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Turkey-A global player in automotive industry
Monthly automotive aftermarket magazine
American automotive firm WABCO opens first distribution center in Turkey
November 2018
Top managers of automotive industry convened in Istanbul
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 Mehmet Soztutan, Editor-in-Chief mehmet.soztutan@img.com.tr
Competitive more than ever
Responsible Editor Yusuf Okçu yusuf.okcu@img.com.tr Editor Ayça Sarıoğlu ayca.sarioglu@img.com.tr Advertising Manager Nihat Akman otomotivnihat@gmail.com Foreign Relations Manager Yusuf Okcu yusuf.okcu@img.com.tr
The exports by Turkish automotive sector, which is the driving force of Turkish economy, reached remarkable figures in the last decade. The Turkish automotive industry has been active since the early seventies. Since the full integration to the European Customs Union in 1994, Turkey has become a major production platform for global automotive manufacturers. As known, the auto parts industry of Turkey has recorded a dynamic growth in line with the automotive industry. From simple components in the mid-1960s, the sector ascended to produce high-tech components currently. The industry with its large capacity, wide variety of production and high standards, supports automotive industry production and the vehicles in Turkey and also has ample potential for additional exports. The leading foreign automotive parts manufacturers have established a presence in the country through joint-ventures, which dominate production and exports. The export potential of the automotive parts sector, coupled with the presence of major international automotive manufacturers, has attracted an increasing number of foreign investors. Key factors which attract foreign capital inflows to Turkey mainly include the market size, consumer composition, friendly investment legislation and liberal banking system together with other attractiveness arising from highly skilled human resources in production and management, the unsaturated domestic market with high potential, easy access to neighboring (regional) emerging markets, and low labor cost. The industry exhibit its full potential in major specialized fairs both at home and abroad. Our publications remain at the service of those businesses people seeking to increase their share in the increasingly competitive foreign markets. We are convinced that the events in which we participate have turned out to be an ideal ground for the business people operating in the automotive business. We wish them lucrative trade.
Consultant Editor Leniiara Agliullina 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. Merkez Mahallesi 29 Ekim Caddesi İhlas Plaza No:11 A/41 Yenibosna–Bahçelievler/ İSTANBUL Tel: 0212 454 30 00 www.ihlasmatbaacilik.com
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Turkey’s right-hand-drive bus showcased in UK Visigo HyPer - the first RHD bus model of Turkish company Anadolu Isuzu - was put on display for the U.K. market at Euro Bus Expo 2018 in Birmingham. Tugrul Arikan, general manager of the company, told that their RHD buses were only manufactured for the U.K. market. "We will produce more buses for the countries, including Northern Ireland, Malta, Turkish Republic of Northern Cyprus (TRNC), Greek Cypriot administration, Singapore and Hong Kong," Arikan said. He said around 40 buses are expected to be sold in 2019. Euro Bus Expo 2018 is the Europe's biggest bus and coach exhibition of the year, according to its website. Anadolu Isuzu is an open joint stock company, whose main field of activity is production and sales of commercial vehicles such as light truck, truck, midibus, bus and pick-up. Tugrul Arikan, general manager of Anadolu Isuzu
Monthly automotive aftermarket magazine
Germany fines Audi nearly $1 billion over diesel emissions
German authorities have fined luxury automaker Audi 800 million euros ($925 million) for selling cars with excessive diesel emissions. Prosecutors in Munich said that the fine was imposed because Audi neglected its oversight duties in selling cars with engines made by it and group partner Volkswagen that did not conform to legal limits on harmful emissions. The case covered some 4.9 million Audi cars sold in Europe, the U.S. and elsewhere between 2004 and 2018. The Munich prosecutor's office said Audi had accepted the fine. Shortly after the announcement, the company said the fine would affect its 2018 financial results. "Taking into consideration the extraordinary effects of the fine, the Audi Group will significantly underperform... on its forecast for 2018 financial results," the carmaker said in a statement. In September 2015 parent company Volkswagen admitted rigging some 11 million diesel autos with software that enabled them to pass emissions tests even though emissions in real driving were much higher. The prosecutors' statement said the resolution of the case did not affect an investigation of individual Audi executives.
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November 2018
Monthly automotive aftermarket magazine
Minister Albayrak announces tax reductions to revive economy, reduce inflation The economy administration has accelerated efforts to boost economic activity and curb running inflation with tax reductions and massive anti-inflation campaigns with the support of the private sector. prices has exceeded 25,000, the minister said.
Berat Albayrak, Treasury and Finance Minister
Treasury and Finance Minister Berat Albayrak announced a comprehensive tax package to cut value-added taxes (VAT) and excise duties in a number of areas including real estate properties, furniture, commercial vehicles and home appliances. In his address at the Turkish Tax Inspection Board (TTIB) in Ankara, Minister Albayrak highlighted the recent positive developments in the Turkish economy. "After the recent spike of the Turkish lira, we are now observing a reduction in the inflation. We will see the mitigation of inflation in October figures." In September, inflation hit 24.52 percent on a year-on-year basis, up 6.3 percent from the previous
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month, according to the Turkish Statistical Institute (TurkStat). Inflation climbed for a sixth straight month, hitting its highest level in almost 15 years. As noted in Turkey's New Economy Program (NEP) announced last month, the country's inflation rate target for this year is 20.8 percent. The target for next year is 15.9 percent, 9.8 percent for 2020, and 6 percent for 2021. Earlier this month, Minister Albayrak announced a "full-scale" program to reduce inflation with the expansive support of the public and private sector. The number of corporations and institutions that participated in the program and cut down their
Among the measures announced to curb inflation was a campaign of minimum 10 percent nationwide cut on prices. To support businesses and maintain investments, the banks will decrease interest rates by 10 percent on loans issued after Aug. 1. The treasury and finance minister stressed that some of the participating companies have reduced prices by more than 10 percent by up to 20 to 30 percent. In order to expedite the fiscal reforms, the minister said the structure of TTIB will be redesigned. The minister also announced a number of reductions in six tax items. The rate of VAT in real estate had decreased from 18 percent to 8 percent over the last year as the campaign continues until the end of the year. The title deed fees have been cut to 3 percent from 4 percent. The excise duty has been removed in home appliance sales. The excise duty in 1.6-liter motor vehicles has been reduced by 15 percentage points. Lastly, the 18 percent VAT in commercial vehicles has been cut down to 1 percent. The minister said that these tax reductions will revive economy and will largely contribute to the fight against inflation.
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The Central Bank revises up year-end inflation forecasts The Central Bank of the Republic of Turkey (CBRT) forecasted year-end inflation rate in the country to reach 23.5 percent.
