Automotive Exports March 2020

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Monthly automotive aftermarket magazine March 2020

Monthly automotive aftermarket magazine

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

Managing Editor (Responsible) Mehmet Söztutan mehmet.soztutan@img.com.tr

Mehmet Soztutan, Editor-in-Chief mehmet.soztutan@img.com.tr

Editor Ayça Sarıoğlu ayca.sarioglu@img.com.tr Advertising Managers Adem Saçın adem.sacin@img.com.tr Enes Karadayı enes.karadayi@img.com.tr Foreign Relations Manager Yusuf Okcu yusuf.okcu@img.com.tr

Dynamism in action…

International debut at the Consumer Electronics Show (CES), held in Las Vegas.

Turkey's Automobile Joint Venture Group (TOGG) is planning to sign agreements with 114 enterprises as its suppliers for the production of Turkey's homegrown fully electric car. Meanwhile, around 400 small and medium-sized enterprises (SMEs) are in talks with TOGG to become potential suppliers when the mass production for the domestically produced car that starts in 2022.

Actually, the last decade has been a turning point for the Turkish automotive industry in terms of its integration into the world economy. Foreign firms that have been attentive to the potential that the Turkish automotive industry possesses have been investing in Turkey. Foreign partners have begun to view their facilities in Turkey as their production center for the global markets.

The auto parts industry of Turkey has developed rapidly as a consequence of developments in the automotive industry. The Turkish auto parts 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 exports.

The Turkish automotive and auto spare parts industry have prospered dynamically in line with ever increasing demand from abroad. So, business people operating in the industry have become outward oriented more than ever before. This fact is also reflected through the pages of our publications.

It is hard to keep its competitive position in the world market full of emerging players.

Thus, manufacturers have shifted their operations to value-added automotive products and brand names. Currently, Turkish manufacturers have their own designs and brands in international markets.

In evaluating the future export potential of the automotive industry, using cross-country statistics, it is possible to indicate that Turkish automotive industry has comparative advantage regarding labor productivity, labor cost and the share of capital in the value added, especially with respect to the mature producers in the world. More than half of these manufacturers compete in international markets and set high standards of export figures. Our publications remain at the service of those businesses people seeking to increase their share in the increasingly competitive foreign markets.

This month, in order to convey the message of the automotive and auto spare parts exporters, we participate in EQUIP AUTO 2020, Algeria.

We are convinced that the event would be instrumental to increase business opportunities in the automotive industry.

We wish lucrative trade for all participants.

Correspondent İsmail Çakır ismail.cakir@img.com.tr Finance Manager Cuma Karaman cuma.karaman@img.com.tr Accountant Yusuf Demirkazık yusuf.demirkazik@img.com.tr Technical Manager Tayfun Aydın tayfun.aydin@img.com.tr Design & Graphics Sami aktaş sami.aktas@img.com.tr Subsciption İsmail Özçelik ismail.ozcelik@img.com.tr HEAD OFFICE: İstanbul Magazin Grubu İHLAS MEDIA CENTER Merkez Mahallesi 29 Ekim Caddesi No:11 Medya Blok Kat:1 34197 Yenibosna / İstanbul / Turkey Tel: 0212 454 22 22 Faks: 0212 454 22 93

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Electric utility vehicles produced in Bursa hit roads in Germany, Australia

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lectric utility vehicles produced entirely with domestic means in the northwestern province of Bursa have started being exported to Germany and Australia. Vehicles manufactured

by TRAGGER under the same name have attracted attention for their 85% fuel efficiency, fewer parts than internal combustion engines and advantages in maintenance costs. Electric utility vehicles are heavily used in touristic facilities, hotels, holiday resorts, university campuses, city hospitals, ports, airports, factories and indoor areas. While they are being exported with the slogan “domestic and national” currently, the objective is to increase the number of overseas markets they are exported to. Ali Serdar Emre, one of the founders of TRAGGER which operates in the Hasanağa Organized Industrial Zone, said they came together in 1998 to transfer technology to Turkey, and later started working on parts and vehicle design.

Emre told that they started in the automotive industry from scratch. “We set out entirely for exports but in order to sell a product abroad, you must be successful in your own country first. In order to produce a successful product in your country, you need to achieve technical excellence,” he said.

Pointing out that they aimed to be successful in Turkey with vehicles that have been in mass production for almost two years and then with other vehicles to be produced at the beginning of next year, Emre said: “We think we have come a long way with this. We started exporting our first vehicles abroad (Germany and Australia). These are vehicles with certain functionality added to them.”

He added that they have pickup utility

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trucks in their professional line, noting that these vehicles are produced at an advanced level of engineering. “Technical teams coming from abroad to take the franchise of our vehicles and carry out inspections tell us that these vehicles are much stronger than their counterparts.

There is much demand. We want to grow the export target in 2022. We work in areas such as virtual reality, and we aim to make a difference by integrating them into vehicles,” he said. Saffet Çakmak, one of the founding partners, said he has been friends with Emre since university, underlining that they started working as two idealistic young men and that they have produced and exported electric utility vehicles backed by years of experience.

Highlighting that they named the company “TRAGGER” with the aim of becoming a global company, Çakmak continued: “We are a local company, but we are also a company that develops design and software. We wanted to be able to sell products all over the world without transferring too much technology from abroad and without being too dependent.

Turkey is quite good in commercial vehicles, one of the world’s leading countries.”

Emphasizing that the automotive sector has reached a point of change with electric vehicles, he remarked that this is an opportunity for them. “There is a competition in the world about building small vehicles. We have entered the electric utility vehicle sector to show that such products can be designed and produced in our country as well,” he said.

Pointing out that they first put emphasis on a design that attracts people, Çakmak said

the vehicle has a lean design compared to its counterparts, reduced maintenance costs and shorter repair durations.

Providing information about the particulars of the vehicle, he added: “Since it is quite small in size, it can maneuver around a tight space, allowing it to get in and out of places like factories. Equivalent vehicles cannot maneuver in such a tight space.

There is a need for small vehicles in cities with narrow roads, for instance, old cities and historic sites.” Çakmak pointed out that the vehicle they have produced is convenient for the collection of waste, especially in cities with narrow streets, saying that they cater to a market that expects good vehicles.

He further noted that the electric utility vehicle’s costs for businesses are very low.

Indicating that they are working on dealers and after-sales services, he stated that they have opened an office in Germany and introduced TRAGGER as EU countries are an export target for them. Expressing that Turkey’s leading engineers in the field of electric vehicles are crucial, Çakmak noted: “Young engineers should return to Turkey after getting experience abroad. The biggest capital in this country is the young population, and there is a need for them.”

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Online car sales to rise, predicts industry expert

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he introduction of smartphones and computers has given birth to the age of enablement – with people able to do just about anything with a click of a button. In most cases, this is a positive thing – speeding up typically mundane tasks. But in some cases it presents certain challenges, like in the car remarketing sector. GlobalData’s motor finance writer Athena Chrysanthou looks at the issues.

Chrysanthou says: “A key challenge is how to ensure the digital space is working cohesively for buyers and vendors in a physical space as well.

“Philip Nothard, customer insight and strategy director at Cox Automotive UK, says the current challenge in the industry is ensuring there is a balance between the online and offline world, although he

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predicts a rise in online car sales.”

Nothard tells GlobalData: “I think it’s a case of getting that blend between digital and physical cohesive so it’s allowing buyers, vendors to operate in the digital space using technology as well as being able to use it in a physical space that it works cohesively together and they are not two separate streams.

“We understand and we know that vendors and the sellers of a vehicle are moving further upstream so in terms of the people wanting to go direct to the end user there’s a lot of that taking place, both the buyers and the sellers want faster decisions and a more efficient process.

“We as a business forecast that there will be an increase in volume of vehicles being sold online as opposed to physical. The

online experience will dominate more in the future and therefore the technology has to be better to present products.

“The way you image products, the information you hold in the digital space needs to be better so we are working very much for that at the minute.

We are supporting that and we understand that technology in the remarketing world will become ever more agnostic and data will become ever more transparent.

“We can’t as a business and as an industry say we are there now, because digital technology is moving quicker than everything else, so we are constantly looking at where it is heading rather than where it is today. We need to look at the future at all times.”

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Number of electric, hybrid cars triples in 2019

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mid a steady increase in the number of electric and hybrid cars registered across Europe and other parts of the world, Turkey has also been enjoying a noteworthy rise due to increasing environmental awareness and models available in the market.

The number of electric or hybrid cars in the country has tripled in 2019 compared to the previous year and reached 15,053, up from 5,367, according to data.

The spike comes amid a decrease in fuel reserves and increasing environmental pollution, which have all led to increasing efforts in the transition to electricity trends in the automotive industry.

Automotive brands are moving away from diesel and gasoline engine vehicle production and are rapidly turning toward hybrid and electric vehicles, which are lauded as an environmentally friendly alternative to gas-powered cars, thanks in part to producing no emissions on the road.While electric vehicles are developing rapidly in many countries, the growth of the sector has gained momentum also thanks to incentives provided for both manufacturers and drivers.

Turkey is one of the countries that has prioritized this trend and looks to further boost the sales of hybrid and electric automobiles. It is focusing on developing and using low-consumption and environmentally friendly automobile technologies.

