global fleet-conference presentation-v2
DESCRIPTION
Fleet Leasing Industry in TurkeyTRANSCRIPT
Operational leasing in TurkeyExtreme competition, stable growth.
İlkay ERSOY Chairman / TOKKDER & CEO / DRD Fleet Leasing
TURKEY a LARGE and
PROMISING COUNTRY
Gross National Product
Worlds 16’th & Europe’s 6’th Economy
Taiwan
Saudi Arabia
Iran
Australia
Turkey
Indonesia
Spain
Canada
Korea
Italy
Mexico
France
United Kingdom
Brazil
Russia
Germany
Japan
India
China
United States
Gross National Product – Purchasing Parity - World Bank / data.world.bank
BulgariaSlovak Republic
IrelandHungaryDenmarkPortugal
GreeceNorway
RomaniaCzech Republic
AustriaSwedenBelgium
NetherlandsPolandTurkey
SpainItaly
FranceUnited Kingdom
Germany
16’th
1.2 Trillion US Dollars
6’th
Sustained Growth
2002 2004 2007 2010 20130.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
0.5
0.7
0.91.0
1.2
GNP / Trillion USD
2002 2004 2007 2010 20130
20
40
60
80
100
120
140
160
36
63
107114
152
Export / Billions USD
World Bank / data.world.bank & Turkish Statistical Institute / www.turkstat.gov.tr
140% 322%
Turkey – Large Country
Turkey’s forest area is 120K sq km, which is;As large as Bulgaria, 1.5 times Czech Republic3.5 times Netherlands,
Total 780 K sq km land area is;The largest in Europe, 1.4 times France 2.2 times Germany.Edirne to Hakkari is 2.200 km
Number of cities more than 1M :
Large and equally crowded
22 with total 44M population
Number of cities more than 500K :
42 with total 60M population
Sixth economy,Largest land area,Biggest but youngest population,Dynamic and sustained growth,
Risky? Maybe yes, maybe no.Promising? Certainly
AUTOMOTIVE INDUSTRY
Passenger Car Per 1000 people & population
Italy
German
y
Belgium
Spain
France
Poland
Czech Rep
ublic
Bulgaria
Serbia
Romania
Turke
y0
100
200
300
400
500
600
700
0
10000000
20000000
30000000
40000000
50000000
60000000
70000000
80000000
90000000
605
531491 482 482
World Bank / data.world.bank
Italy
German
y
Belgium
Spain
France
Poland
Czech Rep
ublic
Bulgaria
Serbia
Romania
Turke
y0
100
200
300
400
500
600
700
0
10000000
20000000
30000000
40000000
50000000
60000000
70000000
80000000
90000000
605
531491 482 482 470
437
367
231203
110
Italy
German
y
Belgium
Spain
France
Poland
Czech Rep
ublic
Bulgaria
Serbia
Romania
Turke
y0
100
200
300
400
500
600
700
0
10000000
20000000
30000000
40000000
50000000
60000000
70000000
80000000
90000000
605
531491 482 482 470
437
367
231203
110
Car Sales (thousends)
2006 2007 2008 2009 2010 2011 2012 20130
100
200
300
400
500
600
700
800
900
1000
666634
527576
793
911
818
893
373 357306
370
510
594556
665
Total PassengerMonthly Automotive Report – Turkey Automotive Manufacturers Association / www.osd.org.tr
Taxation 1
• VAT 18% for resale and brand new car
• Special Consumption Tax on Car is function of CC, (SCT + VAT effect MSRP - TRY)
<1600 CC 100 X 1.45 X 1.18 = 171.11600-2000 CC 100 X 1.90 X 1.18 = 224.2>2000 CC 100 X 2.45 X 1.18 = 289.1
Taxation 2
• Motor Vehicle Tax is about life time of vehicle and is also function of cc (Yearly - TRY)
• Corporate income tax 20%,
<1300cc 5371301-1600 8591601-1800 1.5141801-2000 2.3852001-2500 3.5782501-3000 4.9873001-3500 7.5953501-4000 11.940
>4001 19.541
Sales Behavior of Automotive Industry
• Offers bulk sale and discount at the end of quarters, that is all
• Unstable discount policy in year,• Offers more discount rates for short term,• Does not mind early terminations and resale
market,• Lack of service quality to all kind of «fleet
customers»
OPERATIONAL LEASING INDUSTRY
Operational Leasing / Supliers
Member of TOKKDER (*)
Main Suppliers
(*) - Participants of TOKKDER Market Survey
+
Additional many
member and non
member / known and
unknown car renting
companies
ALDARKASARVALATAKO
AUTOLANDAVIS
BEYAZCENTRAL
DRD FLEETFLEET CORP
GARANTİ FLEETHEDEF
LEASEPLANPREMIUMTAN OTO
Operational Leasing / Basics
>10.000 65.000-10.000 1
<5.000 8Profile of Market Survey
Participants
Estimated number of cars in operational
leasing market
207.000
Share in Corporate Car Parc
12% - 15%
Market in 5 years > 500.000
Charactertics of Market
• Strong competition based on pricing
• Full service operational leasing, fleet management, S&L Back,
