Automotive Ekports April 2024

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Monthly automotive aftermarket magazine<br />




İstmag Magazin Gazetecilik<br />

İç ve Dış Ticaret Ltd. Şti.<br />

Managing Editor (Responsible)<br />

Mehmet Söztutan<br />

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

Advertising Sales Consultant<br />

Adem Saçın<br />

+90 505 577 36 42<br />

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

Enes Karadayı<br />

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

International Marketing Coordinator<br />

Ayca Sarioglu<br />

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

Advisory Editor<br />

Yusuf Okçu<br />

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

Finance Manager<br />

Cuma Karaman<br />

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

Digital Assets Manager<br />

Emre Yener<br />

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

Technical Manager<br />

Tayfun Aydın<br />

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

Graphic & Design Advisor<br />

Sami aktaş<br />

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

Accountant<br />

Yusuf Demirkazık<br />

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

Subsciption<br />

İsmail Özçelik<br />

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


İstmag Magazin Gazetecilik<br />

İç ve Dış Ticaret Ltd. Şti.<br />

Ihlas Media Center<br />

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

Yenibosna Bahcelievler, Istanbul / TÜRKİYE<br />

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

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

KONYA:<br />

Metin Demir<br />

Hazım Uluşahin İş Merkezi C Blok<br />

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

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



Merkez Mahallesi 29 Ekim Caddesi İhlas Plaza<br />

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

Tel: 0212 454 30 00<br />

www.ihlasmatbaacilik.com<br />

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

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

Heading to Astana<br />

The automotive industry is one of the remarkable “locomotives” of the Turkish<br />

economy. It assembles some of the country’s largest exporters and represents one<br />

of the leading investor industries. A multitude of enterprises engage themselves<br />

in both production and trading, adding enormous value to the already dynamism<br />

of the automotive industry.Türkiye’s autoparts industry exports are increasing<br />

steadily year by year.<br />

Competitiveness at the domestic level has been replaced with competitiveness<br />

on a global scale. The Turkish automotive industry, which was originally founded<br />

for import-substitution purposes and focused on the domestic market for a long<br />

period, transformed itself into a production base for a number of global models.<br />

In motor vehicles, a large number of EU legislation was adopted. Turkey has been<br />

continuing efforts to introduce the relevant legal arrangements, and significant<br />

progress has been achieved in this field.<br />

It is the only country within the surrounding geographical area to have established<br />

a well-advanced automotive industry. Therefore, the automotive industry is<br />

strategically important both for Türkiye and for the firms that invest in Türkiye.<br />

The Turkish automotive supplier industry produces almost all types of parts,<br />

components and spare parts such as engines and engine parts, power train<br />

parts and components, brake and clutch parts and components, hydraulic and<br />

pneumatic systems, suspension systems, security systems, rubber and plastic<br />

parts, chassis, frames and parts, casting and forging, electrical equipment and<br />

parts, lighting systems, accumulator batteries, seats etc.<br />

The structure of the automotive industry is changing dynamically, making Türkiye<br />

an alternative suppliers center for global manufacturers.<br />

Actually, the brand name Automechanika signifys successful fairs for the<br />

automotive original equipment manufacturing and aftermarket industries around<br />

the world. Whether in Europe, Asia or the Americas, Automechanika aims at<br />

providing the ideal trading and information platform for automotive professionals.<br />

Messe Frankfurt’s international expertise in the field of trade fair organization<br />

and in-depth knowledge of the most dynamic markets provides the base for each<br />

Automechanika Fair.<br />

This month, we are at Automechanika Astana, <strong>2024</strong> to convey the messages of<br />

Turkish auto parts industrialists and exporters.<br />

Our publications remain at the service of those business people seeking to<br />

increase their share in the increasingly competitive automotive markets.<br />

We wish Turkish automotive exporters and their trading business people lucrative<br />

business.<br />

automotiveexport<br />

EDİToR<br />


Automechanika and Frost & Sullivan<br />

forge new partnership for Global Impact<br />

Frost & Sullivan, the Global Growth Pipeline Company, is joining forces with<br />

Automechanika, the leading international trade fair brand for the automotive<br />

