Automotive Exports May 2019

www.automotive-exports.com

Monthly automotive aftermarket magazine May 2019

Monthly automotive aftermarket magazine

GROUP CHAIRMAN H. FERRUH ISIK PUBLISHER: İstmag Magazin Gazetecilik İç ve Dış Ticaret Ltd. Şti.

Genel Müdür Managing Editor Mehmet Söztutan mehmet.soztutan@img.com.tr Responsible Editor Yusuf Okçu yusuf.okcu@img.com.tr Mehmet Soztutan, Editor-in-Chief mehmet.soztutan@img.com.tr

Editor Ayça Sarıoğlu ayca.sarioglu@img.com.tr Advertising Manager Adem Saçın adem.sacin@img.com.tr Ahmet D. Gölbaşı aderya@gmail.com Foreign Relations Manager Yusuf Okcu yusuf.okcu@img.com.tr Consultant Editor Leniiara Agliullina

The shift of the focus for global markets

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ollowing 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.

In addition, the consumer satisfaction standards based on domestic market demands have now become a quality standard satisfying customers worldwide.

The autoparts industry of Turkey has developed rapidly in line with the automotive industry. The autoparts industry with its large capacity, wide variety of production and high standards, supports automotive industry production and the vehicles in Turkey, and also has a remarkable potential for additional exports.

Whereas previous manufacturing activity focused on domestic markets only, production now extends to export markets. As a result of this structural change, the competitiveness at the domestic level is now replaced with competitiveness on a global scale, both in terms manufacturers and suppliers.

This transformation in the sector urges automotive suppliers to improve their existing structures in line with the demands of global auto manufacturers. These improvements relate to a need to build advanced technological skills, infrastructure, research and development means; capable of effective and successful technical cooperation; skilled in unique product development; equipped with the ability to obtain shares in global projects as well as to have high brand competitiveness.

We think that technology and competitive power will always be the two keys for the survival of the automotive industry. Permanent change is the rule of the game in the automotive industry as usual.

This month, we participate in International SIA 2019 Motor Show, Kiev, Ukraine; to convey the message of Turkish automotive and autoparts exporters.

Our publications remain at the service of those business people seeking to increase their share in the increasingly competitive automotive markets.

We wish them and their trading partners a fruitful and lucrative business.

Correspondent İsmail Çakır ismail.cakir@img.com.tr Graphics & Printing Manager Tayfun Aydın tayfun.aydin@img.com.tr Design & Graphics sami.aktas@img.com.tr Chief Accountant Zekai Turasan zturasan@img.com.tr Finance Manager Mustafa Aktas mustafa.aktas@img.com.tr Subsciption İsmail Özçelik ismail.ozcelik@img.com.tr HEAD OFFICE: Evren Mahallesi Bahar Caddesi Polat İş Merkezi B Blok No:1 Kat: 4 Güneşli - Bağcılar/ İstanbul Tel: (90.212) 604 51 00 Fax: (90.212) 604 51 35 www.img.com.tr turkey@ihlas.net.tr KONYA: Metin Demir Hazım Uluşahin İş Merkezi C Blok Kat: 6 No: 603-604-605 KONYA Tel: (90.332)238 10 71 Fax: (90.332)238 01 74 PRINTED BY: İHLAS GAZETECİLİK A.Ş.

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Rental firm to place order for ‘Made in Turkey’ vehicles

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urkey’s first indigenous car project has already started to attract the interest of car rental companies. Zeplin Car, one of the major players in this field with a fleet of 18,200 vehicles, has announced that it is ready to place an order for 2,000 vehicles.

Works on the domestic car, which will hit the roads in 2021, continue at full speed. The Industry and Technology Ministry is said to have been enjoying an influx of orders placed by individuals and companies.

In November 2017, the Turkish public saw the launch of a groundbreaking initiative to manufacture Turkey’s first domestic automobile. The project has brought together the country’s largest manufacturers and companies in a consortium that includes Kıraça, Anadolu Group, Turkcell, Zorlu and BMC. During the announcement, President Recep Tayyip Erdoğan said he will buy the first car. According to reports, over 30,000 orders have so far been placed

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by various individuals and companies.

Zeplin Car Chairman Hakan Sevim said the daily car rental industry has brought an innovative solution for companies and individuals. “With the spread of electric cars in particular, the industry will grow even further.

We want to fill this opportunity with domestic electric vehicles. For this reason, we have placed an order for 2,000 vehicles. However, it is also important that the vehicle has a range of at least 400 kilometers.”

Pointing out that they deliver some 3,000 vehicles to consumers on a daily basis, Sevim said the economy of “sharing” is on the rise and that this market will grow even further with the increase of electric cars.

“Now, without the need to buy, everyone can get the vehicle they want at any time. Turkey’s domestic automobile project is therefore of great importance. An electric car with a range of 400 kilometers will ensure significant savings for both companies and individuals. We will buy 2,000

vehicles once the domestic automobile is ready,” he added.

He added that they have started making future plans for daily car rentals in line with the electric car infrastructure. “In the future, people will go to electric car parks located within walking distance and instead of buying cars they will take the charged cars and go wherever they want. Therefore, we attach great importance to the domestic electric car project,” he said.

Sevim said some 9,000 companies are registered with Zeplin Car. “We have developed the corporate membership system in Turkey for the first time. Under this project, we open current accounts for companies and provide cars to their staff in 81 provinces of Turkey. The employees or the managers of the company with corporate membership can take the car as soon as they get off the plane in any cities they want, in line with the corporate agreement.

Honda to shut Turkish auto plant by 2021

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onda Turkey Inc. has decided to terminate its automobile manufacturing operations in Turkey in 2021 following the completion of the existing production of the Civic Sedan model, the company said in a statement released.

In a written statement, Honda Turkey has announced its decision to discontinue production at the Turkeybased factory.

The statement revealed that the decision was made because of developments in the electrification field in the global automotive industry and the necessity of ensuring the appropriate production capacity based on these developments.

“Having successfully maintained its automobile production activities in Turkey for 22 years, Honda Turkey is proud to have reached all of its goals in this period. Honda’s impressive performance in the last few years is the most important evidence of the company’s great confidence in the Turkish market. Therefore, Honda Turkey will continue to offer sales and after-sales operations beyond 2021 with high quality services that it offers to its customers. In this respect, automobile operations consisting of the import and distribution of vehicles in Turkey will continue without interruption. Honda

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Motorcycle operations will not be affected by this decision,” the official statement read.

Honda Turkey Chairman Takuya Tsumura underlined in the statement that they are aware of the need to spearhead the rapidly changing market dynamics and technological

developments, adding, “This situation inevitably affects our automobile production operations in Turkey.”

Tsumura also stated that they will provide all kinds of support, including re-employment, to employees affected by the decision. Currently, the company employs approximately 1,100 peopl

Tofaş to invest $225M by 2020 for Egea facelift

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ne of the leading automotive companies in Turkey, Tofaş, a joint venture of Turkey’s Koç Holding and Italy’s Fiat Chrysler, has decided to start the facelift investment of the Egea/Tipo car family produced at the Tofaş’s plant located in the northwestern province of Bursa.

In a statement to the Public Disclosure Platform (KAP), Tofaş said it is foreseen to invest approximately $225 million by the end of 2020.

“With the material disclosures dated 10/25/2013 and 11/6/2014, the duration of the publicly disclosed project has been extended until the end of 2024,” the company said.

Within the scope of the first investment plan, the statement read, 1.3 million units of production targeted in the 2015-2023 period have been realized as approximately 530,000 units up to now and with the contribution of the new investment, a total of 1.45 million pieces of production, 70 percent of which is for export markets, is targeted during the project period of 2015-2024.

“In this context, it is foreseen to invest approximately $225 million by the end of 2020 and it is planned to start production of new vehicles in the last quarter of 2020,” Tofaş said.

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In a statement, Tofaş CEO Cengiz Eroldu said the Fiat Egea has been the most preferable automobile in Turkey for the last three years, indicating that Fiat Egea, which was chosen “Best-Buy Car Of The Year In Europe” at AutoBest 2016, is also maintaining its market success in the Europe, Middle East and Africa region.

“The Egea model will continue providing value added to our country’s economy with the export volume it produces,” Eroldu said.