It recently witnessed the launch of its first indigenous and all-electric automobile prototype. The prototype, introduced on Dec. 27, was designed and manufactured in 18 months by Turkey’s Automobile Joint

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Venture Group (TOGG), a conglomerate of industrial giants including the Anadolu Group, BMC, Kok Group, Turkcell and Zorlu Holding as well as an umbrella organization, the Union of Chambers and Commodity Exchanges of Turkey (TOBB).

There are currently two versions of the prototype – a sport utility vehicle (SUV) and a sedan – both fully electric and C-segment models. The consortium’s SUV in the C-segment will be the first fully electric SUV in Europe. It will also surpass competitors with the longest wheelbase, largest internal volume and fastest pickup performance.

Mass production of the SUV will begin in 2022, while the production of the sedan model is expected to launch after the SUV goes into production. TOGG is currently working with the Energy and Natural Resources Ministry to determine the optimum location for the installation of fast-charging points in the country.

Of the 12.5 million cars registered as of the end of last year, diesel cars constituted 38.1%, followed by LPG-fueled cars with 37.3%, gasoline-fueled cars with 24.2% and electric or hybrid cars with 0.1%.

Though the number of electric or hybrid cars is relatively low compared to conventional internal combustion engine vehicles, there was still a considerable rise in their registrations.

The number of registered electric and hybrid vehicles was only 47 in 2011. It surged by 385.1% in 2012 to 228 and by 91.2% to 436 in 2013. The same figure stood at 525 in 2014 and 889 in 2015, while it reached the threshold of 1,000 in 2016.

Electric and hybrid cars registered in the traffic hit 1,685 in 2017, before

skyrocketing to 5,367 in 2018, and finally 15,053 as of the end of last year. They have increased by approximately 16-fold in the past five years.

Energy and Natural Resources Minister Fatih Dönmez recently said over 1 million electric vehicles are anticipated to be on Turkey’s roads by 2030.

Also, a previous report by the SHURA Energy Transition Center said Turkey’s potential to increase electric vehicle use in the country is high, parallel to the increasing use of electric vehicles in many other countries due to their various benefits, including contribution to a cleaner urban landscape, electricity load management and better efficiency.

The number of passenger electric vehicles in Turkey’s total stock is expected to reach 2.5 million by 2030, making up 10% of the total vehicle stock in the same year, according to the report.

In this context, sales of battery and plug-in hybrid electric vehicles are expected to reach 55% of all vehicle sales in Turkey in 2030, the report projected. A total of 1 million charging points are expected to be established by the said period.

Among others, Turkey is among the few countries producing hybrid vehicles. The number of factories producing hybrid vehicles in Turkey will rise to four by the end of 2020. Following in Toyota, Oyak Renault and Ford Otosan’s footsteps, Hyundai Assan is beginning hybrid vehicle production. It will begin hybrid vehicle production with the revamped i20 in the last quarter of 2020. It will also offer a hybrid engine option in the B-SUV model it will produce in 2021.

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Turkey reveals prototype of first domestic car

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urkey’s long journey to produce a fully homegrown car came to an end as the country unveiled the first prototypes in an attractive ceremony in the northwestern town of Gebze.

President Recep Tayyip Erdoğan unveiled prototypes of a sport utility vehicle (SUV) and a sedan, both fully electric and C-segment models. Mass production of the SUV will begin in 2022, while the production of the sedan model is expected to launch after the SUV goes into production.

“Today, we are witnessing a historic day, the fruition of Turkey’s 60-year-long dream,” Erdoğan said in his speech at the unveiling ceremony at the Gebze Information Technologies (IT) Valley, which was also opened.

“Turkey is several steps ahead of others by entering the electric automobile sector. We are not manufacturing cars for our needs alone. We are looking forward to establishing a global brand,” the president noted.

Erdoğan went on to say that Turkey is not only a market for new technologies but has become a country that develops, produces and exports them all over the world.

“We do not need to purchase a license or permission from anyone; we determine all the technical features ourselves,” he added, highlighting the role of 100 Turkish engineers that worked on the project.

Erdoğan placed an advance order for the car. The two models unveiled were in red and white, the colors of the Turkish flag.

The fully electric SUV will come in two different engine configurations: 200 horsepower or 400 horsepower, Turkey’s Automobile Joint Venture Group (TOGG) CEO Gürcan Karakaş announced during the presentation.

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The 400 horsepower will do 0 to 100 kph in 4.8 seconds. It will have a range of up to 500 kilometers and its locally produced Lithium-ion battery will reach 80% charge under 30 minutes.

The president also emphasized that the automobile “will not pollute the environment thanks to its zero-emission technology.”

Erdoğan later drove the prototype near the Gebze Information Technologies (IT) Valley.

Hours before the ceremony, some major details of the domestic car project were revealed, with the government announcing comprehensive incentives to support the endeavor.

TOGG comprises five of Turkey’s leading industrial groups that have joined forces to build the car. It will establish a factory in the northwestern province of Bursa, often dubbed the capital Turkey’s automotive industry, according to a presidential decree published in the country’s Official Gazette.Erdoğan said some 1 million square meters of a 4-million-square-meter parcel of land in Bursa’s Gemlik district which currently belongs to the Turkish Armed Forces will be allocated for the factory. The production plant will be completed in 2021, and the first car will be produced in 2022.

The domestic electric car project will see a fixed investment of TL 22 billion over 13 years and will enable the production of five models and a total output of 175,000 vehicles per year.

The investment will enjoy comprehensive tax cuts, free land allocation, interest rate reductions and a government purchase guarantee of 30,000 vehicles until the end of 2035, according to the decree. Investors are obliged to provide at least TL 3.5 billion in cash capital by the end of 2023.

Five models of the car will be produced by a workforce of around 4,323 people, including 300 qualified personnel.

Industry and Technology Minister Mustafa Varank said they have already initiated works on necessary regulations as well as for establishing a recharging infrastructure suitable for the electric vehicles.

“With Turkey’s automobile, we are establishing a brand that will compete in the international market,” Varank said.

Turkey is already a big exporter to Europe of cars made domestically by firms such as Ford, Fiat Chrysler, Renault, Toyota and Hyundai. But the cars are made by global autos firms, usually in joint ventures with local partners.

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“The project will help our automobile industry further increase its exports, which have reached $32 billion a year,” Varank said.

Turkey was Europe’s ninth-largest car market as of November, according to the Automotive Distributors’ Association (ODD). Some 316,427 cars were sold in the country between January and November of this year, a decrease of 26% year-on-year.

Following repeated calls from Erdoğan, Turkey in November 2017 ventured into a groundbreaking initiative to manufacture its domestic automobile. The project has brought together the country’s largest manufacturers and companies in a consortium that includes Anadolu Group, BMC, Kök Group, Turkcell and Zorlu Holding, all experienced in their own areas of operation.

The five domestic firms, now with 19% shares each, and the Union of Chambers and Commodity Exchanges of Turkey (TOBB), with 5% of the shares, lead the TOGG joint venture. The TOGG Industry and Trade Inc.’s foundation and partnership agreements were signed on May 31, 2018.TOGG’s CEO is former Bosch executive Gürcan Karakaş and its chief operating officer is Sergio Rocha, former General Motors Korea’s chief executive.

The project, whose intellectual and industrial property rights will be fully owned by Turkey, is expected to contribute 50 billion euros ($55.81 billion) to the Turkish economy and 7 billion euros to the current account deficit, and produce direct and indirect employment for 4,000 and 20,000 people, respectively.

The project to produce a fully homegrown car has been a longtime goal for Turkey. Almost 60 years have passed since Turkey achieved its goal of producing domestic automobiles with Devrim (Revolution). As the first car developed and produced in Turkey, it was a glimmer of hope during the early 1960s and the symbol of the dream to produce a fully domestic automobile.

On June 16, 1961, then-President Cemal Gürsel unveiled his mission to develop an automobile that would meet the needs of the Turkish military for streetcars. The mission was addressed to the National Railways of the Republic of Turkey (TCDD). A team was commissioned and the car was designed and manufactured in a short time, with some difficulties encountered during the design of the engine and the gearbox.

Four cars manufactured upon the instruction of Gürsel at the Turkish Locomotive and Motor Industry Inc. (TÜLOMSAŞ), then named Eskişehir Railway Factories, were taken to Ankara by train.One of these vehicles, which had insufficient gasoline in its tank per railway laws at the time, stopped when it ran out of fuel while Gürsel was behind the wheel for a test drive. The car was later taken back to the central province of Eskişehir and was used in the factory for a while. However, the fact that the car suddenly stopped on the road due to insufficient gasoline paved the way for further negative propaganda against the Devrim, followed by the termination of the project. Only one of the four Devrim cars manufactured under the domestic automobile project has reached the present in a working state. The car is kept in a glassencased section converted into a museum in the garden of TÜLOMSAŞ.

“They managed to hinder the production of Devrim, but they will not be able to hinder this automobile,” Erdoğan said.

Turkey’s automotive industry optimistic about 2020, expects surge in sales

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eaving behind a difficult 2019 and having entered a recovery period, the Turkish automotive industry is optimistic about its performance this year.