aftermarket, to enhance their offerings to industry professionals.<br />

This strategic alliance is designed to deliver a<br />

continuous flow of valuable content for the Brand<br />

Automechanika covering pivotal areas such as market<br />

trends, technology, innovation, and emerging business<br />

models, each contributing to transformative growth<br />

across the entirety of the automotive value chain.<br />

Digitisation, as a disruptive trend in the aftermarket,<br />

finds relevance across all global markets. Frost &<br />

Sullivan valued global manufacturer-level replacement<br />

parts revenues at $470.9 billion in 2023. While<br />

vehicle ageing and average annual mileage will drive<br />

aftermarket demand, trends like electrification, vehicle<br />

autonomy, and remote diagnostics will boost the<br />

outlook further.<br />

Kamal Shah, Associate Partner & Head of DACH<br />

Region at Frost & Sullivan: “Our sector analysis<br />

underscores the pivotal role of digital advancements<br />

in steering the aftermarket towards unprecedented<br />

growth. As the industry transforms, businesses are<br />

encouraged to embrace innovation.”<br />

“This partnership marks a powerful synergy between<br />

Frost & Sullivan’s expertise in the automotive<br />

aftermarket sector and Automechanika’s commitment<br />

to delivering exceptional trade show experiences.<br />

Through our strategic alliance, both parties aim to<br />

elevate the industry’s knowledge-sharing landscape<br />

and provide unparalleled value to participants and<br />

exhibitors at each of Automechanika’s 14 events<br />

around the globe in <strong>2024</strong>.”<br />

Michael Johannes, Vice President Mobility & Logistics<br />

at Messe Frankfurt: “We have been utilising Frost &<br />

Sullivan’s industry expertise for many years. Now we<br />

want to intensify our co-operation in terms of content<br />

and use it for the strategic orientation of our brand. We<br />

expect the collaboration to provide new and important<br />

impetus for the further development of our international<br />

Automechanika trade fairs. The knowledge of trends<br />

and new industry players in markets worldwide is<br />

invaluable for interlinking content throughout our<br />

international events. We are excited about the cooperation.”<br />

As a Global Knowledge Partner, Frost & Sullivan<br />

is excited to actively contribute to the knowledge<br />

enrichment at Automechanika’s portfolio of<br />

international trade fairs spanning four continents,<br />

as well as the potential impact this collaboration will<br />

have on advancing industry knowledge and fostering<br />

innovation within the automotive aftermarket.<br />

Frost & Sullivan is offering members of the<br />

Automechanika community a 20% discount on the list<br />

price of all Mobility Growth Opportunity Analytics on<br />

the company’s Online Store.<br />

<strong>April</strong> <strong>2024</strong><br />


One Spare Parts, number-one<br />

automotive spare parts supplier<br />

With nearly 15 years of domestic and foreign trade<br />

experience in the automotive sector, One Spare<br />

Parts company laid the foundations in Istanbul in<br />

2021 as Moons <strong>Automotive</strong> Tic. Ltd. The company<br />

has always managed to offer the best products<br />

and made great efforts to use all its knowledge and<br />

experience.<br />

To learn the details of the success story of One<br />

Spare Parts, we have recently conducted an<br />

exclusive interview with Muammer Yumuşak of the<br />

company.<br />

<strong>April</strong> <strong>2024</strong><br />

Can you briefly introduce yourself and your<br />

company?<br />


LTD., is an experienced export company that<br />

spreads its brands to as many countries as possible<br />

worldwide through our international connections.<br />

We operate in the heavy vehicle spare parts industry,<br />

providing aftermarket services from A to Z for<br />

brands such as MAN, MERCEDES, DAF, VOLVO,<br />


CUMMINS, and all kinds of TRAILER brands.<br />


What products are in your portfolio, and what are<br />

the outstanding factors of these products? What<br />

kind of work do you have in product development<br />

and R&D?<br />

Our product groups include all spare part components<br />

compatible with MAN, MERCEDES, DAF, VOLVO,<br />


CUMMINS, and all types of TRAILER brands, from A to Z.<br />

What features separate you from your competitors?<br />

On this journey, our customers’ satisfaction and<br />

interests are more important than short-term high<br />

profits. Our primary goal is to solve problems instantly<br />

and within the framework of our customers’ benefits<br />

through active dialogues with them.<br />

Do you have any investments planned for the short,<br />

medium, and long term?<br />

Our main goal is to focus on customer satisfaction<br />

based on the experience gained over the years with<br />

our ONE SPARE PARTS and KOENTECH brands, to<br />

become one of the leading companies in the industry<br />

shortly, and to become a company that directs and<br />

sets trends for the market.<br />

Can you provide details about your exports?<br />

What can you say about your strategies regarding<br />

your current and target markets, international<br />

promotions, and participation in fairs?<br />

We aim to reach every point we can in the world related<br />

to our industry. We value participating in fairs, but we<br />

prefer face-to-face meetings with our customers even<br />

more.<br />

Are there any particular issues or topics you would<br />

like to emphasize?<br />

We believe it is necessary to pay attention to the issue<br />

of counterfeit products, which we have unfortunately<br />

started encountering in our industry. We humbly<br />

suggest that our customers should choose their<br />

suppliers carefully and shop from reliable companies.<br />

<strong>April</strong> <strong>2024</strong><br />


Vehicle sales surge by 30% in<br />

Türkiye to hit record in February<br />

<strong>April</strong> <strong>2024</strong><br />

Vehicle sales across Türkiye rose approximately 30%<br />

year-over-year and marked the highest February figure,<br />

industry data showed building momentum observed<br />

throughout the end of last year and in January.<br />

Some 105,990 units of passenger cars and light<br />

commercial vehicles exchanged hands last month,<br />

the <strong>Automotive</strong> Distributors Association (ODMD) said<br />

in a statement, pointing to a 112.6% increase when<br />

compared to 10-year average February sales.<br />

Consumers have been opting for cars they see as<br />

an investment tool to shield themselves from high<br />

inflation, keeping demand for vehicles high. Some<br />

1.23 million vehicles were sold nationwide in 2023,<br />

according to the association data.<br />

The rise in sales came despite a sharp rise in the costs<br />

of loans for vehicles after months of rising interest rate<br />

hikes by the central bank aimed at cooling demand<br />

and stemming inflation that ticked up above 67% last<br />

month, according to the official data shared.<br />

Since last June bank lifted its benchmark one-week<br />

repo rate by a cumulative 3,650 basis points but has<br />

held rates steady at its last meeting in February.<br />

In February, passenger car sales soared by 39.67% to<br />

82,277 units and light commercial vehicle sales rose by<br />

6.6% to 23,713, the data showed.<br />

The automotive market sales meanwhile jumped<br />

by 40.6% in the January-February period, reaching<br />

185,691 units. In a breakthrough, electric vehicle (EV)<br />

sales constituted 6.7% of the total sales or 9,772 units<br />

in the same period, according to the ODMD data. On<br />

the other hand, some 21,584 hybrid cars were sold,<br />

making 14.8% of total sales.<br />

When evaluated by body types, SUV cars were the<br />

most preferred body type in the first two months with<br />

a share of 50.7% or 74,143 units. They were followed<br />

by sedans with a share of 29.7% or 43,509 units, and<br />

hatchbacks which constituted 17.8% of all sales or<br />

26,051 units.<br />


Auto market expands by<br />

31 percent in February<br />

<strong>April</strong> <strong>2024</strong><br />

The combined sales of passenger cars and light<br />

commercial vehicles increased by 30.6 percent in<br />

February from a year ago to a total of 106,000 vehicles,<br />

according to the data from the <strong>Automotive</strong> Distributors’<br />

and Mobility Association (ODMD).<br />

This was slower than the annual increase of 57 percent<br />

in sales in January but on a monthly basis the number<br />

of vehicles sold rose 33 percent. It also marked an alltime<br />

high vehicles sales for the month of February on<br />

record.<br />

Despite the elevated prices, some factors played a role<br />

in the robust demand, according to experts. Disabled<br />

people bought cars to benefit from the special<br />

consumption tax exemptions and those purchased by<br />

car rental fleets, they said.<br />

Passenger car sales grew 39.7 percent year-on-year to<br />

around 83,000 last month after this market expanded<br />

by 72 percent in January when more than 64,000<br />

passenger cars were sold.<br />

“There was strong demand from disabled people for<br />

vehicles in the past two months,” said Alp Gülan, the<br />

board chair of Gülan Otomotiv.<br />

Due to the expectations that Türkiye will have a good<br />

tourism season this year, sales to car rental fleets also<br />

picked up, Gülan added.<br />

The economic policies the government will follow after<br />

the March local elections will set the course for the<br />

auto market in the coming months, he said.<br />

Light commercial vehicle (LCV) sales were up 6.6<br />

percent last month from a year ago to around 24,000.<br />

The electric vehicles (EV) market was still vibrant.<br />

Last month a total of 5,799 EVs were sold, marking<br />

a strong 312 percent year-on-year increase. EVs<br />

corresponded to 7 percent of all vehicles sold in<br />

Türkiye in February.<br />

In this segment, Togg was the market leader. The<br />

country’s indigenous EV maker delivered 1,202<br />

vehicles, while Tesla sold only 75 cars in February.<br />

In the first two months of <strong>2024</strong>, EV sales increased<br />

by 295 percent from the same period of last year to<br />

9,772 units. EVs captured a 6.7 percent share in total<br />

vehicles sales.<br />

In the January-February period, Türkiye’s auto market<br />

expanded by 41 percent with total sales reaching<br />

185,691.<br />

Passenger car sales rose more than 52 percent<br />

annually to 146,318, while light commercial vehicle<br />

sales were up 9.8 percent to 39,373, according to<br />

ODMD data. Fiat was the best-selling brand in Türkiye<br />

in the first two months of the year. The carmaker sold a<br />

total of 25,284 vehicles, including passenger cars and<br />

LCVs in January-February.<br />


Auto sales, all time high, total 1.23 million last year<br />

<strong>April</strong> <strong>2024</strong><br />

Türkiye’s auto market expanded more than 57 percent<br />

last year from 2022, with passenger cars and light<br />

commercial vehicle sales hitting an all-time high of 1.23<br />

million. From January to December 2023, a total of<br />

967,342 passenger cars were sold in Türkiye, marking<br />

a robust 63.2 percent increase from the previous year.<br />

Light commercial vehicle sales rose more than 39<br />

percent to 265,294.<br />

The rising star of the market last year was electric<br />

vehicles (EVs). EV sales soared 833 percent in 2023<br />

compared with 2022 to reach 72,179 units, according<br />

to the data from the <strong>Automotive</strong> Distributors and<br />

Mobility Association (ODMD).<br />

In December alone, 12,078 EVs were sold in the<br />

country, pointing to a remarkable 695 percent year-onyear<br />

increase, led by Togg, Türkiye’s first indigenous<br />

EV company. In the month, Togg delivered 6,011<br />

vehicles, which brought the number of cars the<br />

company sold in the whole of 2023 to 19,583.<br />

U.S. carmaker Tesla sold 12,150 vehicles in 2023 in<br />

Türkiye, with sales in December alone standing at 550<br />

units. Türkiye’s electric vehicle market is expected to<br />

continue to grow at a fast pace well into <strong>2024</strong>, with<br />

EV sales forecast to reach 100,000 units, according to<br />

experts.The auto market grew 38 percent in the final<br />

month of last year as the combined sales of passenger<br />

cars and light commercial vehicles hit 158,653 units.<br />

The year-on-year increase in passenger cars slowed<br />

from nearly 40 percent in November to 37.7 percent in<br />

December.<br />

Last month, 158,653 passenger cars were sold, which<br />

was higher than the 115,000 sales recorded in the<br />

previous month. The slowdown in the pace of annual<br />

growth in passenger car sales started in August. The<br />

year-on-year sales eased from 118 percent in July to<br />

85 percent in August, further losing pace in September<br />

(55.9 percent) and October (55.4 percent).<br />

Representatives from the industry expect auto sales to<br />

decline between 35 percent to 40 percent in <strong>2024</strong>.<br />

Vehicle sales will be around 750,000 units next year,<br />

where they were in 2020, they predicted.<br />

Bülent Kılıçer, senior assistant general manager at<br />

Honda Türkiye, said last month that difficulties with<br />

accessing loans and prohibitively high prices of brandnew<br />

cars would be the main factors hindering sales.<br />

The automotive industry’s export performance was<br />

also strong last year, with shipments to foreign markets<br />

increasing 13 percent from 2022 to surpass $35 billion,<br />

corresponding to 15.8 percent of Türkiye’s overall<br />

export revenues last year.<br />


Welcome to Automechanika Astana!<br />

<strong>April</strong> <strong>2024</strong><br />

The largest international exhibition of spare parts,<br />

automotive components, equipment and vehicle<br />

maintenance products in Kazakhstan and Central<br />

Asia will take place from 17 to 19 <strong>April</strong> <strong>2024</strong> at the<br />

