An overview to the automotive industry of Turkey (August 2010)

1. AUTOMOTIVE INDUSTRY EXPORTERS’ UNION OF TURKEY
Overview: Automotive Industry of Turkey
Evren Belenlioğlu
OİB Russia
August 2010 , Moscow
OİB Russia / Evren Belenlioğlu / Moscow, August 2010 www.uibrussia.org 1/15

2. AUTOMOTIVE INDUSTRY EXPORTERS’ UNION OF TURKEY
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
OİB Russia / Evren Belenlioğlu / Moscow, August 2010 www.uibrussia.org 2/15

3. AUTOMOTIVE INDUSTRY EXPORTERS’ UNION OF TURKEY
About OİB
OİB – Automotive industry Exporters’ Association
• OİB serve as non-profit affiliated organization under Prime Ministry
Prime Ministry of TR, Undersecretariat for Foreign Trade.
• Established in 1986. Headquarter in Bursa/Turkey
Undersecretariat
• Coordinator association of the automotive sector: for Foreign Trade
OİB hosts all OEMs and the automotive component
manufacturers in Turkey in its membership structure UIB - Uludag
(currently about 4400 members). Exporters’ Association
• Among these members, there are around 200 companies
with foreign capital (partly or 100%). Automotive Industry
Exporters’ Association
OİB in Russian Federation
• 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 Russia / Evren Belenlioğlu / Moscow, August 2010 www.uibrussia.org 3/15

4. AUTOMOTIVE INDUSTRY EXPORTERS’ UNION OF TURKEY
Turkish Automotive: Integrated part of European Automotive
Customs Union between EU and Turkey: Customs free export to EU
%80 of the total production is exported to the EU countries /manufacturers
Around 200 local manufacturers with foreign capital (mostly EU companies)
Among the 27 EU countries Turkey holds in automotive production
5th place in 2008: 7th place in 2009:
• 1st place in bus production • 1st place in LCV production
• 2nd place in LCV production • 2ndplace in bus production
• 3rd place in CV production
OİB Russia / Evren Belenlioğlu / Moscow, August 2010 www.uibrussia.org 4/15

5. AUTOMOTIVE INDUSTRY EXPORTERS’ UNION OF TURKEY
Development of the Turkish Automotive Industry + Brands Produced
Market politics in 1960s: Ford, Chrysler, BMC,
Turkey: • License and Assembly Mercedes-Benz, Deutz
1970
1970s:
Protected Market Fiat, Renault,
• Development of the Supplier Industry /
till 1980 John Deere
Localization
1980
1980s:
Volvo, Leyland, Isuzu,
• Modernization and Increase in
Transition Time MAN, Mitsubishi, Iveco
Capacity
1980 - 1995 1990
1990s:
• Up-to-Date Model Export Land Rover, Opel,
• Full Integration to the World Toyota, Honda, Hyundai
Manufacturing Base
2000
Customs Union with EU. 2000s:
Free market • R&D / Design and Technology
since 1995 Peugeot, Citroen
Management
2010
• Intellectual and Industrial Property
2010s:
• Target: Center of Excellence
OİB Russia / Evren Belenlioğlu / Moscow, August 2010 www.uibrussia.org 5/15

6. AUTOMOTIVE INDUSTRY EXPORTERS’ UNION OF TURKEY
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 • Young, educated and motivated man-power
compliance with global standards
• Entrepreneurs ambitious to succeed
and regulations
• Enhanced export experience
• Full integration with foreign
partners
OİB Russia / Evren Belenlioğlu / Moscow, August 2010 www.uibrussia.org 6/15

7. AUTOMOTIVE INDUSTRY EXPORTERS’ UNION OF TURKEY
Statistics of Turkish Automotive Market
The majority of the vehicles are produced for export (70-80% of total production)
In 2009 more vehicles produced than in Russia
(1000 units) 2004 2005 2006 2007 2008 2009
Production 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 376,2 425,8 441,9 464,5 525,5 358,7
Market 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 294,6 324,6 296,4 283,8 220,6 206,1
Import 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 70,4
Export 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
OİB Russia / Evren Belenlioğlu / Moscow, August 2010 www.uibrussia.org 7/15