Turkey’s passenger car and light commercial vehicle sales declined by 22.8% last year to 479,060, according to data by Turkey’s Automotive Distributors Association (ODD). Several measures, including tax exemptions, incentives and a cheap loan campaign by public lenders, relieved the Turkish automotive market, which had faced multiple problems.

High volatility in foreign exchange rates in the second half of 2018, followed by a high increase in interest rates on loans, led to a sharp decline in domestic demand.

The government, however, introduced tax

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cuts in November 2018 to reinvigorate consumption. It later extended the cuts until the end of June 2019.

The sales are expected to be around 550,000 to 600,000 in 2020, according to Ali Bilaloğlu, head of the ODD. Bilaloğlu stressed that automobile sales significantly dropped at the beginning of 2018, and it was important to decrease the special consumption taxes (ÖTV) to an even 1% at the time to jump-start the sector, which is now enjoying a recovery.

The Central Bank of the Republic of Turkey (CBRT) made significant special consumption tax cuts starting from Oct. 31, 2018, to June 30, 2019, allowing an average TL 15,000 discount in the retail prices of the market.

The automotive market sales figures were around 1 million units during 2015 and 2017 but dropped to 670,000 in 2018 and further decreased last year.

Bilaloğlu noted that the sector needs at least three years to reach its highest numbers again.

The CBRT began aggressively lowering rates in July 2019 after having raised the key rate to 24% in September 2018 in the face of rising inflation.

It cut the main policy rate by 12% between July and December to 11.8%. The CBRT’s slashing of its benchmark policy rate was followed by a campaign initiated by public lenders to spur domestic demand and that offers cheaper loans to citizens when they buy domestically produced vehicles from select manufacturers.

The three state lenders, Ziraat Bank,

Halkbank and Vakıfbank, launched a campaign that offered low-interest loans for buying locally produced cars. The three banks slashed the monthly cost of 18-36 month loans for cars produced in Turkey to rates between 0.49% and 0.69%.

The central bank started the year 2020 with further interest rate cuts at the first meeting of the bank on Jan. 16, bringing the total cuts of the bank since July to around 1,275 basis points to 11.25% on the back of stabilizing the Turkish lira and dropping inflation.

Speaking on the electric vehicle market in Turkey, Bilaloğlu said the market is currently quite narrow, but completion of the charging infrastructure across the country will contribute to the enlargement of the sector while government promotions, not only as material assistance but also for producing attractive terms, are also important in this regard.

“Incentives such as the establishment of special lanes for electric vehicles on urban roads, or providing easy passage during congested hours, along with the parking priorities, would produce attractive terms,” he said. The number of electric or hybrid cars in Turkey has tripled in 2019 compared with the previous year and reached 15,053, up from 5,367, according to data.

Turkey looks to further boost the sales of hybrid and electric automobiles while focusing on developing and using lowconsumption and environmentally friendly automobile technology. The country announced its first fully domestically produced electric car recently.

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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 the

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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 are developed 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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Original equipment and quality spare parts for truck and buses by UCM Automotive

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CM Company aims to provide and produce various required goods by the automotive industry. Export area manager Alican Mutluşan introduced his company and their success story.

Our Company was founded by Ali Mutluşan in 1976 on Millet Caddesi in Istanbul as Şan Ticaret in order to market Deutz parts. Till 1990, we imported parts from Yugoslavia where many Germen automotive industry companies like Iskra - Tam - Torpedo Papfeda Tesanj - Ricard Benciç and Fap Famous were based. Because of civil war in Yugoslavia in 1991, we began to export parts instead of importing parts from this country where the production stopped because of the war.

In 1993, we founded Ucem Company and began to produce gaskets for famous companies such as Deutz - Man - Mb Volvo - Scania -Renault - Iveco according to the German quality standards.

In 2007, we moved to our current factory with 6,000 sqm closed area where we increased the production capacity and raised our quality by using auxiliary products and raw materials like Victor

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Reinz, Dph, Fisher, Plath, Frenzelit, Carteco etc. In 2011, we registered our brand Euro Gasket so that we could produce for world market by raising day by day quality of our gaskets especially according to European heavy vehicle OEM quality standards.

In addition, we supplied our products under trademark Euro Truck to world market as a product of the Turkish automotive industry, which has an important place in world market according to the demands of our customers.

We produce to fit Daf, Deutz, Iveco, Man, Mercedes, Renault RVI, Scania, Volvo, ZF brands productions. For instance; full set gasket, conversion set, head set gasket, cylinder head gasket, oil pan gasket, turbo gasket and compressor gaskets.

On the other hand we sell for Deutz FL 413/FL 513 FL511, FL912, FL913, FL914, FL1011, BFM 1012, BFL/BFM 1013, BFM 1015, BFM/TCD 2011, BFM/TCD 2012, BFM/TCD/TCG 2015, Tractor parts.

We supply for Meco Diesel brand and Daf, Iveco, Man, Mercedes, Renault RVI, Scania, Volvo, for these engines Eurotruck brand for instance bearings, piston ring,

piston, cylinder linet, valve guide, tappet, crankshaft, flywheel gear, oil pump, water pump, bolts, switches, etc..

Our Gasket production factory is located in Büyükçekmece, Istanbul. We plan to buy new injection press and laser cutting at the same we buy new OEM samples. We will think to produce new products.

Our factory is in Büyükcekmece Istanbul but our call center and showroom are in Ikitelli Dolapdere 20th industry area. Our location is very close to other sellers and the factory in Buyukcekmece is not far from Muratbey Customs.

Automotive spare parts industry has high quality level in Turkey. During last years, China was the biggest competitor for us because China market prices were so low because of low costs. On the other hand there are a lot of advantageous about location. Turkey is in the center of world transportation. So, we change disadvantageous to advantage by our location. We attend Istanbul and Frankfurt Automechanica fairs every year. We want to participate in Automechanica Moscow and Automechanica Shangai as well.

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Auto parts manufacturer WABCO breaks ground for facility in Turkey

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ABCO, one of the world’s leading manufacturers of braking systems and safety applications for commercial vehicles, held a ground-breaking ceremony in the northwestern province Sakarya for its first manufacturing facility in Turkey.

The company’s plant will cost around $20 million and will sell to customers in Turkey, Europe and the Middle East.

The facility will eventually provide jobs for up to 600 people and will carry out exports worth at least $100 million a year, Industry and Technology Minister Mustafa Varank said in his speech at the ceremony.

The investments by the manufacturer in

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Turkey have grown in recent years. The new manufacturing facility follows the October 2018 opening of WABCO’s distribution center in Istanbul. In 2011, WABCO opened an international sourcing and purchasing office in Istanbul, which purchases parts and sub-assemblies worth over $50 million from a wide range of Turkish suppliers annually.

In the next four years, the company aims to increase the number of local suppliers it cooperates with in Turkey to 32, bringing its annual purchases up to $120 million.

“WABCO has transferred important funds due to purchasing activities in our country over the years, strengthening domestic

suppliers. By establishing the logistics center in October 2018, it launched another important phase of the supply chain. Now, it completes all the links of the chain by also carrying out its production in our country,” Varank said.

The minister noted that with the investment, WABCO would ensure that the country benefits from value addition as well as it will be manufacturing its final product in the country. In the past the company was procuring parts from the domestic automotive supply industry and was manufacturing its final goods in the factories abroad.

All sub-components in the production

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process will be supplied from Turkey, Varank said. He added that the first phase of the factory that will be completed in August will manufacture brake cylinders, hydraulic brakes and crankshafts for compressors. Construction for the second phase in which compressors will be produced will start afterward.

WABCO will be exporting a large part of the production to the automotive and commercial vehicle producers it works with across the world, with most exports going to European countries.

Turkey is the biggest automotive supplier of the European Union, Varank noted.

The industry and technology minister highlighted that 2020 will be marked by the launch of new mega-scale investment projects in chemistry, petro-chemistry, transportation technologies, integrated mining, defense and electronics. “With these new projects, we will maintain a healthy and sustainable growth trend that produces job opportunities. We aim to make Turkey a center of economic attraction with global investments,” Varank said, noting that the ministry will introduce a more flexible structure for incentive schemes.

In order to attract more research and development (R&D) activities by global firms, the ministry offers great opportunities to firms operating in technoparks and R&D centers established by private sector firms. “Thanks to the R&D lab support program, leading global firms are able to find centers in Turkey,” Varank said, calling on WABCO to establish an R&D center in the country.

The industry and technology ministry prioritizes policies to advance the current industrial capacity and localize production.

“The technology-oriented industry program, technology and innovation fund, regional development fund and support schemes for entrepreneurs are some of the visionary programs the ministry implements,” he said, adding, “We would like to see more private sector businesses to capitalize on the support programs at the maximum level.”

The plant in Sakarya to be established on a 40,000-square-meter area – of which 8,000 square meters will be used in the first stage – will provide employment to around 300 people.

Delivering a speech at the ceremony,

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Jacques Esculier, WABCO chairman and CEO, called Turkey “an automotive country.” He stressed the country is among the world’s top 20 strongest economies, pointing to its high growth potential.

Underlining the company’s trust in Turkey, Esculier emphasized that the company’s customers and suppliers in Turkey have an important place in WABCO’s global strategy.