"We projected the inflation rate to converge gradually to the target under the assumption of a tight monetary policy stance and enhanced policy coordination focused on bringing inflation down," Central Bank Governor Murat Çetinkaya said in a news conference in Istanbul ahead of the release of the bank's quarterly inflation report. The bank also foresees year-end inflation for 2019 to reach 15.2 percent. Çetinkaya said the inflation rate is expected to stabilize at the bank's medium-term target of 5 percent in the medium term after it drops to
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9.3 percent by the end of 2020. He added that the inflation rate would fluctuate between 21.9 percent and 25.1 percent through to the end of 2018. The rise in the forecast has been driven by the upward revision in the projections of lira-denominated import prices, food inflation and inflation in the third quarter of 2018, Çetinkaya noted. According to the Turkish Statistical Institute (TurkStat) on Oct. 3, the country's annual inflation reached 24.52 percent in September. Inflation climbed for a sixth straight month, hitting the highest level in almost 15 years. October's inflation
figures will be announced on Nov. 3. Treasury and Finance Minister Berat Albayrak said in mid-October the Turkish economy will see inflation drop in the last quarter of the year as a result of the government's expansive efforts to mitigate inflation and economic rebalancing. As noted in Turkey's New Economy Program (NEP) announced on Sept. 20 by Minister Albayrak, the country's inflation rate target for this year is 20.8 percent. The target for next year is 15.9 percent, 9.8 percent for 2020 and 6 percent for 202.
Monthly automotive aftermarket magazine
China’s Xi promises market opening, more imports
President Xi Jinping promised to open China wider to imports as he opened a high-profile trade fair meant to rebrand the country as a global customer. But he offered no response to U.S. and European complaints about technology policy and curbs on foreign business. The China International Import Expo is part of official efforts to defuse trade tension while resisting pressure to roll back industry plans that Washington, Europe, Japan and other governments say violate its market-opening obligations. "It is our sincere commitment to open the Chinese market," Xi said in a speech to a VIP audience that included Russian Prime Minister Dmitry Medvedev. Xi promised to "stimulate the potential to increase imports," including by cutting costs for importers and improving consumer spending power. Xi's government is emphasizing the promise of China's growing consumer market to help defuse complaints Beijing abuses the global trading system by reneging on promises to open its industries. Business groups complain that while Beijing is expanding imports to serve its manufacturers and consumers, it blocks access to industries including finance and logistics. They say regulators are trying to squeeze foreign competitors out of promising fields
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such as information security. Prime ministers and other senior officials of governments including Egypt, Pakistan and Vietnam also are attending the fair. The United States — China's biggest trading partner — had no plans to send a high-level envoy. The expo is "likely not a huge benefit or attraction for U.S. companies," said the chairman of the American Chamber of Commerce in China, William Zarit, in an email. "Many may be attending because they think it is politically smart," said Zarit. "However, unless some of the protectionist trade barriers currently in place are changed, it won't make much difference either way." Xi made no mention of Beijing's fight with President Donald Trump over Chinese plans for stateled development of technology industries. But in an indirect reference to Trump's "America first" policies and threats of import controls, he appealed to other governments to "jointly safeguard free trade." China has cut tariffs and announced other measures this year to boost imports, which rose 15.9 percent in 2017 to $1.8 trillion. But none addresses U.S. complaints that prompted Trump to impose penalty tariffs of up to 25 percent on $250 billion of Chinese imports. Beijing has responded with tariff hikes on
$110 billion of American goods. Chinese leaders have rejected pressure to roll back plans such as "Made in China 2025," which calls for state-led creation of global champions in robotics and other fields. Some American officials worry that might erode U.S. industrial leadership. Trump and Xi had what China's foreign ministry called an "extremely positive" phone conversation. They plan to meet this month during the Group of 20 gathering of major economist in Argentina, but private sector analysts say a breakthrough is unlikely. The fight has added to challenges for communist leaders are who trying to shore up economic growth that slumped to a postglobal crisis low annual rate of 6.5 percent in the three months ending in September. They also are struggling to revive confidence in a stock market that has tumbled 25 percent this year to become the world's worst performer. Xi acknowledged some Chinese industries face "growing risks" but said efforts to shore up growth are already paying off. "The fundamentals for sound and steady growth of the Chinese economy remain unchanged," he said. The expo fits in with Beijing's quest to develop a trading network centered on China and increase its influence in a Western-dominated global system. China already is the No. 1 market for its Asian neighbors and is promoting its multibillion-dollar "Belt and Road" initiative to expand commerce by building ports, railways and other infrastructure across 65 countries from the South Pacific through Asia to Europe and Africa.
Monthly automotive aftermarket magazine
Turkey top improver for first time in Doing Business report Turkey carried out a record number of business reforms in the past year, earning the country a spot in this year’s top 10 global improvers, read the World Bank Group’s Doing Business 2019: Training for Reforms report on Oct. 31.
The reforms are a significant acceleration of the country’s efforts to improve the business climate for domestic small and medium enterprises, according to the report. As a result of the past year’s reforms, Turkey advanced to 43rd place in the global ease of doing business ranking by climbing 17 ladders in the list of 190 countries, the report showed. “I am pleased to note the priority the government is placing on the important agenda of improving the business climate to boost investment and produce jobs. Given the current economic environment in Turkey, it is, nevertheless, encouraging to the global business community and local entrepreneurs alike to see the process of conducting business simplified in so many Doing Business areas,” said Johannes Zutt, the World Bank Country Director for Turkey. Some of the reforms implemented in the past year were also
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mentioned in the report. According to the report, starting a business was made easier and faster by removing the paid-in minimum capital requirement, eliminating notarization requirements and reducing registration costs. It now takes seven days to start a business, as opposed to being 10 days previously. Dealing with construction permits was improved by publishing all preapplication requirements needed to obtain a construction permit online, thereby enhancing the process of construction permits. Turkey now ranks 59 globally in this area, compared with 96 last year, it noted. “Getting credit was also strengthened by improving access to credit information and enhancing the rights of secured creditors in bankruptcy proceedings. As a result of this reform, Turkey catapulted to 32nd place globally in this area from 77 last year,” it added. Paying taxes was made easier by improving the online portal for
filling and payments of taxes and the time needed by a firm to file taxes has been reduced to 170 hours from 215 hours. The country performs best in the areas of enforcing contracts, with a global rank of 19, and a rank of 26 for protecting minority investors. For example, resolving a commercial dispute through a local first-instance court in Turkey costs 25 percent of the claim value, compared to the regional average of 26.3 percent. It also performs well in the area of registering property, with a global rank of 39, and at just five days, it is four times faster to register a property transfer in Turkey than in the region, according to the report. However, the country underperforms in the areas of resolving insolvency with a global rank of 109, paying taxes with a rank of 80 and a rank of 78 for starting a business.
