension systems, security equipment, rubber and plastic parts, chassis
frames and parts, electrical equipment and parts, lighting systems, accumulator
batteries, seats etc.
We think that innovation and competitive power will always assume a key position
for the survival of the automotive spare parts industry.
As known, we convey the messages of the Turkish automotive and the related
industries by participating in a series of international fairs and exhibitions.
We wish lucrative trade for all participants around the globe.
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automotiveexport
automotiveexports

Charging capacity, affordability
hamper US electric vehicle shift
The United States’ shift to electric vehicles has
hit a speed bump, with woes about vehicle range
and limited charging capacity adding to the main
affordability issues.
Automakers have pushed back EV sales targets
and delayed capital projects as they seek to reduce
inventories of unsold EVs at dealerships.
“The slowdown in EV sales is much more pronounced
than it is for other categories of vehicles and that isn’t
related to the economy,” said Neil Saunders, managing
director of GlobalData.
“The EV has a problem attached to it,” he said.
“It’s a much more difficult and complex purchase
because of the range of the vehicles and the charging
infrastructure.”
American consumers are accustomed to often lengthy
road trips for holidays or to visit friends and relatives,
owing to the country’s large size and limited public
transit options.
But so far, the network of EV charging stations remains
dodgy, with many areas either lacking infrastructure or
equipped with unreliable machines.
Range, pricing concerns
More than three-quarters of drivers consider EVs
reliable, according to a survey by the Consumer
Technology Association (CTA), the organizer of the
annual Consumer Electronics Show in Las Vegas.
But there are also significant doubts among drivers
surrounding the autos over inadequate charging
infrastructure (36%), battery range (39%) and vehicle
affordability (38%).
The average EV sold in October for $51,762, some
$13,000 below the year-ago level for the autos but
almost $4,000 above the average price of all autos.
In Europe, the elevated price of gasoline adds an
incentive that allows consumers to overlook the lofty
upfront cost of the vehicle.
But that is less of a factor in the United States, where
gas prices are only about half the level in France or
Britain, according to Observatoire Cetelem 2024.
Industry leaders such as Tesla Chief Executive Elon
Musk have also pointed to increased borrowing costs
as a drag after a series of Federal Reserve (Fed)
interest rate hikes over the last year and a half.
December 2023
10

Tesla remains a dominant player in EVs, accounting for
more than 55% of the 873,000 EV autos sold in the first
10 months of 2023, according to industry researcher
Kelley Blue Book.
Ford Chief Executive Jim Farley predicted “some
bumpiness” in the evolving U.S. market.
“The dynamic changes in the market – pricing,
adoption rates, regulations – are forcing us to further
reduce the cost of our EVs,” Farley said last month.
Lowering costs
Ford’s rival and fellow Detroit giant General Motors
recently pushed back until the end of 2025 a plan to
convert its Orion, Michigan plant for EVs “to better
manage capital investment while aligning with evolving
EV demand,” the company said last month.
“In addition, we have identified engineering
improvements that we will implement to increase the
profitability of our products,” GM said.
Ford and Tesla, too, are looking to simplify their
manufacturing processes to limit costs.
“Reducing the cost of our vehicles is our top priority,”
said Tesla Chief Financial Officer Vaibhav Taneja.
For its futuristic Cybertruck, which is expected to
commence deliveries before the end of 2023, Tesla
is “doing everything possible to simplify that vehicle”
to reach efficiency “that is unheard of in the auto
industry,” Musk said.
Ford also vowed to tweak its design and manufacturing
to reduce complexity.
But the results are still unproven, according to
Deutsche Bank analyst Emmanuel Rosner.
“What concerns us most is that automakers haven’t
cracked the economics to make an easy, affordable
EV,” Rosner said on CNBC.
Washington has mobilized in favor of EVs during the
presidency of Joe Biden, approving $7.5 billion in
funds for EV chargers and extending tax credits up to
$7.500 for consumer purchases of the autos.
The Biden administration wants 50% of vehicle sales
to be electric by 2030.
“The politicians wanted it to happen overnight, but
you can’t just set arbitrary targets; you’ve got to make
sure the infrastructure’s there,” said Saunders of
GlobalData.
“The long-term trajectory is probably good for EVs,”
but “it’s something that’s much slower-going,” he
predicted.
December 2023
12

Auto production increases
19 percent in October
December 2023
The automotive industry’s production increased by
18.6 percent in October from a year ago to 136,177,
data from the Automotive Manufacturers’ Association
(OSD) have shown.
Haberin Devamı
Last month, more than 91,000 passenger cars
were produced, pointing to a 46.7 percent increase
compared with October 2022, while carmakers’
commercial vehicle production plunged 15 percent to
around 45,000.
Pickup truck output was down 19 percent year-onyear,
but bus production leaped 41 percent.
In October, the market expanded 52 percent as a total
of 105,154 vehicles were sold, with passenger car
sales rising more than 74 percent to some 83,000,
OSD said. Türkiye’s passenger car imports climbed
77 percent to 52,482. The share of imported cars
in the local market was 63.5 percent in October,
declining from 66.5 percent in the previous month
and 79 percent in August. The industry’s total vehicle
shipments to foreign countries rose by 7.4 percent.
Passenger car exports, on the other hand, increased
31 percent from October 2022 to around 67,000.
Export revenues amounted to $3.14 billion, marking a
16 percent year-on-year increase.
In the first 10 months of 2023, carmakers produced
a total of 1.2 million vehicles, a 12.4 percent increase
compared with January-October last year, with
passenger car output rising 23 percent to more than
773,000.
Total vehicle sales reached almost 1 million with a 62
percent annual increase. Passenger car sales grew 68
percent to 750,000.
The automotive industry’s export revenues amounted
to $29.3 billion in the January-October period, rising
15.5 percent from a year ago.
In terms of euro, exports increased by 12.8 percent to
27.1 billion euros, according to OSD.
16

