​​​​​​​​​​​​​The foundation of Turkey’s automotive industry dates back to the early 1960s. During a period of rapid industrialization and progress, this key sector transformed itself from assembly-based partnerships to a full-fledged industry with design capability and massive production capacity. Since 2000, original equipment manufacturers (OEM) have invested over USD 15 billion in their operations in Turkey. These investments significantly expanded their manufacturing capabilities, which in turn led Turkey to become an important part of the global value chain of international OEMs. Meeting and exceeding international quality and safety standards, today’s Turkish automotive industry is highly efficient and competitive thanks to value-added production.

• Leveraging a competitive and highly-skilled workforce combined with a dynamic local market and favorable geographical location, the vehicle production of 9 global OEMs in Turkey has increased by almost five times from 300,000s in 2002 to over 1.5 million units in 2018. This represents a compound annual growth rate (CAGR) of around 10 percent during that period. Over the past five years alone, MAN has increased its production by 143 percent, Toyota by 95 percent, Ford by 52 percent, and Fiat by 35 percent.
• ​Significant growth posted by Turkey’s automotive sector led to Turkey becoming the 15th largest automotive manufacturer in the world and 5th largest in Europe by the end of 2018.
• Turkey has already become a center of excellence, particularly with respect to the production of commercial vehicles. By the end of 2018, Turkey was the number two producer of commercial vehicles (CVs) in Europe.
• Proven as a production hub of excellence, the Turkish automotive industry is now aiming at improving its R&D, design, and branding capabilities. As of 2019, 184 R&D and design centers belonging to automotive manufacturers and suppliers were operational in Turkey.
• Notable examples of global brands with product development, design, and engineering activities in Turkey include Ford, Fiat, Daimler, and AVL​. Ford Otosan’s R&D center is one of Ford’s three largest global R&D centers, while Fiat’s R&D center in Bursa is the Italian company’s only center serving the European market outside its home country. Meanwhile, Daimler’s R&D center in Istanbul complements the German company’s truck and bus manufacturing operations in Turkey. AVL Turkey, which opened up its 2nd R&D center in Turkey, started to develop autonomous and hybrid vehicle technologies.
• Turkey offers a supportive environment on the supply chain side. There are around 1,100 component suppliers supporting the production of OEMs. With the parts going directly to the production lines of vehicle manufacturers, the localization rate of OEMs varies between 50 and 70 percent.
• Turkey is home to many global suppliers. There are more than 250 global suppliers that use Turkey as a production base, with 30 of them ranking among the 50 largest global suppliers.
• Auto manufacturers increasingly choose Turkey as a production base for their export sales. This is evidenced by the fact that 85 percent of vehicle production in Turkey was destined for foreign markets in 2018. More than 1.3 million vehicles were exported from Turkey to foreign markets in the same year. In addition, Turkey was the number one vehicle exporter to European markets with 1.1 million units in 2018.

For further information, you can visit: https://www.invest.gov.tr/en/sectors/pages/automotive.aspx

Source: Republic of Turkey Investment Office / link: https://www.invest.gov.tr/en/sectors/pages/automotive.aspx
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

According to the news of Hürriyet Daily News, Turkey’s automotive industry exports totaled $28.05 billion in the first 11 months of this year, an exporters association announced on Dec. 4.

The country’s automotive exports dropped 3.6% year-on-year in the first 11-month period, said the Uludag Automotive Industry Exporters’ Association (OIB).

Despite the decline in exports, the auto sector ranked first in the country’s overall exports, which reached $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.

Germany was the top destination for automotive exports in the same period, with over $4 billion, followed by France ($3.13 billion) and Italy ($2.65 billion).

The EU market constituted 76.8% of all country’s automotive exports in the 11-month period.

In November, the sector’s exports reached nearly $2.7 billion, dropping 3% on a yearly basis.

Source: Hürriyet Daily News / link: http://www.hurriyetdailynews.com/turkeys-automotive-exports-in-first-11-months-top-28b-149451
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

According to the news of Hürriyet Daily News, German automotive giant Volkswagen is not actively looking for new locations as an alternative for the production plant in Turkey, a company spokeswoman said on Oct. 22.

“We are watching developments very closely. Our plans for Turkey are currently on hold,” Leslie Bothge told Anadolu Agency.

Volkswagen Turkey Otomotiv Sanayi ve Ticaret A.S. was established early October with capital of 943.5 million Turkish liras ($164.5 million), according to the Turkish Trade Registry Gazette.

The company was founded to design, produce, assemble, sell, import and export automobiles, trucks and all sorts of motor and transport vehicles and their parts and components.

The German carmaker was expected to invest more than € 1 billion for the factory and start production in 2022.

The Volkswagen Group, established in 1937, is the owner of several vehicle brands, including Audi, Seat, Skoda, Lamborghini, Porsche, Bentley, Man, Ducati, and Scania.

Other prominent auto manufacturers -including Fiat, Ford, Hyundai, Mercedes, Renault, and Toyota -have manufacturing operations in Turkey.

Source: Hürriyet Daily News
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

According to the news of Hürriyet Daily News, for the first time in Turkey, aluminum engine blocks will be manufactured at Renault, making it the only hybrid engine production facility in Europe, said the country’s industry and technology minister on Oct. 23.

