automotive of turkey

AUTOMOTIVE INDUSTRY EXPORTERS’ UNION OF TURKEY

1/15OİB Russia / Evren Belenlioğlu / Moscow, August 2010 www.uibrussia.org

Overview: Automotive Industry of Turkey

Evren BelenlioğluOİB Russia

August 2010 , Moscow



Contents

q About OİB

q Turkish Automotive: Integrated part of European Automotive

q Development of the Turkish Automotive Industry and the Brands Produced

q Strengths of the Turkish Automotive Industry

q Statistics of Turkish Automotive Market

q OEMs in Turkey and Vehicle Production

q Automotive Component Manufacturers in Turkey

q Export of Parts, Components and Systems

q OİB Contacts



About OİB

• OİB serve as non-profit affiliated organization underPrime Ministry of TR, Undersecretariat for Foreign Trade.

• Established in 1986. Headquarter in Bursa/Turkey

• Coordinator association of the automotive sector:OİB hosts all OEMs and the automotive componentmanufacturers in Turkey in its membership structure(currently about 4400 members).

• Among these members, there are around 200 companieswith foreign capital (partly or 100%).

• Promotes the Turkish Automotive Industry in order to increase the export volume

• Supports Turkish manufacturers at their investment projects in Russia

• Started its activities in April 2009

• Located at the Turkish Embassy in Moscow / Commercial Counselors’ Office

OİB – Automotive industry Exporters’ Association

OİB in Russian Federation

Prime Ministry

Undersecretariatfor Foreign Trade

UIB - UludagExporters’ Association

Automotive IndustryExporters’ Association



Turkish Automotive: Integrated part of European Automotive

%80 of the total production is exported to the EU countries /manufacturers

Customs Union between EU and Turkey: Customs free export to EU

5th place in 2008:

• 1st place in bus production

• 2nd place in LCV production

• 3rd place in CV production

Around 200 local manufacturers with foreign capital (mostly EU companies)

Among the 27 EU countries Turkey holds in automotive production

7th place in 2009:

• 1st place in LCV production

• 2ndplace in bus production



Development of the Turkish Automotive Industry + Brands Produced

Market politics inTurkey:

1960s:• License and Assembly

1970s:• Development of the Supplier Industry /

Localization

1980s:• Modernization and Increase in

Capacity

1990s:• Up-to-Date Model Export• Full Integration to the World

Manufacturing Base

2000s:• R&D / Design and Technology

Management• Intellectual and Industrial Property

2010s:• Target: Center of Excellence

1970

1980

1990

2000

2010

Customs Union with EU.Free marketsince 1995

Ford, Chrysler, BMC,Mercedes-Benz, Deutz

Fiat, Renault,John Deere

Volvo, Leyland, Isuzu,MAN, Mitsubishi, Iveco

Land Rover, Opel,Toyota, Honda, Hyundai

Peugeot, Citroen

Transition Time1980 - 1995

Protected Markettill 1980



Strengths of the Turkish Automotive Industry

• Strategic geographic location

• Modern production methods with

high-tech equipment

• High efficient production capacity

• International quality management

systems

• Strong supplier industry in

compliance with global standards

and regulations

• Full integration with foreign

partners

• Young, educated and motivated man-power

• Entrepreneurs ambitious to succeed

• Enhanced export experience



Statistics of Turkish Automotive Market

(1000 units) 2004 2005 2006 2007 2008 2009Production Total 823,4 879,5 987,6 1.099,40 1.147,10 869,6

Passenger cars 447,2 453,7 545,7 634,9 621,5 510,9

Commercial vehicles 376,2 425,8 441,9 464,5 525,5 358,7Market Total 745,8 763,2 669,6 641,3 526,5 575,9

Passenger cars 451,2 438,6 373,2 357,5 305,9 369,8

Commercial vehicles 294,6 324,6 296,4 283,8 220,6 206,1Import Total 432,3 438,1 384,3 359,1 306,0 313,9

Passenger cars 311,7 301,9 255,5 236,7 206,7 243,5

Commercial vehicles 120,6 136,2 128,8 122,4 99,3 70,4Export Total 508,4 552,8 696,7 820,4 910,3 629,0

Passenger cars 305,1 319,8 430,4 504,4 525,3 388,0

Commercial vehicles 203,3 233 266,3 316 385 241

In 2009 more vehicles produced than in Russia

The majority of the vehicles are produced for export (70-80% of total production)



OEMs in Turkey (1)

Eskişehir

Ankara

İzmir

Adana

Aksaray

Kocaeliİstanbul

Sakarya

Bursa

Biggest cluster inTurkey

13 passenger cars, buses and commercial vehicles manufacturers:

Oyak-Renault, Tofaş-Fiat, Karsan, Toyota, Honda, Hyundai-Assan, Ford Otosan, MAN, BMC,Mercedes-Benz, Anadolu-isuzu, Otokar-iveco, Temsa-Mitsubishi



OEMs in Turkey (2)