Turkish automotive sector beating
1 million milestones
December 2023
The automotive sector will exceed the “1 million”
threshold in all three production, export and sales
figures in 2023, the 100th anniversary of the founding
of the Republic of Türkiye. According to the latest data
shared by Cengiz Eroldu, president of the Automotive
Industry Association (OSD), the total automotive
production will reach 1.5 million units and exports will
reach 1 million units by the end of the year.
Sales will exceed 1.15 million units. With these results,
the automotive market will break the historical record
by exceeding the 1 million mark for the first time in
history. Production and exports will catch up with
2018, but will be slightly behind the historic year of
2017, when 1.6 million units were produced and 1.1
million units were exported.
“The 60-year-old automotive industry, which has grown
with the republic, now operates with a capacity of
2 million units in 17 production facilities,” said OSD
President Cengiz Eroldu at a press conference held in
Istanbul to present the latest figures on the sector.
“We are using 1.4 million units of that capacity. We
have 13 members, and the members have 15 R&D
centers. As a sector, we invest $1 billion annually
and produce jobs for more than 500,000 people. We
continue to contribute to Türkiye’s economy with
annual exports of $30 billion and we continue to be the
leader in this field.”
By the end of 2023, total automotive exports could
reach $35 billion, Eroldu said, noting that automotive
production exceeded 1 million units in the January-
September period.
“Both the growth of the domestic market and the
growth of exports support the numbers of the
automotive industry in 2023. We have broken the 1
million production barrier in the first nine months. This
means that we have returned to our production figures
before the pandemic.”
Regarding vehicle sales, Eroldu said that while they
foresee a 10 percent decline in the overall market
in 2024, they do not expect a similar decline in
production and exports.
“We are hopeful on the export side, we think exports
can cover the loss in the domestic market,” he added.
Emphasizing that the automotive sector has been a
foreign trade surplus sector for many years, Eroldu said
the situation has worsened this year.
22

“The share of domestic producers in total vehicle sales,
which was 45 percent last year, has unfortunately
dropped to 37 percent this year. The most important
factor is the car. In automobiles, we have a domestic
share that has gone from 39 percent to 31 percent.
This is a situation that we do not want at all.
Unfortunately, the sector that gives a surplus of $10
billion is at the level of minus $318 million according
to the first eight months figures, which will grow even
more in September. The last negative value was
realized in 2015 with minus $195 million.”
Eroldu reiterated that the Special Consumption
Tax (ÖTV) base should be updated to increase the
domestic share of the market and to give consumers
access to affordable vehicles. As of June, all cars sold
in Türkiye entered the ÖTV base limit of 80 percent.
December 2023
23

Turkish auto sales see over
55% increase to maintain record streak
December 2023
Car sales in Türkiye maintained their record trend
in October despite tightening financing conditions,
industry data showed, adding to the peaks since the
beginning of the year.
Backed by the increase in the supply of available cars,
a record 101,367 passenger cars and light commercial
vehicles were sold last month, the Automotive
Distributors and Mobility Association (ODMD) said in a
statement, marking a 55.4% year-over-year increase.
Car sales surged by 74.1%, totaling 82,611 units, the
data showed, while the market for light commercial
vehicles saw a more modest increase of 5.5%, with
sales reaching 18,756 units.
Demand soared as depreciation in the Turkish lira, and
soaring prices prompted consumers to continue to opt
for cars they see as a tool to safeguard themselves
from high inflation, which rose to 61.5% in the 12
months to September.
The increase in October lifted the combined sales from
January through October to a fresh record of 958,942
units, marking a year-over-year growth of 63.7%.
The figure surpasses the whole of 2022 when some
783,283 cars and light commercial vehicles exchanged
hands.
The increase in car sales comes despite higher
borrowing costs after the central bank aggressively
tightened its monetary policy after the May elections to
counter price rises.
Higher interest rates, which cool the economy by
making it more expensive to borrow and bearing
down on spending, have contributed to bringing down
inflation worldwide.
26

Türkiye’s central bank has raised its benchmark oneweek
repo rate by 2,650 basis points since June as
part of a wider policy shift toward more conventional
policymaking.
Meanwhile, electric cars have also been booming this
year, capturing a market share unseen to date, backed
by the first homegrown battery-powered vehicle brand
that has been adding momentum to its deliveries.
Some 48,883 EVs have been sold from January
through October of this year, the ODMD data showed,
marking a ninefold increase from a year ago.
Sales in October alone jumped tenfold to 9,832, lifting
the EV share in the overall market to 11.9%.
Togg, the manufacturer of Türkiye’s first electric car,
outpaced Tesla as it delivered some 3,567 units of its
C-segment SUV T10X in October. This figure brings its
deliveries since late April to 9,171 units.
Tesla sold 500 units of its Model Y last month. The
carmaker has delivered some 10,700 units so far this
year.
December 2023
28

Electric car makers race for
supplies of lithium for batteries
December 2023
Threatened by possible shortages of lithium for electric
car batteries, automakers are racing to lock in supplies
of the once-obscure “white gold” in a politically and
environmentally fraught competition from China to
Nevada to Chile.
General Motors and the parent company of China’s
BYD Auto went straight to the source and bought
stakes in lithium miners, a rare step in an industry that
relies on outside vendors for copper and other raw
materials. Others are investing in lithium refining or
ventures to recycle the silvery-white metal from used
batteries.
A shortfall in lithium supplies would be an obstacle for
government and industry plans to ramp up sales to
tens of millions of electric vehicles a year.
It is fueling political conflict over resources and
complaints about the environmental cost of extracting
them. Ford Motor has signed contracts stretching up
to 11 years into the future with lithium suppliers on two
continents. Volkswagen and Honda are trying to reduce
their need for freshly mined ore by forming recycling
ventures.
Global lithium output is on track to triple this decade,
but sales of electric SUVs, sports cars and sedans that
rose 55 percent last year threaten to outrun that.
30

Each battery requires about eight kilograms of lithium,
plus cobalt, nickel and other metals.
Adding to uncertainty, lithium has emerged as another
conflict in strained U.S.-Chinese relations.
Beijing, Washington and other governments see metal
supplies for electric vehicles as a strategic issue and
are tightening controls on access.
Other governments including Indonesia, Chile and
Zimbabwe are trying to maximize their return on
deposits of lithium, cobalt and nickel by requiring
miners to invest in refining and processing before they
can export.
GM is buying direct access to lithium by investing $650
million in the Canadian developer of a Nevada mine. In
return, GM says it will get enough for 1 million vehicles
a year.
BYD Auto’s parent company, battery maker BYD Co.,
has announced more than $5 billion in investments in
lithium mining and refining over the past 18 months.
Despite rising output, the industry may face shortages
of lithium and cobalt as early as 2025 if enough isn’t
invested in production, according to Leonardo Paoli and
Timur Gul of the International Energy Agency.
“Supply side bottlenecks are becoming a real challenge,”
said Paoli and Gul in a report last year. Alastair Bedwell
of GlobalData said miners are reluctant to “go all out”
on lithium until they are sure the industry won’t switch to
batteries made with other metals.
Developing lithium sources is a yearslong process.
Mines that came online in 2010-19 took on average more
than 16 years from discovery to the start of production,
according to Paoli and Gul of the IEA.
“These long lead times raise questions about the ability
of supply to ramp up,” they wrote.
Worldwide lithium resources are estimated at 80 million
tons by the U.S. Geological Survey.
Bolivia’s are the biggest at 21 millions tons, followed
by Australia with 17 million and Chile with 9 million.
China has 4.5 million tons of known reserves and the
United States has 1 million. Forecasts of annual global
production range as high as 1.5 million tons by 2030. But
demand, if EV sales keep rising at double-digit annual
rates, is forecast to increase to up to 3 million tons.
December 2023
32