Monthly automotive aftermarket magazine
Five of top 10 auto brands produced in Turkey Five of the top 10 brands in the passenger car market are manufactured in Turkey, with Renault, which has been manufacturing in the country for 50 years, ranking first in the list. This trend shows that consumers prefer cars produced by Turkish workers and engineers.
The market share of imported automobiles has fallen by about 11.4 percent in the last five years, dropping from 77.9 percent in 2013 to 70 percent in 2017 and to 66.5 percent in January-October 2018. The share of domestic automobiles produced in Turkey, on the other hand, rose to 33.5 percent. Recent passenger car investments in the automobile have led to a decrease in the market share of imported automobiles. One of the leading automotive companies in Turkey, TofaĹ&#x;, started to manufacture passenger cars in its factory in Bursa with the Fiat Egea sedan, while Oyak Renault increased the number of its models to two with the Renault Megane sedan. Meanwhile, Toyota started to produce the new SUV model C-HR as well as the Corolla sedan in its Sakarya factory. With the passenger cars produced by Hyundai Assan and Honda, the number of domestic models sold in Turkey increased. The imported-domestic balance in the market has changed with the
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recent figures. Consumers held the most important role in this change as they preferred the brands that were produced in Turkey. The data of the Automotive Industry Association also proves this argument. Accordingly, for the January-October period, there are five brands that are produced in Turkey among the top 10 best-selling brands. Renault, which has been producing in Turkey for 50 years, ranks first in the list of the best-selling brands with 61,820 units. Similarly, Fiat, which also has investments in Turkey, comes third with 29,727 units, followed by Hyundai with 27,913, Honda with 22,435 and Toyota with 22,268 units. The imported-domestic balance is changing in the passenger car trade but not enough. The number of automobiles produced in Turkey must increase in order to further reduce the share of imported autos. As in the world, demand for SUV models in Turkey is increasing. In the last four years, the SUV market
has grown at a high rate of 63.9 percent in Turkey. SUV sales, which stood at 74,000 units in 2014, rose to 122,000 units in 2017. In the January-October period of 2018, the market share of SUVs rose to 20.6 percent, amounting to 78,179 units in sales. During this period, the bestselling SUV model was the Nissan Qashqai with 10,722 units, followed by the Dacia Duster with 9,653 and the Peugeot 3008 with 6,359 units. In the January-October period, the sedan auto market share was 50.7 percent. Most Turkish consumers preferred sedan models. During this period, eight of Turkey's top 10 bestselling models were sedans, four of which were produced in Turkey. Among the models produced in Turkey, 24,217 units of the Renault Megane sedan were sold in the first 10 months, followed by the Fiat Egea sedan with 23,740 units, the Honda Civic Sedan with 17,656 and the Toyota Corolla sedan with 16,351 units.
Monthly automotive aftermarket magazine
Turkish government extends free of charge space allocations at industrial zones The scope of free of charge spaces in Turkey’s organized industrial zones has been extended, a decision by the Industry and Technology Ministry has shown.
Mustafa Varank, Industry and Technology Minister
According to the decision, which was released on the Official Gazette on Nov. 2, the spaces at the organized industrial zones in fourth-ranked districts will be allocated without any fees. This move was one of the measures in a package announced by Industry and Technology Minister Mustafa Varank who previously vowed to fight “the attacks against the Turkisheconomy.” According to the decision, the existing “free of charge” space allocation will continue to be
applied to the fifth-ranked and sixth-ranked districts. Rent discounts in the organized industrial zones which are located in the second-ranked and thirdranked districts have also been extended to 60 percent and 80 percent, respectively, from a previous 40 percent and 60 percent. The decision aims to further raise production and employment by fueling investments in the organized industrial zones.
Turkey’s domestic electric car debuts at exhibition in Istanbul A domestically manufactured electric car has been showcased at an exhibition in Istanbul for the first time. The domestic car, the TM-480, which can be charged in one hour at a fast charging station, consumes TL 10 ($1.80) worth of electricity per 100 kilometers. The electric car, which is completely domestic with regard to external design, engine, interior design and all other parts, could be on the market in a short time if necessary procedures are completed. Domestic car manufacturer Dr. Gürsel Güzel said that for the first time they have showcased the domestic car they produced. The report said all parts of the TM-480 have been produced domestically. "The vehicle's interior design, exterior design, mechanical design, chassis, bonnet and engine are domestic. Motor drive, electronic equipment, all control units and software belong to us," Güzel said. The car has 150 kilowatts of engine power and 203 horsepower. A total of $6.5 million was spent on research and development (R&D) in five years. While mass production could start after six months, it can take two-to-three years due to certification procedures, the report added. The range of the electric domestic car TM 480 is 400
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kilometers. It consumes TL 10 worth of electricity per 100 kilometers. The announced price is TL 200,000 (approximately $36,000). Established in 2014 under the leadership of Güzel, GEN Otomobil completed its first electric vehicle prototype, GEN1, and grew its team by employing talented engineers experienced in the automotive industry. After the team grew, GEN started research and development (R&D) operations to develop three different mass-producible models: a sedan, a hatchback and an LCV, the statement on the company's official site read. GEN Otomobil made its first appearance with its hatchback prototype in September 2017 at the International R&D Summit and Fair organized by the Architects & Engineers Group in Turkey. After completion of the three different prototypes, GEN Otomobil will do the necessary work for mass production, according to the statement.