international exhibition center EXPO. General sponsor<br />

Automechanika Astana <strong>2024</strong> is Meiji Sangyo Company,<br />

Automechanika Astana is co-located with the<br />

exhibition Futuroad Expo Astana licensed by Messe<br />

Frankfurt Exhibition GmbH (previously held under<br />

the brand CTECA) – Central Asian exhibition of<br />

commercial vehicles and road construction equipment.<br />

Automechanika Astana is a meeting point for the<br />

automotive business community: in the constantly<br />

changing economic conditions. It is important to<br />

know how to establish new supply chains as well as<br />

find direct helpful contacts. And the exhibition is an<br />

opportunity to discuss the details in person.<br />

Leading manufacturers and suppliers of automotive<br />

components, equipment and car maintenance<br />

products, such as Meiji Sangyo Company,<br />

TruckMotors, Bohnenkamp, Oscar Lubricants,<br />

Autograd and many others, will present their products<br />

in <strong>April</strong>. In addition, many brands can be found at the<br />

stand of BrainStorm, one of the key online stores for<br />

car service equipment in Eurasia.<br />

The international status of the exhibition is confirmed<br />

by companies from Spain, Thailand, Japan, Latvia,<br />

Poland, Belarus, USA, UAE. It will present such<br />

big players as tire manufacturers Huasheng and<br />

Roadboss, one of the leading manufacturers of shock<br />

absorbers and suspensions in China Zhejiang Gold<br />

Intelligent Suspension Corp, developer of scanning<br />

systems Newland and other companies. “And this, of<br />

course, is not the limit. Now we see the demand of<br />

foreign companies for cooperation with the actively<br />

developing Central Asian region,” the press center of<br />

the exhibition explained. Traditionally, the exhibition<br />

for trucks and commercial transport Futuroad Expo<br />

Astana will be collocated with Automechanika Astana.<br />

For example, this year SVS Trans will be among the<br />

exhibitors again. The spare parts for Isuzu, Man,<br />

Komatsu, Volvo, Carrier brands will be presented at<br />

the company stand. The “Fire Safety Center” group<br />

of companies decided to exhibit for the first time,<br />

diversifying the standard exposition with the firefighting<br />

equipment. The largest domestic vehicle<br />

manufacturer Allur will also take part in the exhibition.<br />

Visitors will have an opportunity to get acquainted with<br />

the latest samples of commercial, municipal and road<br />

construction vehicles and a wide range of auto parts.<br />


Main draw for EVs in<br />

Türkiye concerns over fuel costs<br />

The primary draw for electric vehicles (EVs) in Türkiye<br />

continues to center on a consumer perception that<br />

fuel costs will be significantly lower, outweighing the<br />

concern for climate change, Deloitte’s <strong>2024</strong> Global<br />

<strong>Automotive</strong> Consumer Study has shown.<br />

Some 69 percent of those surveyed that lower fuel cost<br />

for the reason for choosing an EV for the next vehicle,<br />

while 52 percent cited concern for the environment.<br />

Last year, 72,179 EVs were sold in Türkiye, marking<br />

an 833 percent increase compared to 2022. EVs<br />

accounted for 7.5 percent of all vehicles sold last year.<br />

The shares of gasoline and diesel cars in the market<br />

were 66.7 percent and 13.8 percent, respectively.<br />

Driving experience and less maintenance ranked third<br />

and fourth in Deloitte’s survey. Another 27 percent<br />

said government incentives, subsidies and stimulus<br />

program is the reason for choosing an EV.<br />

One-third of the surveyed consumers cite cost as the<br />

biggest hurdle to BEV penetration, underlining the<br />

need to address elevated transaction prices, the report<br />

said, adding that top concerns are also directly related<br />

to charging - a key issue for mobility providers to solve<br />

going forward.Half of consumers (51 percent) remain<br />

interested in internal combustion engine (ICE) vehicles.<br />

This was 52 percent in 2023.<br />

At the same time, consumer interest in plug-in hybrids<br />

(PHEVs) continues to grow - rising from 4 percent in<br />

the 2023 survey to 13 percent - while interest in allbattery<br />

electrics remains steady – inching up from 9<br />

percent to 10 percent.<br />

However, a variety of challenges continue to stand in<br />

the way of EVs, including range anxiety, charging time<br />

and availability of charging infrastructure, the report<br />

said. Most EV intenders plan to charge their vehicle<br />

away from home, signaling the need for a robust public<br />

charging network driven by a strategic plan focused on<br />

optimizing a return on the invested capital, according<br />

to the report. Only 7 percent said they expect to<br />

charge their vehicles most often at home against 64<br />

percent at on-street/public charging stations and<br />

26 percent at work. The most important aspect of a<br />

public EV charging experience is ease of use and a<br />

strong majority of consumers surveyed prefer to pay<br />

for charging via a traditional credit/debit card, signaling<br />

the need to simplify the experience using familiar<br />

payment methods.<br />

Two-thirds of non-BEV intenders surveyed would<br />

expect a fully charged BEV to have a driving range of<br />

at least 400 km to consider one as a viable option for<br />

their next vehicle, showed the survey.<br />

<strong>April</strong> <strong>2024</strong><br />


“The Exciting <strong>2024</strong> Trends<br />

Shaping the <strong>Automotive</strong> World”<br />

Artificial Intelligence (AI):<br />

The dream of self-driving cars is becoming a reality,<br />

with more advanced autonomous features becoming<br />

prominent in cars starting this year. These systems<br />

aim to provide a higher level of automation while<br />

driving on highways or crowded city streets, making<br />

driving safer and more convenient. Additionally, the<br />

Internet of Things (IoT) networks are weaving into<br />

cars, transforming them into mobile hubs that can<br />

communicate with smart homes and each other.<br />

Through digitization, car owners are offered more<br />

personalized and user-friendly experiences. Digital<br />

applications are utilized to monitor vehicle status,<br />

determine maintenance needs, and establish more<br />

effective communication with vehicle owners. Digital<br />

service applications, such as digital vehicle tracking<br />

systems and appointment scheduling software,<br />

contribute to efficiency and improvement in service<br />

processes, gaining popularity among car owners.<br />

<strong>April</strong> <strong>2024</strong><br />

Murat Günay, the CEO of Rabam<br />

Electric vehicles have made a significant impact<br />

on the automotive sector in recent years, and<br />

advancements in artificial intelligence are transforming<br />

cars into technology hubs. The rise of more advanced<br />

autonomous driving, the surge in micromobility, and<br />

developments in electrification stand out as closely<br />

monitored trends in <strong>2024</strong>. Murat Günay, the CEO<br />

of Rabam, emphasizes the industry’s substantial<br />

transformation under the leadership of artificial<br />

intelligence, stating, “The days when our cars can be<br />

managed with our mobile phones are not far away.<br />

Due to the heavy traffic in cities, autonomous driving<br />

technologies attract significant attention both globally<br />

and in our country. We love embracing technology and<br />

are very open to innovations.”<br />

The automotive sector has been witnessing<br />

exciting developments in recent years, ranging from<br />

autonomous driving to interconnected smart vehicles,<br />

electrification, and augmented reality applications. The<br />

CES <strong>2024</strong> Fair held last month provided crucial insights<br />

into the future of automobiles and emerging mobility<br />

solutions. Here are the key trends closely monitored in<br />

the automotive world this year:<br />

AI Behind the Wheel in <strong>2024</strong>:<br />

In <strong>2024</strong>, AI taking the wheel understands you better<br />

and offers advanced voice assistants familiar with your<br />

driving habits. Traditional in-car displays are giving<br />

way to augmented reality screens, turning your car’s<br />

windshield into an information center where real-time<br />

data can be observed.<br />

Electrification:<br />

The excitement for electric vehicles is shaping the<br />

future of the automotive world. Electric cars have<br />

already made their mark in recent years, but the focus<br />

now shifts to more affordable electric vehicles with<br />

a broader range, faster charging times, and smarter<br />

batteries. As countries adopt cleaner energy and<br />

stricter emission regulations, major car manufacturers<br />

respond to this call. CES <strong>2024</strong> highlighted the<br />

adaptation of electrification beyond cars to various<br />

transportation vehicles. In <strong>2024</strong> and beyond, electric<br />