Türkiye’s electric vehicle market
charges toward 60K sales target
December 2023
The remarkable surge in Türkiye’s electric vehicle (EV)
market growth becomes evident as October’s sales
witnessed a significant uptick, propelling the market
share of these vehicles to 11.0%, and indicating sales
possibly hitting the 60,000 mark by year-end.
According to data from the Automotive Distributors
and Mobility Association (ODMD), sales of electric cars
last month reached 9,087 units, posting a growth rate
of 929%. In the first 10 months of the year, a total of
43,682 electric cars were sold across the country, as
per data. Furthermore, it is estimated that the electric
car market will reach 60,000 units by the end of 2023.
The primary reason for the increase in electric car sales
and market share is the introduction of new models,
the report of Sabah indicated.
Along with new models, the unprecedented boom in
the EV market was backed by the first homegrown
vehicle brand Togg, which began its deliveries earlier
this year, and the entry of U.S. maker Tesla to the
market. In the last quarter of the year, one of the
world’s largest electric car manufacturers, the Chinese
company BYD also entered the Turkish market.
BYD initially launched the Atto 3 model and aims to
trade its 1,500 units by the end of the year. In the first
quarter of 2024, BYD plans to introduce the Han and
Seal models and has a sales target of 10,000 units for
2024. During the launch of the Atto 3, Ismail Ergun, the
general manager of BYD Türkiye, mentioned that they
have encountered significant demand through various
communication channels.
He pointed to the high interest in their models with the
number of interested individuals exceeding 22,000. He
also mentioned that they aim to achieve a market share
of 10% or more depending on market conditions.
“We have also introduced BYD Finance for our
customers’ credit solutions, aiming to provide a quick
and secure response to our customers’ credit needs.
We have started sales with four dealerships, two in
Istanbul, and one each in Ankara and Izmir. In 2024, we
plan to increase the number of dealerships to over 20,”
he said. By the end of 2022, there were 14,552 electric
cars in Türkiye. As of the end of September, this rapidly
increasing number has further increased to 51,219, a
3.5-fold rise. According to ODMD’s data, 3,567 units
of Togg’s SUV T10X were sold in October. This figure
brings its deliveries since late April to 9,171 units.
Meanwhile, Tesla’s estimated sales figure stands at
around 10,000 units so far this year.
Overall car sales in Türkiye maintained their record
trend last month despite tightening financing
conditions, the industry data showed, adding to the
peaks since the beginning of the year.
34

Tesla quarterly results
disappoint as discounts bite
Tesla’s results for the third quarter missed analyst
estimates on Oct. 18, as the Elon Musk-run company
was hit by higher costs and the fallout from price
discounts.
The Texas-based electric vehicle giant said sales in the
July to September period reached $23.35 billion, lower
than the $24.19 billion forecasted by analysts polled by
Factset.
The company also saw net profits come in less than
hoped for, at 66 cents per share instead of 73 cents
forecasted.
Musk has undertaken multiple price cuts throughout
2023 on vehicles, telling investors in April that the
company has taken the view that pushing for higher
sales is the right choice versus taking a bigger margin.
The move came as more EVs from legacy carmakers
like General Motors and Ford are hitting dealerships.
But those rivals have been punished by a major strike
in the United States, something that Tesla will not have
to navigate.
The price cuts have made investors nervous and
Tesla’s share price slid more than seven percent in the
last month and was down more than three percent
from its last closing price in afterhours trade.
The Tesla stock valuation however still dwarfs other
U.S. carmakers and it has more than doubled in 2023,
comforting Musk’s position as one of the world’s two
richest people.
Also rattling nerves, Tesla reported earlier this month
that its new auto deliveries fell in the third quarter to
435,059 units because of downtimes at factories in
Shanghai and Austin.
Production overall declined 10 percent from the
second quarter to 430,488, according to the figures.
December 2023
36

Türkiye’s electric vehicle sales
primed for 61% yearly expansion
December 2023
Sales of electric vehicles (EVs) in Türkiye are expected
to register an annual average growth of nearly 61% in
the coming years, a trend that is forecast to see the
battery-powered cars’ share in the passenger vehicle
segment soaring to over 30%, according to a report.
EV sales have boomed this year, rising ninefold in the
first ten months versus a year ago, propelled by the
first domestically produced electric car brand, Togg, as
well as the entrance of many global automakers such
as Tesla. Sales are expected to grow by 60.8% a year
on average until 2032, according to data compiled
from the “Turkey Electric Vehicles Profile” country
report by research firm BMI, a unit of Fitch Solutions.
The growth is expected to elevate EVs’ share in total
passenger car sales to 30.4%, it said.
It would mark a twofold increase compared to BIM’s
earlier forecast of 33.2% growth. The share of EVs in
total car sales is expected to reach 4.1% this year, up
from just 1.3% in 2022.
Some 48,883 EVs have been sold from January
through October of this year, according to the
Automotive Distributors and Mobility Association
(ODMD). The combined sales of electric and hybrid
cars totaled 127,270 units.
By 2032, the total number of electric passenger
vehicles in Türkiye is forecast to surge to 259,500,
according to the BIM report.
Sales in October alone jumped tenfold to 9,832, lifting
the EV share in the overall market to 11.9%.
Togg, the manufacturer of Türkiye’s first electric car,
outpaced Tesla as it delivered some 3,567 units of its
C-segment SUV T10X in October. This figure brought
its deliveries since late April to 9,171 units.
Tesla sold 500 units of its Model Y last month. The
carmaker has delivered some 10,700 units so far this
year. The trajectory of increased EV sales is projected
to continue into 2024, according to the BIM report.
However, the imposition of taxes is anticipated to
keep the overall market share of EVs in the automotive
industry constrained for some time.
Despite the limitation, the report suggests supportive
measures may be instituted, particularly for Togg,
serving as a catalyst for the widespread adoption of
electric vehicles.
38

Togg’s production is set to reach one million units by
2030, with plans to commence exports to European
markets by 2025. Besides the SUV, Togg will
manufacture four other models – a sedan, C-hatchback,
B-SUV and B-MPV – by 2030. The sedan will follow the
mass production of the SUV. The current production
capacity of around 100,000 vehicles per year will reach
175,000 once Togg’s factory in the northwestern Bursa
province reaches total capacity. Meanwhile, a significant
upswing is also expected in the sales of commercial
electric vehicles over the next few years. The surge is
poised to be fueled by improvements in incentives and
the expansion of charging infrastructure. The initiation of
Tesla’s investment in charging infrastructure in Türkiye is
predicted to strengthen the outlook for electric vehicle
sales by 2032.
December 2023
40