Monthly automotive aftermarket magazine
October exports total highest monthly value in Turkey’s history, hit $15.7B
Ruhsar Pekcan, Turkish Republic Trade Minister
The increasing trend in Turkish exports continued in October and peaked in terms of monthly value; its highest in the history of the Turkish Republic. Trade Minister Ruhsar Pekcan announced that Turkish exports in October recorded a 13.1 percent increase compared to the same period last year and reached $15.7 billion. Exports over the last 12 months hit $166.8 billion. Pekcan stated that Germany, the U.K. and Italy were the top three destinations for Turkish exports in October. The minister stressed that exports will reach $170 billion by the end of the year as foreseen in the New Economy Program (NEP). Pekcan noted that the country's exports to target markets soar swiftly. "Our exports to Mexico advanced 14 percent, to India 16 percent and to Latin America 41 percent," she said and added that exports to Africa also surged by 25 percent annually in October. Imports dropped by 23.5 percent in the same month and fell to $16.2 billion. The ratio of exports to imports was recorded at 65.4 percent in October 2017, Pekcan
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recalled and drew attention to the significant increase in this ratio which hit 96.7 percent last month. Russia topped the list of countries from which Turkey imports with $1.9 billion. It was followed by Germany with $1.6 billion and China with $1.4 billion. The foreign trade gap plummeted on a yearly basis in the month, according to the data. The country posted a foreign trade deficit of $529 million for October, down 93 percent from the same month last year. Moreover, the foreign trade volume dropped to $32 billion in October, falling 9 percent. The automotive industry ranked first among sectors with an export value of $2.9 billion. Chemicals followed the automotive industry with $1.59 billion, and the textile sector came in third with $1.56 billion. The highest sectoral rise was observed in jewelry exports, which increased by 113 percent in October. The manufacturing sector accounted for 81 percent of total Turkish exports and recorded a 16 increase compared to the same period of the previous year and
reached $12.7 billion. The exports of agricultural products made up 13.8 percent of total sales abroad. With a 4.1 percent rise, agricultural exports in the same period totaled $2.1 billion. The mining sector composed 2.6 percent of the total exports and reached $2.1 billion. Turkish Exporters' Assembly (TİM) Chairman İsmail Gülle highlighted the historic high in the October exports and stressed that exports are key to accomplishing macroeconomic goals, including growth, cutting down the current account deficit and reducing unemployment. Gülle underscored that TİM will continue working to update the customs union. Turkey and the EU have been in talks over the modernization of the 1996 deal. As the only non-EU member country that has had a customs union agreement with the EU since 1996, Turkey has been one of the largest trade partners of the union with an export value of 69.8 billion euros and an import value of 84.5 billion euros in 2017 in goods alone. In its Dec. 21, 2016 assessment, the European Commission proposed a modernization of the current deal, which only covers a limited range of industrial products and excludes agriculture, public procurement and services. Highlighting that the upgrade of Turkey-EU trade relations forms an essential part of efforts made by Turkey and the EU to deepen relations in key areas of common interest, the commission reiterated its resolve to continue delivering on the commitments it has made as part of the deal with Ankara.
Monthly automotive aftermarket magazine
Turkey ranks first with highest rate of exports in total automotive production Turkey has overtaken Canada in the highest rate of exports in total automotive production, ranking first by exporting 83.3 percent of its total production.
According to figures from the automotive industry research firm Jato Dynamics, Canada led the way with the highest rate of exports in total production in 2017 with 82 percent, followed by Turkey with 80 percent, Mexico and Europe with 79 percent and South Korea with 59 percent. However, this table changed in 2018. Having increased its export rate to 83.3 percent, Turkey exported 83 of every 100 vehicles manufactured. The export journey of the Turkish automotive industry began in the first half of the 1990s. Exports, which stood at thousands of units, have risen to millions of units today. With investments in the last five years, Turkey has become one of the few automobile exporting countries in the world.
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Based on data released by the Automotive Manufacturers' Association, six manufacturing companies, the drivers of exports, exported a total of 12.4 million passenger cars and light commercial vehicles between 1994 and 2017. Including 2018 January-September exports, this figure exceeds 13.3 million units. Oyak-Renault has so far exported a total of 3.7 million units, followed by Ford Otosan with 3.2 million, Tofaş with 3 million, Toyota with 1.9 million, Hyundai Assan with 1.5 million, and Honda Turkey with 126,000 units. Celebrating its 50th anniversary this year, Tofaş exported its three millionth vehicle in October. About half of Tofaş's exports of 3 million units consisted of Doblo model
with 1.5 million units, followed by Fiorito with 830,000 units. Tofaş CEO Cengiz Eroldu recalled that 75 units of Murat 124, sent to Egypt in 1974, went down in history as the first export of Tofaş, adding in 1996, they later achieved the first large-scale automobile exports of the Turkish automotive industry with their Tempra model. Turkey maintains its title as the country that exports the largest number of motor vehicles to Europe in 2018. According to data from the European Automobile Manufacturers' Association (ACEA), Turkey led the way in vehicle exports to Europe in 2017 with 1 million units. Followed by Japan and South Korea, Turkey also ranks first in passenger car exports.
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Yeni İsp Oto Yedek Parça penetrates into foreign markets
ABD,AAPEX fuar,2017
Martex,Polonya 2014
Founded in 2001, Yeni İsp Oto Yedek Parça has been exporting quality auto spare parts and accessories to Russia, Ukraine, Poland, Lithuania, Belarus, Kazakhstan, Uzbekistan, Bulgaria and many other countries for 20 years. The Company also involves in marketing of the automotive products of a series of leading firms operating in the industry such as Meklas, Maysan Mando, Aydınsan, Sem Lastik, Kale Balata, Besel Bijon, Hobby Exhaust, Mesa, Kormas. Erman Nuroğlu, one of the founders of the Company, being an Associate Professor of Polymer Physics, shares his experiences with the clients. Mürsel Serter, other partner of the Company, has become a locomotive
Rusya, OOO MZ Tonar 2006
of this sector with Sertplas which is a well known company of the automotive world. Erman Nuroğlu, Chairman of the Board of the Company attended conferences organized for the 10th and 15th anniversary of the establishment of MZ TONAR, one of the biggest truck & trailer manufacturer of the Russian Federation, in 2005 and 2010. He also participated in the international conference on the New Solutions
for Automotive Electricity in Kaluga, Russian Federation. Yeni İsp Oto Yedek Parça Dış Ticaret Ltd.Şti. represents the Turkish spare parts sector successfully abroad. Erman Nuroğlu regularly participates in promotional activities at Frankfurt, Moscow, Shanghai and Poznan fairs and also undertakes the promotion of automotive products abroad as a participant at Automechanica Frankfurt, Istanbul fairs and AAPEX 2017 Las Vegas, USA.
İstanbul,Automechanika,2018
Moskova MIMS,2018
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FUAR 2011 Moskova
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American Varroc Lighting acquires Turkish automotive firm
Exterior vehicle lighting specialist U.S.-based Varroc Lighting Sytems has acquired Istanbul-based Sa-ba Automotive, a statement confirmed. "Through Sa-ba Automotive, Varroc Lighting gains valuable manufacturing and production capacity with a 10,000-squaremeter manufacturing and technology center near Istanbul, and a new plant under construction in Dimitrovgrad, Bulgaria," the statement said. The terms and conditions of the acquisition, however, were not disclosed. It also noted that the 20,000-square-meter Bulgaria plant will give Varroc Lighting
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expanded and scalable production capacity for its European customers. "This acquisition further underscores our commitment to a global footprint that provides our customers with cost-effective and high-quality lighting products and technology," said Stephane Vedie, president and CEO of Varroc Lighting Systems. "Turkey is a growing market, and our presence there helps us expand the services we can provide to our growing customer base, while substantially increasing our capabilities in small lighting." In the statement, Varroc Lighting said that the acquisition was the
sixth business initiative in the past 16 months that directly support the expansion of its global product portfolio and manufacturing and engineering footprint. It also noted its manufacturing and product development facilities based in Morocco, Brazil, Japan, and Poland. It recently opened an expanded Lighting Development Center in Ostrava, Czech Republic while expanding manufacturing capabilities in Vietnam. With the acquisition of the Istanbul-based company, Varroc Lighting now has a global presence in 17 countries across five continents.