“The new manufacturing facility will enable WABCO to leverage the local manufacturing talent base and benefit from the country’s exceptional infrastructure and logistics capabilities,” said Nick Rens, WABCO president for Europe, the Middle East and Africa (EMEA).

“This will allow us to further strengthen our customer intimacy locally as well as export products from Turkey across Europe and the Middle East to further enhance WABCO’s competitiveness in those regions,” Rens added. Since 1982, WABCO has established strong roots in Turkey, forging deep relationships across

the country’s commercial vehicle industry and building a strong leadership position in its market locally.

“The new facility will allow WABCO to progressively localize the manufacturing of its products supporting the local market.

This will further enhance our service to local customers by delivering high quality, cost-efficient products with agility, speed and flexibility,” said Kazım Eryılmaz, WABCO country leader for Turkey. WABCO is a major global supplier of braking control systems and other advanced technologies that improve the safety, efficiency and connectivity of commercial vehicles. The leading truck, bus and trailer brands worldwide rely on WABCO’s differentiating technologies. Powered by its vision for accident-free driving and greener transportation solutions, WABCO is also at the forefront of advanced fleet management systems and digital services that contribute to commercial fleet efficiency. In 2018, it reported sales of over $3.8 billion and has more than 16,000 employees in 40 countries.

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Improvement in inflation expectations continues Inflation expectations continue to improve and are broadly in line with the central bank’s projection of 8.2% by year-end, the Central Bank of the Republic of Turkey (CBRT) said.

In the minutes of its policy meeting, released, the bank said its own policy will depend on further disinflation.

The bank cut its key interest rate to 11.25% earlier this month from 24% since July 2019 on the back of stabilizing lira and a drop in inflation, which was 11.8% in December.

Last year, it held eight monetary policy meetings, as interest rates fell by 1,200 basis points over the course of the year, from 24%. The bank scheduled 12 committee meetings for 2020.

Inflation has been a pressing issue for the economy since the second half of 2018, when it surged to almost 25.24% in October as steep depreciation in the Turkish lira pushed up the price of imported goods.

The inflation rate in December came in at 11.84%. Turkey was expected to close 2019 with inflation at around 12%, as laid out in the New Economic Program (NEP) for 2020-2022 announced by the government in September 2019. The program forecasts inflation to stand at 8.5% in 2020, 6.0% in 2021 and 4.9% in 2022. Turkish policymakers must keep a lid on financial volatility and deliver predictable fiscal policies to keep the economic recovery on track, the bank said. To “minimize a

likely inflation-growth trade-off, it will be crucial that macro-financial policies (reduce) financial volatility ... and that the predictability of the fiscal policy continues to be reinforced,” it added.

While the bank has said it has less room to continue easing policy, analysts expect it to cut rates a little more in the coming months.

“Keeping the disinflation process on track with the targeted path requires the continuation of a cautious monetary stance,” the bank said in the minutes.

Policies will hinge on “indicators of the underlying inflation trend to ensure the continuation of the disinflation process,” it added.

Turkey could achieve greater stability in 2020 Turkey could experience greater stability in 2020, said the credit ratings agency Fitch.

“Fitch expects the recovery and rebalancing of the economy to continue, with growth strengthening, inflation falling and the current account deficit contained,” the agency said in report on the outlook of emerging European countries. The report stressed that with no national elections due until 2023, 2020 provides an opportunity for Turkey to implement reforms stated in the government’s New Economy Program, tackling structural credit weaknesses.

“Nonetheless, risks remain multifaceted. Weak monetary policy credibility, economic policy, political, geopolitical and sanctions risks could provoke bouts of asset price volatility, although global interest rate policy should keep external financing conditions supportive,” it added. It said the weak global economic growth will produce a more difficult environment for emerging European countries next year.

March

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Turkey more resilient to internal and external shocks than ever

Turkey’s twowheelers exported to 110 countries in 2019

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xports of Turkish two-wheeler products, such as bicycles, mopeds and motorcycles, surged by 37%

year-on-year last year, according to Uludağ Automotive Industry Exporters Association (OİB) data.

Two-wheeler sales were made to 110 countries around the globe generating

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he worst is behind for the Turkish economy and its financial system, said Treasury and Finance Minister Berat Albayrak, stressing that Turkey is now more resilient to internal and external shocks.

Albayrak’s remarks came in his interview with Japanese Nikkei newspaper.

The minister emphasized that the Turkish economy’s immune system has entered a phase in which it is getting stronger.

After a financially and economically turbulent period that kicked off in the second half of the year in 2018 and prolonged into the first half of 2019, the Turkish economy had been battered by currency volatility, high inflation and high-interest rates, resulting in tumbling domestic demand by consumers and investors.

Turkey’s GDP entered a promising era of growth in the third quarter of 2019, breaking three consecutive quarters of contraction. The economy grew 0.9% year-on-year between July and September of 2019, according to data of the Turkish Statistical Institute (TurkStat).

Compared with the second quarter, the Turkish economy expanded by a seasonally and calendar-adjusted 0.4%, its third positive quarter-on-quarter in a row, TurkStat data showed.

In the first two quarters, the economy contracted 2.3% and 1.6%, respectively, on an annual basis. In 2018, the economy posted an annual growth rate of 2.8%, narrowing in the last quarter.

some $63.8 million in revenue, data has shown.

Most of the industry’s exports went to Finland, where sales increased by 47% year-on-year raking in around $14.12 million, up from $9.61 million the previous year.

Finland was followed by Germany with $12.97 million, a 233% year-on-year rise.

These two countries constituted 42% of Turkey’s total two-wheel exports.

The Netherlands came in third place, receiving $6.5 million worth of twowheelers from Turkey. Then, came Spain where exports went up by 12% compared with 2018, amounting to some $5.57 million. Among others, two-wheeler sales to the U.K., France and Italy brought in $5 million, $4.9 million and $3.3 million, respectively.

A noteworthy fact was that exports to Greece surged by 92% year-on-year.

The common market expectation for the fourth quarter estimates ranges from 4.5% to 5%. While the government forecasts 0.5% annual growth for the whole of 2019, its New Economic Program (NEP) targets a 5% annual growth rate for 2020, 2021 and 2022. Albayrak said he is expecting roughly 0.5% GDP growth for 2019 with a possible 5% expansion in the last quarter of 2019.

He also emphasized that 4% to 5% annual base growth for Turkey is only natural, considering high population growth and an export-oriented competitive industrial base. In a post on his Twitter account, Albayrak said those who had trust in Turkish lira assets since August 2018 to date have won.

He elaborated on the comparative returns of financial investment instruments from August 2018 to date and in 2019 alone.

Albayrak said the long-term Government Domestic Debt Securities (DİBS) investor has reaped the greatest profit with 101.5%, while BIST 100 index, the benchmark index of Turkey’s stock exchange Borsa Istanbul (BIST), provided a value of 33.3% from August 2018 to date.

According to the infographic in Albayrak’s post, the U.S. dollar and euro lost 9.8% and 13.7% in value, respectively, against the Turkish lira in the said period, in which the medium-term DİBS also provided a return of 68.3% to its investor.

In 2019, long and medium-term DİBS investors obtained 39.1% and 34% in profits, respectively. The BIST 100 index gained 29.7% in value last year.

Sales to the country generated nearly $2.4 million, up from $1.24 million in 2018.

Exporters last year also managed to send goods to Poland, Estonia, South Korea, Indonesia, Bahrain, Japan, Nepal, Mozambique, Slovakia, Norway, Belarus, Togo and Equatorial Guinea, all countries where sales had not been made the previous year. Exporters also added two free trade zones. Exports to the aforementioned countries and zones generated $3 million.

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2020 to be a year of economic recovery for Turkey, reports show

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020 will be a year of recovery for the Turkish economy with inflation dropping to single digits and growth between 3.5-4%, according to reports by the country’s major investment advisory companies.

Private lender Garanti BBVA’s 2020 strategy report said economic and financial circles will take particular interest in the central banks’ rate decisions in 2020 and regional developments will largely shape investment decisions. The report said lower interest and high liquidity environment is here to stay globally as well as in Turkey. The report added that the Turkish lira is expected to undergo a “controlled depreciation” due to a higher current account deficit while the volatility index will show a more stable performance compared to the previous year. The report added that Turkey’s interest rate policy will be affected by the fiscal policy as much as it is affected by inflation, regional developments and Fed’s rate decisions.

The easing monetary policy by the Central Bank of the Republic of Turkey (CBRT) since July last year, after having raised the key rate to 24% in September 2018 in the face of rising inflation, allowed public lenders to slash interest rates on housing as well as on consumer and corporate loans.

“The steps taken in 2020 for sustainable economic growth will also shape the country’s economic outlook 2021 onwards,” the report said.

It added that international rating agencies would acknowledge improvements in Turkey’s economic outlook compared to the previous years and upgrade the country’s credit ratings.

Another strategy report by investment advisory company Deniz Yatırım said 2020

March

will mark a return to economic growth for Turkey. It also expected the Turkish stock market to perform better than other asset markets.

“The economy’s potential to reach its growth targets is largely tied to its ability to drop inflation to single digits and contain the widening current account deficit.

The report emphasized that the recovery is expected to continue this year with the Turkish economy growing by 3.5% by the end of 2020, inflation hovering around 9.5%, and the current account deficit to account for 1.5% of its gross domestic product.