Automechanika Frankfurt receives positive feedback on
focus topics transformation and sustainability
December 2023
Registrations for Automechanika Frankfurt 2024
are already around 20 per cent above the level of
the previous event one year before the start of the
trade fair. The focus topics of transformation and
sustainability have also been very well received by the
industry: Leading players have already announced that
they will be presenting corresponding products and
solutions for the aftermarket and original equipment
from 10 to 14 September 2024. New event formats will
foster discussions and networking on important topics
such as circular economy, electromobility, alternative
fuels, sustainability, connectivity, AI in cars and for
service.
The transformation of the automotive industry will
be omnipresent throughout the fringe programme
of Automechanika Frankfurt. Exhibitors can choose
from a range of different event formats. A brand
new addition is the Sustainability Court in Hall 5,
where car manufacturers, suppliers and players
from the automotive aftermarket can present their
sustainable solutions and discuss them on stage as
well as in the nearby networking area. At the Future
Mobility Park, trade visitors can live experience and
test vehicles with alternative drive systems and
innovative future solutions. The top-class expert forum
‘Innovation4Mobility’ will take place in Hall 3 for the
second time. Lectures and discussion panels will cover
the entire cosmos of topics related to the fundamental
changes in the mobility industry.
The fact that the industry is currently joining forces will
also be demonstrated by the first Sustainability Day in
Bologna on 17 November 2023, initiated by the Forum
on Automotive Aftermarket Sustainability (FAAS). Frank
Schlehuber, Senior Consultant Market Affairs, CLEPA
- European Association of Automotive Suppliers,
comments: “With FAAS, we are now reaching an
important milestone. Launched as an initiative at
Automechanika Frankfurt 2022, suppliers and the parts
trade are bundling their activities in a newly founded
non-profit international association that represents and
supports the automotive aftermarket on the path to
sustainable business processes. The Sustainability Day
offers the opportunity to learn from experts and build
long-term networks that will drive the industry forward
in terms of sustainability in the coming years.”
Philippe Colpron, Head of ZF Aftermarket, also
emphasises the importance of international
partnerships: “We must strike a balance between being
42

locally rooted and globally connected. At the same
time, we need to foster innovative partnerships to
address the evolving landscape of Next Generation
Mobility, characterized by CASES megatrends
(Connected, Autonomous, Shared, Electrified,
Sustainable). The aftermarket sector demands fresh
business models, enhanced service concepts, and
a deeper understanding of customer expectations.
Our pursuit of Zero Emissions, Zero Accidents, and
Zero Downtime for every kilometer driven, while also
creating sustainable growth opportunities for the
aftermarket, can only be realized through collaborative
efforts with our partners, for today and tomorrow.”
Numerous companies return to
Frankfurt after many years
Olaf Mußhoff, Show Director Automechanika
Frankfurt, about the current planning status: “We are
experiencing a lot of demand for stand enlargements
and are especially pleased that some renowned
companies are back on board after a longer break.”
This includes Borsehung, Exedy, Marelli Aftermarket,
Niterra, SKF, Sogefi and Trucktec in the parts and
components product area, 3M, Axalta, PPG and
Spanesi for body and paint, Sonax for the trend topic
of detailing and Airbest Industry, Cormach, OMCN,
Rabotti, Rotar Marchinery Industrial for workshop
equipment.
The response to Automechanika Shanghai, which
will take place from 29 November to 2 December
2023 at the National Exhibition and Convention
Center, is also almost at pre-corona levels with
5,600 registered exhibitors. Michael Johannes, Vice
President Mobility & Logistics at Messe Frankfurt: “All
ten Automechanika trade fairs in 2023 far exceeded
our expectations. Automechanika Shanghai will soon
be the grand finale. China plays a pioneering role
in the automotive industry as a centre for research,
development and production. This becomes clear just
by looking at the topics of around 60 events that will
take place during the four days of the trade fair.”
Exhibitor statements on the upcoming
Automechanika Frankfurt 2024
“We see us as a driving force in the challenge of
making the aftermarket fit for e-mobility. In doing so,
we focus on our customers’ need for economical and
future-proof repair solutions.”
Jens Schüler, CEO Schaeffler Automotive Aftermarket
“Together with our customers, we want to shape
the sustainable transport of the future and continue
to be a strong innovator in the commercial vehicle
industry in the original equipment and aftermarket.
At Automechanika, we will showcase our vision of a
holistic aftermarket ecosystem for the first time with
Cojali by our side.” Andreas Wimmer, Member of the
Management Board of Knorr-Bremse Systeme für
Nutzfahrzeuge GmbH
“We are incorporating the technological changes,
e.g. the electrification of automobiles, into our
software solutions and offer real added value through
telematics data, for example. For us, the essential
December 2023
43

innovation lies in connecting all technologies and
using artificial intelligence to simplify and accelerate
processes.”
Helmut Eifert, DAT Managing Director Innovations and
International
“In general, we believe that companies are increasingly
better positioned as part of the transformation process.
The extraordinary and volatile market situation in
recent years has led to a rethink in the industry. With
a new sustainability concept, we are helping repair
businesses to operate profitably in the long term: with
efficient processes, energy-saving products and digital
tools, they can significantly increase their profitability
and at the same time make a contribution to greater
sustainability.”
is based on the pillars of sustainability, design,
functionality and user-friendliness. Together with them,
we have implemented a unique product DNA in the
wash industry that fulfils the needs of the operator and
end user.”
Marko Maricic, Head of International Sales, Otto Christ AG
“The automotive industry has never stood still, but
is changing at a rapid pace every year and we are
keeping up with this change. Our tools are becoming
lighter and we also offer innovative software solutions.
We also aim not only to adapt to the latest materials
and repair processes, but also to inspire and motivate
the new generation of technicians.” Jürgen Braun,
Sales/Technical Manager DACH Celette
Jochen Kleemann, Director PPG Germany,
Sales & Services GmbH
“At Bosch, sustainability is deeply rooted in our
corporate values and has not just recently become
part of our day-to-day business. For more than 50
years, Bosch Automotive Aftermarket has been
offering circular products. By 2030, we will more than
double our circular business in the aftermarket with
remanufacturing, reuse, repair and recycling.” Peter
Lukassen, Head of Operational Sustainability at Bosch
“Our customers are the centre of our focus and are
also the drivers of our innovation process, which
December 2023
44