Monthly automotive aftermarket magazine
Auto spare parts production up Every year more than 500.000 vehicles are sold in Turkey, providing a high demand for parts and component, and also for spare and replacement parts. This paves the way for grounds for a powerful parts industry and trade platform. Domestic production of parts and components ranges from diverse products of engine and engine parts to electrical equipment and auto glass, just to name a few. There are 1,120 parts and components manufacturers in Turkey. 70 % of those are small and medium sized enterprises, supporting many strong industrial development zones all across the country. The parts and components industry is mainly concentrated in the Marmara Region around Bursa (a two hour drive from Istanbul). Beside Bursa, Istanbul, İzmir, Kocaeli, Ankara, Konya, Adana and Manisa are home to many other important manufacturing sites. Due to high demand all over the country, vehicle manufacturers have already established their authorized service station network. In addition, there are thousands of small and medium sized garages located in every part of the country, servicing the repair
and maintenance needs of the large vehicle park in Turkey. Both the network of service points and the large pool of garages are important to Turkey’s position as a producer and consumer of parts and components, as they are in constant need of supply of various parts from various price ranges.
Above that, there are more than 12,000 gas stations in Turkey. Many of them offer repair and maintenance services in addition to their car wash facilities and contribute to the positive development of the automotive parts industry.
Bursa prospers in automotive exports
Almost two-thirds of the roughly 900,000 vehicles that Turkey is expected to export to foreign markets are assembled in Bursa. Thousands of people work in giant car factories that produce vehicles for global companies like Renault and Fiat to be sold on the growing Turkish market or to be shipped to Europe. The car industry in Bursa is hugewith Renault and Fiat vehicles
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manufactured in factories to be sold in Turkey or exported to Europe. More recently, government officials and businessmen have been trying to promote Bursa as a tourist destination. The Turkish automotive and spare parts industry is concentrated in the Marmara Region, mainly in Bursa. Two major car factories and two “Organized Industrial Zones” are located in Bursa. The automotive supplier industry of Bursa produces almost all types of parts, components and spare parts such as engines and engine parts, power train parts and components, brake and clutch parts and components, hydraulic and pneumatic systems, suspension
systems, security systems, rubber and plastic parts, chassis, frames and parts, casting and forging, electrical equipment and parts, lighting systems, accumulator batteries, seats etc. The auto parts industry of Bursa has developed rapidly as a consequence of developments in the automotive industry. The auto parts industry with its large capacity, wide variety of production and high standards, supports automotive industry production and the vehicles in Bursa and also has ample potential for exports. The automotive and auto spare parts industry have prospered dynamically in line with ever increasing demand from abroad.
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Stricter automobile emission tests come into force across EU
Stricter emissions tests for all new cars in the European Union went into force. It comes in response to the 2015 Volkswagen emission scandal, in which some of its diesel cars were rigged to fool tests while actually
emitting illegal levels of fumes in real driving situations. The new controls are part of the Worldwide Harmonised Light Vehicle Test Procedure (WLTP). They are designed to measure emissions using real driving data, rather than a theoretical driving profile, which was the basis for previous tests, the EU said. The EU's roll-out of WLTP began one year ago, affecting all car models that were being introduced to the market for the first time. The rules apply to every new car for sale. "In the last three years since the emissions scandal broke out, we've cardinally changed the rules of the game to prevent emissions cheating, protect our public
health and the environment, and boost our industry's global competitiveness," EU Industry Commissioner Elzbieta Bienkowska said in a statement. "Stronger emissions tests are a key piece of the puzzle," she said. The German car industry has criticized the EU-mandated tests, saying the change has taken place too fast and warning they could result in damaging production shortfalls. Earlier this year VW blamed production bottlenecks on the tests, while BMW temporarily stopped production of some models with gasoline engines in order to make them compliant. BMW said in July it had largely completed the transition to WLTP.
Manufacturing index at 44.3 points in October
Turkey's Purchasing Managers' Index (PMI) for the manufacturing sector stood at 44.3 points in October, according to a closelywatched business survey. An Istanbul Chamber of Industry PMI Manufacturing Index report, conducted in cooperation with IHS Markit, showed a 1.6-point month-on-month rise in October
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pointing to a further easing of the health of the sector. While the PMI rose for the first time since July, the survey showed that the output, new orders and employment moderated to lesser extents in October. "A more stable exchange rate scenario led rates of inflation for both input costs and output
prices to slow markedly over the month," the report read. The survey revealed that the latest slowdown was less marked last month compared to September, while the output prices rose at the weakest pace since March. "A stabilization of the lira exchange rate helped lead to a marked slowdown in the rate of input cost inflation in October," it added. The report also noted that new export orders eased to a greater extent for the second month running. A reading greater than 50 indicates the sector is growing, while a reading below 50 signals a contraction.
Monthly automotive aftermarket magazine
Mercedes-Benz Türk’s R&D center providing truck road test, engineering services
The research and development (R&D) center established by the global automotive giant Mercedes-Benz at its truck factory in Turkey's central province of Aksaray has become the "only center" of the German automaker Daimler AG that provides truck road tests and engineering services throughout the world. The center is one of MercedesBenz Türk's most important developments in 2018. The construction of the new R&D center, whose foundation was laid at the company's factory last year with an investment of 8.4 million euros, has been completed, according to a statement by Mercedes-Benz Türk. With the said investment, Aksaray province has been included in the global network of R&D centers in Germany, the United States, Brazil, India, China and Japan by Daimler AG, the parent company of Mercedes-Benz Türk. The auto manufacturer's Aksaray Truck Factory has the title of being the biggest employment resource of the region with more than 2,000 employees and its sub-industry. Mercedes-Benz Türk has
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significantly contributed to the Turkish economy since 1986 in terms of investment in Central Anatolia, production, exports and employment. In the center, the latest milestone in the 51 years of the company's adventure in the country, 251 Turkish engineers will continue their work specific to the truck product group. The center will be the start and the end point of the tests of all trucks carrying the Mercedes-Benz star. 8,000 square meters of the total area of 40,000 square meters of the center is closed, with the rest being the open area. Thanks to the virtual reality and mixed reality technologies used in the new R&D center, which was equipped consonantly with requirements of the Industry 4.0, R&D engineers working all over the world within the global network of Daimler can work together at the same time. Mercedes-Benz Türk CEO Süer Sülün recalled that in 2016, the 30th anniversary of the Aksaray Truck Factory, they announced the investment plan of 113 million euros to boost the production and employment capacities.