Turkey’s annual inflation rate rose a little more than expected to 12.15% year-onyear in January, increasing from 11.84% in December 2019, according to official data. The annual inflation rate, which rose to around 25% in 2018, dropped gradually throughout 2019, from 20.35% in January to 8.55% in October. It closed the year with 11.84% in December.

The advisory company cited Turkish stock markets as the asset market with the highest potential of growth in 2020 and forecasted Borsa Istanbul’s BIST 100 index to record 18% growth and reach 145,000 points within the year.

Gedik Yatırım, another leading investment

advisory company based in Istanbul, said according to its 2020 strategy report renewed global risk appetite will remain high in 2020 and continue to support the recent rally in Turkish stock markets.

Gedik stressed that Turkish stock markets’ high performance is due to the Turkish assets’ ability to remain comparatively attractive due to its valuations and a sharp decline in the country’s international risk premium. The report added they expect the BIST 100 Index to hover above 140,000 points. Echoing other reports, Gedik said the Turkish economy’s recovery will become more apparent in the first two quarters of 2020 due to the delayed impact of the CBRT’s rate cuts on the real economy. The report forecasted inflation to drop to single digits in the second half of the year and the economy to record 4.5% growth by the end of 2020 and current account deficit to account for 1.8% of the GDP. In the second half of 2018, the Turkish economy was battered by currency volatility, high inflation and high-interest rates, resulting in tumbling domestic demand from consumers and investors.

It took three consecutive quarters of contraction for the country’s GDP to enter a promising era of growth

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Mercedes-Benz maker’s profits plummet 64% in 2019

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utomaker Daimler AG, the maker of Mercedes-Benz cars, saw profits slump in 2019 and faced a loss in the fourth quarter.

The weaker results announced underlined the pressures on the global auto industry from economic headwinds and the need to invest in electric cars to meet tougher European Union limits on greenhouse gases. The company also saw deductions to earnings from regulatory troubles regarding the emissions of its diesel cars.

March

Net profit for the full year fell to 2.71 billion euros from 7.58 billion euros. In the fourth quarter of the year, the Stuttgart-based company lost 11 million euros, compared with a profit of 1.64 billion euros in the year-earlier quarter.

CEO Ola Kallenius said “we cannot be satisfied” with the results but added that the company was on track to cut costs and improve its earnings performance.

Profits were slashed due to charges linked to emissions cheating and defective airbags from supplier Takata, with 4 billion alone down to “dieselgate.”

Along with the dieselgate charges, massive costs for investments in new technology like battery-powered and automated cars weighed on profitability.

Given the profit slump, bosses plan to offer shareholders a dividend of just 90 euro cents, down from 3.25 euros in 2018 and well short of the 1.53 euros forecast by analysts.

Against the backdrop of a downward demand trend in global auto markets, Daimler was able to maintain unit sales at around the previous year’s level of 3.3

million, while boosting revenue 3% to 173 billion. But overall it was a tough first year for Kallenius, who took over from 13-year veteran boss Dieter Zetsche in late May. In July, Daimler reported its first quarterly loss in a decade for April-June, while last month it warned that its full-year financial results would be below expectations.

Germany’s KBA transport authority ordered a recall of more than a million Daimler-built vehicles. The firm still contests whether “motor control functions” fingered by regulators are in fact illegal, but it agreed to pay an 870 million euro fine for selling infringed vehicles, weighing on both the cars and vans divisions.

Daimler’s vans unit was especially hard hit, reporting an operating loss of 3.1 billion euros, while the measure at the flagship cars division was slashed in half, to 3.4 billion. Looking to counter the profit pressure, Kallenius has embarked on a massive cost-cutting program, with 1.4 billion euros of a promised 1.6 billion euros in annual savings set to come from job cuts. More than 10,000 posts are expected to go, out of Daimler’s 300,000 worldwide.

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Turkish amphibious armored combat earthmover to be exported to Philippines

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urkish defense firm FNSS has signed an agreement to export its amphibious armored combat earthmover (AACE) to the Philippines, the company’s general director said. Turkey’s FNSS defense systems general director, Nail Kurt, told in an interview that the KUNDUZ

TurkishIndonesianmade battle tank attracts more buyers

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he mass production of KAPLAN MT Modern Medium Weight Tank, the product of a joint project carried out in Turkey by a leading Ankara-based defense company and an Indonesian defense company, has begun while the producing parties have been conducting new meetings for the export of the vehicle.

The tank-class vehicle was initially developed to meet the Indonesian armed forces’ demands for a modern, mediumweight tank and was produced by leading Indonesian armored vehicle manufacturer PT Pindad and Turkey’s FNSS Defense Industries Company.

Nail Kurt, general manager and CEO of FNSS, told that FNNS finalized a contract in the last month of 2019 for the mass production of 18 KAPLAN MT tanks, adding

March

Amphibious Armored Combat Earthmover has been sold to the Philippines, making it the first South Asian country to import the vehicle.

Kurt said the details of the agreement will be finalized in the next two months, and the delivery of the vehicles will start in 2021. He added that new contracts could be signed with the Philippines to import the firm’s other defense products.

Locally developed and manufactured, KUNDUZ has been used by the Turkish Land Forces in various missions and is capable of conducting bulldozing, rough grading, excavating, hauling and scraping operations.

Kurt also announced that the company will soon start the mass production of KAPLAN MT, a medium-weight military tank jointly developed by FNSS and its Indonesian partner PT Pindad.

The tank’s design architecture consists of advanced ballistic and mine protection with a broad range of firepower, ranging from support of infantry to anti-armor.

that a prototype was set to be delivered at the end of this year, while the rest of the vehicles are planned to be delivered in 2021.

“We expect additional orders within this year and in 2021 within the scope of budgeted works,” he added.

Kurt stated that the vehicle is lighter than the main battle tank but the impact power is almost equivalent to that, which enables it to operate with infantrymen easily, adding that this feature of the tank attracts global customers due to its high profitability in an asymmetrical war environment.

Joint Development KAPLAN MT design architecture consists of advanced ballistic and mine protection with a broad range of firepower, ranging from support of infantry to anti-armor.

This vehicle was not only developed for Indonesia but to meet the needs of both Turkey and allied countries, he said.

Exports to other countries on the table Saying that the project includes the transfer of technology, Kurt noted that FNSS provided a license to the Indonesian company under the scope of the project, enabling the South Asian country to carry out contracts for the export of the vehicle.

Kurt noted that the producing parties are currently in contact with two other countries for the purchase of the tank.

The KAPLAN MT is powered by a power pack located at the rear of the vehicle,

With a maximum speed of 70 kilometers per hour, the vehicle’s range is 450 kilometers. Kurt said the company is also in talks with Hyundai Rotem in South Korea for technology transfer for FNSS’s other product, the Samur Rapid Deployable Amphibious Wet Gap Crossing System.

Samur, which enables Turkish Armed Forces’ (TSK) elements to cross rivers and streams and resembles a “transformer,” is the first original design and development project of the Turkish defense industry.

Kurt said FNSS is now facing serious competition from Germany, which has a similar system, for the South Korean tender that is expected to be finalized in mid-2020.

If the Turkish side wins the tender, the mass production of Samur will start in South Korea after FNSS engineers travel to the country to transfer the know-how, Kurt said.

which delivers a power-to-weight ratio of about 20 HP/ton. The engine transfers this power to the driving system, which has a six-wheel, anti-shock suspension system with double-pinned tracks mounted on torsion bars.

The tank-class vehicle brings together stateof-the-art modern technology platforms with superior firepower, supported by battlefield management systems and laser warning systems, providing tactical support to the commander.

Firepower is provided by a CMI Cockerill 3105 turret, integrated with a highpressure 105-millimeter Cockerill gun and an advanced autoloader. Thanks to this turret, the KAPLAN MT has high firepower despite its relatively low weight.

The vehicle, which has an ultimate mine and ballistic protection for its class, rapidly responds to threats in the field and offers adequate firepower over a short period of time which, in turn, ensures superior survivability and mobility on the battlefield

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TürkTraktör exports 67% of its tractors in 2019

March

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ürkTraktör, the Turkish automotive industry’s first manufacturer that is still operational, managed to export 67% of the tractors it produced throughout 2019.The manufacturer last year produced 22,745 tractors, of which 15,207 were exported, in the largest plant in Europe in terms of production volume in the Erenler district of the northwestern province of Sakarya.

TürkTraktör makes four out of every five tractors produced in the country. The company currently produces for New Holland, Case IH and Steyr, maintaining exports, which began in 1979, to more than 130 countries. TürkTraktör General Manager

Aykut Özüner said that despite the shrinkage in the market, they accounted for about 78% of the country’s tractor production.

“I would say that we produce four out of every five tractors produced in Turkey,” Özüner told, adding that they exported 15,207 tractors last year. “Due to the shrinkage in the domestic market, our domestic market production has been limited. However, we think that this year will be better given the recent mobility,” he told.

According to Özüner, they sold nearly 73,000 tractors in 2017, 48,000 in 2018 and 25,00026,000 in 2019 – evidencing a rapid decline.

The company exported 14,500 tractors in 2018 and 15,207 in 2019.