In 2015 Tofaş introduced a sedan body vehicle as the first member of the Egea family, the company’s new passenger car project. The model also went on sale in other countries’ markets as

of December of the same year. With the completion of project-related investments, hatchback and station wagon versions of the Egea family also went on sale in 2016. Costing about $1 billion, the project to develop these models represents one of the biggest product investments ever undertaken in the history of the Turkish automotive industry.

The sedan member of the Fiat Egea family sold 34,000 units in 2018 and holds the title of being “Turkey’s Best-Selling Automobile” for the last three years. Founded in 1968, Tofaş is said to be the only company in Turkey that manufactures both passenger cars and light commercial vehicles.

With an annual production capacity of 450,000 vehicles and with nearly 9,000 employees, Tofaş is Turkey’s fourthbiggest industrial enterprise.

Having had an export ratio of 80 percent in 2018, the company is carrying exports to around 80 countries. It exported 243,832 units last year, while its total production stood at 301,750 units. One of the important strategic production facilities of Fiat Chrysler Automobiles around the world, Tofaş is also one of the biggest research and development (R&D) centers in Europe.

Turkey-A global player in autumotive industry

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uring the 1990’s, as other international manufacturers like Toyota, Honda, Hyundai, Isuzu and Mercedes-Benz entered the market, Turkey rapidly became an automotive production base which not only caters to one-time developments of the industry but rather holds long-term development options.

Today, Turkey has a thriving automotive sector, demonstrating substantial growth in the past. All players involved, including local authorities and the government, are participating in providing conditions to increase output in the future. Some of the facts are: -High level of integration into the global automotive industry -14th major automotive producer in theWorld,with 78% average export rate -Vehicles of Turkish origin hold the leading position among the vehicles coming from outside of EU -Production, export, and engineering hub of global brands for international markets -Quality products with high export rates -Hundreds of Tier 1 companies working directly with OEMs -Center of excellence in automotive engineering and R&D,in which new technologies are developed

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Strong international presence -Giants of global automotive value chain benefit from Turkey’s location, cost, andcompetitiveadvantages -Because of their profitable business in the country, companies in Turkey continue to invest in the country’s future -9 R&D centers support not only the local operations, but also the operations in other plants of parent companies.

-Ford Otosan’s R&D department is one of Ford’s 3 largest global R&D centers -R&D centerin Bursa is the only center of

Fiat outside of Italy serving the European market.

-For Courier, Ford’s new light commercial vehicle, the Yeniköy plant is the sole production center in the world.

-Toyota’s C-HR Hybrid is produced in Turkey for World markets -Daimler R&D is the center of competence for some parts and carries global responsibility.

-With more than 40 thousand employees, automotive OEMs are one of the major employers in the manufacturing industry.

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INEOS Styrolution exhibited new automotive solutions at PIAE in Mannheim/ Germany

• High quality automotive interior and exterior applications • New structures with laser grained surfaces • StyLight® composite: New exhibits and presentation on latest developments Frankfurt, Germany - INEOS Styrolution, the global leader in styrenics, offered a comprehensive overview of its material lineup and solutions portfolio for the automotive industry at the PIAE (Plastics in Automotive Engineering) in Mannheim/ Germany (April 3-4, 2019). Highlights included the award-winning Luran®S for exterior applications, new structures with laser structured surfaces and the latest news on the company’s composite StyLight®, designed for structural and aesthetic applications.

Luran® S is the material of choice for automotive exterior applications such as radiator grills and mirror housings. Dedicated grades of the material were developed for weather resistance and state-of-theart UV stabilization. At the Mondial de l’Automobile in Paris in 2018, Luran S, an ASA (acrylonitrile styrene acrylate) polymer, was announced winner of the Automotive Brand Contest in the category “Future, Mobility & Parts”. Today Luran S grades are more and more used for unpainted parts at SUV rear spoilers.

INEOS Styrolution also exhibited new structures with laser grained surfaces developed in collaboration with Reichle Technologiezentrum GmbH. The following styrenics grades, typical materials of choice for automotive interior and exterior applications, are particularly looked at: Novodur® H701 (ABS), Novodur® H801 (ABS, Novodur® Ultra 4255 (ABS), Luran® SC KR2863C (ASA/ PC), Terblend® N NM21EF (ABS/ PA) and Luran® HH-120 SPF50 (AMSAN).

New applications of StyLight®, INEOS Styrolution’s composite material for structural and aesthetic applications will be presented at the INEOS Styrolution booth. The material is based on a modified SAN (styrene acrylonitrile copolymers) matrix and diverse fiber textile (carbon fabric, glass fabric, or hybrid carbon/ glass). The latest addition to the StyLight family of composites includes composites based on a PP (polypropylene) matrix offering customers for the first time an aesthetic PP thermoplastic composite solution.INEOS May 2019

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Turkey’s bus, minibus exports record nearly 19 pct rise in Q1

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us-minibus-midibus exports, one of the subproduct groups of the automotive sector, rose by 18.91 percent in the first quarter of 2019.

According to the Automotive Industry Exporters’ Association, the Turkish automotive sector exported buses, minibuses, and midibuses to 110 countries in 2018, amounting to $1.8 billion in exports with a 12.57 percent increase year-on-year.

In the first quarter of 2019, this automotive group saw an 18.91 percent increase in exports over the same period of the previous year, rising from $420.8 million achieved in the first quarter of 2018 to $500.4 million in the same period of this year.

If the sector’s export growth trend continues as in the first quarter, the year-end export figure is expected to exceed $2 billion.

In the first quarter of the year buses, minibuses and midibuses were sold to 72 countries, with Romania taking the lead in terms of quantity.

Exports to Romania, which overtook Germany in this product group, surged 13.5-fold over the same period of the

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previous year from $5.58 million to $80.65 million. This figure amounted to $75 million of the export increase Turkey achieved in this product group in the first quarter.

Exports to Germany, which came second in exports this quarter fell by 19.73 percent to $69.4 million. Turkey’s automotive exports to France, on the other hand, increased by 37 percent from $38.5 million to $52.9 compared to the same period of the previous year.

Meanwhile, exports to Italy, Poland, the

U.K., Spain, Bulgaria, Croatia, Belgium, Hungary, Israel, Norway and Greece surpassed $10 million each in the January-March period.

Among these countries, Hungary saw a 7.5-fold increase in exports from $1.5 million to $12.6 million compared to the previous year.

Exports to Israel, which is among the leading countries in the export hike, rose from $2.2 million to $11 million, while exports to Greece climbed from $3 million to $10.5 million.

AutoTechService offers challenging opportunities

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utoTechService is the leading B2B automotive event in Ukraine, with over 350 exhibiting accompanies and 35,000 expert visitors every year.

The show is held alongside SIA - Kyiv International Motor Show, which

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enables to increase the number of visitors and produce a richer experience. AutoTechService is specifically tailored to the conditions of the Ukrainian automarket, and its popularity among professionals guarantees a high quality audience and

large attendance at the exhibition. It provides exhibitors with a highly costeffective platform to reach their target audience. In addition, the exhibition provides you with an opportunity to learn about automotive industry trends and novelties.

EU plans to put speed limiters, data recorders on cars

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he European Union is moving to require cars and trucks to have technology that would help keep drivers from speeding as well as data recorders that would document the circumstances of accidents.

Those were among the safety features included in a provisional agreement announced by the EU’s executive commission.

The package would mandate so-called intelligent speed assistance, which recognizes speed limits using mapping systems and help drivers observe them by restricting engine power. The driver can override the system by pushing harder on the gas pedal. But the onboard data recorder could further deter speeding by registering the car’s speed.

“Every year 25,000 people lose their lives on our roads,” said Elzbieta Bienkowska, the European Commissioner responsible for internal market and industry. “We can and must act to change this.”

The European Commission, the executive arm of the 28-country EU, said that the features would be

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required on all vehicles on European roads from 2022.

The other safety features would include systems to warn drivers if they seem drowsy and against distractions such as smartphone use. Cameras and sensors would be required to avoid accidents while backing up and to help keep a car in a lane. For cars and vans, the deal requires advanced emergency braking, which can detect obstacles and push the brake pedal if the driver does not responds in time.