Sülün said the center will serve with a capacity of 215 people in all the research and development processes from vehicle concept to construction, including simulation and vehicle tests. "Our engineers will provide truck road tests and engineering services throughout the world. We are proud that we will be providing engineering services to the world from Aksaray," Sülün noted. Mercedes-Benz Türk R&D Director Mustafa Üstertuna said at the new center, the truck and truck parts will be tested by engineers using the latest technological equipment and software and will be tested for reliability and function in routes reflecting customer usage and real road conditions. The parts and tools completed at the Aksaray R&D center have been approved to be valid in all parts of the world, Üstertuna continued. "Our R&D engineers, who are able to exchange information with different teams within the Daimler's global network in a virtual environment, are having an opportunity to develop future technology within the global ecosystem in Turkey at the same time," he said. "While important steps are being taken for the development of our truck and bus sector with our R&D works, we are providing an opportunity for the sub-industry firms to be included in Daimler AG's international portfolio, thus paving the way for opening of export ways from Turkey to the world. In sum, while contributing to Turkey's potential, we are exporting engineering to the whole world from Turkey," Üstertuna concluded.
Monthly automotive aftermarket magazine
Turkey offers challenging opportunities for global manufacturers
According to Manufacturing Risk Index 2018 research carried out by the commercial real estate consulting firm Cushman&Wakefield, China has maintained the lead in global manufacturing, while Turkey with a cost advantage, infrastructure investments and geographical location, has entered the top 10 in the world. With the research, which examines a range of risks and cost factors, n the framework of research including political and economic risks as well as labor cost, a comprehensive assessment of the attractiveness of 42 countries for global manufacturing was carried out. The report said the global economy remains in good shape despite the uncertainty surrounding the future of U.S.' trade policies, the shape of Brexit in Europe and heightened geopolitical risk in the Middle East, parts of Asia and Latin America. "Global GDP [gross domestic product] growth is forecast to accelerate to 3.2 percent in 2018 from 2.9 percent last year. Multiple factors support this outlook: The robust economic fundamentals of the U.S., Europe and China, a
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cautious monetary policy by the major global central banks and strong trade growth. The global exports of goods are expected to grow by 5.5 percent in 2017 - their fastest pace in five years - and by over 4 percent in 2018," the report read. Industrial output in 2018 is projected to increase by 3.8 percent globally - its fastest rate since 2011 - and by 3.0 percent in Europe, the report said. It also suggested that economic development and technological trends will shape the type and distribution of future manufacturing, but the sector will remain an engine of global growth. By 2020, the report said, manufacturing's share of the GDP will exceed 20 percent in the top 60 largest global economies. In China, manufacturing will still account for a massive 30 percent of the GDP in 2025. In the Eurozone, manufacturing makes up 17 percent of the GDP, led by Germany with over 23 percent. The report revealed that wage hikes and growing labor shortages in Central Europe are pushing more cost-sensitive industries east
to Lithuania, Romania, Bulgaria and Turkey. "Emerging manufacturing locations in Turkey, Romania and Bulgaria are increasing in attractiveness based primarily on cost," it added. With infrastructure investments and the strength of its geographical location, Turkey continues to be the leading production base in the world. Its cost advantage, infrastructure investments and geographical location has enabled the country to enter among top 10 in the world. In his assessment regarding the report, Cushman&Wakefield managing partner Tuฤ ra Gรถnden said economic, political and technological developments that have rapidly evolved have affected countries' positions in the production market. Gรถnden also indicated that it is possible with long-term structural trends and strategic positioning to ensure growth and sustainability in an increasingly competitive global manufacturing arena. "Located at the intersection of Europe, Asia, Russia and Africa, Turkey's geographical location and high-tech infrastructure investments offer significant advantages in terms of the global manufacturing market. Despite the geopolitical risks faced, our country continues to be the production base of Europe and the world. I believe that by correctly evaluating the location and potential of Turkey, the country will be a shining star in production in the long term," Gรถnden said.
Monthly automotive aftermarket magazine
Turkey maintains fiscal discipline to keep inflation in check, budget in balance
Turkish Treasury and Finance Minister Berat Albayrak
Turkish Treasury and Finance Minister Berat Albayrak reiterated the government's commitment to fighting against inflation and accomplishing the budgetary target by the end of this year and next year. "We will analyze yearend data for the budget and in the new year, we will continue to form policies with strong commitment to the fiscal balancing and budget discipline," Minister Albayrak said in a live broadcast on the A Haber news channel. "We are fully committed to the principle of budgetary discipline," he emphasized. The central government budget balance posted a deficit of TL 56.7 billion ($10.45 billion) in the period of January to September and budget revenues totaled TL 546.8 billion in this period, up nearly 20 percent year-on-year. Last year, the budget deficit was TL 47.4 billion, totaling around 1.5 percent of the country's GDP. The new economic program suggests that the government predicts that the ratio of the budget deficit to GDP will be 1.9 percent this year and 1.8 percent in 2019. The positive indicators for economic rebalancing are most evident in the monthly surplus of the current account. "The October data is expected to outperform and we will see a better outlook in November and December," the
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minister said. One of the macroeconomic issues the government is tackling the inflationary pressures which disrupted pricing behaviors in the real economy. "We observed distorted pricing mechanisms in September, which is reflected in inflation data," the minister said. "In October, inflation started to slow down. In November and December, more positive data for inflation will be seen as the Turkish lira has spiked against the U.S. dollar and lira, dragging down production costs." The downward trend in oil prices and energy costs will also facilitate a reduction in the inflation, the minister stated. Minister Albayrak also highlighted that last week's tax reductions will reduce the inflation in the last two months of the year. Last week, Albayrak announced a comprehensive tax package to cut value-added taxes (VAT) and excise duties in a number of areas including real estate properties, furniture, automotive products and home appliances. Turkey's Consumer price index (CPI) increased by 25.24 percent year-on-year in October, according to data released by the Turkish Statistical Institute (TurkStat). The Turkish lira weakened after the report and was trading 0.2 percent lower at 5.45 per dollar in the afternoon. The currency
lost nearly half of its value against the dollar amid a diplomatic row with the U.S. but has rebounded by more than 25 percent from August's all-time low. In September, inflation hit 24.52 percent on a year-on-year basis, up 6.3 percent from the previous month, according to TurkStat. Inflation climbed for a sixth straight month, hitting the highest level in almost 15 years. Last week, the Turkish Central Bank revised Turkey's year-end inflation rate forecast to 23.5 percent. As noted in Turkey's New Economy Program announced last month, the country's inflation rate target for this year is 20.8 percent. The target for next year is 15.9 percent, 9.8 percent for 2020, and 6.0 percent for 2021. Over the past five years, the annual inflation saw its lowest level at 6.13 percent in April 2013, while the figure reached its highest level this October. In order to curb the inflation and ensure a balance in the pricing behaviors, the Treasury and Finance Ministry launched a fullscale campaign in early October with the support of private sector. Among the measures announced to curb inflation was a campaign of minimum 10 percent nationwide cut on prices. To support businesses and maintain investments, the banks will decrease interest rates by 10 percent on loans issued after Aug. 1. The treasury and finance minister explained that some of the participating companies have reduced prices by more than 10 percent by up to 20 to 30 percent. Minister Albayrak stressed that more than 2,500 companies have participated in the campaign with expansive discounts.