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EQUIP AUTO Algeria 2020-International Trade Show for Automotive Aftersales and Services for Mobility Opens A trade event bringing together

Bodywork , Painting Equipment ,

at EQUIP AUTO ALGERIA. EQUIP AUTO

manufacturers, distributors and repairers

Accessories, Repair – Maintenance,

ALGERIA attracts a visiting public that

from the automotive market seeking new

Troubleshooting- Networks, Washing

grows each year, with an 89% satisfaction

products, services and partners, The 14th

Services. EQUIP AUTO Algeria is the

rate. Visitors are distributors, repair

edition of EQUIP AUTO ALGERIA will take

only Algerian trade fair specialising

professionals and fleet managers from

place from 02th to 05th March 2020 at the

in automotive aftersales, repairs and

Algeria, the Middle East and North

Palais des Expositions of Pins Maritimes, in

maintenance, covering both light vehicles

Africa. At the heart of a new expanding

Algiers (PAVILLON CONCORDE – SAFEX).

and heavy goods vehicles. EQUIP AUTO

environment of commercial and

The event includes the sectors such

ALGERIA, genuine business generator

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as Automobiles, Automotive Parts,

in the automotive aftersales and

ALGERIA welcomes 10,320 professional

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maintenance ecosystem, your gateway

visitors today. The visitors come

Supply, Bicycles, Motorcycles by focusing

to the North African market. Meet your

essentially for the distribution of trade in

mainly on:

future business and industrial partners

import and export (50%).

March

50

Şükrü Bölükbaş: “We are number one in the world in terms of price and performance.” of its products. Şükrü Bölükbaş, Besa Automotive Sales and Marketing Manager said that Besa is keen on the the quality of the auto parts they manufacture.

Stating that a minimum error may risk human life, he underlined the fact that the manufacturing companies should always be more careful in this regard. We have recently interviewed Şükrü Bölükbaş, Besa Automotive Sales and Marketing Manager:

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esa Automotive, which has been producing suspension and steering systems for the automotive industry

for nearly 15 years, exports almost all

March

First of all, could you give information about Besa Automotive? Which products do you supply for the sector?

Besa Automotive embarked on its operations for the first time in 2003. Our first claim is to manufacture and market quality products. For more than 14 years, we have been able to capture the image of a reliable products in the market by not giving up this strategy. We have a production capacity of one and a half

million products per year in our 2100 square meter production facilities located in İkitelli and Bayrampaşa. With our efforts in marketing and R&D, we have expanded our product range in a short time and gained reliability in the sector with an average growth rate of 20% per year.

Our brand, which increases its product range day by day, continues to serve our customers with more than 3000 product items such as aluminium and steel control arm, tie rod end, ball joint, axial joint, thrust rod, lower ball, drive shaft bearing, suspension rods, bushes, shock absorber flanges.

As a country, we are very competent in the automotive spare parts industry.

What would you say about Turkey’s export performance?

In the past, manufacturing companies were few in our country and there was a

52

German impact especially in technology and know-how. This idea started to change in 2010 and after. In line with technological changes and state supports, we renewed our machinery and kept up with the technological developments.

Currently, Turkish goods are taking their place in the market with high quality products. We can say that Turkish products have left German products behind in terms of quality and aftersales services, especially in the sector we produce and export. We are the number one in the world in terms of price and quality.

Can you give information about your export activities? Are there any target markets from the stand point of exports?

As a brand, we export 95% of our production. We have our own offices in Russia and Bulgaria. We are actively exporting to more than 21 countries.

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Eastern Europe, Turkic Republics and Russia are the majör markets we export.

The export markets we want to enter are Europe and Africa. Nigeria is the target country especially in Africa because these products are distributed to the entire continent from here.There is an important point to be emphasized on this occasion.

Since the countries we export to have not improved themselves in road construction, you should produce really high quality goods. Apart from the fairs, we also visit these places by ourselves. Since we see them personally, we can also analyze ourselves about how these products should be in terms of quality and tecnical expertise.

What do you put a special emphasis when it comes to manufacture your products?

As an example, the product, which we call tie rods, is produced by combining 6

different inputs. If any of them are missing or of poor quality, it affects the product completely. Rubber tires are normally used for manufacturing tie rods but we use polyurethane rubber because we export this product to both Syria and Russia. There is a big difference in terms of climate conditions of these countries.

When you use rubber, the material cracks in different temperatures. However, we do not encounter this problem when we use polyurethane material. Why do we pay attention to such important points?

The parts we produce can directly risk human life. In accidents, you frequently hear a sentence so called “ Losing steering control.” The part we produce causes the tire to turn. The steering does not turn when this part is dislodged or broken. This is one of the most important factor causing accidents. We make lifeconscious auto spare parts. So we have to manufacture our products very carefully.

March

Electric vehicles in Turkey expected to number 2.5M by 2030

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he number of passenger electric vehicles (EV) in Turkey’s total stock is expected to reach 2.5 million by 2030, making up 10% of the total vehicle stock in the same year, according to a report by the SHURA Energy Transition Center released.

The report titled “Transport sector transformation: Integrating electric vehicles into Turkey’s distribution grids” highlighted Turkey’s potential to increase EV use in the country, parallel to the increasing use of EVs in many other countries due to their various benefits, including contribution to a cleaner urban landscape, electricity load management and better efficiency.

In this context, sales of battery and plug-in

March

hybrid EVs are expected to reach 55% of all vehicle sales in Turkey in 2030, the report projected. A total of 1 million charging points are expected to be established by the said period.

There are currently around 1,000 EVs being driven in Turkey, while the total number of charging stations is said to vary between 1,000 and 1,500.

The report outlined that the current passenger vehicle ownership rate in Turkey has reached 154 out of 1,000 people.

“This is a low level when compared with other countries of the Organization for Economic Co-operation and Development (OECD), such as Germany and the United States. However, ownership rates are rapidly increasing with passenger cars representing six out of 10 vehicles sold in Turkey,” it added.

The passenger vehicle ownership rate figure is expected to rise to 300 vehicles per 1,000 people by 2030, when the population of Turkey is expected to exceed 90 million, up from 81 million in 2018.

By the end of 2018, the total number of EVs in the global vehicle stock exceeded 5

million with a similar number of charging stations in place. The report pointed to projections that the total number of EVs worldwide could increase to between 120 million and 250 million by 2030.

In the case that the total electricity demand excluding EVs grows by 5% per year between 2018 and 2032 (an 80% increase in total) and grid investments needed to manage this load are undertaken, analysis shows that EVs can be integrated with limited impact on grid operation and nearly no additional capacity expansion in the distribution grid.

Elaborating on the report, Selahattin Hakman of the SHURA Energy Transition Center said trends in the electric vehicles sector in Turkey are coherent with global ones, according to current and projected figures. Indicating that electric vehicle production in Turkey would begin in the future, Hakman said, “We anticipate that the number of users will increase with the increase in the population and the opportunities provided by electric vehicles.

The use of electric vehicles will also reduce carbon dioxide emissions.”

SHURA Energy Transition Center Director Değer Saygın emphasized that the electric vehicle market would predominantly grow in the region along the Ankara-Istanbul highway. Saygın also noted that the use of charging stations in Turkey would be spread throughout public areas and said the market would be similar to China.

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Interest in Turkey’s first fully homegrown car running high

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ith interest in Turkey’s recentlyintroduced first indigenous car already running high, the procedure for pre-orders will be set up soon, according to the industry and technology minister.

“We’re at the stage of producing 100-150 prototypes. They will be tested, and at the beginning of 2022, the factory will start mass production,” Mustafa Varank told.

Applications to buy the indigenous car once it rolls off the assembly line in northwestern Bursa are not yet being accepted, but interest both in Turkey and abroad is high, he added. The advance

March

orders will be received by the company after the launch of the brand. In a survey conducted among more than 1,500 citizens by an independent company, 95.4% of the participants said they were aware of the car project and have already seen the photos and advertisements of the prototype. Of these respondents, 97.6% support the project.

The indigenous car project may be considered the first project to see such growing support among the public so far, Varank said.

Meanwhile, 88% of respondents expressed interest in buying the car, while 98.4% liked the design.

The minister highlighted that among the survey participants, only 55% owned a car.

Of those who do not own a car, 96.2% said they would buy the indigenous car given the chance. 90.3% of the participants said they believed that the domestic car has the potential to become a world-renowned brand. Varank also noted that within the scope of the project, which is being carried out with state-supported private entrepreneurship, the work will continue to produce a brand compatible with the car’s design while reflecting Turkey’s characteristics.

Turkey will guarantee the purchase of 30,000 units of the landmark vehicle by

2035. The automotive purchase guarantees will be the first of their kind, he remarked.

Turkey’s long journey to produce a fully homegrown car came to an end on Dec. 27 as the country unveiled the first prototypes in a grand ceremony in the northwestern town of Gebze. The fully electric SUV will come in two different engine configurations: 200 horsepower or 400 horsepower. The 400 horsepower will go from 0 to 100 kph in 4.8 seconds. It will have a range of up to 500 kilometers and its locally produced Lithium-ion battery will reach 80% charge under 30 minutes.

The car, which is a product of Turkey’s 60-year-dream that finally came true, was designed by Turkey’s Automobile Joint Venture Group (TOGG) in just 18 months.