And another system would help bus and truck drivers avoid hitting cyclists in their so-called blind spots. Although properly adjusted mirrors should allow truck drivers to see to the side, Germany’s transport ministry has pushed for the measure to reduce deaths of cyclists and pedestrians.

Much of the technology already exists and is available on more expensive cars.

The European Automobile Manufacturers’ Association welcomed the EU’s agreement but said vehicle technology needed to be supplemented with better road infrastructure and

measures to encourage safer driver behavior.

“This challenging piece of legislation will no doubt be instrumental in further improving road safety - something all auto makers are fully committed to,” said ACEA Secretary General Erik Jonnaert. “At the same time vehicle technology alone will not be sufficient.

For maximum effect, policy makers must now push for a fully integrated approach to road safety; combining vehicle technology with better road infrastructure and safer driver behavior.”

The association warned in December that intelligent speed assistance should be introduced only gradually. It said the technology was hampered by too many false readings due to out-of-date maps and poor sign visibility.

The measures announced were agreed on in negotiations between European national governments, the commission, and the European parliament. The provision political agreement is subject to formal approval by the European parliament and EU leaders.

RENOLIT Promoting 100% Recyclable, Lightweight Automotive Interior Material Solutions at Automotive Interiors Expo 2019, Stuttgart Buriasco – RENOLIT GOR S.p.A., with a leading global position in the production of thermoplastic and thermoformable materials for the automotive market, is promoting its extensive range of 100% recyclable, thermoplastic composite material solutions for vehicle interior trim parts at AIE (Automotive Interiors Expo) 2019 (21-23 May), Stuttgart.

The RENOLIT stand (A4085) at AIE will be showcasing the complete RENOLIT COMPOSITES range of established polypropylene based materials. This includes RENOLIT WOOD-STOCK, along with a wide variety of other highly formable sheets, rolls and rigid cored composite products, all specially developed for cost effectively fabricating coated automotive interior trim parts.

This year there is a special focus on

Parcel shelf made with RENOLIT TECNOGOR. (Photo: RENOLIT COMPOSITES, PR002)

its latest ‘star product’ innovation, RENOLIT TECNOGOR. This next generation, thermoformable sheet and roll material has already gained a leading position in the global automotive interiors market with major OEM end customers. German, Italian,

French and Japanese car makers now use RENOLIT TECNOGOR for a variety of thermoformed, custom coated, vehicle interior 3D trim parts.

Successful applications include: parcel shelves, load floors, seat back covers, dashboard inserts and trunk trims.

RENOLIT TECNOGOR is a safe, clean, 100% recyclable, glass fiber (GF) reinforced, PP based, lighweight thermoplastic composite material. It has been specifically designed to cost effectively produce automotive interior trim parts. Tier 1 converters are able to combine superior part performance with consistent quality and higher productivity, while also achieving lower production costs as it can be 3D shaped in a ‘glue free’ one-step-process.

Yildirim Ticaret ready for the future with confident steps light commercial, heavy commercial, construction machinery.

What are the features that make your company different from other brands?

Based on Kaizen principles, our company always develops itself and adopts innovations through a series of innovations. We are able to produce tailor made solutions for our customers. By reducing the time losses of our customers, we offer brand new and fast solutions.

For this reason, these facts make us different from other companies.

Do you have any investment plans as Yıldırım Ticaret brand?

Our company has invested in machine and machine tools so far. Starting in 2019, we will embark on a new factory construction. As soon as we finish the factory construction, we will continue to serve from a better and more developed place.

To which countries do you export?

The countries we particularly export to are our neighbors, such as Syria, Iraq, Iran, including the UK and France. 70% of the total turnover is for domestic market and the remaining 30% is for export markets.

What are the fairs you have participated in Turkey and abroad?

This year, we have participated in Automechanika Istanbul. We are not planning to attend another fair this year. We want to participate in one of the fairs organized in Europe next year.

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ıldırım Ticaret, which has been developing year by year, based on a series of innovations, is at the service of the automotive sector by producing silicone turbo intercooler hoses. The company is moving forward with its new factory investment.

“In 1999, Yıldırım Ticaret embarked on the automotive sector to meet the need for spare parts for heavy commercial vehicles. It continues its successful progress with silicone turbo intercooler hose manufacturing. In addition to domestic sales, it also makes a great contribution to the national economy by exporting its products.” Mustafa Yildirim of Yıldırım Ticaret said.

Can you tell us about the establishment of Yıldırım Ticaret?

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We entered the sector in 1999 with the retail trade of heavy commercial vehicle spare parts. In a short period of time, we have added to our service the sale of mineral oil for the automotive industry.

In 2010, we started manufacturing silicone intercooler turbo hose. We are currently serving the automotive industry, with special reference tos pare parts of construction machinery and special vehicles.

Which machines and technologies do you use in the production of intercooler hose? Can you tell us about the variety of your products?

In silicone turbo intercooler hose manufacturing, we use chemistry and machinery technologies. Our products include spare parts for

How do you evaluate the development of the automotive industry as a specialist in manufacturing turbo and intercooler hoses? Are there any sectoral developments that have affected you positively or negatively over the years?

Turbo intercooler hose industry will record a remarkable performance in line with the automative industry.

However, with probable the increase of electric vehicles in the future and the decrease of the vehicles with internal combustion engine could exert negative effects on our sector. Actually, this is a long-term sectoral problem. The sector we are in is a dynamically developing sector for the next 20 years. We are able to meet the new challenges in an efficient manner.

Turkish businessman seeks recall of Range Rover Vogue SUVs before EU offices

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Turkish businessman -winning his case against a world-famous British carmaker in March over engine failure -has taken the lawsuit to the EU offices, an Istanbul based NGO said.

International Diplomats Association said after winning his multi-year court battle Engin Yakut, the owner of the faulty Range Rover Vogue, claimed in his petition that thousands of Range Rover Vogue models in Turkey have been suffering from the same engine problem.

The association said Yakut took his case to the European Court of Justice, European Commission, EU Parliament, and the bloc’s competition authority.

“Land Rover Company will lose a great deal from its reputation if they reject to accept their fault. The company CEO should make a public announcement about the issue and [2013 model] Range Rover Vogue SUVs should be called back,” Yakut said, adding the vehicles with similar engine failures pose a danger for traffic safety.

Yakut urged European prosecutors to launch an investigation against Land Rover Company as there are currently around 8,600 vehicles suffering from the same engine and transmission

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failures.

Yakut bought a luxury Land Rover sport utility vehicle (SUV), Range Rover Vogue for 170,000 in 2013 but soon it broke down.

Mechanics at Borusan Oto, the vehicle’s distributor in Turkey, issued a report blaming the breakdown on a manufacturing defect.

After three attempts by Yakut to get Land Rover to replace his car

went unanswered, Yakut filed suit in Istanbul’s 1st Consumer Court, demanding the car be pulled from the market.

After seeing evidence of the manufacturing defect, a Turkish court ordered the company to reimburse Yakut for his purchase, with interest but did not order the Vogue model pulled from the market

Mercedes boosts Aksaray’s economy by TL 1.7B in 33 years

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erman automotive firm Mercedes has carried out a socio-economic survey that measured the concrete contributions its truck factory in central Turkey’s Aksaray has made since its establishment in 1986.

Mercedes, operating in Turkey for over 52 years now, employed two independent research companies to carry out the survey.

The findings showed that the factory, built with a foreign direct investment of 495 million euros ($551.81), has produced an economic value of over TL 1.7 billion in the city with its production, employment, research and development (R&D) activities and exports over 33 years.

Some 2,000 people from the different demographic backgrounds, including local people, tradesmen, local authorities, employees and their families who joined the survey said that Mercedes-Benz Türk is a symbol of Aksaray, adding that the fact that the factory is located in the city is a source of pride for them.

Mercedes-Benz Türk CEO Süer Sülün expressed their pride regarding the company’s impact in transforming the region. “Over time, we have seen that Aksaray, one of the most beautiful

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Aksaray’s total gross domestic product (GDP) in 2017 was TL 10.64 billion, according to Turkish Statistical Institute (TurkStat) data. “When we laid the foundations of the factory 33 years ago, we predicted that this investment would not be limited to providing employment alone, but the employment provided would have a direct impact on the quality of life. These figures prove that we have turned out to be right in our predictions,” he said

Nissan Turkey new regional management center

apanese automotive giant, Nissan has made its Turkey country office the management center for eight North African countries and the Commonwealth of Independent States (CIS), the company confirmed in a statement.