In his speech at the factory’s test production site in Bursa, Mustafa Varank said engines manufactured in Turkey will be exported to China, Spain, and the U.K.

He noted the latest technology machines were installed in a 10,500 square meter facility. More than 100 qualified engineers and operators have been hired to run the setup.

Despite facing all kinds of challenges the Turkish economy is on track, he said, adding that aluminum, will be supplied from domestic manufacturers and thus domestic resources will be utilized in the most efficient way.

“The contribution of this facility in reducing the current account deficit, providing employment and improving exports in truly commendable,” he said.

He added Turkey wants to see Renault produce hybrid vehicles here in the country and export them.

Also speaking, Antoine Aoun, director-general of Oyak Renault Turkey, said: “We have completed our production center in a very short time as promised and we came to the final stage to start mass production in 2020.”

Renault, one of the country’s largest carmakers, manufactured 30,729 units in September, which corresponded to 34 percent of the local automotive industry’s total output.

In the first nine months of the year, the company’s total production stood at 243,302 units, according to data from the Automotive Manufacturers’ Association (OSD).

Source: Hürriyet Daily News
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

The report includes the European Union and European Free Trade Association members.

The report shows that Germany is the most auto selling country in Europe with 3,453,778 car sales.

The United Kingdom takes second place with 2,367,147 car sales.

Turkey takes the eight place with 486,321 car sales in total.

European automotive market has fallen by 0,04% in 2018 compared to 2017.

A total of 15,624,486 cars were sold in 2018.

Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

He also noted that the first quarter of 2017 also showed 9.2% increase in exports compared to the same period last year. He added that the foreign trade deficit decreased by 10% in April.

According to TIM data, top performing industries in March were Automotive, Sea Vessels and Jewelry with 32.5%, 87.3% and 75.4% increases respectively. In the first three month, automotive exports increased by almost 1.5 billion dollars, while steel increased by 874 million dollars and chemicals by 788 million dollars.

In March, exports to the Far East increased considerably, by 91%. Exports to EU-28 also continued its steady growth with a 20% increase with the largest increases in Malta and Portugal with 95.9% and

92.1% respectively. In addition to these countries, exports to Russia increased by 45.3% in March and by 40.3% in the first quarter.

Source: Ministry of Economy

Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

Turkish Economy Minister Nihat Zeybekci, drew attention to the significance of the agreement signed between Turkish and Italian Eximbanks as well as the need of new trade volume target. DEİK and its Counterpart Confindustria will establish a joint platform to seize business opportunities and to boost trade volume from 18 billion USD to 30 billion USD.
Renewal of Turkey- EU Custom Union will contribute significantly to EU and trade volume will increase by 55-60 percent. Turkish and Italian business communities will benefit from the renewal and he announced that Turkish Trade Center will be established in Italy in 2017. In the sectors of tourism and energy two countries complete each other; furthermore, new investments are kicked out in the energy sectors.

Italian Economic Development Minister Carlo Calenda, stated that Turkey can always trust Italy in the matters of EU, furthermore, during the Custom Union renewal Italy will act as supervisor and will follow up the procedure. Turkey shouldered great responsibility regarding illegal migration and Calenda thanked Turkey for its great efforts. The agreement between to Exim Banks will accelerate investment and necessary studies will be carried out to correctly inform and guide investors.
Italian Economic Development Minister Carlo Calenda expressed that Turkey and Italy are stronger in different countries of Africa and partnership efforts should be accelerated. Turkey and Italy do not only have economic interest, as a result, their partnership will be very fertile.

DEİK President Ömer Cihad Vardanstated that Turkey and Italy is in a great harmony and synchronization. In the past two years trade is declining between two countries, thus, business communities from both countries should expand this volume as soon as possible. Italy has chosen Turkey as a “Target Country” and this is very important for Turkey, as a result, many new partnerships will be established in the sectors of energy, agriculture, automotive, food, start-ups, innovative technology and renewable energy.
Turkey-EU Custom Union negotiations will start soon and DEİK hopes that Custom Union will be completed soon addressing many chronicle problems between Turkey and EU. Turkey hopes for permanent solutions to chronicle problems such as transportation quota, driver license, Visa practice to Turkish citizens. Business communities of Turkey and Italy can do much greater projects than today via joint projects.

DEİK/Turkey-Italy Business Council President Burak Vardanindicated that opportunities in both countries should come to live. Both economy complete each other, thus, project in third countries should be initiated. Partnerships in the field of health, infrastructure and energy would be beneficial for both countries. “To be a key player in the global economic arena, both countries should form partnerships not only in Italy and Turkey but in Africa, Iran, Middle East and Central Asia”.

Turkey-Italy Trade Figures (Ministry of Economy-2016)
Turkish export to Italy: 7.5 billion USD
Main export items: Automobile, motor vehicles, crustaceans, parts and components for land vehicles, iron-steel
Turkish import from Italy: 10.2 billion USD
Main import items:Parts and accessories for land vehicles, petroleum oils, diesel, semi-diesel engines, motor vehicles
Trade Volume: 17.8 billion USD
Trade Balance:2.6 billion USD in favor of Italy

Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.