TOGG comprises five of Turkey’s leading industrial groups that have joined forces to build the car. It will establish a factory in the northwestern province of Bursa, often dubbed the capital of Turkey’s automotive industry. The groundbreaking ceremony for the factory, to be established on 1 million square meters of land in Bursa’s Gemlik district, is expected to be held in the first half of this year, Varank said. The production plant will be completed in 2021, and the first car will be produced in 2022. TOGG CEO to introduce Turkey’s car to the world

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Tunisia signs deal to purchase armored vehicles by Turkey’s BMC

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MC, one of Turkey’s leading defense contractors, is set to produce armored vehicles for Tunisia as part of a recent deal with the country’s Interior Ministry. The contract was signed after the Turkish land vehicle manufacturer won the International Armored Vehicle Tender for the production of a total of nine 4x4 Medium Class Multi-Purpose Armored Vehicles (MPAVs).

BMC, whose product range features tracked, armored and tactical vehicles, competed against some of the world’s largest military vehicle manufacturers, including those from the U.S., Germany, France and Finland.

As part of the deal, the company will for

the first time produce midrange armored vehicles, which are currently used by the Turkish military, for the global market.

BMC will also provide integrated logistical support solutions to Tunisia after the delivery of vehicles. The Turkish vehicle producer was added to the Defense News’ annual Top 100 list of the world’s largest defense manufacturers in 2019, having posted $554.2 million in profits in the previous year. The company shared the 85th place with another Turkish defense manufacturer, STM, in the prestigious list.

BMC produces various types of military vehicles, including tanks and armored cars, as well as commercial vehicles, buses and trucks. The company is also one of several

working on the production of Turkey’s first homegrown main battle tank, Altay.

Altay will be entirely produced in Turkey, with mass production likely to begin this year. The tank has already seen interest from several countries. In November 2019, the company signed a landmark deal with Turkey’s Presidency of Defense Industries (SBB) for the mass production of next-generation battle tanks. The defense contractor currently offers tailored solutions to the Turkish Armed Forces (TSK) as well as friendly and allied countries. It aims to further improve its products to venture into new markets, citing over 50 years’ worth of experience in the defense and automotive sector.

Taysad: Competent representative of the Turkish automotive supplier industry

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stablished 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 domesticallyproduced 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.

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Turkey’s domestic car presented at CES tech fair in Las Vegas

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fter a grand unveiling at home late December, Turkey’s first domestic car project made its international debut at the Consumer Electronics Show (CES), held in Las Vegas on Jan. 7-10.

Speaking at a CES panel titled “Let’s CoProduce a New Era of Mobility,” Turkey’s Automobile Joint Venture Group (TOGG) CEO Gürcan Karakaş discussed Turkey’s domestic automobile, which will be fully electric. The audience consisted of leading names of the global automotive industry. In his speech, Karakaş elaborated on how the Turkish automotive industry will transform into an integrated mobility system.

TOGG defines the domestic car as a smart device and a walking computer, not just a vehicle that moves from point A to point B. Therefore, the domestic car could reportedly be exhibited at technology fairs rather than just traditional auto shows. If that happens, the C-SUV, which is scheduled to hit the market in mid-2022, may make its official debut at a future CES. The tech fair has become a favorite platform for automotive brands in recent years. Automakers increasingly prefer CES, which brings together technology companies, over traditional auto shows like those in Detroit, Frankfurt and Paris.

Aisin Group, Continental and Osram also showcased their latest technologies at CES 2020.

A product of Turkey’s 60-year-dream, the domestic automobile was developed and designed by TOGG in just 18 months.

TOGG aims to become Turkey’s first global brand and, therefore, works to introduce novelties and first-of-a-kind qualities in terms of technical features and equipment of the automobiles it will release.

The consortium’s sports utility vehicle (SUV) in C-segment will be the first electricborn SUV in Europe. It will also surpass competitors with the longest wheelbase, largest internal volume and fastest pickup performance.

The fully electric SUV will come in two different engine configurations: 200 horsepower or 400 horsepower. The 400 horsepower will go from 0 to 100 kph in 4.8 seconds. It will have a range of up to 500 kilometers and its locally produced Lithiumion battery will reach 80% charge under 30 minutes. TOGG comprises five of Turkey’s leading industrial groups that have joined forces to build the car. It will establish a factory in the northwestern province of Bursa, often dubbed the capital of Turkey’s automotive industry. The groundbreaking ceremony for the factory, to cover over 1 million square meters in Bursa’s Gemlik district, is expected to be held in the first half of this year.

This event hosted Audi, BMW, Byton, Daimler, FAW Group, FCA (Fiat-Chrysler), Fisker, Ford Motor Company, Honda, Hyundai Group, Lexus, Nissan and Toyota. Sub-industry companies such as Bridgestone, Bosch, Valeo, Toyota Boshoku,

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Switch to electric cars could cause more than 400,000 job cuts in Germany

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he shift to electric vehicles could cost 410,000 jobs in Germany by 2030, daily Handelsblatt reported, citing government advisers.

In engines and transmissions’ production alone, around 88,000 jobs will be at risk, the newspaper said, citing a report by the National Platform for the Future of Mobility (NPM), an advisory council for the government.

Electric cars’ engines are made of fewer parts and require less maintenance than combustion engines, which will result in

layoffs, the report was quoted as saying.

Vehicle production will be further automated and will not be sufficient to support the current level of jobs, Handelsblatt said, citing NPM’s Chairman Henning Kagermann.

In 2018, employment in the car industry in Germany reached 834,000, its highest since 1991. Germany’s main automobile industry body (VDA), which in December warned of more job cuts in 2020 due to a drop in global car sales, said NPM’s forecast was based on an “unrealistic extreme scenario,”

European auto market records 1.2% growth in 2019

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he European auto market grew by 1.2% last year, with a push in December raising the total number of sales to 15.3 million vehicles, the European Automobile Manufacturers’ Association (ACEA) said.

Regulatory changes were behind a jump of 21.7% in December compared with the same month a year earlier, the sector association said.

Throughout the year Volkswagen cemented its place at the top of EU auto sales, with its figures up 3.1%. The group includes the Audi, Porsche, Seat and Skoda marques.

In second place was French automaker PSA, which owns Peugeot, Citroen, DS, Opel and Vauxhall, though it reported a 1.1% drop in sales.

Its French rival Renault group, which includes the Alpine, Dacia and Lada brands, the third-largest by European sales, increased by 1.1% for the year as a whole, ACEA data showed.

The European market had started the year in decline “but the last quarter, and the month of December in particular, pushed the annual performance into positive territory,” the ACEA said in

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Handelsblatt quoted a VDA official as saying.

The industry, an important driver of growth in Europe’s largest economy, has been accelerating plans to launch electric vehicles, under pressure from a European Union drive to further cut carbon dioxide emissions.

a statement. Of the main European markets, Germany saw the highest sales increase, up a strong 5%, with France rising 1.9% and Italy up 0.3%.

On the other hand, sales in Spain were down 4.8% and in Britain, they slid 2.4%.

The European market has been “artificially boosted” by the tightening of standards on carbon dioxide emissions, said Flavien Neuvy, director of the Cetelem Observatory, a research unit of BNP Paribas. The sales figures are based on the registration of vehicles, and Neuvy said carmakers had an incentive to register at the end of 2019 large carbon dioxide-emitting vehicles so they would not be used in calculations for 2020 on the overall emissions levels of its fleet. Carmakers who breach the lower ceiling in 2020 of an average 95 grams of carbon dioxide emitted per kilometer for their fleet face fines.

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Automotive industry expects rebalancing process in 2020

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everal measures, including tax exemptions and incentives, relieved the Turkish automotive market, which has faced multiple problems recently, according to Haydar Yenigün, the head of Turkey’s Automotive Manufacturers Association (OSD).

He said the industry expects a rebalancing process and an increase in sales in 2020.

The automotive market sales figures were around 1 million units during 2015 and 2017 but dropped to 670,000 last year and are expected to decrease even further to 400,000-480,000 this year, Yenigün told an event in Istanbul.

“We expect a rebalancing process next year, sales will rise by 15-20% to reach around 600,000 units,” he noted.

High volatility in foreign exchange rates last year, followed by a high increase in interest

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rates on loans led to a sharp decline in domestic demand. The government, however, introduced tax cuts in November to reinvigorate consumption. It later extended the cuts until the end of June.

Sales of passenger cars and light commercial vehicles in Turkey surged 127.5% year-on-year in October, according to Automotive Distributors Association (ODD) data. The surge followed an 82.35% year-on-year increase in September, both of which come amid a drop in borrowing costs since the Central Bank of the Republic of Turkey (CBRT) kicked off an easing cycle in its monetary policy in July.

The CBRT’s slashing of its benchmark policy rate – the one-week repo rate – was followed by a campaign initiated by public lenders to spur domestic demand and that offers cheaper loans to citizens when they buy domestically-made vehicles from select manufacturers.

In the January-October period of this year, sales fell 31.9% on an annual basis to 330,384, according to ODD. Amid a surge in sales, the ODD also revised its sales forecast for this year to 450,000-500,000 vehicles from a previous forecast of 340,000-380,000.