Ford Otosan unveils Yeniköy
factory, bolsters Türkiye’s EV focus
December 2023
Ford Otosan, a joint venture of Türkiye’s conglomerate
Koç Holding and the U.S. automotive giant Ford,
opened its Yeniköy factory in northwestern Kocaeli with
the participation of President Recep Tayyip Erdoğan
following the redesigning and modernization process
initiated with the support of authorities in 2021.
Ford Otosan chair of the Board and Koç Holding
deputy chair of the board of directors Ali Koç stated
that the renewed factory will strengthen their position
as Europe’s leading electric commercial vehicle
manufacturer, Anadolu Agency (AA) reported.
“However, our dreams for the future go far beyond
these. Our Yeniköy factory will serve these dreams,”
he said. Highlighting that they continue to invest in
Türkiye’s future, Koç said, “As we enter the second
century of the republic, we are placing our Yeniköy
factory, which we call ‘the factory of the future,’ into
service by enlarging it approximately fourfold and
further modernizing it.”
“The first step of this great happiness was taken at
the meeting we held on March 16, 2021, again in the
presence of our president, this time hosted by you
(Erdoğan), you encouraged us with the support and
encouragement of our state and we took the first step
there,” Koç recalled.
“In such an uncertain period, we announced our
strategic investment of 2 billion euros ($2.14 billion),
calling it ‘our vision for the future.’ This figure is the
largest investment in the Turkish automotive industry,”
he underscored.
“It is also an ambitious vision project whose impact
will last at least 10 years. On that day, we said, ‘As
Europe’s commercial vehicle production leader
and Türkiye’s export champion, we will also lead
the electrification transformation of the automotive
industry,’” Koç noted. The Kocaeli facility, located in
the Gölcük district, is the largest commercial vehicle
production hub for Ford in Europe.
Wishing the plant, which employs 3,500 people, to
be beneficial, Erdoğan on the other hand, said: “This
facility, which is a reflection of the engineering and
production power of the world brand Ford, deserves
the title of the factory of the future with its pioneering
features. It stands out with its production of both
internal combustion and electric vehicles.”
Emphasizing the factory’s potential, Erdoğan further
said it would host the production of the new generation
Transit Custom, as well as the electric Transit and
Volkswagen’s 1-ton commercial vehicle.
“I hope that the new version of Transit Custom,
Europe’s bestselling van class vehicle, will be beneficial
to its customers in our country and around the world.”
“That we have elevated to the 13th place from the
15th place in production in five years shows that we
are advancing toward the right direction,” President
Erdoğan said. “What is more, we have achieved
this despite successive global crises. Last year, our
automobile exports had a foreign trade surplus of over
$9 million.”
‘Growing interest in EVs’
“We, as Türkiye, are determined to preserve our
production and export potential, which we have
obtained by swiftly adopting the technological
transformations in the automobile production market.
We attach special importance to the investments
that will give us a say in electric and hybrid vehicle
production, which is growing exponentially. As is the
case in the entire world, there is a growing interest in
electric vehicles in Türkiye as well,” Erdoğan noted.
Stressing that 14 million electric vehicles are expected
to be sold this year across the world, President
Erdoğan added: “Apparently, with the new actors
breaking into the market along with the already-present
ones, the competition in this area will get increasingly
fiercer.”
“With the interest triggered by the Togg hitting the
road, we march on the path to having a rapidly
developing electric vehicle market. Our aim is to make
our country one of the world’s leading actors in electric
vehicle and battery production.”
Highlighting the development in the electric vehicle
sector, whose sales boomed this year, increasing
approximately ninefold in the first 10 months of 2023
when compared to last year, according to official data,
Erdoğan said, “We, as a country that has already
reached a production capacity of 70 gigabytes per
hour in electric vehicle batteries, are determined to
become the battery production hub of Europe.
46

Türkiye’s energy landscape reshaping
as renewables gain momentum
December 2023
Türkiye’s electricity installed capacity has increased
by more than threefold in the past two decades, while
renewable energy share has reached approximately
55% of the existing installed capacity, Deputy Minister
of Energy and Natural Resources Abdullah Tancan
said.
“Electricity installed capacity, which was 31,846
megawatts (MW) in 2002, has increased 3.3 times to
reach 105,135 MW by the end of July,” said Tancan at
the opening of the 16th EIF Energy Congress and Fair
held in the southern province of Gaziantep.
Looking at electricity production, Tancan noted that
electricity production had reached 326 billion kilowatts
(kW) by the end of last year, and Türkiye ranks 5th in
renewable energy installed capacity in Europe and 12th
globally.
He also highlighted the country’s position in equipment
production, saying: “We are currently ranked 13th
globally and 6th in Europe in equipment production.
We have made significant progress in installed
capacity and production of renewable sources over
the past 21 years, with electricity installed capacity
increasing 3.3 times from 31,846 megawatts in 2002 to
105,135 megawatts by the end of July.”
“We have increased the share of renewable energy in
electricity production to 42%. Currently, our country
has approximately 10,398 MW of solar installed
capacity, with 10,169 solar energy production
facilities,” he noted. Pointing out that
there are significant goals regarding
solar energy in the National Energy
Plan, Tancan said: “By 2035, we aim
to add an average of 3.5 gigawatts
per year, with 52 gigawatts out of 189
gigawatts of installed capacity being
derived from solar energy sources.”
“Solar energy will be one of the
fundamental components of energy
in the near future and will continue
to grow. Additionally, producing local
products has become important.
In the fields of wind and solar,
many equipment items are now
being produced in Türkiye, with the
localization rate of panels reaching
up to 80%,” he added.
Kutay Kaleli, head of the International
Solar Energy Society (ISES) Türkiye Section
(GÜNDER) for his part, noted that 150,000 people are
directly employed in the solar energy sector, stating
that panel factories with a production capacity
of approximately 30,000 megawatts have been
established in Türkiye.
“With all the investments made in solar energy,
we have become the 3rd largest panel-producing
country in the world. We opened the 5th EVA factory,
which is important in solar technology,” Kaleli said.
Çiğdem Dilek, chairperson of the EIF Congress
Executive Board, stated that recent technological
developments have taken a more prominent place in
Türkiye’s energy agenda.
She emphasized that self-consumption and
distributed energy are at the forefront of investors’
agendas and said: “In Türkiye, legislation work on
topics such as hydrogen and charging stations is on
the agenda and progressing rapidly. We will continue
to see new technological developments.”
“If an energy picture of Türkiye were to be taken,
sector representatives would need to come to EIF.
By organizing these events in cities where investors
and equipment productions are located, we produce
new opportunities. That’s why we organized EIF
in Gaziantep. We have also received invitations to
organize this event from Malatya, Kahramanmaraş,
Adıyaman and Şanlıurfa,” Dilek explained.
48

