Groepszakenreis Automotive TurkijeBackground info

17/12/2018

C NT T T M NO EX OF HE ISSIOAwex and FIT will organize a trade mission in cooperation with Agoria, in the automotive sector, during the 3rd week of March 2019.

The main goal of this mission is to introduce our Belgian companies and technologies to the decision makers of the Turkish National Car Project (see below), in order to identify potential collaborations. The second goal will be to approach the Turkish automotive industry more generally, as we believe that this flagship sector of the Turkish economy is of interest for our companies and offers many business opportunities.

In terms of technologies, the mission should focus on the following:

Technologies related to the electrification of the vehicle Embedded technologies and IT Production technologies (3D printing, etc.)

T NAT NA CA P CTURKISH IO L R ROJEIn November 2017, Turkey launched an ambitious project for creating its first domestic car brand. With the strong support of the government, five major companies entered the consortium to make Turkey's first domestically produced automobile. A prototype is expected to be ready by the end of 2019 while sales should start in 2021.

The consortium is made up of Anadolu Group, BMC, Kiraça Holding, Turkcell and Zorlu Holding. TOBB, the Union of Chambers and Commodity Exchanges of Turkey, is also a shareholder of the project and has a coordination role.

The Anadolu Group has a subsidiary jointly owned by Isuzu and builds trucks under licence. It is not related the earlier Anadol car that was in production for twenty years. BMC is also a truck manufacturer that started with the British Motor Corporation in the early 1960s before being nationalised. Turkcell is a mobile phone company and will be in charge of IT developments and Zorlu Grup has divisions supplying home appliances (Vestel) and will produce the batteries. Kiraca Holdings is active is different sectors of interest for the project: automotive, marine and design studios.

The consortium appears to have the necessary knowledge to lead this project to success. Nevertheless, they will rely on foreign technologies in order to achieve their goal within the given deadlines.

www.flandersinvestmentandtrade.com

The project is quite popular in Turkey where the creation of up to 20,000 jobs has been announced. The production capacity is planned to be 200,000 units a year. As up to 20% of all Turkey’s exports are vehicles built in the country, a national car is of key importance to the Government.

A T M T CT N TU O O IVE SE OR I URKEYToday, Turkey has 13 active car manufacturers and nearly 5,000 equipment manufacturers (including around 250 foreign investments). The country is the world's 14th largest producer of vehicles, the 5th largest European producer outside Russia (2017) and the leading European producer of light commercial vehicles (LUVs) ahead of Spain (2017) and the largest bus manufacturer in Europe.

Automotive is the 1st export category of the country (29 billion USD in 2017 i.e. 18.5% of the national total). It generates 259,000 direct jobs (manufacturers and equipment manufacturers), and this number goes up to 700,000 people if we integrate the distribution, sales and repair channels.

In 2017, Turkey produced 1.67 million vehicles, of which 1.12 million were cars. 78 percent of local production went to export, i.e. 1.3 million vehicles including 986,000 to Europe.

In 2017, Turkish production of vehicles increased by 14% compared to 2016 and car manufacturing by 20%. During the same period, exports increased by 17% in value in Euros and in quantity.

In 2017, the domestic vehicle market narrowed by 3% with 980,000 sales. The auto market alone shrank by 5% with 723,000 units.

Sources:http://www.motoringweekly.com.au/2018/07/31/the-turkish-national-car/http://export.businessfrance.fr/turquie/001B1804307A+le-marche-de-l-automobile-en-turquie.html

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