Monthly automotive aftermarket magazine
American automotive firm WABCO opens first distribution center in Turkey
Belgium-based U.S. company WABCO Holdings, one of the leading global suppliers of braking control systems and other advanced technologies that improve the safety, efficiency and connectivity of commercial vehicles, officially opened its first distribution center in Turkey. Sources said that the center has been established with an investment of TL 100 million ($16.67 million). "Underlining WABCO's continued commitment to Turkey and its significant investment in the region, the 2,000-square-meter, state-of-the-art facility based in Istanbul enhances the distribution capab ilities for WABCO's extensive portfolio of technologies and services to support the needs of local aftermarket customers, original equipment manufacturers and trailer builders in the country," the company said in a statement. Speaking at the opening ceremony, Investment Office President Arda Ermut said that WABCO's investment proves the company's trust in the Turkish economy. "We have already started to discuss with WABCO its new investments in Turkey. It will be very important to boost our
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competitiveness and added value in the automotive sector," Ermut said. The company added that it has maintained a 36-year relationship with Intermobil, its exclusive representative, fourth-party logistics provider and supply chain management partner in Turkey, and will further build its local customer relationships through improved product availability, quicker response times and local customer service excellence. "Present in Turkey since 1982, WABCO has forged deep relationships across the Turkish commercial vehicle industry, which includes some of the world's leading original equipment manufacturers," it added. WABCO's investment in Turkey has grown significantly in recent years, the statement read. "In 2011, WABCO opened an International Sourcing and Purchasing Office in Istanbul which currently purchases over $50 million of commodities annually, ranging from metals to rubber and casting to forging, as well as assembly parts sourced from over 20 Turkish suppliers." The new distribution center was inaugurated at a grand
opening event, hosted by WABCO Chairman and CEO Jacques Esculier. Customers, industry representatives, central government officials, suppliers, partners and WABCO employees were present on the occasion. "Demonstrating our commitment to Turkey and building on our major $50 million annual expenditures here, we strongly believe that our investment in this cutting-edge distribution center will help further contribute to the growth of the commercial vehicle industry in the region," said WABCO Chief Supply Chain Officer Nicolas Bardot, at the opening ceremony. "In addition to enabling WABCO to significantly increase access to our extensive portfolio of advanced products and services to our aftermarket customers and trailer builders in Turkey, these investments will help foster even closer relationships with local suppliers to deliver further value and differentiation for our customers," added WABCO president EMEA Nick Rens.
Monthly automotive aftermarket magazine
Turkey’s foreign trade deficit falls 77.1 pct in September
Turkey's foreign trade deficit saw an annual fall of 77.1 percent in September, the country's statistical authority announced. Last month, Turkey's exports went up 22.4 percent year-on-year to $14.45 billion, while imports decreased by 18.3 percent to $16.3 billion. In September, the country's foreign trade deficit amounted to $1.87 billion, down from $8.17 billion. "In September 2018, exports coverage imports was 88.5 percent while it was 59.1 percent in September 2017," TurkStat said. Official data showed that Germany with $1.42 billion was the top market for Turkish exports. "The country was followed by the U.K. with $1.05 billion, Italy with
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$816 million and Iraq with $719 million," it added. The institute said the top country for Turkey's imports was Russia with $1.7 billion in September, followed by China ($1.5 billion), Germany ($1.4 billion) and the United States with $1.1 billion. In the nine-month period, exports totaled $123.04 billion with an annual hike of 7 percent, and imports were $174.16 billion, up 3.1 percent over the same period. As a result, Turkey's foreign trade balance in January-September posted a deficit of $51.1 billion - down 5.2 percent - as the deficit was $53.9 billion over the same period last year. Exports to Turkey's major trade partner, the EU, totaled $61.9 billion or accounted for 50.4 percent of all exports, while the country's
imports from the bloc were $63.4 billion. The Near East and Middle Eastern region was the second largest export market for Turkish products with some $21.5 billion, followed by African countries with nearly $10.3 billion. The EU was followed by the countries in Asia with an amount of $55.2 billion on the imports side. In 2014, Turkey's exports hit an all-time high of $157.6 billion, while the figure was nearly $157 billion last year. Over the past five years, the highest export-to-import ratio on a yearly basis was recorded in 2016 with 71.8 percent, while Turkey's foreign trade deficit has fallen from $99.8 billion in 2013 to $76.8 billion in 2017.
Monthly automotive aftermarket magazine
Turkey’s automotive exports record second-highest monthly figure, hit $2.9B in October
One of the driving forces of the Turkish economy, automotive industry exports hit $2.9 billion in October, marking a year-on-year rise of 11 percent. This figure was the second-highest export figure after the record of $3.1 billion in March on a monthly basis, according to Uludağ Automotive Industry Exporters' Association (OİB) data. Meanwhile, the share of the automotive industry in total exports stood at 19 percent. As far as product groups go, exports by the automotive subindustry grew by 3 percent to $939 million, private car exports by 10 percent to $1.19 billion, motor vehicles for goods transport by 5 percent to $471 million and bus-minibus-midibus by 26 percent to $178 million. On the country basis, exports to Germany, the largest market, decreased by 2 percent, while
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exports to the U.S. rose by 24 percent, to Poland by 15 percent, to Morocco by 40 percent, to Algeria by 122 percent and to Slovenia by 48 percent. Also, exports to Romania, Spain and Iran, which are among the major markets, dropped by 12 percent, 10 percent and 75 percent, respectively. Exports to the European Union, the largest market on the basis of the groups of countries, went up by 13 percent, reaching $2.27 billion in October. European Union countries had a 78 percent share in exports. While exports to African countries, which are among alternative markets, soared by 60 percent, exports to Middle Eastern countries plummeted by 41 percent. The automotive industry exported $433 million worth of goods to Germany, up by 4 percent, which is the largest market on a national
basis, followed by Italy, the secondlargest market, with $278 million with a 3 percent rise. On the other hand, exports to France tumbled by 7 percent to $269 million. OİB Chairman Baran Çelik stated that exports in the automotive industry reached $26.3 billion with a 12.5 percent upsurge in the first 10 months of the year. Expressing that the average export volume of the automotive industry was $2.6 billion in the JanuaryOctober period, Çelik said, "In October, exports of private cars and bus-midibus-minibus increased by double digits, while exports of towing vehicles continued to increase at high rates. Exports to European Union countries and African countries increased by 13 percent and 60 percent, respectively."