Japan’s automakers unveil EV galore,
vie for supremacy at Tokyo show
December 2023
“We love battery EVs,” said the executive in charge of
electric vehicles at Toyota Takero Kato not once, but
twice, to underscore what he considers the message at
this year’s Tokyo auto show.
It’s a message ringing clear at the Tokyo Mobility Show,
which will run through Nov. 5 at Tokyo Big Sight Hall,
where battery-powered electric vehicles are the star at
practically every booth.
Mazda Motor Corp. is highlighting a sportscar concept
that is a plug-in EV packed with its signature rotary
engine. Honda Motor Co. is showing off its Prelude
sportscar EV concept. Toyota Motor Corp.’s lean
angular Lexus concept, set to sell in 2026, is an electric
vehicle running on lithium-ion batteries.
Journalists got a preview ahead of the show’s public
opening.
U.S. automakers like General Motors Co. and Ford
Motor Co. aren’t exhibiting at the show and have not
taken part for some years. The Americans make up a
very tiny fraction of Japanese auto sales and have had
a hard time cracking a market where domestic makers
remain powerful.
Among the foreign makers taking part are Mercedes-
Benz, a perennial Japanese favorite and China’s BYD.
Kato denied he repeated his words because he is
worried Toyota isn’t perceived as loving EVs enough.
Toyota executives have acknowledged that Japan’s top
automaker has fallen behind rivals in EV development
like Tesla of the U.S. and China’s BYD Auto. That is
partly because of Toyota’s past success in hybrids,
exemplified in the Prius, which has a gasoline engine
and an electric motor.
Toyota already sells a tiny two-seater called C+pod
and the bZ4X, co-developed with group company
Subaru, as electric offerings, but not much else. And it
is eager to play catchup.
As the first serious EV from Toyota, the Lexus LF-ZC
will serve as a true test for how Toyota fares in a sector
that still comprises a minority of the global market but
is growing quickly, given priorities like climate change.
In Japan, EVs make up less than 5% of the auto
market, according to the International Energy Agency
(IEA). In the U.S., where Tesla dominates, EVs account
for just under 10% of auto sales, although President
Joe Biden is pushing for requiring at least 54% of new
vehicles sold in the U.S. to be electric by 2030. In
China, a third of vehicles sold are EVs.
Tesla’s global vehicle deliveries last year grew 40%
from the previous year to 1.31 million EVs. BYD sold
more than 1.85 million electric cars, including plug-ins.
52

December 2023
Toyota, meanwhile, sold fewer than 25,000 EVs
worldwide last year, although in the first eight months
of this year, it sold 65,000, mostly outside Japan.
Toyota is targeting sales of 1.5 million EVs a year by
2026 and 3.5 million by 2030.
“We are looking toward an electrified future that we
hope to build together with our customers,” Kato said.
Catching up is challenging but not impossible, said
Joshua Cobb, senior automobiles analyst at BMI.
“Over the short term, we see Chinese EVs from brands
such as BYD, SAIC-GM-Wuling and Tesla-branded
EVs will continue to gain market share as there is little
competition at the moment,” he said.
But, Cobb added, “One thing not to underestimate is
the strong brand loyalty in Japan.” He said Japanese
consumers may hold off on EV purchases until more
domestic models hit the market.
Nissan, an early EV maker among the Japanese with
its Leaf going on sale in 2010, is showcasing four EV
concept cars. Among them is the Hyper Tourer minivan
concept that Nissan says has advanced technologies
like autonomous driving. It runs on high-energy-density
solid-state batteries. Senior Vice President Alfonso
Albaisa said Nissan is focusing on virtual reality and
other breakthroughs that allow vehicle designers to
shorten model development time.
“At Nissan, we have been racing forward with our
dramatic digital shift just as other industries, like
gaming,” Albaisa said.
Manufacturers also note that EV technology is
changing how a vehicle drives.
Batteries and a motor for an EV generally take up less
space than a gas combustion engine. That means
EVs can have a lower center of gravity while offering
more cabin space, making it a nifty powertrain for
sportscars, vans, pickups and SUVs.
In Nissan and elsewhere, a key issue for EVs is battery
charge time and driving range. While all the world’s
major automakers are working to shorten charge time
and lengthen cruise time per charge, the U.S. startup
Ample has developed a different solution – battery
swapping. Instead of charging the battery in the car,
a module containing the battery is taken out and
replaced by a fully charged battery at a drive-in facility
built especially for the procedure. The swap, done by
robots, takes just five minutes.
The approach is already being used by Uber drivers
in the San Francisco area. Ample’s battery-swapping
arrives in Japan this winter through a partnership with
Mitsubishi Fuso, a Daimler group truck company. The
swapping is being demonstrated at Mitsubishi Fuso’s
booth. De Souza said another attraction of battery
swapping is its greenness. A battery can be charged
flexibly, using renewable energy at times of the day
with low demand for power, he said.
“We decided what worked really well about gas is
that you stop for a few minutes,” said John de Souza,
Ample’s president and founder.
54

World Bank provides financing
for greening of Turkish firms
December 2023
The World Bank Board has approved a $155 million
loan for the greening of firms through equity financing,
and mobilized private capital and expanded climate
financing in Türkiye’s capital markets.
The funds will be channeled by the Industrial
Development Bank of Türkiye (TSKB), which will use
them to partially capitalize a Türkiye Green Fund (TGF),
the World Bank said in a statement.
The TGF will provide equity financing to green and
greening companies. It will be managed by Maxis
Private Equity Portfolio Management, one of Türkiye’s
largest asset management companies and a Project
Implementing Entity under the project.
The project’s total size is expected to reach $405
million by mobilizing private capital in the amount of a
combined $250 million at the fund level and investee
level, in addition to the World Bank loan, according to
the statement.
The project aims to support firms’ decarbonization
and investments in green technologies, development
of the Private Equity industry through a demonstration
green fund, financial sector diversification and
development of firms’ access to diversified sources of
long-term finance, lowering high corporate leverage,
and accelerate financing for the green transition and
enhanced climate action.
For Türkiye to reach its intended green objectives,
firms need to decarbonize, the statement said.
56