motorcycles, bicycles, boats, and even private aircraft<br />

are expected to gain more prominence in daily life.<br />

Micromobility:<br />

As the global micro-mobility market continues to grow,<br />

it attracts the attention of renowned investors and<br />

industry players. Micro-mobility solutions, consisting<br />

of e-bikes, e-scooters, and bicycles, will continue to<br />


gain popularity in <strong>2024</strong> due to increased demand for<br />

greener transportation options. The shift of millions of<br />

people in large cities towards e-bikes and e-scooters<br />

has a profound impact on the automotive industry,<br />

prompting both new competitors to enter the market<br />

and major automotive manufacturers to adapt their<br />

business models.<br />

Rabam CEO Murat Günay, highlighting the automotive<br />

sector’s significant potential in artificial intelligence,<br />

mentions that manufacturers leverage AI in various<br />

aspects, from predicting vehicle faults to monitoring<br />

driver habits and improving customer service through<br />

advanced voice assistants like ChatGPT and Alexa.<br />

He states, “As seen at this year’s CES Fair, many<br />

companies are focusing on autonomous driving,<br />

productive AI, sensors, micro-mobility, and even<br />

flying cars. Micro-mobility is once again one of the<br />

standout topics in <strong>2024</strong>. The global market, driven by<br />

e-scooters and e-bikes, was valued at $3.87 billion last<br />

year and is expected to reach $11.26 billion by 2032,<br />

attracting many traditional automotive manufacturers.<br />

Trends closely followed by Rabam this year include<br />

comprehensive electrification in mobility, integration<br />

of AI into automotive technology, hydrogen-powered<br />

vehicles, and software and hardware integration in<br />

car interior design. On the other hand, the increasing<br />

global demand for green solutions drives car<br />

manufacturers to seek more environmentally friendly<br />

fuels and systems. This year, we can expect to hear<br />

more about hydrogen-powered vehicles, which have<br />

been overshadowed by electric cars in recent years.<br />

We continue to encounter exciting technologies not<br />

only showcased at fairs but also hitting the roads.<br />

In <strong>2024</strong>, automotive enthusiasts can look forward to<br />

many dreams turning into reality.”<br />

”Traditional service models are giving way to digital<br />

applications.”<br />

Murat Günay, who stated that Rabam closely monitors<br />

technological developments in the automotive<br />

sector, mentioned: “The rising popularity of electric<br />

vehicles has increased the role of digitization in<br />

vehicle software and hardware. Digital applications<br />

offering personalized service options are becoming<br />

increasingly preferred by car owners. In response to<br />

the evolving expectations and needs of our customers<br />

due to digitization, we are enhancing our services and<br />

working on new collaborations. With the solutions<br />

we have developed, we provide vehicle owners with<br />

greater convenience, benefits, and a more userfriendly<br />

experience during this transformative period.<br />

As traditional service models are replaced by digital<br />

applications and software, vehicle owners now have<br />

the opportunity to access various services from a<br />

single point. We carefully observe the possibilities<br />

offered by digitization. By offering more than 50<br />

services in 7 different areas, including maintenance,<br />

inspection, car wash, damage repair, appraisal, fuel,<br />

and tire replacement, our application meets the needs<br />

of vehicle owners. Our application provides users<br />

with control over every detail related to their vehicles<br />

through a comprehensive database.”<br />

<strong>April</strong> <strong>2024</strong><br />


Türkiye’s automotive industry<br />

records dynamism more than ever<br />

<strong>April</strong> <strong>2024</strong><br />

The foundation of Türkiye’s automotive industry<br />

dates back to the early 1960s. During a period of<br />

rapid industrialization and progress, this key sector<br />

transformed itself from assembly-based partnerships<br />

to a full-fledged industry with design capability and<br />

massive production capacity. Since 2003, original<br />

equipment manufacturers (OEM) have invested over<br />

USD 17 billion in their operations in Türkiye. These<br />

investments significantly expanded their manufacturing<br />

capabilities, which in turn led Türkiye to become an<br />

important part of the global value chain of international<br />

OEMs. Meeting and exceeding international quality and<br />

safety standards, today’s Turkish automotive industry is<br />

highly efficient and competitive thanks to value-added<br />

production. As part of its commitment to transforming<br />

its automotive industry, which has historically been a<br />

key economic driver in integrating the Turkish economy<br />

with the global value chain, and to its vision of making<br />

Türkiye an economic powerhouse, Türkiye has<br />

introduced its own locally-developed born-electric car<br />

built upon strength stemming from the country’s longstanding<br />

know-how in the area.<br />

Accordingly, Türkiye’s Automobile Joint Venture Group,<br />

known as Togg, will produce five different models<br />

on a joint platform with fully-owned intellectual and<br />

industrial property rights by 2030.<br />

Leveraging a competitive and highly-skilled workforce<br />

combined with a dynamic local market and favorable<br />

geographical location, the vehicle production of 8<br />

global OEMs in Türkiye has increased by almost five<br />

times from 300,000s in 2002 to over 1.3 million units in<br />

2022. This represents a compound annual growth rate<br />

(CAGR) of around 6 percent during that period.<br />

•Significant growth posted by Türkiye’s automotive<br />

sector led to the country’s becoming the 13th largest<br />

automotive manufacturer in the world and 4th largest in<br />

Europe by the end of 2022.<br />

•Türkiye has already become a center of excellence,<br />

particularly with respect to the production of<br />

commercial vehicles. By the end of 2022, Türkiye was<br />

the number one producer of commercial vehicles (CVs)<br />

in Europe.<br />

•Proven as a production hub of excellence, the Turkish<br />

automotive industry is now aiming at improving its<br />


<strong>April</strong> <strong>2024</strong><br />

R&D, design, and branding capabilities. As of 2022,<br />

156 R&D and design centers belonging to automotive<br />

manufacturers and suppliers are operational in Türkiye.<br />

• Notable examples of global brands with product<br />

development, design, and engineering activities in<br />

Türkiye include Ford, Fiat, Daimler, AVL, and FEV. Ford<br />

Otosan’s R&D center is one of Ford’s three largest<br />

global R&D centers, while Fiat’s R&D center in Bursa is<br />

the Italian company’s only center serving the European<br />

market outside its home country. Meanwhile, Daimler’s<br />

R&D center in Istanbul complements the German<br />

company’s truck and bus manufacturing operations<br />

in Türkiye. AVL Türkiye, which opened up its 2nd R&D<br />

center in Türkiye, develops autonomous and hybrid<br />

vehicle technologies.<br />

• Türkiye offers a supportive environment on the<br />

supply chain side. There are around 1,100 component<br />

suppliers supporting the production of OEMs. With the<br />

parts going directly to the production lines of vehicle<br />

manufacturers, the localization rate of OEMs varies<br />

between 50 and 70 percent.<br />

• Türkiye is home to many global suppliers. There are<br />

more than 250 global suppliers that use Türkiye as a<br />

production base, with 30 of them ranking among the<br />

50 largest global suppliers.<br />

•Auto manufacturers increasingly choose Türkiye<br />

as a production base for their export sales. This<br />

is evidenced by the fact that 73 percent of vehicle<br />

production in Türkiye was destined for international<br />

markets in 2022. Türkiye exported more than 950,000<br />

vehicles to international markets in the same year. In<br />

addition, Türkiye has been the number one vehicle<br />

exporter to European markets for around a decade.<br />


Auto industry’s production rises 19 percent<br />

The Turkish auto industry produced more than 133,000<br />

vehicles in February, marking a strong 19.2 percent<br />

increase from a year ago, after output declined by 3<br />

percent in the previous month.<br />

Passenger car production rose by 32 percent to 84,000<br />

units, while the year-on-year increase in commercial<br />

vehicle output was limited at 3.6 percent, data from the<br />

<strong>Automotive</strong> Manufacturers’ Association (OSD) showed.<br />

The local auto market expanded by 31 percent last<br />

month when a total of 111,000 vehicles were sold with<br />

the passenger car sales rising nearly 40 percent to<br />

more than 82,000.<br />

Passenger car imports were up 55 percent compared<br />