The decision will expand the sphere of responsibility for Sinan Özkök, Nissan Turkey’s managing director. He has now been appointed as the Managing Director for North Africa and CIS countries.

As of April 1, Özkök will handle Nissan operations in Morocco, Tunisia, Sudan, Azerbaijan, Armenia, Georgia, Uzbekistan and Turkmenistan.

According to the statement, the company’s activities in these countries were previously managed within the

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examples of local development, has become one of the few MercedesBenz cities in the world. With our production, exports, R&D activities, employment we have produced, and investment activities, we provide added value to both Aksaray and the national economy,” Sülün said.

He added that Mercedes-Benz Türk constitutes some 20 percent of Aksaray’s economy thanks to the indirect and stimulated impacts of the truck factory on its surroundings.

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Middle East region.

Nissan Turkey, which started to operate under the global umbrella of the brand in 2015, is continuously increasing its market share, it has retained its leading position in the SUV market with a 19 percent share.

Nissan Turkey has also set an example to other countries with its innovative practices.

Following the decision, Özkök said: “North Africa and the Commonwealth of Independent States are high potential markets for our brand.

We are happy to contribute to the development of our brand by moving our knowledge and experience to a vast region, spanning from Casablanca to Tashkent. In this period where we are experiencing shrinkage in the

domestic market, this decision will be a source of motivation for our team working in Turkey and produce new excitement.”

Having started his career in the automotive industry in 1993, Özkök worked on logistics and product planning. Since 2001, he worked on strategic planning in Renault France and served as Paris regional manager.

After returning to Turkey in 2007, Özkök served in many high-level positions such as dealer development, branch management and sales and network directorship.

He was appointed Nissan Turkey Managing Director in October 2015 and managed to make the brand the leader in SUV segments and one of the top 10 automotive brands in the country.

Automotive exports reach $2.6 billion in April

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he Uludağ Automotive Industry Exporters’ Association (OİB) announced that the Turkish automotive industry achieved the second highest April performance in its history.

According to an OİB written statement, Turkish automotive industry exports reached $2.6 billion with a 9.8 percent decline in April. Despite the fall, the industry achieved the second highest April performance in its history.

The automotive industry, which still ranks first in Turkey’s exports with a 17 percent share, reached an average of $2.6 billion in exports in the first four months of the year. Industry exports were $10.3 billion, a 6.8 percent fall in the January-April period.

As far as product groups, the export of vehicles, with the exception of buses, minibuses and midi-buses, declined in April, while exports to EU countries, which have a 76 percent share of Turkish automotive exports, dropped 13 percent.

Considering the April performance in terms of product groups, export of private cars, which have a 37 percent share, plummeted by 23 percent to $961 million.

Meanwhile, supply industry exports decreased by 3 percent to $926 million, the second-largest share of automotive exports.

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Exports of motor vehicles for transportation of goods decreased 1 percent to $469 million, while exports of buses, minibuses and midi-buses increased 14 percent to $170 million.

Exports to France, the largest market in passenger cars, dropped 36 percent, followed by Italy at 41 percent, Spain at 34 percent, Germany at 33 percent, the U.K. at 17 percent, Belgium at 36 percent and Sweden by 22 percent.

On the other hand, exports to Israel rose 15 percent and to Slovenia and Hungary by 19 percent each. Exports of passenger cars, to the U.S. soared by 43.9 percent.

Meanwhile, exports to Germany, the largest market for the automotive supply industry, shrank by 11 percent and to France, the second-largest market, by 1 percent and to Romania, plunging by 23 percent.

Moreover, exports to the U.K., the U.S. and Algeria skyrocketed by 17 percent, 24 percent and 58 percent, respectively. Export of motor vehicles for transportation of goods to the U.K., Slovenia, and Spain went up by 32 percent, 72 percent and 30 percent, respectively, while exports to Italy fell by 41 percent, Belgium by 13 percent, the Netherlands by 18 percent, Germany by 26 percent and Sweden by 59 percent. In April, exports to Germany, the largest market for the

Turkish automotive industry, stood at $368 million, an 18 percent decline, and to France at $268 million, a 23 percent fall. Exports to Italy totalled $237 million with a 28 percent fall.While exports to Spain and the Netherlands, two important markets, declined by 24 percent each and to the Netherlands by 22 percent, exports to the U.K., Slovenia and the U.S. were up by 14 percent, 39 percent and 57 percent, respectively.

The reason for the fall in the German market was the 33 percent fall in automobile exports and 11 percent fall in supply industry exports. Also, the reason for the shrinkage in exports to France and Italy was the 36 percent and 41 percent fall, respectively, in passenger car exports.

Exports to EU countries, which are the largest market as far as country groups, dropped 13 percent to nearly $2 billion. Automotive exports to African countries surged by 30 percent and North American free trade zone countries by 14 percent.

Exports to the EU countries stood at $8 billion in the January-April period, while exports to North American free trade zone and Middle Eastern countries shrank by 19 percent and 4 percent, respectively.

Automotive exports to African countries increased by 10 percent and Far Eastern countries by 12 percent.

Year’s Record Came from Automotive Industry! * Automotive Industry has exceeded the targets with “Automechanika Istanbul” which is the World’s 3rd largest fair! * Automechanika Istanbul, the leading international automotive aftermarket fair of Turkey was successfully held, 4-7 April 2019.

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he world’s 3rd largest fair of the automotive industry, Automechanika Istanbul reached a significant success at Istanbul!

As the leading automotive trade brand in the region Automechanika Istanbul once again became the industry’s ultimate meeting point. The fair brought together 48,737 industrial trade visitors from 130 countries with 1400 local and international exhibitors from 38 countries in Istanbul. This

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year, the fair exceeded its own record once again with increasing the visiting rate by 6%. Stating that Turkish automotive manufacturers targeted 32 Billion Dollars’ worth of exports in 2019, Hannover Fairs Turkey Fuarcılık General Manager Alexander Kühnel and Messe Frankfurt Istanbul’s Managing Director Tayfun Yardım stated that, “Within the scope of the trade fair which we organised in line with the vision of making a greater

contribution to exports, our exhibitors signed important agreements. These agreements will have positive impacts on the industry’s targets. We will be seeing these positive impacts on Turkish economy more clearly particularly beginning from the second half of the year”.

The international trade fair “Automechanika Istanbul” which was held between 4 - 7 April in Istanbul brought industrial professionals

together with their target markets.

At the trade fair which was organised for the 13th time with the cooperation of Deutsche Messe’s Turkey office, Hannover Fairs Turkey and Messe Frankfurt Istanbul, professional visitors had the convenience of finding everything they need about the automotive industry under a single roof.

Pointing out to the importance of Turkey as a trade centre for the international automotive market, and the need to utilise this potential through an increase in exports, Hannover Fairs Turkey Fuarcılık General Manager Alexander Kühnel commented; “The automotive manufacturing industry is among Turkey’s most important industrial manufacturing areas. Automechanika Istanbul offers a very important opportunity in order for Turkey to show the world its strength in this field, and its future potential.

With Automechanika Istanbul, which we organised with the vision of making a greater contribution to the exports in the industry, we achieved huge success also in 2019. During a four-day period, our exhibitors made magnificent use of this opportunity and made important deals. The positive feedback we received from our exhibitors, and their satisfaction, motivated us to immediately start the preparations for next year’s trade fair”.

Emphasising that the shrinkage experienced during the first quarter was temporary, and that the industry will gain momentum with new business deals to be realised in the remaining part of the year, Kühnel and Yardım continued his words as follows: “The vehicle sales experienced in European Union countries, which constitute Turkey’s largest export market, caused a decline in new orders, which resulted in a temporary shrinkage in manufacturing.

Automechanika Istanbul witnessed successful conclusion of business deals that will change this course of events in Turkey’s favour. Automotive industry is very important for Turkish economy as it covers a wide range of goods.

We attach great importance to the development of companies that focus on the manufacturing of this category of goods which ranges from passenger vehicles to the supply industry, motor vehicles for cargo carriage, and buses.