China to curb exports of graphite
citing national security concerns
China will demand export permits for some graphite
products to safeguard national security, its commerce
ministry said, in its latest move to control supplies
of critical minerals in response to hurdles over its
manufacturing dominance.
China is the world’s top graphite producer and
exporter and also refines over 90% of the world’s
graphite into the material that is used in virtually all
EV battery anodes, which is the negatively charged
portion of a battery.
Beijing is requiring export permits when many foreign
governments are increasing their pressure on Chinese
companies over their industrial practices.
The European Union is weighing levying tariffs on
Chinese-made EVs, arguing they unfairly benefit from
subsidies. Also, the U.S. government widened curbs
on Chinese companies’ access to semiconductors,
including stopping sales of more advanced artificial
intelligence chips made by Nvidia.
The ministry said the move was “conducive to
ensuring the security and stability of the global supply
chain and industrial chain and conducive to better
safeguarding national security and interests.”
It added that it was not targeting any specific country.
Top buyers of graphite from China include Japan, the
United States, India and South Korea, according to
Chinese customs data.
Under the new restrictions, China will require as of
Dec. 1 that exporters apply for permits to ship two
types of graphite, including high-purity, high-hardness
and high-intensity synthetic graphite material, and
natural flake graphite and its products.
Three types of “highly sensitive” graphite items had
already been under temporary controls, the commerce
ministry said, and are included in the new list.
Meanwhile, it dropped temporary controls on five less
sensitive graphite items used in basic industries such
as steel, metallurgy, and chemicals.
The new measures will ensure the domestic supply
of graphite for military use, such as in the aerospace
sector, as well as domestic battery-making, said
Chang Ke, an analyst at consultancy Mysteel.
With rising sales of electric vehicles, automakers are
racing to lock in supplies from outside China, but
shortages are looming.
“It’s a restriction on EV material flowing out as many
new energy companies are increasingly building up
more plants overseas,” Chang said.
Shares in China’s new energy vehicle and battery
makers rose after the announcement.
The curbs are similar to those in place since Aug. 1
for two chip-making metals, gallium and germanium.
The restrictions have slashed exports of those metals
from China recently and pushed up prices outside of
the country. Analysts said it was not clear how much
impact the new measures on graphite would have in
the short term.
“This control is not a complete ban, and there has
been no significant impact on any industry during the
previous temporary control,” said Ivan Lam, a senior
analyst at Counterpoint Research.
Prices for natural flake graphite were 3,950 yuan
($539.62) a metric ton, down 25.5% from the
beginning of this year because of declining demand
from the EV sector, according to Mysteel.
However, Counterpoint’s Lam said that graphite prices
are likely to rise.
“We believe that the average price of graphite will
continue to rise in the future due to supply and
demand imbalances, including Russia, which was
one of the major graphite suppliers before the Russia-
Ukraine war,” he said.
December 2023
58

Turkish defense industry ‘will move forward’
The defense industry is the leading sector of the
national technology movement, Industry and
Technology Minister Fatih Kacır has said, adding that
the sector will be in a much better position than today
in the future.
“Türkiye is a country that has been fighting terrorism
for nearly 40 years and unfortunately has not been able
to see its allies from time to time in this fight and has
not been able to find the opportunity to access the
defense industry systems it needs from time to time,
despite paying for them,” Kacır said on Nov. 8 during
talks on his ministry’s 2024 budget in a parliamentary
commission.
“This has led Türkiye, especially in the last 20 years, to
develop all of its critical platforms, including air, land,
naval and space systems, domestically and nationally
in the defense industry to meet its own needs,” he
added. Noting that the first flight of the national fighter
is expected to take place by the end of 2023, Kacır
said that the performance tests of the Hürjet project
will continue.
“The Atak helicopter, our national helicopter, is in
service,” he added.
“Let us make it very clear, we will not retreat even
one inch from these projects, on the contrary, we will
develop these projects much further than today for the
peace, welfare and security of 85 million citizens living
in Türkiye, for our independence and our future.”
Kacır also noted that the brain drain abroad has
improved.
“According to the brain drain statistics referred to
by the World Bank, in the ranking of 179 countries in
2023, our country has improved 21 places in the last
six years, from 112 to 134,” the minister said.
December 2023
60

Chinese brands increasing share in Turkish auto market
December 2023
Chinese carmakers are fast increasing their share in the
Turkish market, but subsidies the Chinese companies
receive from their government may lead to unfair
competition, warns Baran Çelik, the board chair of the
Uludağ Automotive Industry Exporters’ Association
(OİB). Chinese companies are aiming to consolidate
their positions in the auto markets with the help of the
large subsidies they enjoy, Çelik said.
“They have a destructive approach in competition,
such as weakening competitors and ensuring that they
are eliminated from the market. This may turn into an
unfair competition in the future.”
Türkiye should use all its rights regarding customs
investigations provided by the World Trade
Organization, according to Çelik. In the whole of 2022,
only 3,456 Chinese-made cars were sold in Türkiye,
but in the January-October period of this year, a total
of 43,562 Chinese cars were sold. They appeal to local
consumers because they are affordable and highquality
cars. However, governments and domestic
manufacturers are cautious about the risks that may
arise in the foreign trade balance and the competition
in the market. The prices of those vehicles will not
remain at the same level once those companies gain
certain market power, Çelik said.
“Although it may seem like an advantage for
consumers in the short term, in the long term, after
they gain a market share, there may come a time when
unfair competition begins.”
The only way to prevent this is to break the power
subsidized by tariffs, Çelik argued.
The automotive industry, which has been Türkiye’s
largest exporting industry for the past 15 years, had
been posting a foreign trade plus. But this is about to
change in 2023.
“The auto industry’s annual export revenues are over
$30 billion. This year, we may post a foreign trade
deficit of around $1 billion to $2 billion,” Çelik said,
warning that the deficit may further increase to $3.5
billion to $4 billion in the future. The biggest reason
for this is the decrease in the share of domestic
automobiles in sales, according to Çelik.
“We started selling less of what we produced to the
domestic market. On the other hand, the number
of vehicles we imported in the upper segment also
increased. Especially electric vehicles disrupt our
foreign trade balance,” Çelik said. In order to maintain
the balance in foreign trade, “we need to produce and
export electric vehicles,” he added. Electric vehicle
sales skyrocketed to 890 percent in the January-
October period from a year ago to 48,883, according to
the data from the Automotive Distributors’ and Mobility
Association (ODMD). Electric vehicles accounted for
6.5 percent of all vehicle sales in the first 10 months.
64