to February last year to 56,000.<br />

In the first two months of <strong>2024</strong>, the industry<br />

manufactured a total of 241,861 vehicles, pointing to<br />

an 8.1 percent increase from the same period of 2023.<br />

Passenger car output rose 12.3 percent on an annual<br />

basis to 151,000 units.<br />

Oyak Renault was the largest producer of passenger<br />

cars in January-February, according to the numbers<br />

from the association. In the first two months of <strong>2024</strong>,<br />

the company manufactured 49,817 passenger cars,<br />

accounting for 33 percent of all car production.<br />

Hyundai Assan ranked second with a 27.6 percent<br />

share or 41,750 passenger cars, followed by Totoya at<br />

23.8 percent or 35,905 cars.<br />

Tofaş produced 23,542 passenger cars in two months,<br />

corresponding to 15.6 percent of all production.<br />

In the January-February period, total vehicle sales<br />

amounted to 193,297 units, rising nearly 40 percent<br />

from a year ago with the passenger car market<br />

expanding by 52 percent to 146,000 units.<br />

Local carmakers shipped more than 89,000 vehicles to<br />

foreign markets in January-February, up 13.6 percent<br />

on an annual basis, while passenger car deliveries rose<br />

20.1 percent to around 56,000.<br />

The industry’s export revenues reached $5.5 billion in<br />

the first two months of <strong>2024</strong>, increasing 9.1 percent<br />

from a year ago. Passenger car exports climbed 3<br />

percent year-on-year to $ 1.63 billion.<br />

Meanwhile, a delegation from the <strong>Automotive</strong> Industry<br />

Exporters’ Association (OİB) recently traveled to<br />

Malaysia and Singapore to hold talks as part of the<br />

Trade Ministry’s “Distant Countries Strategy,” which<br />

aims to expand the Turkish companies’ reach beyond<br />

the traditional export markets.<br />

Some 13 Turkish companies took part in the mission,<br />

which took place between March 3 and 10.<br />

They held talks with auto importers, wholesalers and<br />

distributors in Malaysia and Singapore.<br />

The Turkish automotive sector’s exports to Malaysia<br />

and Singapore were $7.4 million and $6.8 million last<br />

year, respectively, said Baran Çelik, the president of<br />

OİB.<br />

“We are aiming to increase our exports to those<br />

countries. We have the production capacity and quality<br />

products to achieve this goal,” Çelik said.<br />

<strong>April</strong> <strong>2024</strong><br />


Turkish automaker Togg launches<br />

<strong>2024</strong> orders for its electric SUV<br />

<strong>April</strong> <strong>2024</strong><br />

Turkish electric car manufacturer, Togg announced it<br />

was launching the order period for <strong>2024</strong> for its first<br />

smart device model, the C-segment SUV T10X.<br />

The company said that from Jan. 6-10, it provided the<br />

opportunity for configuration updates for users on the<br />

reserve list in the draw held in 2023 and also offered<br />

priority to place an order for users who participated<br />

in the draw in <strong>April</strong> 2023 but did not qualify for an<br />

order between Jan. 15-19. Togg is now opening order<br />

screens to all potential buyers starting Jan. 20.<br />

“The <strong>2024</strong> general order period for T10X has<br />

started. You can order Türkiye’s first electric smart<br />

device #T10X immediately via our Trumore mobile<br />

application,” read the statement released on Togg’s<br />

official account on X platform, formerly Twitter.<br />

To place an order, users will need to download the<br />

Trumore application, which is available on the App<br />

Store, Google Play and App Gallery.<br />

There will be no draw for T10X this year, and deliveries<br />

will be made based on the order queue, configuration<br />

features and related production planning. Togg will also<br />

be accepting orders from corporate users this year.<br />

Delivering around 20,000 units of T10X so far, the<br />

brand aims to manufacture 1 million vehicles across<br />

the five segments by 2030. The automaker recently<br />

announced the expansion of its lineup as it unveiled its<br />

second model at the sprawling tech and gadget show<br />

CES <strong>2024</strong>, held in Las Vegas earlier this month. The<br />

sedan model, which was introduced under the name,<br />

T10F, has fastback lines and is expected to enter the<br />

market in 2025. Besides the SUV and fastback, Togg<br />

will manufacture three other models – a C-hatchback,<br />

B-SUV and B-MPV – by 2030.<br />


Tesla to increase prices of its<br />

Model Y in parts of Europe<br />

Tesla said it would hike the price for its Model Y<br />

electric vehicles in several European countries on<br />

March 22 by approximately 2,000 euros ($2,177), or the<br />

equivalent in local currencies.<br />

The move, announced in a post on social media<br />

platform X, followed the automaker’s announcement<br />

that it would increase prices for all Model Y cars in the<br />

U.S. by $1,000 on <strong>April</strong> 1.<br />

Tesla raised the prices of its Model Y rear-wheel drive<br />

and long-range vehicles by $1,000 to $43,990 and<br />

$48,990, respectively, on March 1.<br />

“This is the essential quandary of manufacturing:<br />

factories need continuous production for efficiency,<br />

but consumer demand is seasonal,” Tesla CEO Elon<br />

Musk said in February, replying to a post on X from<br />

his company announcing that prices would go up the<br />

following month.<br />

Tesla’s margins have been hurt by a price war with<br />

rivals that started more than a year ago.<br />

In January, Tesla warned of “notably lower” sales<br />

growth this year as it focuses on the production of its<br />

next-generation EV, which is code-named “Redwood.”<br />

<strong>April</strong> <strong>2024</strong><br />


Turkish auto industry lifts bar to<br />

new $39B export peak in <strong>2024</strong><br />

Türkiye’s automotive sector is seeking to build on<br />

its peak in 2023 and achieve a new all-time high<br />

in exports this year, according to a senior industry<br />

official. The traditional leader in Türkiye’s outbound<br />

shipment made $35 billion (TL 1,080 billion) worth<br />

of shipments last year, compared to nearly $31<br />

billion in shipments in 2022, according to the Uludağ<br />

<strong>Automotive</strong> Industry Exporters’ Association (OIB).<br />

That figure is sought to be lifted to $39 billion, said<br />

Baran Çelik, the head of the board of directors of<br />

OIB. The earlier peak was recorded in 2018, at $32<br />

billion, before the coronavirus pandemic lowered the<br />

figure to $25.5 billion in 2020.<br />

“2023 was a year in which we once again broke the<br />

record and reached a significant value of $35 billion<br />

in exports, making us the sector with the highest<br />

exports in Türkiye,” Çelik told Anadolu Agency (AA).<br />

The sector has been the export leader for 17 out of<br />

the last 18 years, except for 2022, he said, before<br />

regaining the leadership in 2023.<br />

Up to 68% of the automotive goods are shipped to<br />

the European Union, Türkiye’s biggest export market,<br />

according to Çelik.<br />

“When you include non-EU countries geographically<br />

within the market, it reaches a market size of over<br />

80%. Of course, the largest market among these<br />

is Germany, followed by other major European<br />

countries,” he said.<br />

“If we look at the top 10 markets we export to, eight of<br />

them are in the European region. In fact, if you include<br />

Russia in the European region, 9 of them are European<br />

countries.” Exports in January saw a 3% increase yearover-year<br />

to $2.8 billion, which Çelik says reinforces<br />

the achievability of the $39 billion goal he says isn’t<br />

“just a standalone target,” but “emerged as a figure<br />

backed by data.”<br />

“Unless there is a significant deviation, a major conflict<br />

or a disaster ... we anticipate that this year we will<br />

close with around $39 billion in exports, maintaining<br />

our position as the export leader,” he added.<br />

<strong>April</strong> <strong>2024</strong><br />


Expanding reach<br />

Çelik reaffirmed Europe’s importance for the industry<br />

but emphasized the aim for diversification and growth<br />

in new markets.<br />

“There are significant export demands in the Gulf<br />

countries and the North Africa region, and we are<br />

conducting special studies for these regions,” the<br />

OIB chair said. He also added a delegation of 23<br />

companies that visited Morocco earlier this month.<br />

Çelik said North America has also been an important<br />

market but said they could not yet achieve the desired<br />

results in South America.<br />

“In recent years, with our Ministry of Trade, we have<br />

determined various strategies for distant geographies<br />

and, in parallel, we organize more than 10 events<br />

covering distant geographies,” he noted.<br />

“We organize national participation fairs, trade<br />

delegations and procurement delegations. We have<br />