We are delighted to have organised such a fruitful B2B trade fair in Turkey, which is a very important country for Deutsche Messe’s activities”.

Stating that Automechanika Istanbul is an important meeting point for the

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Tayfun Yardım also pointed out that the fair is not only focused on commerce, but is also an information-sharing platform. Mr. Yardım shared his thoughts on the fair with the following words: “Under the roof of Automechanika Brand which is the most successful trade fair brand in the world, Automechanika Istanbul as the 3rd biggest automotive industry fair in the world, once again closed its doors with record-breaking numbers. During 4 days, 48,737 professional visitors from 130 countries met with 1400 exhibitors in 13 halls. At the fair where all the components of the industry meet professionals from all over the world had the opportunity to see the latest trends, technologies and new products in the automotive industry.

As in previous years, international participation and visit proved the importance of the fair in the world.”

sector at an international scale, Messe Frankfurt Istanbul Managing Director

Female Employees In the Industry Was the Focal Point of the Event!

Attracting attention with its international top-quality contents and conferences that add colour to the industry every year, this year Automechanika Academy discussed the role of women within the industry.

Leading woman executives of the Turkish automotive industry will speak at the “Women in the Automotive Industry; “Women Talk” Panel organised with the cooperation of KAGİDER. Automechanika Academy, which attracts attention with its international content and conferences, discussed the role of women in the sector for the first time this year at “Women Talk” Panel.

Female executives in the automotive industry from Mercedes-Benz Türk, TOBFED Women’s Commission, Faydası Çok Multi Foundation and Turkish Tractor were the panelists who has attended the Women in the Automotive Industry Panel; “Women Talk”.

Within the scope of the Buyers’ Delegation Program organized by the Automotive Industry Exporters’ Association under the coordination of the Ministry of Trade, 37 purchasing delegations from 8 countries, mainly in Europe, Middle East and Africa region, were hosted at the fair.

Automechanika Istanbul is supported

by Ministry of Trade.

14th International “Automechanika Istanbul” will be held between 2 – 5 April 2020!

ROTA displays its new product line at Bauma

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OTA displayed its new product group such as the steering equipment for construction machinery and the hydraulic cylinders at Bauma Fair.

Bauma, world’s largest construction machinery fair, was held in Munich, Germany between 08-14 April 2019. During the Bauma Fair, 3,700 exhibitors from 63 countries met 620,000 visitors from over 200 countries.

ROTA has has been manufacturing for the OEM / OES industry and aftermarket.

ROTA, which produces more than 600 OEM reference products

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for construction machinery, has exhibited some of the 25 new products developed for the construction machinery. In addition, ROTA, which carries its quality-oriented production concept to hydraulic products, exhibited these products for the first time.

As known, ROTA manufactures OEM products such as tie rod end, ball joint, centre rod, axial joint, triangular torque rod, torque rod and repair kit for commercial vehicles, agricultural tractors, construction machinery and special vehicles.

Many business meetings were

held with ROTA for new and potential customers during the fair. Zeki Cidik, the Executive Board Member of NSK Group who participated in the fair, said: “We have experienced a successful trade show to introduce our brands for the construction machinery market, thereby contributing to the export figures of our company. We also had the opportunity to introduce our products and see the potential of the market for the hydraulic cylinder products that we will start to produce. We will continue to promote our brands all over the world.”

Eximbank to provide TL loans for non-SME firms to boost exports

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ürk Eximbank, which provides loans in local currency to small and medium-sized enterprises (SMEs) exporting in Turkish lira, will from now on grant loans to nonSME companies as well.

In a statement, Trade Minister Ruhsar Pekcan said significant efforts have been made in recent years to improve trade in local currencies.

She pointed out that the share of the Turkish lira in exports rose from 4.5 percent in the first two months of 2018 to 4.8 percent in the first two months of this year.

Pekcan said Türk Eximbank has continued to provide TL loans to exporting SMEs with affirmative

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interest rates compared to market figures.

She added that the bank channeled Turkish lira sources to SMEs in August 2017 and provided additional credit support of about TL 10 billion to SMEs, including TL 2.1 billion in 2017 and TL 7.7 billion in 2018, adding the said support will continue to increase in 2019.

The trade minister said that Türk Eximbank’s loan facility in Turkish lira was planned to be diversified and increased by taking into consideration the importance and growing potential of trade in local currency in the upcoming period.

On providing loans in the local currency

to non-SME companies, Pekcan said: “For this purpose, the current Turkish lira loan program for SMEs exporting in the local currency will continue.”

She said for non-SME companies, on the other hand, a previously announced loan program will be put into operation as of April 22, 2019.

The loan will have a one-year maturity period and a six-month interest rate payment based on the Central Bank of the Republic of Turkey’s (CBRT) daily weighted average funding rate.

“We believe this opportunity will contribute to the development of trade in local currencies,” said Pekcan.

Indigenous automobile to add 50B euros to Turkish economy

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he details and financial returns from the indigenous automobile project, launched in November 2017 through the efforts of the Turkish business world, are being revealed as the project makes progress. Gürcan Karakaş, the CEO of Turkey’s Automobile Joint Venture Group (TOGG), said within the next 15 years the ecosystem to be mobilized by their project will contribute 50 billion euros ($56.5 billion) to the gross domestic product (GDP), 7 billion euros to the current account deficit and add about 20,000 people to direct or indirect employment.

In his speech at the “The Future of the Mobility Ecosystem” panel moderated

by Martaş Otomotiv board member Cem Baver Özalp at the Uludağ Economic Summit, TOGG CEO Karakaş said there are changes in three dimensions triggered by megatrends in the mobility ecosystem, namely those in the technological dimension of the automobile, social life, and the trends adopted by the lawmakers and countries.

The TOGG CEO evaluated the approach of the company toward the concept of the domestic automobile. He noted that around 20 global examples of success and failure had been analyzed during the technical and feasibility studies of the project. Karakaş underscored that the market conditions are available for global competition and the indigenous automobile has a strong portfolio to compete in the global market.

Speaking of the portfolio, he explained that an SUV will be included among the models given the demand in the market and four to five models will be on the market. Karakaş further stressed that Turkey is not indifferent to the transformation and megatrends in the world, adding that there is a real opportunity resulting from not only the transformation of technology but also the market.

“The race has just begun,” Karakaş continued. “We have not compared ourselves with the manufacturers of internal combustion engines of 150 years, but with those who believe that this work will be solved by the mobility ecosystem and that the future will be there because of the transformations and megatrends.”

Indicating that there are over 500 start-

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ups engaged in this line of business in the world, three quarters of which are interested in the mobility ecosystem to be produced around the car with these transformations, not the car itself, Karakaş said that there is not much difference between the classic car manufacturers and Turkey in this sense, underlining that compared to beginners, the distance is short enough to cover. Karakaş said that Turkey’s Automobile Project is the result of a 15year effort. “We think that we can build it very easily because Turkey, as well as the automotive sector, has a really good infrastructure,” he noted, pointing out that they believe their plan has a very solid foundation.

TOGG CEO Karakaş said the joint venture has determined eight criteria to implement this plan, listing the first one as opportunity and market, followed by a global brand and portfolio to compete with the world, and the formation of a global and competitive supply industry and start-up ecosystem. “We think that we can do it because if we can compete at the moment, we can ensure its sustainability as well. We want Turkey to get intellectual property rights.

When we start our production, we will enter the market to the extent that will compete with manufacturers who have been in this business for a long time,” he said.

Karakaş also highlighted that the company does not pursue separate quality for both the domestic market and the foreign market as some countries do.

“Since we are also a 15-year project, we have enough breath, sources and belief in this matter,” he said.

Touching on the project’s contribution to the Turkish economy, Karakaş said within the next 15 years the ecosystem to be mobilized by the project will contribute to the Turkish economy.

“When substituting vehicles, reducing the dependence on oil and using more efficient systems are calculated, it has a positive contribution of 7 billion euros to the current account deficit,” he continued. “We will have nearly 4,000 employees in our company. If one person works in the automotive industry, four people will be employed in the sub-industry and partners.

Therefore, we believe that we will produce employment for 20,000 people.”