Time has come for Central Bank
digital currencies to prove their worth
December 2023
The European Central Bank’s (ECB) milestone step
toward introducing a digital euro in the coming years
signifies a crucial moment for the newest incarnation
of money to demonstrate its value and relevance in the
evolving financial landscape.
A few countries have introduced central bank digital
currencies (CBDCs). China is trialing a prototype yuan
with 200 million users, India is gearing up for a pilot,
and some 130 countries representing 98% of the
global economy are exploring digital cash.
The ECB’s move to establish a pilot that could lead
to a digital currency for the 20 countries that use the
common currency, making it the first heavyweight
Western central bank to forge ahead formally, could
become a global blueprint.
Supporters say CBDCs will modernize payments with
new functionality and provide an alternative to physical
cash, which seems to be in terminal decline.
But questions remain about why CBDCs represent an
advance, with uptake low in countries such as Nigeria
that have adopted them, as well as protests against the
ECB’s plans, showing public concern about snooping.
Commercial bankers fret about the costs and possible
deposit bleeds as customers could move money into
central bank accounts, while developing countries
worry that an easily accessible digital dollar, euro, or
yuan could cause havoc in their systems.
’What is money?’
The ECB’s plan “is a very big deal, and a lot of the rest
of the world is watching this closely,” said Josh Lipsky,
who runs a global CBDC tracker at the Atlantic Council.
“It is one of the biggest central banks, so if it comes up
with answers to the privacy and cybersecurity issues
and the ability to use it offline, it will be very influential.”
Five years ago, central banks were spooked into
action when Facebook floated plans for a breakaway
currency. Now, though, policymakers have yet to
persuade many why CBDCs are needed fully.
Fabio Panetta, the ECB Executive Board member
overseeing the bank’s digital euro work, said it would
help “future-proof” the currency and reduce what he
called an over-reliance on the payment systems of
U.S.-based credit cards.
But experts are scratching their heads.
“It’s not yet clear what the thing is that could be done
with a retail CBDC that couldn’t also be replicated with
commercial bank money,” said Barclays’ managing
director of advanced technologies, Lee Braine, who
has been involved in some of the Bank of England’s
digital pound projects. “You are potentially breaking
some of the singleness of money,” he said, flagging
the risk of a two-tier system if CBDCs are allowed
different functionality or data disclosure rules than
bank accounts.
“This all comes down to, what is money?”
Defining a global standard
A key unknown is whether the U.S. Federal Reserve or
Bank of Japan will launch retail CBDCs.
India could be a more effective test environment than
China because, while each Asian giant has more than 1
billion people, India has a far more open economy.
In contrast, Canada and others appear to be tapping
the brakes, while most of those already using CBDCs
are seeing very little interest.
Data this month from the Bahamas, which launched
the world’s first digital currency in 2020, showed
personal transactions of its SandDollar were down
11% in the first seven months of the year while wallet
top-ups had plunged fourfold.
A May International Monetary Fund (IMF) paper
described public adoption of Nigeria’s eNaira as
“disappointingly low,” with 98.5% of wallets never even
used.
“The current adoption level of eNaira has been
reflective of the early stage of CBDC awareness,”
the country’s central bank said in a written response
to questions, adding it had been “consistent” with
expectations.
66

Türkiye looking into Russia’s road map for gas hub
Russia has prepared a road map for the proposed gas
hub and submitted it to Türkiye, Deputy Prime Minister
Alexander Novak said, also stressing Azerbaijan’s
intention to join the initiative.
The Kremlin last October floated the idea of producing
a major gas-trading hub in Türkiye as Moscow worked
to reroute its energy exports after European countries
sharply cut their imports from Russia in response to its
actions in Ukraine.
The plan followed unexplained explosions that
damaged Nord Stream gas pipelines linking Russia
with Germany under the Baltic Sea.
The project has garnered significant attention from
both Türkiye and Russia, with other nations expressing
interest as well, according to Novak.
“This project has attracted intense interest from both
Türkiye and Russia. Additionally, there are other
potential participants. For instance, Azerbaijan is also
prepared to be part of the project,” he told Anadolu
Agency (AA) on the sideline of the Russian Energy
Week in Moscow.
He also highlighted the potential for further
international collaboration.
“We believe that other countries can also participate
as gas suppliers. Establishing an electronic trading
platform would be suitable, especially for Europe and
Southeast Europe, to determine gas prices based on
the volumes to be sold there,” he noted.
The project envisages the setting up of an electronic
platform for gas sales in Türkiye.
Novak underscored the ongoing efforts in the
establishment of the gas center and said a draft of the
project has been prepared and is being considered by
Türkiye.
“This project is being discussed now, a roadmap has
been drafted and it has been submitted to Turkish
partners. They are studying it now. As soon as it is
signed it will be implemented as planned,” he told an
interview with RT Arabic.
“A road map has been prepared in collaboration with
Gazprom and BOTAŞ, and adjustments are being
made,” he noted, stressing hopes the project would
December 2023
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e signed in the near future, paving the way for its
implementation.
Putin also echoed the aim to expand energy
cooperation and the realization of a natural gas hub
project with Türkiye during his speech at the Russian
Energy Week.
Also speaking on the sidelines of the event, Turkish
Energy and Natural Resources Minister Alparslan
Bayraktar said discussions regarding the project were
taking place with Russian energy giant Gazprom, and
stressed collaboration with Russia on various energyrelated
fields will continue.
Türkiye already serves as a major transit country for
Russian gas, which is being shipped through the
Black Sea via two pipelines. The Blue Stream and the
Turkstream boast a combined capacity of almost 48
billion cubic meters (bcm) per year.
Novak said Russia and Türkiye have a history of
successful cooperation in the energy sector.
He credited the success of these projects to the
agreements reached between President Recep Tayyip
Erdoğan and Russian President Vladimir Putin.
“Gazprom and BOTAŞ are jointly implementing these
projects, and the pipelines are operating successfully.
Deliveries are being carried out seamlessly in line with
the design capacity. Therefore, I believe successful
collaborations have been conducted in the energy
sector, particularly in the natural gas industry.”
The implementation of the gas hub project aiming
at redirecting supplies and exporting them to the
European market was delayed after devastating
earthquakes jolted southeastern Türkiye in early
February, causing widespread destruction across
the region. Türkiye, a NATO member state that has
maintained relations with both Russia and Ukraine,
currently imports almost all its gas needs and
has extensive liquefied natural gas (LNG) import
infrastructure. Ankara believes it can leverage its
existing and new trade relations to become a gas hub.
Maximizing trade hub project
Bayraktar said Türkiye wants to establish a more
extensive trade hub in which not only natural gas but
also electricity and minerals are exchanged.
To achieve this, he explained that Türkiye wants
to establish a larger trade center for natural gas,
electricity and minerals at the Istanbul Financial Center.
He called on other countries to endorse this aim to
ensure secure energy supplies.
Bayraktar explained that the bilateral energy
cooperation between Türkiye and Russia is not limited
to natural gas but encompasses nuclear power, oil, oil
products and coal.
“Russian companies and Russia have a great track
record of being a trustworthy supplier to Türkiye,”
Bayraktar said, referring to the almost 40-year history
of economic collaboration, particularly in natural gas.
“Türkiye also plays a significant role in Russia’s efforts
to develop a stable and expanding market and,
hence, the ongoing, long-term collaboration between
us,” Bayraktar told. Bilateral energy cooperation
has extended to nuclear power and to the Turkish-
Russian collaboration to build Türkiye’s first nuclear
power plant, the Akkuyu Nuclear Power Plant, which
Bayraktar said was one of the largest among the
nuclear plants currently under construction. In April,
nuclear fuel was delivered to the Akkuyu site, granting
it international nuclear facility status, Bayraktar
explained, adding that “now, we are awaiting the day
when we will produce electricity from the first reactor.
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