product development (PD) activities and we have 18<br />

companies in it. We organize various procurement and<br />

trade delegations with these companies. Our activities<br />

targeting distant countries actually demonstrate our<br />

focus on those markets.”<br />

Çelik also stressed the industry’s determination to<br />

increase engagement with China.<br />

“Despite China being an important competitor and<br />

threat to us, we also see it as a potential market due to<br />

being a major market in many product groups in that<br />

region. In this regard, while maintaining the high rate<br />

of exports to the European region, we are intensely<br />

focused on new markets to be added without incurring<br />

any numerical loss.”<br />

<strong>April</strong> <strong>2024</strong><br />


Turkish exporters break sales<br />

records to 70 countries in 2023<br />

Turkish exporters made shipments to some 240<br />

countries and customs territories throughout last year,<br />

achieving their highest sales in history to 70 of these<br />

nations, the country’s Trade Ministry said.<br />

The nation’s exports reached a third straight annual<br />

peak to a total of $255.8 billion (TL 7.77 trillion) in 2023,<br />

a 0.6% year-over-year increase from $254 billion in<br />

2022, according to official data.<br />

The record came despite multiple challenges, including<br />

global tightening that curbed demand, including in<br />

the EU, Türkiye’s biggest export market, geopolitical<br />

conflicts in the region and devastating earthquakes<br />

that struck the southeastern region earlier in 2023.<br />

Sales totaled $225.4 billion in 2021 after they were hit<br />

by the coronavirus pandemic and dropped to as low as<br />

$169.5 billion in 2020. The government’s medium-term<br />

program (MTP) estimates were set at $255 billion for<br />

2023 and $267 billion for <strong>2024</strong>.<br />

At $361.8 billion, imports in 2023 also came below the<br />

program’s estimate of $367 billion.<br />

The sales figure led Türkiye to lift its share in global<br />

exports to 1.06%, up from 1.02% in 2022 and a major<br />

leap from just 0.55% back in 2002, the Trade Ministry<br />

said. Some 38,574 companies engaged in overseas<br />

sales for the first time in 2023, according to the<br />

ministry, taking the total number of exporting firms to<br />

139,830, a 339% increase from some 31,855 some two<br />

decades ago. The Trade Ministry further underscored<br />

the momentum in trade and economic relations with<br />

the Near and Middle Eastern nations.<br />

Export to the region rose by 2.2% to $46.2 billion<br />

last year. Sales Turkic republics reached $10.2 billion,<br />

marking an all-time high with a 26.9% increase.<br />

Shipments to member countries of the Organization<br />

of Islamic Cooperation (OIC) totaled $67.3 billion,<br />

showing a 3.68% increase and a new peak.<br />

The ministry also said that while imports from the EU<br />

countries decreased by 16.1% in January-November<br />

2023, Türkiye’s sales to the bloc jumped by 1.2% in<br />

the whole year, reaching $104.3 billion.<br />

<strong>April</strong> <strong>2024</strong><br />


The manufacturing industry accounted for 94.2% of<br />

the total exports, with an amount of $241 billion, the<br />

statement added. The share of medium-high and hightech<br />

product sales rose to 40.3%.<br />

Notable high-tech exports included aircraft and related<br />

components, pharmaceuticals, immune products,<br />

video recording devices and photovoltaic cells.<br />

In 2023, exports exceeding $1 billion were recorded in<br />

54 products, out of which 39 simultaneously saw their<br />

highest sales ever.<br />

Shipments exceeding $1 billion were made to 49<br />

countries in 2023, the Trade Ministry said. Some 30<br />

cities in Türkiye also achieved sales figures surpassing<br />

$1 billion.<br />

Providing insights into global exports of Turkish<br />

products, the ministry said Türkiye is the world’s top<br />

seller of construction iron, raw/block/semi-processed<br />

marble-travertine, cement, hazelnuts, flour, refined<br />

sunflower oil, dried grapes, dried apricots, dried figs,<br />

shell-less pistachios and bulgur.<br />

The nation is top in Europe in home textiles and<br />

second globally in carpet exports. It ranks fourth<br />

globally in exports of buses, minibusses, electric<br />

ovens, dishwashers and washing machines.<br />

It is the world’s fifth-biggest exporter of refrigerators,<br />

deep freezers and small electric household appliances,<br />

while it ranks seventh in total textile and ready-to-wear<br />

exports and eighth in truck, van and pickup sales.<br />

Exports are among the government’s top priorities,<br />

which seeks to rely on them to ensure sustainable<br />

economic growth.<br />

Türkiye has embraced more conventional policymaking<br />

after the May elections and delivered aggressive<br />

monetary tightening aimed at arresting soaring<br />

inflation, reducing trade deficits, rebuilding foreign<br />

exchange reserves and stabilizing the Turkish lira.<br />

Since June, the country’s central bank has lifted its<br />

one-week repo rate by 3,650 basis points to 45%. The<br />

bank said it completed its aggressive tightening cycle<br />

and said it would maintain current levels “as long as<br />

needed” to bring about the desired disinflation.<br />

Inflation rose to nearly 65% last month and is expected<br />

to peak at 70%-75% in May before dipping to about<br />

36% by the end of <strong>2024</strong> as tightening cools prices.<br />

The Trade Ministry affirmed the commitment to lift<br />

exports further and achieve the government’s goals set<br />

for this year.<br />

“With the effective policies and strategies we are<br />

implementing to elevate our exports to higher levels,<br />

we continue our efforts to achieve the <strong>2024</strong> Middle-<br />

Term Program goal of reaching a $267 billion goods<br />

export volume,” the statement said.<br />

<strong>April</strong> <strong>2024</strong><br />


DEİK to lobby for modernization<br />

of customs union with EU<br />

The Foreign Economic Relations Board (DEİK) will be<br />

lobbying for the modernization of the customs union<br />

between Türkiye and the European Union, says Nail<br />

Olpak, the president of DEİK.<br />

Haberin Devamı<br />

The upcoming elections for EU Parliament pose a risk<br />

as the elections may slow down the process, Olpak<br />

told a group of journalists in Istanbul.<br />

“Steps can be taken in this regard as of the second<br />

half of the year, which of course means some waste of<br />

time. We would like to see the decisions, which Türkiye<br />

has been looking for, taken before the elections and<br />

the customs union is updated as soon as possible,” he<br />

said. The other important issue DEİK keeps an eye on<br />

the relations with the bloc is the EU Green Deal and the<br />

carbon border adjustment mechanism, Olpak added.<br />

“The Green Transition and the Green Economy are on<br />

the agenda now… As the Turkish business world, we<br />

need to prepare for this new era, specifically in Europe,<br />

where Türkiye’s largest export market,” he noted.<br />

“The trade volume between Türkiye and the European<br />

Union is around $200 billion, but the customs union<br />

only covers industry and processed agricultural<br />

products,” DEİK said in a statement, adding that the<br />

customs union needs to be rapidly updated to adapt to<br />

the requirements of today’s trade environment.<br />

DEİK has been reiterating this stance on behalf of the<br />

Turkish business community in meetings it holds with<br />

EU member countries, the board said.<br />

The board recalled that Türkiye’s exports reached an<br />

all-time high of $255.8 billion last year despite the<br />

global challenges.<br />

Türkiye aims for a total export revenue of $375 billion,<br />

including services exports, in <strong>2024</strong>, it added.<br />

<strong>April</strong> <strong>2024</strong><br />


Number of EV charging points<br />

in Türkiye exceeds 12,000 mark<br />

<strong>April</strong> <strong>2024</strong><br />

The number of electric vehicle (EV) charging points<br />

across Türkiye has surpassed 12,000 as of Dec. 25,<br />

according to the data compiled by Anadolu Agency.<br />

The number of EV points reached 12,067 in 5,614<br />

stations according to the data from Türkiye’s Energy<br />

Market Regulatory Authority (EMRA).<br />

The country is now equipped with 8,492 slow charging<br />

(AC) and 3,575 fast charging (DC) points located<br />

throughout the country’s 81 provinces.<br />

Türkiye is also following the global trend of moving<br />

away from vehicles run on gasoline and diesel, which<br />

are considered more polluting to the environment and<br />

is, as a result, reaping the benefits of lower energy<br />

costs.<br />

EVs are set to play an important role in reducing the<br />

countries’ dependence on imported fossil energy<br />

sources in the long term.<br />

Eco-friendly EVs are also touted as fuel-efficient with<br />

low maintenance costs, comfortable and quiet driving<br />