8. AUTOMOTIVE INDUSTRY EXPORTERS’ UNION OF TURKEY
OEMs in Turkey (1)
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
İstanbul Kocaeli
Sakarya
Biggest cluster in
Turkey Ankara
İzmir Bursa
Aksaray
Eskişehir
Adana
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9. AUTOMOTIVE INDUSTRY EXPORTERS’ UNION OF TURKEY
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
OİB Russia / Evren Belenlioğlu / Moscow, August 2010 www.uibrussia.org 9/15

10. AUTOMOTIVE INDUSTRY EXPORTERS’ UNION OF TURKEY
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 0
Total 823.408 879.452 987.580 1.099.414 1.147.110 869.605
OİB Russia / Evren Belenlioğlu / Moscow, August 2010 www.uibrussia.org 10/15

11. AUTOMOTIVE INDUSTRY EXPORTERS’ UNION OF TURKEY
Automotive Component Manufacturers in Turkey (1)
There are around 4000 component manufacturers in Turkey.
Most of them are located in Bursa, Istanbul, Izmir, Kocaeli, Ankara, Konya, Adana and Manisa.
Istanbul Kocaeli
Ankara
Izmir Bursa
Konya
Manisa
Adana
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12. AUTOMOTIVE INDUSTRY EXPORTERS’ UNION OF TURKEY
Automotive Component Manufacturers in Turkey (2)
Market
Turkish automotive components industry has become an integrated part of the global
automotive industry. Components for local and global markets, as well as for OEMs and
aftermarkets are manufactured. %70 of the production is exported to Europe.
International manufacturers
Due to the high export potential of the sector and Turkey’s regional advantages, the component
sector has been attracting foreign investors. At present about 200 foreign companies including
the global leaders at the sector have joint-ventures and manufacturing facilities in Turkey.
Quality
Turkish component manufacturers are the pioneers of Turkish companies for the “European
Quality Award”. Most of the manufacturers have international quality certificates such as ISO
9000, QS 9000, ISO 14000, ISO TS 16949 etc.
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13. AUTOMOTIVE INDUSTRY EXPORTERS’ UNION OF TURKEY
Export of Parts, Components and Systems (1)
2009: Total export 4,98 billion USD
Engine parts and components
2008: Total export 6,80 billion USD
Inner tubes and tire casings
Nr.1 - Engine parts and components:
Body assembly parts
• 1.35 billion USD
Rubber components for motor (%84 to EU:1.1 billion USD)
vehicles • More than 500 exporter companies in
Hub cap and tyre parts Turkey
2009 • Among them are also companies with
Diesel and semi-diesel engines foreign capital: Bosch, Federal-Mogul,
2008
MGI Courtier etc
2007
Transmission bearings
2006
Breaks and servo breaks
Batteries, parts and components
Clutches, parts and components
0 400 800 1200 1600
Million USD
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14. AUTOMOTIVE INDUSTRY EXPORTERS’ UNION OF TURKEY
Export of Parts, Components and Systems (2)
Headlights and flash lamps Ignition devices
Shock absorbers Internal combustion engines
Seats for motor vehicles Exhaust systems, mufflers…
Filters Bumpers and components
Ball bearings 2009 Gear boxes
Safety belts 2008 Steering wheels, columns…
Glass pane for windows 2007 Cooling pumps for fuel and oil
Aig bags 2006 Metal sheet gaskets
Axles Air conditioners
Radiators Rearview mirrors
Body works Brake pads
0 50 100 150 Million USD 0 20 40 60 80
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15. AUTOMOTIVE INDUSTRY EXPORTERS’ UNION OF TURKEY
OİB Contacts
OİB Russia
Mr. Evren Belenlioglu
Turkish Embassy Tel: +7 499 246 29 89
Commercial Counselors' Office / OİB Fax: +7 499 246 49 89
7. Rostovsky Per. D. 12 E-Mail: evren@dtmos.ru
119121 Moscow / Russian Federation www.uibrussia.org
OİB in Turkey
Organize Sanayi Bölgesi Tel: +90 224 219 1000
2. Gelişim Sahasi Fax: +90 224 219 1099
Kahverengi Cad. 8 E-Mail: uludag@uib.org.tr
16159 Bursa / Turkey www.uib.org.tr
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