In November 2017, the Turkish public saw the launch of a groundbreaking initiative to manufacture Turkey’s first domestic automobile. This goal has brought together the country’s largest manufacturers and companies in a consortium that includes Kıraça, Anadolu Group, Turkcell, Zorlu and BMC. The initiative came after repeated calls from President Erdoğan for a joint venture car project by the Turkish Union of Chambers and Commodity

Exchanges (TOBB) and the Ministry of Science, Industry and Technology.

Global trends in automotive industry TOGG CEO Karakaş also spoke of the global trends in the automotive industry with specific notes on the development of electric cars and autonomous cars.

“The availability of electric vehicles with the development of electric engines and battery technology makes it an alternative to internal combustion vehicles,” he continued.

“This process is further accelerated with the development of environmental awareness and the pressure of emission laws. That is why we believe that electric vehicles will soon replace internal combustion vehicles,” he said.

Karakaş noted that autonomous driving, combined with the development of sensor technology and digitalization, puts the car in a very different position.

“In our cars, we can do what we can at home and at work because we will not focus on driving. We define this as the car’s transformation into a living space,” he added.

Karakaş pointed out that with the cities getting a bit smarter together with technology, automobile sensors will be able to interact with smart cities, stressing the cars are being transformed into a smart device or a walking computer that can communicate with the devices at home - refrigerators, buildings, sites, cities and traffic safety systems.

“When we combine all of them,

everything that happens to the mobile phone with its usage areas will also be happening to the car. On mobile phones, while we used to be only able to call someone, we can do almost anything right now. The car is in this transformation with the same logic,” he noted. Karakaş said there are many countries, spearheaded by China, that perceive the technological transformation, especially the transformation in the automobile, as an opportunity, and therefore change the current postures, even the laws of the city to the extent of urbanism.

Informing that China, which has been investing very high amounts for years especially in electric vehicles, intends to invest $130 billion in the next 10 years. Adding that other automakers will also invest up to $300 billion in the next 10 years because if they do not take part in the transformation, their share of total profit pools will decrease, Katakaş said with regards to all profits generated in the automotive sector in 2017, the amount earned from new business opportunities originating from the mobility system accounts for 1 percent of the profit, which will go up to 40 percent in 2035, meaning that 40 percent of the 2035 profitability will come from these new areas.

“Conversely, the share of the classic carmakers from their current job in 2035 will be 60 percent. In new technologies, profitability rates are also higher, hence developing a very attractive market,” he continued.

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Turkey or Bulgaria: VW to decide on new plant

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mid many rumors over recent months, it has been reported that German automotive giant Volkswagen (VW) will decide where to build its new plant at the end of November, with Turkey and Bulgaria standing out as the two strongest candidates for the company to invest in.

According to the information obtained by the German news agency Deutsche PresseAgentur (dpa), the decision is yet to be made as the issue will be discussed at the VW supervisory board meeting at the end of April and the final decision will be made at the supervisory board meeting in November.

Deutsche Welle (DW) Turkish revealed that personnel expenses in both countries are lower compared to those in Germany, pointing out that the result of the race between the two countries is clear. VW has made no disclosure on the billions of euros worth of investment.

Meanwhile, speaking to automobile industry magazine Automobilwoche, Alper Kanca, Chairman of the Automotive Suppliers Association of Turkey (TAYSAD), said that the Turkish public does not want VW to see Turkey as a sales market alone, and expects it to carry out production in the country.

Recalling that VW sold 120,000 vehicles in Turkey last year alone, Kanca said that the

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company should give a positive signal taking into consideration Turkish-German relations.

Kanca added that the investment to be made in Turkey will be an important instrument in this regard.

It is estimated that Turkey has a high chance to be chosen in terms of its current qualified workers and distribution structure. In addition, in midJanuary, VW had agreed to produce minibuses at Ford factories in Turkey. Bulgaria, which is one of the options for the German automaker, hopes that the new plant will be opened in the country. According to dpa, a delegation from the VW examined the Bulgarian capital of Sofia ahead of German President Frank-Walter Steinmeier’s visit to the city in early April. Conditions in the country where the investment is planned will be effective in VW’s decision.

Last November, VW announced that it would make an investment of 44 billion euros ($49.8 billion) in electric vehicles, autonomous driving and digital technologies for the next five years, disclosing that about 30 billion euros of this investment would be allocated for the development of electric vehicles. The company had also revealed that Skoda Karoq and Seat Ateca model vehicles under VW will be produced in the new factory planned to be opened in Eastern Europe.

Turkey, Russia work on aircraft, armor parts

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ussia and Turkey are jointly working on aircraft and helicopters, and also components for armor, the press office of Russia’s state arms seller Rosoboronexport, part of the state hi-tech corporation Rostec, reported.

“We have a number of joint projects for developing promising aircraft and rotorcraft platforms, components for the armor and the after-sale maintenance of the armaments supplied,” the press office quoted Rosoboronexport CEO Alexander Mikheyev as saying.

Turkey is also showing interest in the newest Russian combat modules, air defense systems with different range capabilities and anti-tank weapons. Despite rivals’ interference in bilateral relations, Russia and Turkey are coping with the difficulties that arise, the chief executive stressed.

“At present, we are discussing with our Turkish partners about the implementation of some of the most important projects in the sphere of military and technical cooperation and in the civilian industry... We are undoubtedly ready for various formats of technological cooperation, including such science-intensive spheres as the aerospace industry, helicopter-building and the energy sector,” the Rosoboronexport press office quoted Rostec CEO Sergei Chemezov as saying.

The Rosoboronexport and Rostec chiefs announced this on the eve of the IDEF’19 defense industry exhibition to be held in Istanbul from April 30-May 3. The exhibition will showcase equipment for land troops, the navy, the air force, security technologies, space technologies, onboard systems and also helicopters, ships, electronics, security systems, transportation and logistics equipment and systems.

Auto production nearly 490,000 in Jan-April ANKARA- A total of 489,429 vehicles rolled off Turkish automotive industry production lines in the first four months of this year, the Automotive Manufacturers Association (OSD) said.

The country’s auto productionincluding automobiles, commercial vehicles, and tractors- fell 13% yearon-year in the January-April period.

The association said automobile production in Turkey also fell 14% to reach at 322,281 during the same period.

From January to April, total auto sales market almost halved to 123,155 vehicles.

Turkey’s automotive exports went down 8% on a yearly basis to hit 126,026 in the first four months.

The sector earned $10.5 billion from automotive exports between January and April.

Share of imported cars in auto market shrinks to 61 pct The share of imported automobiles in the Turkish market has declined to 61 percent in the first three months of this year as the market share of locally produced models keeps growing.

Turkey imported more than 77.9 percent of its automobile in 2013. That share dropped to 70 percent in 2017 and further declined to 63.3 percent last year.

According to the Automotive Distributors Association (ODD), the market share of imported automobiles in January-February fell to 61 percent, while the share of domestic cars increased to 39 percent. Thus, automobile imports have declined by 16.9 points since 2013.

While the automobile market shrank by 52 percent in the January-February period, imported car sales and domestic automobile sales fell by 55 percent and 45 percent, respectively. A total of 30,184 automobiles were sold during this period.

Also, the sales of light commercial vehicles dropped by 54 percent in the

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same period, in which the share of imports stood at 47 percent.

One of the most important reasons for the decline in the share of imports was the increased demand for automobiles produced in Turkey.

Currently, five automobile brands are producing eight models of automobiles in Turkey. Tofaş manufactures the Fiat Egea in Bursa, Oyak Renault produces the Megane sedan and Clio hatchbacks in Bursa, Toyota produces the C-HR and Corolla sedans in the industrial province of Sakarya, Hyundai Assan produces i10 and i20 and Honda produces Civic sedans in the country.

Another reason for the decrease in imports is the fact that many brands have not launched their 2019 car models due to the recession, changing the supply-demand balance in the market. The gap caused by imported cars in the market is currently compensated by domestic automobiles.

According to forecasts, a total of 350,000 automobiles, including 220,000 imported, will be sold in 2019. The

share of imported automobiles is expected to be 62.8 percent by the end of the year.

Having run a foreign trade surplus in the past decade with the exception of the years of 2011 and 2015, the Turkish automotive industry broke a new record in 2018.

Because of the rise in domestic models, the foreign trade surplus soared to $13 billion in 2018 from $6.5 billion in 2017.