Monthly automotive aftermarket magazine
Taysad: Competent representative of the Turkish automotive supplier industry
Established in 1978, TAYSAD is the sole and most competent representative of the Turkish automotive supplier industry. TAYSAD plans its activities in line with its vision and mission and aims at becoming a center of attraction in the automotive industry, by enhancing its capability as a representative association, its effectiveness in the sector, as well as the cooperation between members and by providing better-quality services to meet members’ changing needs. The major facts are: • Established in 1978, TAYSAD is the sole and most competent representative of the Turkish automotive supplier industry • With 408 members, TAYSAD represents 65% of the output of the automotive supplier industry and 70% of the industry’s exports • 80% of TAYSAD’s members operate in the Marmara region;12% in the Aegean region and 8% in other regions of Turkey • 408 TAYSAD members employ more than 160,000 people. • 25% of TAYSAD members have foreign partners who hold varying levels of shares • TAYSAD is a member of CLEPA, the European Association of Automotive Suppliers (www.clepa.be) • TAYSAD is the founding partner of OTAM Automotive Technologies Research & Development Company. • TAYSAD has a reference position within Turkey for domestic and international OEM’s, Tier 1 Suppliers and institutions being the representative of Turkish Automotive Parts and Components Suppliers • TAYSAD holds ESCA Silver Label and ISO 9001 Certificates. The product range of TAYSAD members covers all sorts of parts except a few items and is sufficiently diversified to support an 85-90% local parts ratio in
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domestically-produced motor vehicles. The main product groups manufactured by TAYSAD members operating in the motor vehicle manufacturing industry can be classified as follows: • Complete engines and engine parts, • Radiators • Heating, ventilating & air conditioning systems (HVAC systems) • Power trains, • Brake systems and parts, • Hydraulic and pneumatic spare parts, • Suspension parts, • Safety spare parts, • Foam and rubber parts, • Chassis parts and spare parts, • Forged and cast parts, • Electrical equipment and illumination systems, • Batteries, • Automobile glass, • Seats • Design & Engineering services • Simulation services • Special vehicle production In order to adapt to the changing competitive environment, TAYSAD members closely follow technological developments and continue to invest in innovation and expansion. With the help of their advanced manufacturing capabilities, they produce prototypes, use testing facilities, perform CNC-based and conventional machining, engage in product development, pursue collective R&D activities with foreign and domestic companies and use CAD-CAM applications during the design process. Vision To become, by 2023, a sectoral association representative of all companies in Turkey, that supply goods and services directly and indirectly to the automotive industry; a sectoral association which pursues and supports activities increasing the local share in global automotive manufacturing to at least 3%; and a sectoral association which has gained complete public support. Mission To provide the environment and conditions for developing the Turkish automotive industry as a whole and making Turkey one of the leading supply centers of the global automotive industry, by supporting its members as a collective organization.
Monthly automotive aftermarket magazine
Turkey-A global player in automotive industry During 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 the World, 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
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are developed Strong international presence -Giants of global automotive value chain benefit from Turkey’s location, cost, and competitive advantages -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 center in 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.
Monthly automotive aftermarket magazine
Top managers of automotive industry convened in Istanbul
Held for the fifth time WAC 2018, World Automotive Conference, attracted record number of visitors. Over 40 directors and top-level managers were at the conference that was visited by 902 people. Ersin Kara, director of the conference emphasized on the timing of the event that has become a strategic organization that helps to establish networks for cooperation in these critical days. Organized by Worldwide Partnership, a London headquartered firm, representatives of leading firms in automotive industry discussed the future of the industry. Panel, case studies, group workshops and team activities were the main events in the conference and participants find opportunities to share their experiences. Ersin Kara expressed his satisfaction about the results of the event and said, “We are happy to share our experiences, knowledge and to establish serious business connections.” Some of the names in the event has expressed their views,
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among them was Demet Yavuz, consumer finance director of Garanti Bank. She said, “Behind the success of the industry lays the cooperative efforts of financial firms. 25 years ago, we have to visit first the showrooms of sellers for several times, then we start to look for credit for the car we wanted to buy. Now, we have contracts with car dealers for funding directly their customers. People now have become able to order and buy a vehicle as if they are ordering a pizza. They can get their car delivered at their door steps.” CIO of Mercedes-Benz Turk, Gokce Bezmer said thet their company emphasize on sharing vehicles and they are developing new ways and schemes to sold cars to the members of new generation. He said, “80 % of earnings in the automotive industry that has a sales volume of 3.5 billion dollars in the world accounts car sales. The sales is expected to reach up to 6.7 billion dollars in 2030 and only 55 % of it will come from sales, the 25% will be earned from
mobile services.” Hakan Kostepen, Panasonic America director, has told about data based communities they formed and the importance of movement of people, goods, data and energy. He said, “Mobility changes lives of the people. Community 5.0 is a new term invented in Japan, that focuses on peoplenet in addition to worldwide internet.” Ozlem Derici Sengul, an economist, has told about investment on technology, human resources, and on R&D. She said, “50 trillion of dollars currency that was injected in he world economy has been started to call back since 2015. We do not have luxury of working with short term funds. For this reason we have to plan for the next ten to twenty years. Carlos Moreira, CEO of Wisekey firms from Switzerland has emphasized on the data security issues in automotive industry and said that there is an urgent need to design new cars having asymmetric identity systems to prevent hacking attempts.
Monthly automotive aftermarket magazine
Oyak-Renault lays foundation for its $115M plant in Turkey’s Bursa
Turkish-French auto manufacturer Oyak-Renault laid the foundation of its high-pressure aluminum injection molding plant in Bursa. The $115-million plant will produce aluminum engine blocks for the company's new generation of hybrid vehicles, Turkey's Industry and Technology Minister Mustafa Varank said in the groundbreaking ceremony. "The plant investment was made
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under the project-based incentive system," he added. Varnak said that the products made at the plant would be exported. "It [the plant] will contribute to employment and exports while reducing Turkey's current deficit of by $2.3 billion annually." Necessary parts in the engine block production will be provided by domestic manufacturers and suppliers, the minister said.
Renault Senior Vice President Nicolas Maure said that the plant was the first step in the company's future investment plans in Turkey. Maure added that the company has renewed its partnership with Oyak for another 27 years. Oyak-Renault, founded in 1969, produces some 360,000 cars and 750,000 engines annually.
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