• Undefinite «product and service»
• Product is «car»• Car is passenger car• Strictly protective rules
on LCVs
• No regulation and no limit for market entry
• Always new entries to market
• Under strong FX risk• Intensive technology
investments• Large selection of
suppliers from multinationals to strong and extensive locals,
Operational Leasing / Growth
2010 2011 2012 20130
50,000
100,000
150,000
200,000
250,000
117,517
142,036
170,031
207,221
Number of Vehicles
2010 2011 2012 20130
5,000
10,000
15,000
20,000
25,000
30,000
9,675
11,990
17,285
26,189
Number of Customers
11,1
7,3
21%
20%
22%
76% 170%
TOKKDER - Turkish Auto Leasing and Car Rental Association / www.tokkder.org
Car Parc / Brands
RENAULT VW FORD FIAT OPEL CITROEN AUDI PEUGEOT BMW OTHER
25.9%
18.1%16.0%
12.4%
5.8% 4.9%3.4% 2.7% 2.2%
8.5%
TOKKDER - Turkish Auto Leasing and Car Rental Association / www.tokkder.org
Car Parc / Fuel and Transmission
DIESEL; 92.2%
GASOLINE; 7.6%OTHER; 0.2%
CAR PARC / FUEL TYPE
MANUAL; 70.3
%
AU-TOMATIC; 29.7
%
CAR PARC / TRANSMISSON
TOKKDER - Turkish Auto Leasing and Car Rental Association / www.tokkder.org
Car Parc / Segments
B C D E-F LCV
31.7%
49.2%
12.9%
3.1% 3.1%
Symbol, Fiesta etc
Focus, Corolla, Jetta etc
TOKKDER - Turkish Auto Leasing and Car Rental Association / www.tokkder.org
A4, 3.20, Passat, C5
etcA6, A8, 5.20,
Luxury SUVs etc
Car Parc / Contracts
<18 Months; 8.4%
18-30 Months
; 18.2
%30-42 Months
; 61.0
%
>43 Months; 12.4%
CAR PARC / CONTRACT MATURITY
EUR;
80.4%
USD; 5.2%
TRY;
14.4%
CAR PARC / CONTRACT FX
TOKKDER - Turkish Auto Leasing and Car Rental Association / www.tokkder.org
TIPS for
FLEET MANAGER
Who uses what? – Samples for Segments
CEO of Major Banks and multinational companies
VP of Major Banks multinational companies
Director, Coordinator and Executives
Managers, Regional Managers, Executives
Sales People
AUDI A8L, BMW 7 Series, Mercedes S Class
Fully equipped AUDI A6, BMW 525, Mercedes E Class
AUDI A4, BMW 3.20, C5, VW Passat, Mercedes C Class
AUDI A4, BMW 320, VW Jetta, Corolla, Focus,
Citroen C4, Fiat Liena, Citroen Elyse, Clio Symbol, VW Polo
Selected Positions Sample Make and Models
Wise Fleet Manager in Turkey....
• Segmented milage for fleet. Calculate it for segments and positions.• Turkey is large country, you do not need to have winter tires in most cities.
Try to estimate your winter tire needs. If you are wrong, it is always possible to buy with good discounts,
• Winter tires for higher segment cars are extreemly expensive, be careful.• Always question your supplier for service structure.
– Ask main service stations,– Ask call-center structure,– See sample fleet reports and ask online reporting, try– Ask damage management and insurance system, fix insurance or based on customer
claim ratio?– Ask to visit customer relations departments and some service stations, – Is there internet service base?– Is there IOS, Android, W8, BB based apps?
Wise Fleet Manager in Turkey....
• Do not focus just pricing, be sure supplier is understood the service package and capable to ensure it,
• Check and force multinational as well as locals, never be sure for your supplier’s service structure just because of «the name»,
• Check if they have a control and audit system on their third party suppliers,
• Check their ERP,• Ask fair wear and tear conditions,• Never forget Turkey is large country and your cars will be
thousends of kms far from you!,• If your milage projections results high milages have an
optimization team with finance and sales departments,
Car is an asset
• Saving is important,• And productivity is more important,• In the end car is an asset, an equipment which must
create value,• That value depends on your supplier,• Delivery of cars is not the end, it is the begining, • Force for KPIs to your supplier and understand if
«internal customer» is happy for your service,
– 80% of damages are under 500 USD,– Repair time is under 1 day! Supplier do not provide a courtesy
car under one day,
Association is also for customers
• As a wise fleet manager, never forget that TOKKDER is always ready to assist!!!
Note www.tokkder.org
THANK YOU