The first market forecast for next year was set at 525,000-575,000. The midpoint of forecasts indicates that the sector is projected to grow by 16% in 2020.

OSD’s Yenigün said, however, short-term incentives cannot survive and develop the sector. “All stakeholders should come together again to shape Turkey’s automotive economy as a locomotive for the future,” he noted.

He stressed that Turkey should prepare plans for sales up to 1.5-2 million vehicles in the long run. Meanwhile, the automotive industry’s exports totaled $28.05 billion in

the first 11 months of this year, a decline of 3.6% year-on-year, Uludağ Automotive Industry Exporters Association (OİB) data showed.

Despite the decline in exports, the automotive sector ranked first in the country’s overall exports of $165 billion in the same period. Car exports, which constituted 38% of automotive exports, fell 6% to $10.75 billion, while supply industry exports dropped 3% to $9.8 billion. Exports of motor vehicles for goods transport also saw a decline of 9% to stand at $4.46 billion. Also speaking at the OSD’s meeting in Istanbul, EricMark Huitema, the director-general of the European Automobile Manufacturers Association (ACEA), said GDP, subsidies and taxation affect affordability for electric cars deterring their market penetration.

The Netherlands and Sweden dominate the electric car market in Europe due to their taxation system, Huitema added.

The taxation rate is 25% for corporate cars in the Netherlands and Sweden, while only 4% for electric cars, he said. “If you have rich countries with lots of rich citizens, of course, they can afford these cars,” Huitema noted.

Touching on the Turkish automotive market, he stressed Turkey has lots of petrol, diesel, LPG and LNG vehicles. LNG type engines have lower CO2 emission and Turkey has already done a great job, he said. This could be the reason for the slower spread of electric cars in the Turkish market, he added.

Referring to self-driving cars, he said people can read a newspaper or do their work when they are in a traffic jam. “You don’t care anymore about traffic jams because it has become work time and you don’t have to look at the road anymore,” he said.

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Hybrid, electric car market attracts growing interest in Turkey

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urkey’s electric and hybrid car market is growing with high interest among consumers, as the number of sales in 2019 has tripled the figures from the previous year.

According to the year-end data provided by the Turkish Electric and Hybrid Cars Platform (TEHAD), 222 of the 11,237 electric and hybrid cars sold in 2019 were fully electric while the rest of them were hybrid models, excluding mild hybrids.

Toyota’s Corolla Hybrid model was the bestselling model among the hybrid cars with a

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total of 7,605 sales, while the Jaguar I-Pace topped sales among electric models with 119 units.

TEHAD Chairman Berkan Bayram, whose views were included in the statement shared on the electric and hybrid car platform’s website, said that with the inclusion of the latest numbers, a total of 1,600 fully electric cars are on the roads in Turkey.

There are currently four electric models in the Turkish market, the statement said, adding that there will be five additional

models in 2020. The electric MINI, Audi e-Tron, Mercedes EQC, Porsche Taycan and Nissan Leaf are expected to be introduced to the market in the first half of the year.

The sales and market share of electric cars have increased rapidly in Europe while showing a relatively slow increase in Turkey. However, more automotive brands are beginning to launch newer, more advanced models in the country.

Turkey has recently introduced its fully electric domestic car, as well, the mass production of which is set to begin in 2022.

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Turkey’s domestic car to be globally registered brand

Officials have been carrying out trademark applications meticulously abroad for Turkey’s homegrown fully electric car, following the vehicle’s introduction in Turkey in late December.

Turkey’s Automobile Joint Venture Group (TOGG) has already applied for design registration to several countries, including Russia, the U.S., India, China, Japan, South Korea and some European countries.

Along with the applications, the venture group has also applied to the Turkish Patent and Trademark Office (TürkPatent) to receive the industrial property rights of the domestic car, which is set to begin mass production in 2022.

March

The patent applications to TürkPatent included those of the rights of the car’s “cruise control system” along with its “semi-replaceable battery, interchangeable battery system and mechanical connection structure.”

The patent and registration authority has already approved applications made by TOGG under three different titles, while reports on other subjects are expected to be prepared by the authority soon.

TürkPatent Chairman Habip Asan told that the industrial property rights provided by the institution provide national-level protection thus the venture company has to make applications abroad to preserve its rights in those countries as well.

A product of Turkey’s 60-year dream, the domestic automobile was developed and designed by TOGG in just 18 months.

TOGG aims to become Turkey’s first global brand and, therefore, works to introduce novelties and first-of-a-kind qualities in terms of technical features and equipment of the automobiles it will release.

Asan said TOGG has been cautiously carrying out the works regarding both registrations and receiving the industrial property rights of the domestic car from the very beginning of the process.

TOGG has also rented a 9,000 square meter area in Informatics Valley,

an important project established in northwestern Turkey’s Kocaeli province as a national and international innovation center of the Industry and Technology Ministry. As an important transition corridor between Europe and Asia, Kocaeli is among the leading provinces contributing to the Turkish manufacturing industry’s production capacity.

The consortium’s sports utility vehicle (SUV) in the C-segment will be the first fully electric SUV in Europe. It will also surpass competitors with the longest wheelbase, largest internal volume and fastest pickup performance.

The fully electric SUV will come in two different engine configurations: 200 horsepower and 400 horsepower. The 400 horsepower will go from 0 to 100 kph in 4.8 seconds. It will have a range of up to 500 kilometers, and its locally produced lithium-ion battery will charge to 80% in under 30 minutes. TOGG comprises of five of Turkey’s leading industrial groups that have joined forces to build the car. It will establish a factory in the northwestern province of Bursa, often dubbed the capital of Turkey’s automotive industry. The groundbreaking ceremony for the factory, to cover over 1 million square meters in Bursa’s Gemlik district, is expected to be held in the first half of this year.

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Turkey targets $190B in exports in 2020

March

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urkey is targeting $190 billion worth of exports in 2020, the head of the Turkish Exporters’ Assembly (TİM) said. Despite multiple hurdles, the country’s exports reached an all-time high in 2019 as they crossed $180.46 billion, up 2.04% year-on-year, according to assembly data. Imports dropped by 8.99% to reach $210.4 billion, while foreign trade deficit decreased by 44.9% year-on-year from $54.3 billion to $29.9 billion. Foreign trade made a record contribution of 4.7 points to the country’s growth, the largest contribution seen in 18 years in Turkey.

In 2019, the export/import coverage ratio was 85.8% in 2019, up from 76.5% in 2018, she added.

The share of high-tech products in the country’s overall exports is rising, Gülle told. Turkey aims to increase the share of high-tech products in specialized free zones to 14% – the average in Organization for the Economic Cooperation and Development (OECD) countries.

According to current figures, exports this month rose 5% over January 2019, added Gülle.

Referring to interest rates, Gülle said,

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“Turkey should cut interest rates to the single-digit level for sustainability.”

The Central Bank of the Republic of Turkey (CBRT) began aggressively lowering rates in July last year, after having raised the key rate to 24% in September 2018 in the face of rising inflation. It cut the main policy rate by 12% between July and December to 12%.

The CBRT also increased the number of policy meetings to 12 next year from eight in 2019. In the past, it held 12 meetings annually but reduced the number to eight in 2017.Cutting interest rates and raising the number of meetings are both important steps, said Gülle.

Despite difficulties in international trade, it is important that Turkey’s exports trend upward, he stressed. “I’m confident that we’ll close out this year with a record in exports,” he noted, adding that they are working toward this goal.He stressed that while major world economies closed out 2019 in decline, it is extremely important for Turkey to reach 2% growth.

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In 2019, the sales volume of the world’s top 50 exporting countries contracted by 2.7%.

Turkey, however, ranked seventh in the list of countries which saw the highest increase in exports.

In 2019, 17,544 Turkish firms exported for the first time, with their foreign sales totaling $4.5 billion, the TİM chairman noted. Mentioning U.S. restrictions on steel imports and the narrowing EU car market, he said these two factors cost Turkey $10 billion in 2019.

Turkey is a role model for its region, he said, adding that the country saw developments in investments, GDP, technology and the defense sector in recent years.The U.K., which is one of the 17 target countries cited in Turkey’s Export Master Plan, is among the developed countries where Turkey runs a surplus in its foreign trade and continuously increases its exports. Exports to the U.K. amounted to some $11.28 billion last year, according to TİM figures.

Gülle also said that Turkey’s annual GDP

growth rate will be positive in 2019 and around 5% in 2020. “There’s nothing negative about Turkey in 2020. Almost all indicators are positive,” he added.

Turkey’s GDP entered a promising era of growth in the third quarter of 2019, breaking three consecutive quarters of contraction. The economy grew 0.9% year-on-year between July and September, according to Turkish Statistical Institute (TurkStat) data.

In the first two quarters, the economy contracted 2.3% and 1.6%, respectively, on an annual basis. In 2018, the economy posted an annual growth rate of 2.8%, narrowing in the last quarter.

The average estimates for the fourth quarter of the year are 4.5% to 5%. The overall annual growth forecasts vary by 0.3% to 0.6%. The government forecasts a 0.5% growth for the whole year. Also, the new economic program (NEP), unveiled in September last year, targets a 5% annual growth rate for 2020, 2021 and 2022.

March