Company Foreign Capital Product Capacity Production in 2009

Oyak Renault 51% Passenger cars 360.000 277.572

Tofaş Fiat 38% Passenger cars 400.000 253.090

Ford Otosan 41% Trucks, LCVs, minibuses 350.000 173.456

Toyota 100% Passenger cars 150.000 72.264

Hyundai Assan 70% Passenger cars 125.000 48.652

Honda 100% Passenger cars 50.000 18.264

Karsan 0% LCVs, minibuses 25.000 8.313

Mercedes-Benz 85% Trucks, buses 20.000 6.492

BMC 0% Trucks, LCVs 20.000 3.167

Otokar 0% LCVs, minibuses 8.000 2.560

Temsa 0% Buses, trucks, LCVs 14.000 2.414

Anadolu Isuzu 30% Buses, trucks, LCVs 13.000 1.817

M.A.N. 100% Buses 3.000 1.544



Vehicle Production in Turkey

2004 2005 2006 2007 2008 2009

Oyak Renault 197353 179669 228593 263656 286695 277572

Tofaş Fiat 146048 161360 178434 212493 267436 253090

Ford Otosan 206706 243423 258126 286356 268761 173456

Toyota 134377 158566 176688 161516 126521 72264

Hyundai Assan 57740 60020 60895 90190 81590 48652

Honda Türkiye 15581 11236 18322 23663 50073 18264

Karsan 16885 13146 12524 9720 11230 8313

Mercedes-Benz Türk 11686 13916 15209 19014 20800 6492

BMC 12819 12500 11679 10369 8736 3167

Otokar 3245 2590 2775 2534 3023 2560

Temsa 6316 8161 8915 9328 10542 2414

Anadolu Isuzu 6011 6762 7445 7842 10007 1817

MAN 1966 2030 2501 2069 1696 1544

Others 6675 6073 5474 664 0 0Total 823.408 879.452 987.580 1.099.414 1.147.110 869.605



Automotive Component Manufacturers in Turkey (1)

Konya

Ankara

Izmir

Adana

Manisa

Kocaeli

Bursa

Istanbul

There are around 4000 component manufacturers in Turkey.

Most of them are located in Bursa, Istanbul, Izmir, Kocaeli, Ankara, Konya, Adana and Manisa.



Automotive Component Manufacturers in Turkey (2)

Turkish automotive components industry has become an integrated part of the globalautomotive industry. Components for local and global markets, as well as for OEMs andaftermarkets are manufactured. %70 of the production is exported to Europe.

Due to the high export potential of the sector and Turkey’s regional advantages, the componentsector has been attracting foreign investors. At present about 200 foreign companies includingthe global leaders at the sector have joint-ventures and manufacturing facilities in Turkey.

Turkish component manufacturers are the pioneers of Turkish companies for the “EuropeanQuality Award”. Most of the manufacturers have international quality certificates such as ISO9000, QS 9000, ISO 14000, ISO TS 16949 etc.

Market

International manufacturers

Quality



0 400 800 1200 1600

Clutches, parts and components

Batteries, parts and components

Breaks and servo breaks

Transmission bearings

Diesel and semi-diesel engines

Hub cap and tyre parts

Rubber components for motorvehicles

Body assembly parts

Inner tubes and tire casings

Engine parts and components

2009

2008

2007

2006

Export of Parts, Components and Systems (1)

2009: Total export 4,98 billion USD

2008: Total export 6,80 billion USD

Nr.1 - Engine parts and components:• 1.35 billion USD

(%84 to EU:1.1 billion USD)• More than 500 exporter companies in

Turkey• Among them are also companies with

foreign capital: Bosch, Federal-Mogul,MGI Courtier etc

Million USD



Export of Parts, Components and Systems (2)

0 50 100 150

Body works

Radiators

Axles

Aig bags

Glass pane for windows

Safety belts

Ball bearings

Filters

Seats for motor vehicles

Shock absorbers

Headlights and flash lamps

2009

2008

2007

2006

0 20 40 60 80

Brake pads

Rearview mirrors

Air conditioners

Metal sheet gaskets

Cooling pumps for fuel and oil

Steering wheels, columns…

Gear boxes

Bumpers and components

Exhaust systems, mufflers…

Internal combustion engines

Ignition devices

Million USD



OİB Contacts

Mr. Evren Belenlioglu

Tel: +7 499 246 29 89

Fax: +7 499 246 49 89

E-Mail: [email protected]

www.uibrussia.org

Turkish Embassy

Commercial Counselors' Office / OİB

7. Rostovsky Per. D. 12

119121 Moscow / Russian Federation

OİB Russia

OİB in Turkey

Organize Sanayi Bölgesi

2. Gelişim Sahasi

Kahverengi Cad. 8

16159 Bursa / Turkey

Tel: +90 224 219 1000

Fax: +90 224 219 1099

E-Mail: [email protected]

www.uib.org.tr

automotive of turkey

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turkish automotive industry

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integrated part

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total production

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