A new foreign trade surplus record is expected in 2019.

Automotive equipment manufacturer Delphi Technologies has made Turkey a base of after-sale services and spare parts.

Reşat Dumanoğlu, the regional director for Turkey, the Caucasus, the Middle East and Africa at Delphi Technologies, stated that the company grew by 44 percent in 2018. “Thanks to our efforts, we have become the regional directorate of 67 countries in Turkey, the Caucasus, the Middle East and Africa,” he said.

Investment coordination council lays out new reform vision to draw more FDI

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he Coordination Council for the Improvement of Investment Environment (YOİKK) convened to lay out a new revisionist road map for reform that will further strengthen Turkey’s investment environment. In his opening remarks at the meeting held in the Presidential Complex, Vice President Fuat Oktay drew attention to the reforms implemented in the last 17 years.

“Turkey has been branded as the most reformist country among the members of the Organization for Economic Cooperation and Development (OECD) in eliminating the hurdles limiting foreign direct investment (FDI).

Thanks to these reforms, Turkey has attracted $210 billion in FDI in the last 17 years. YOİKK, formed with the inclusion and contribution of many Turkish associations, bodies and nongovernmental organizations (NGOs) operating in the field of investment, has been conducting activities since its foundation, Oktay said.

YOİKK, formed with the inclusion and contribution of many Turkish associations, bodies and nongovernmental organizations (NGOs)

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operating in the field of investments, has been conducting activities since its foundation, Oktay said.

The vice president stressed Turkey’s determination to conduct sweeping reforms and noted that the meeting will specify the activities to be held in the upcoming period. The council will seek to further improve the investment environment, he added.

The YOİKK will determine flexible and sustainable policies based on national and international circumstances.

YOİKK has made significant contributions to the improvement of the investment climate, according to Oktay, who also noted that all these reform works were carried out by taking into consideration the comprehensive consultations and demands from the sections represented by the participants.

The vice president emphasized that thanks to the results of the dedicated work run by relevant ministries and NGOs and coordinated by the board in the recent period, Turkey ranked 43rd in the World Bank’s Ease of Doing Business list for 2019, climbing 17 places compared to previous

year, noting that 2.4 percent out of the 5.7 percent average economic growth in the last 17 years came from investments.

According to the report published by the World Bank, Turkey received 74.33 points out of 100, improving 4.34 points compared to previous year. New Zealand, which topped the list, scored 86.59 points.

According to the “Doing Business 2019 – Training for Reforms” report, the previous year’s reforms accelerated Turkey’s efforts to improve the business climate for domestic small and medium-sized enterprises (SMEs).

Oktay further remarked that the continuation of the momentum in the investment environment depends on the sustainability and development of works carried out by the institutions in the recent period.

He indicated that with the vision it will lay out, YOİKK will be a pioneer for the increase of foreign direct investments, both in the international and domestic arenas.

“In addition to being a platform for solving problems, YOİKK will act with a perspective that aims to produce an appropriate investment climate for attracting tomorrow’s technology and investments. We aim to make a ‘participatory and innovative’ spirit of cooperation prevail in our board studies, whose road map and operation with main lines we will be designating.

We plan to primarily include in the process the ‘solution oriented, welldefined and result-oriented’ reform proposals that our board members will offer to further develop the investment climate,” said Oktay.

The contribution and guidance of YOİKK will have important effects on the national development initiative, according to the vice president.

“As a result of the improvement in the investment environment, we expect the international investments that will head toward our country to produce added value, provide technology transfer to our country, and the employment figures and the current account balance to follow a more positive course. We should worker harder to attract foreign investment and remain competitive in this period of escalating global competition and financial tightening,” Oktay said.

Turkish drivers’ appetite for electric vehicles above world average

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s recent developments have raised consumers’ belief in the future of electric vehicles, studies suggest that Turkish consumers’ willingness to purchase electric vehicles maintains a level above the world average.

Developments in the field of electric vehicles are moving very rapidly.

Studies show that battery prices are rapidly declining, while the ranges are increasing, plus fast charging stations are becoming incrementally widespread.

According to information compiled from the TEB Cetelem Observatory 2019 report, electrical vehicles offer some solutions in environmental, economic, industrial and social terms thanks to their specific technical features.

However, in addition to some possible obstacles in the development process, ongoing technical and organizational issues are also worth noting.

When these obstacles are overcome, drivers are expected to fully benefit from the power and convenience of this innovation. The results of the report indicate that significant progress has been made on issues related to the infrastructure and legal regulations of electric vehicles in the period between the observatory survey conducted in 2012 and the study conducted in 2019 on electric vehicles. Consumers’ perceptions and requests have also changed during this period.

Through the promotional activities

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carried out in this period and the first models seen on the roads in the meantime, people have gotten used to this new product more and more.

In the survey conducted in 2012, the lack of confidence in the technology of the product was the third reason for not buying this product, while this item ranked sixth in this year’s survey, proving that people have adopted this product. While the limited range of electric vehicles stands out as the main weakness, it is seen that providing customers’ acceptance of this factor is an obstacle that cannot be ignored.

Moreover, while the purchase price and range, which drivers consider as a critical criterion for electric vehicles, has not shown much improvement in recent years, this element is still considered to be one of the biggest obstacles to people’s adoption of electric vehicles. However, positive developments have been recorded in the amount of savings in usage expenses. Consumers’ perceptions of electric vehicles are likely to be significantly improved due to the increased attractiveness of electric vehicles. The rate of people ready to pay more for an electric vehicle in Europe increased by 7 points compared to 2012. Meanwhile, a survey of 10,600 people between the ages of 18 and 65 from 16 countries, including Turkey, outlined the opinions of consumers about electric vehicles.

According to the report, 25 percent

of the vehicles sold in the world are expected to be electric in 2030. This figure is expected to rise to 36 percent in China, where the purchase is encouraged, and up to 39 in Norway.

According to statements by Turkish drivers participating in the survey, 29 percent of the vehicles to be sold in Turkey will be electric.

Given the Turkish consumers’ perception of electric vehicles, the reason for not buying is the vehicles’ high price. Short range despite long battery charge time is also expanding the distance between Turkish consumers and electric vehicles.

Another factor keeping Turkish drivers away from electric vehicles is their range of 83 kilometers per day, which is 32 kilometers above the world average. In spite of the negative data, the rate of Turkish drivers, who said they could buy an electric car in the next five years, was 60 percent, which was 17 percentage points above the world average of 43 percent. Turkey’s first indigenous automobile to be manufactured by the Automobile Joint Venture Group (TOGG) is expected to enter the market in 2022 with an electric SUV in the C segment.

The fact that batteries will be cheaper is shown as the first reason for electric vehicles to become widespread as of 2030. A cost of $1,000 for one kilowatthour in 2010 is now down by 5 percent.

In the future, this cost is expected to fall below $150

Current account gap drops at its lowest since 2009

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icking up from where it left off at the end of last year, Turkey has continued to see a gradual decline in its current account deficit. With measures taken by the government and the stabilization process in the economy, the country’s 12-month rolling current account deficit has dropped to $12.83 billion in March, its lowest level since the end of 2009. The monthly current account deficit in March also saw its lowest level since October 2015 and dropped to $589 million, decreasing by $4.14 billion year-on-year, according to the Central Bank of the Republic of Turkey (CBRT) report released. The figure was nearly $4.73 billion in the same month of 2018. A group of 17 economists, surveyed by Anadolu Agency, estimated a $900-million deficit in March, while, on the other hand, the median of 12 forecast in a Bloomberg survey was for a gap of $1 billion. Economists expect the country’s current account deficit to maintain its trend and continue to narrow down in April as well and drop below $10 billion. Decline to continue rapidly during first half of this year Haluk Bürümcekçi, said recovery in the current account balance will continue until end of the first half of 2019.

“Lower foreign trade deficit versus the last year and posting surplus of services item were main factors for recovering of the current account deficit,” he noted.

Bürümcekçi said that he expected the country’s year-end current account deficit will be $10 billion.

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Banu Kıvci Tokalı, the chief economist of HalkInvest, a subsidiary of state lender HalkBank, stressed the current account deficit could drop to $8-10 billion in April, of which data will be released in June. She underlined that the decline in the deficit would continue rapidly during the first half of the current year due to policies to support exports, the base effect and moderate energy prices. Tokali forecast that the country would close the year with a $19 billion current account deficit.