with state-of-the-art technological equipment and are<br />

moving into the arena of autonomous driving.<br />

With a rise in the number of EV charging stations<br />

throughout the country, the demand for these vehicles<br />

is similarly expected to expand.<br />

While the number of EVs and charging stations<br />

is increasing in Türkiye, the EMRA has passed a<br />

regulation to allow these vehicles to be charged in a<br />

more environmentally friendly manner.<br />

Under this regulation, license holders of charging<br />

network operators may designate all or some of the<br />

charging stations in their network as “green charging<br />

stations” if renewables have generated the electricity<br />

used in the charging stations.<br />

According to EMRA data, the majority of electric<br />

charging stations in Türkiye are located in Istanbul,<br />

totaling 1,308. The capital, Ankara, follows with 542<br />

and Antalya with 422.<br />

These three major cities also have the highest number<br />

of sockets, with 3,316 in Istanbul, 1,249 in Ankara and<br />

833 in Antalya.<br />


‘Emissions trading system best<br />

tool for carbon pricing in Türkiye’<br />

<strong>April</strong> <strong>2024</strong><br />

Carbon pricing is spreading across the globe, whether<br />

in rich or poor countries, as one of the most significant<br />

tools to combat climate change as the world is still<br />

far from meeting the 2015 Paris Agreement’s goal of<br />

limiting warming to 1.5 degrees Celsius and emissions<br />

are continuing to rise.<br />

With international debates on the advantages and<br />

disadvantages of carbon pricing gaining heat, Türkiye’s<br />

green transformation and policies to fight global<br />

warming are also taking shape.<br />

An Emissions Trading System (ETS) is the wellsuited<br />

tool for carbon pricing for Türkiye, according<br />

to technical studies, Professor Halil Hasar, Director<br />

of Climate Change Presidency of Türkiye, told in an<br />

exclusive interview.<br />

“Technical studies conducted in the scope of the<br />

Partnership for Market Readiness (PMR) Project<br />

supported by the World Bank show us the emissions<br />

trading system is the most cost-effective carbon<br />

pricing option for Türkiye. Furthermore, an advisory<br />

decision was taken for the development of a National<br />

Emissions Trading System in the Climate Council,<br />

organized in 2022” he elaborated.<br />

Both the 12th Development Plan which reflects the<br />

country’s 2053 net-zero goal, as well as the Medium-<br />

Term Program mirror the strategic dimension of an<br />

ETS, Prof. Hasar said, reminding that in Türkiye’s<br />

Nationally Determined Contributions submitted within<br />

the scope of the Paris Agreement, ETS is among the<br />

main implementation tools for reducing greenhouse<br />

gas emissions in the industry and electricity production<br />

sectors.<br />

Carbon pricing places a fee on carbon emissions and<br />

thus encourages lower pollution. Experts agree that<br />

initially, carbon pricing can affect the economy and<br />

raise energy prices, however, in the long-term, the<br />

benefits outweigh the disadvantages while the revenue<br />

gained from ETS can be used to spend on and invest<br />

in new green projects.<br />

As the World Bank put it, “allows emitters to decide<br />

to either transform their activities and lower their<br />

emissions, or continue emitting and paying for their<br />

emissions.”<br />

Prof. Hasar explained that carbon pricing emerges with<br />

two main forms of implementation, one of which is<br />

ETS, and the other is carbon taxing.<br />


“To speak about global carbon pricing instruments,<br />

according to the report published by the World Bank<br />

in May, there are 73 active implementations. Again,<br />

as of 2022, approximately $100 billion of revenue has<br />

been generated from carbon pricing practices. Through<br />

these, 23% of global greenhouse gases were covered<br />

and approximately 40% of the revenues were used for<br />

green transformation purposes,” Prof. Hasar said.<br />

On the EU’s Carbon Border Adjustment Mechanism<br />

(CBAM), which aims to bring in climate tariffs on<br />

imports, and affect Türkiye’s trade with the bloc, Prof.<br />

Hasar said that the adoption of ETS will facilitate<br />

Ankara’s goals toward becoming a green, digitalized<br />

and competitive economy.<br />

The director pointed out that Türkiye has been working<br />

on ETS for around ten years while the project on<br />

Carbon Market Readiness conducted with the World<br />

Bank was finalized in 2021.<br />

“With this project, capacity building was achieved in<br />

many areas such as monitoring emissions, analysis of<br />

policy options, simulation and recording system,” he<br />

underlined.<br />

As a next step, Türkiye has currently also entered the<br />

stage of working on capacity needs in coordination<br />

with the Partnership for Market Implementation (PMI),<br />

which assists countries in designing and implementing<br />

pricing instruments suitable for their development<br />

priorities.<br />

“Outputs such as design elements of the emission<br />

trading system, sub-legislation draft studies, economic<br />

impact modeling and registration system will be<br />

obtained,” Prof. Hasar continued, highlighting that ETS<br />

necessitates working together and negotiating with<br />

several institutions of other fields.<br />

A working group has started work on carbon pricing<br />

and developed a range of suggestions. Furthermore,<br />

the Green Deal Action Plan, led in coordination with the<br />

Trade Ministry also has a unit on carbon pricing.<br />

“Due to our position as a candidate country for<br />

the European Union, a separate project has been<br />

scheduled to ensure the compliance of the national<br />

ETS with EU legislation,” he said further.<br />

<strong>April</strong> <strong>2024</strong><br />


“The planned schedule is to complete the emission<br />

cap determination, which is one of the design elements<br />

of the ETS, and the completion of the allocation plans<br />

of the facilities included in the system, in October<br />

<strong>2024</strong>, and to begin full implementation with market<br />

transactions at the beginning of 2025.”<br />

Prof. Hasar emphasized that Türkiye’s work on carbon<br />

pricing constitutes an example of the country’s efforts<br />

within the scope of the principle of “common but<br />

differentiated responsibilities,” which summarizes<br />

Ankara’s fair and inclusive approach to combating<br />

climate change.<br />

Being one of the countries that is most vulnerable<br />

to global warming and located in the Mediterranean<br />

basin, Türkiye has also stepped up efforts to<br />

draft a climate law. The draft law prepared by the<br />

Environment, Urbanization and Climate Change<br />

Ministry determines activities to primarily decrease<br />

greenhouse gas emissions as well as policies for<br />

climate change adaptation.<br />

“Considering the importance of activities to be carried<br />

out locally, the draft makes it obligatory to prepare<br />

Local Climate Change Action Plans across Türkiye’s<br />

81 provinces. Moreover, regulations have been made<br />

regarding the ETS, which will be implemented for the<br />

first time in our country. Works based on the principle<br />

of setting an upper limit on greenhouse gas emissions<br />

have been introduced, and it has become mandatory<br />

for businesses to obtain a greenhouse gas emission<br />

permit,” Prof. Hasar pointed out.<br />

“Along with all these regulations, the draft also includes<br />

the determination of green investments, which is one of<br />

the important cornerstones in the fight against climate<br />

change – the legal basis for climate finance, climate<br />

change incentives and national green taxonomy<br />

studies has been established,” he said.<br />

Climate change is an issue that goes beyond politics<br />

and affects every part of society with its environmental,<br />

economic and social impacts. Hence, Türkiye this year<br />

rolled up its sleeves for urgent and efficient measures<br />

to fight climate change. Located in the Mediterranean<br />

basin, one of the most sensitive regions in terms of<br />

climate change impact, the country has witnessed<br />

disasters, air pollution, heat waves, wildfires, droughts<br />

and low precipitation.<br />

From “Water Efficiency Mobilization” early in January,<br />

“International Zero Waste Day” which was observed<br />

for the first time this year toward “Environment Week”<br />

celebrations and lastly, the COP28 climate summit –<br />

Türkiye witnessed a tide of significant environmental<br />

endeavors and achievements in 2023.<br />

<strong>April</strong> <strong>2024</strong><br />


Renault to invest over $430M<br />

to turn Türkiye into export hub<br />

<strong>April</strong> <strong>2024</strong><br />

French carmaker Renault Group said it plans to reduce<br />

its production costs by increasing the use of digital and<br />

artificial intelligence technology, and announced plans<br />

to expand its presence in Türkiye.<br />

The company will be investing 400 million euros<br />

($430.92 million) by 2027 to make four new models at<br />

its site in the Turkish northwestern Bursa province in<br />

collaboration with Türkiye’s OYAK Group, including a<br />

new low-cost SUV Duster.<br />

As part of its “International Game Plan 2027,” Renault<br />

said it aims to transform Türkiye into an export hub for<br />

Europe and other countries in the world.<br />

It said it aims to cut the production costs of its cars by<br />

as much as 50% in the next four years by increasing<br />

the use of digital and artificial intelligence technology.<br />

Between now and 2027, the company will aim to cut<br />

its production costs per vehicle by 30% for internal<br />

combustion vehicles and by 50% for electric vehicles.<br />

The carmaker also wants to reduce vehicle<br />

development times to two years from three years, it<br />

said in a statement.<br />

Renault already uses more than 300 AI applications to<br />

trace car parts such as tires and boost quality control<br />

and aims to increase that number to 3,000 by 2025.<br />

Three of the new models to be manufactured at the<br />

Bursa plant will be designed to meet the needs of<br />

customers in the B and C SUV segments, said the<br />

company. One of the highlighted models is the new<br />

Renault Duster, which is set to be available in Türkiye<br />

with a hybrid engine option in the second half of <strong>2024</strong>.<br />

Renault aims for one-third of its sales in Türkiye to<br />

be electric or hybrid by 2027, according to Fabrice<br />

Cambolive, the CEO of Renault.<br />

“We will make our Bursa factory the export center not<br />

only for Europe but also for other countries worldwide,”<br />

Cambolive told a meeting with the press in Istanbul.<br />

Renault’s longstanding alliance partners Nissan and<br />

Mitsubishi confirmed plans to invest in the French<br />

carmaker’s electric vehicle unit Ampere and use it to<br />

develop EVs for the European market.<br />

Cambolive emphasized the longstanding partnership<br />

between Renault and OYAK in Türkiye, spanning 54<br />

years. The two companies produced more than 7.5<br />

million cars and reached a level where every out of<br />

seven vehicles in Türkiye features Renault logo, he<br />

noted.<br />

“Türkiye plays a significant role in our ‘International<br />

Game Plan 2027.’ Our goal is to become the market<br />

leader in Türkiye, strengthen our brand with new<br />

products, show a strong presence, especially in the<br />

SUV segment and implement an electrification strategy<br />

based on hybrid and electric vehicles,” the CEO said.<br />

Jan Ptacek, the CEO of Renault Group Türkiye,<br />

highlighted the importance of local production for<br />

market leadership.<br />

“Today, I am pleased to announce that we plan to<br />

localize four new Renault models before 2027 at our<br />

OYAK Renault Factory in Bursa. Among these new<br />

vehicles, three will be SUVs, including the Renault<br />

Duster,” said Ptacek.<br />

“By offering a product range that meets customer<br />

needs in the B and C SUV segments in Türkiye,<br />

Renault will further strengthen its leadership position.”<br />

Ptacek underlined the significance of Türkiye as a<br />

key industrial asset within the Renault Group, with<br />

the Bursa factory boasting the largest passenger car<br />

production capacity in the country.<br />

He said the implementation of Renault Group’s new<br />

modular platform in the Bursa factory by 2026 will<br />

further enhance efficiency, offering a flexible and<br />

highly efficient platform supporting various powertrain<br />

technologies.<br />


Foreign trade with lira up nearly 40 pct<br />

<strong>April</strong> <strong>2024</strong><br />

Türkiye’s foreign trade in the Turkish Lira increased by<br />

39.4 percent in January-February <strong>2024</strong> from the same<br />

period of last year to reach 207.7 billion liras ($6.6<br />

billion).<br />

Exports in the local currency surpassed 56 billion liras<br />

in the first two months of <strong>2024</strong>, rising 43 percent from<br />

a year ago, while imports in lira climbed 38 percent<br />

year-on-year to 15.16 billion liras, according to the data<br />

from Trade Ministry.<br />

In February alone, exports in the local current<br />

amounted to 25.1 billion liras, up from 21 billion liras<br />

in the same month of 2023. Imports in liras increased<br />

from 61.45 billion liras to 70.47 billion liras.<br />

In the first month of <strong>2024</strong>, exports and imports in lira<br />

were 31 billion liras and 81.2 billion liras, respectively.<br />

In 2023, total foreign trade in the local current<br />

amounted to 1.2 trillion liras. Exports in lira were 313<br />

billion, while imports in the local currency amounted to<br />

901 billion liras.<br />

The preliminary numbers from the ministry showed last<br />

week that Türkiye’s exports rose by 8.5 percent yearon-year<br />

in the first two months of <strong>2024</strong> to $41.1 billion.<br />

Imports were down 15.5 percent to $54.3 billion.<br />

The country’s foreign trade deficit shrank 50 percent to<br />

$13.2 billion.<br />

In February, the annual increase in exports was 13.6<br />

percent to $21.09 billion. Imports declined by 8.5<br />

percent compared to February last year to $28.1<br />

billion. Consequently, the foreign trade deficit fell more<br />

than 42 percent year-on-year to $7 billion.<br />


Türkiye ‘received $262 billion<br />

in investments in 21 years’<br />

<strong>April</strong> <strong>2024</strong><br />

Türkiye is a country that has attracted 262 billion dollars<br />

in investments since 2003, Burak Dağlıoğlu, president of<br />

the Presidential Investment Board, has said. Speaking at<br />

the 43rd Ordinary General Assembly of the International<br />

Investors Association (YASED), Dağlıoğlu said that<br />

there were less than 6,000 international companies in<br />

the country 21 years ago, but now there are more than<br />

80,000.<br />

“Since 2003, under the leadership of our president,<br />

we see the story of Türkiye’s breakthrough in many<br />

fields,” he said, adding that the country was a middle<br />

low-income country in 2003 with a per capita national<br />

income of $3,000.<br />

“Now it is a middle high-income country with a per<br />

capita national income of $13,000,” he said.<br />

“Again, if we look at it, while Türkiye was a country with<br />

a share of less than 0.5 percent in world trade at that<br />

time, it has now increased its global exports share to<br />

over 1.1 percent.”<br />

Dağlıoğlu noted that Türkiye has attracted $262 billion in<br />

investments since 2003.<br />

“According to data from the Industry Ministry and Trade<br />

Ministry, foreign companies account for 8.4 percent of<br />

employment and private sector employment in Türkiye,”<br />

he said.<br />

“Companies with international capital also account for<br />

30 percent of private sector R&D expenditures in the<br />

country. Sixty percent of exports consist of high and<br />

medium-high products. In this context, we see that<br />

YASED members positively improve the investment<br />

environment in Türkiye in a way that increases value<br />

added, and that they attract Turkish companies to<br />

international supply chains, enabling them to move up<br />

the value chain.” Dağlıoğlu emphasized that Türkiye<br />

aims to soon be among the high-income countries by<br />

exceeding $15,000 per capita national income.<br />

“Our share of international direct investment in the world<br />

is currently around 1 percent. We want to increase it to<br />

1.5 percent,” he added.<br />

Speaking at the same event, Humberto Lopez, World<br />

Bank country director for Türkiye, said that electricity<br />

production and carbon reduction are very important and<br />

that there is very good news in the case of Türkiye in<br />

this regard. Lopez stated that Türkiye is currently using<br />

55 percent renewable energy.<br />

“This is a very good thing. There is a very good picture<br />

not only among developing countries, but all over the<br />

world,” he said.<br />

“At the same time, some effort is needed on the<br />

production side. Because the private sector has to<br />

make an effort. They have to adapt to this new situation.<br />

Otherwise, you cannot be competitive, and you have to<br />

be competitive so that this adaptation can take place.”<br />

Engin Aksoy, president of YASED, stated that<br />

international investors contribute to the sustainable<br />

development of Türkiye by investing in all sectors of<br />

the economy, supporting production, exports and<br />

employment.<br />

“Continuing the fight against inflation within the<br />

framework of a rational policy with the planned<br />

roadmap and eliminating the uncertainties in the pricing<br />

mechanisms as planned are also of great importance in<br />

restoring confidence in our country,” he said.<br />


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