“The current-account-deficit-to-GDP ratio, which was 5.6 percent in 2017 and 3.6 percent in 2018, could fall to 2.6 percent by the end of 2019,” she added.

Orkun Gödek, DenizBank Investment Group strategist, highlighted that the current account deficit of $589 million was under the expectations of $1 billion in March.

“In the first quarter, the current account deficit was $1.9 billion, while it was $16.2 billion in the same quarter last year,” he said. In an interview , Treasury and Finance Minister Berat Albayrak said the current account deficit, which nearly hit $60 billion last year, will nearly be zeroed by the end of May. Albayrak said the current account balance and surplus were in a period of rapid recovery and that there would be no external financing requirement in the next period. The central bank said in its report that the development in the current account is mainly attributable to a $3.7-billion decrease in the goods deficit recording net outflow of $916 million. The CBRT also said Turkey’s

current account deficit – excluding gold and energy – posted a $3.5-billion surplus in March 2019, versus a $573-million deficit in the same month last year.

“Services item realized net inflow of $1.3 billion increasing by $113 million compared to March 2018,” the bank said. It added that travel item under services recorded a net inflow of $1.04 billion, rising by $55 million compared with March 2018.

Previously, current account deficit fell 88.4 percent in January to $813 million deficit, indicating a decrease of $6.22 million compared to January of the previous year, bringing the 12-month rolling deficit to $21.59 billion, the lowest level of 105 months.

In February, it fell to $718 million, down by $3.78 billion from the same month last year. The 12-month rolling deficit reached $17 billion in the month.

Economists forecast that the 2019-end deficit will be $13.8 billion.

Last year, the current account balance posted a deficit of around $27.6 billion, improving from a nearly $47.5 billion deficit in 2017. It realized at around 3.5 percent of the country’s gross domestic product. The figure was the lowest since 2009, while Turkey’s highest annual current account deficit over the last decade was seen in 2011, with $74.4 billion. The country’s new economic program, announced in September 2018, targets a currentaccount-deficit-to-GDP ratio of 3.3 percent this year, 2.7 percent in 2020 and 2.6 percent in 2021.

Auto sales drop to 119,500 in January-April Turkey’s overall auto sales market, including light trucks, in the January-April period, shrank 48 percent compared to the same period in 2018, the Automotive Distributors’ Association (ODD) reported.

The number of cars and light commercial vehicles sold in the country in the first four months of the year stood at 119,440, ODD said in a statement.

Passenger car sales also posted a decrease of 47.5 percent to total 93,228 between January and April. “In January-April 2019, the light commercial vehicle market shrank by 49.7 percent, in comparison to last year, to 26,212,” the group said in a statement.

Over 159,000 vehicles registered in first quarter The number of vehicles registered in Turkey reached 159,219 in the first three months of this year, the country’s statistics authority said.

The first quarter figure was down 42.1 percent from the same period last year, the Turkish Statistical Institute (TurkStat) announced.

The total number of road motor vehicles registered was around 23 million by the end of March.

Automobiles accounted for the bulk of new registrations - 60 percent (95,583) - a drop of 42.4 percent year-on-year between January and March.

In March, the number of registered motor vehicles also slipped 37.9 percent compared to the same month last year, to 58,7909, TurkStat added.

The breakdown of model brands for new registered cars in the month is as follows: Renault, 16.1 percent; Fiat, 12.3 percent; Volkswagen, 11 percent; Hyundai, 6.5 percent; Honda and Toyota, 6.2 percent apiece; Opel, 5.3 percent; Peugeot, 4.3 percent; Dacia, 4 percent; Mercedes-Benz, 3.7 percent; and other brands accounted for 24.5 percent.

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Ford scraps 3 factories, passenger car production in Russia over low demand U.S. carmaker Ford will close three of the four factories of its Russian joint venture after deciding to stop making passenger cars in a country where car sales have slumped in recent years, the company said.

Ford said in a statement that it has signed a preliminary agreement with its local partner Sollers on “a significant restructuring of its... joint venture in Russia, focusing exclusively on growing its commercial vehicle business moving forward.”

The joint venture “will discontinue its passenger vehicle portfolio in Russia to help deliver a more competitive and sustainably profitable business going forward,” Ford said.

Ford, based in the US state of Michigan, said that by the end of June this year it will close its vehicle assembly plants in the northwestern city of Saint Petersburg and the city of Naberezhnye Chelny in Tatarstan, central Russia.

It will also close an engine plant in Yelabuga in Tatarstan that opened in 2015.

Sollers will have a 51 percent stake in the restructured joint venture.

Currently, the factories produce seven models including the Ford Transit van.

Ford said that the “Russian passenger vehicle market has been under significant pressure in recent years, with recovery slower than expected and a shift to lowerpriced passenger vehicle segments.”

The carmaker said that this led to “underutilization” of factories and “inadequate returns on invested capital,” although sales of the Ford Transit continue to grow, with a 15 percent share of the market segment.

Following a period of growth and massive investment by global carmakers, Russia’s car market collapsed between 2013 and 2016, whiplashed by international sanctions over the Ukraine conflict and a crash in global oil prices.

New car sales, a key indicator of consumer confidence, fell by more than half during that period.

However, sales of new cars in Russia rose in 2018 for a second year running, but slowed in February this year.

Opening ceremony at the new Archroma Global Competence Center for Automotive & Synthetic Dyeing in Korschenbroich, Germany, in presence of Alexander Wessels (center), CEO, Mark Dohmen (right), Head of the Global Competence Center for Automotive & Synthetic Dyeing, and Thomas Hoffmann (left), Head of Operations, Korschenbroich. (Photo: Archroma)

Archroma Opens Global Competence Center for Automotive & Synthetic Dyeing in Germany Reinach, Switzerland - Archroma, a global leader in color and specialty chemicals towards sustainable solutions, has officially inaugurated its new Global Competence Center for Automotive & Synthetic Dyeing in Korschenbroich, Germany.

The site is part of former M. Dohmen, an international group specializing in the production of textile dyes and chemicals for the automotive, carpet and apparel sectors, that Archroma acquired between 2014 and 2018.

The inauguration ceremony, held on 6 May 2019 in the presence of Alexander Wessels, CEO of Archroma, and Mark Dohmen, former CEO of M. Dohmen and Head of the new Global Competence Center for Automotive & Synthetic Dyeing, also celebrated the merger of M. Dohmen GmbH into Archroma Germany GmbH. With the new Global Competence Center for Automotive & Synthetic Dyeing, Archroma creates a global hub for technical expertise, market knowledge, technology and creativity.

The site of Korschenbroich will therefore continue to operate as a specialist production and laboratory facility specialized in dyes and auxiliaries for synthetic fibers and wool, such as the Dorospers®, Dorolan® and

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Fadex® ranges.

The exceptional combination of global experts, R&D laboratory and production will be fully dedicated to helping manufacturers of automotive and synthetic textiles to optimize their productivity and create value in their markets.

The new Competence Center for Automotive and Synthetic Dyeing comes as a new addition to Archroma’s existing network of global hubs of expertise: The Global Competence Center for Special Dyes in Barcelona, Spain and the Global Competence Center for Finishing in Reinach, Switzerland.

“The new Archroma Global Competence Center will strive to create the new innovative and sustainable system solutions that our customers need to win on their markets,” Alexander Wessels commented at the ceremony.

“This is how we best support our customers, whilst at the same time pushing on our agenda to continuously

challenge the status quo in the deep belief that we can make our industry sustainable.”

“I am extremely proud to see the strong experience of M. Dohmen being the foundation of Archroma’s Global Competence Center for Automotive & Synthetic Dyeing in Germany, serving customers operating in applications as demanding and challenging as automotive or technical textiles,” Mark Dohmen added.

Experts of the new Archroma Global Competence Center for Automotive & Synthetic Dyeing will be at the upcoming Techtextil exhibition to introduce the latest of its innovations: Fadex® AS New, a new “super UV protector” to make automotive & transportation textiles more resistant to light. For more information, click here.

Dorospers®, Dorolan® and Fadex® are trademarks of Archroma registered in many countries. © 2019 Archroma