1. The Automotive Industry in Turkey
2010 And Beyond?
Prof.Dr.Ercan TEZER / OSD General Secretary

2. Otomotiv Sanayii Derneği / OSD Automotive Manufacturers Association
Founded in 1974
Main Objectives Are:
 To Represent MV Sector In Public Authorities, Local and International Organisations
 To Gather and Publish Various Information on MVI of Turkey
 To Organize & Conduct Joint Actions in Different Fields
Is an Active Member of:
 OICA  ACEA Liaison Committee
 ODETTE  GAID Group
 ENX
OSD is a Partner of
ACEA / EUCAR, EU ERTRAC and EU Motor Vehicle Technical Committee
UN / WP 29
All Relevant Information is Found in OSD Web-Site:

3. OSD is Organizing & Conducting Joint Actions in Different Fields

4. Automotive Industry Global Intensive Multiple Effect-Creates
(70 Mio Production / 62 Countries)
Intensive
(10 Companies / % 90 Production)
Multiple Effect-Creates
(Value Added / Revenue / Jobs)
High Competition / Costumer Expectation
(Better Safety/Higher Comfort/Rock Bottom Price)
Product Differentiation
(P.Cars-Status / CV-Investment)
Globally Under Heavy Legislation
(Emission/Safety/Climate Change)
Innovation Oriented

5. Global Delocalization
“To be Manufacturer in Potential Markets and Enjoy With Low Operational Cost”
1970
Japan
USA
1980
1950
1960
Europe
Korea
1980
1990
S.America
And
Others
1970
PRC

6. Global Production (1995/2009) and Future ( x Million)
J.D.POWER Associates 6

7. World Total Production – 2008/2009 (x 1.000)
Ranking in EU (27) 2009
Total 7
Buses 2
LCV 1
H.Trucks 9
P.Cars 8
Units
in 2009
OICA

8. 2009 Total World Production (x 1.000)
OICA

9. Changes in Total Production By Regions 2008/2024
Production Moves From West To East & North To South
J.D.POWER Associates

10. Production BRIC Countries 2008 / 2024 (x 1.000)
38,699
16,612
Change
X 2,33
2008 (%) (%) /2008
Russia ,59
Brazil ,59
China ,46
India , ,07
BRIC (23) (35) ,33
Total World ,53
J.D.POWER Associates

11. Turkey Keeps up With Recent Global Economic Trends in the Region
Longest Practice of Global Market Economy
Emerging Economy Applying the International Rules of Free Trade Such as Competition Law, Property Rights And Etc.
International Capital Movements are Liberalized
Up to Date Infrastructure for Commercial and Financial Activities, Telecommunication and Transportation
Competitive Industrial Products for the World Market
Long Term Relation With EU Within The Association Agreement Dated 1963
Candidate Country in Negotiation Process For EU Membership

12. Customs Union/1996 and MVI
Customs Union Was Realized Between Turkey and
EU For The Free Circulation of Industrial Goods
New and More Competitive Conditions in the Market
Better Incentives for the Industry Towards More Competitiveness to be a Global Player
Closer Integration of MVI’s Between Turkey and EU
More Share in the MVI Market for EU
For the Free Movement of Industrial Goods
Tariffs and Non-Tariff Measures Were Wholly Abolished
for Non-EU Countries CCT and CTP Were Implemented
Series of Technical and Commercial Legislation Were Adopted

13. TARGET FOR NEAR FUTURE : CENTER of EXCELLENCE
Development of MVI in Turkey: 1960/…..
ASSEMBLY
License
Protected Market
Localization
DEVELOPMENT OF
COMPONENT IND.
INCREASE IN
CAPACITY
Modernization
Transition Period
Up-to-date Model
UP-TO-DATE MODEL
EXPORT
Entrance of
Toyota, Honda, Hyundai
FULL INTEGRATION
MANUFACTURING BASE
EU/TR
Customs Union
Free Market
Global Competition
Research & Development,
Design & Technology Management,
Intellectual & Industrial Property
2001-…..
TARGET FOR NEAR FUTURE : CENTER of EXCELLENCE

14. 85 % of Components Manufacturers
MV Manufacturers in Turkey
85 % of Components Manufacturers
İSTANBUL
İzmit
Adapazarı
Gölcük
Bursa
Ankara
Eskişehir
İzmir
Aksaray
Adana

15. MV Manufacturers in Marmara Region

16. Motor Vehicle Manufacturers (2010)

17. Motor Vehicle Manufacturers (2010)
Japanese Interest Was First Shown In Car Industry In 1994 With Toyota And Then Honda
Toyota Brought New Concepts And A Remarkable Motivation To The Industry
Toyota-Turkey Became One Of The Important Manufacturing Centres Of Toyota In Europe
Isuzu, Hino And Mitsubishi Are In Commercial Vehicle Sector

18. Link With EU Manufacturers Link With Non-EU Manufacturers
MVI Integration
Number of Manufacturers 13
Link With Non-EU (% 17 of production)
* JV/FDI
* License
Link With EU (% 82 of production)
* JV/FDI
* License
Local (% 1 of production)
Link With EU Manufacturers
FIAT GROUP JV
FORD JV
MAN FDI
M.BENZ JV
RENAULT JV
ROVER GROUP L
PEUGEOT L
Link With Non-EU Manufacturers
ISUZU JV
TOYOTA FDI
MITSUBISHI L
HONDA FDI
HYUNDAI JV

19. History of the Production (x1.000)
Total Production:
3, in 1963
1,147, in 2008
High Fluctuations In the Past Have Had A Particularly Negative Effect On The Development And Competitiveness Of The Industry

20. Changes in Last 7 Years; 2009 and 2010 (x1.000)
Exports
Production
2002/2008 X 3,5
2002/2008 X 3,3
Total Market
Exports / Million $
2002/2008 X 5,4
2002/2008 X 3,6

21. 2003/2009 Results and 2010 Estimation

22. Crises  Changes in Total Market (x 1.000)
4 Year
4 Year
4 Year % 22

23. Rate of Exports in Production
Exports Share in Total Production is Over 72 %
Rate of Exports in Production
Total Production % 72
P. Cars % 76 %
(X 1000)

24. The Automotive Market is An Unsaturated One
World Bank / P.Cars/1.000 Inhabitants in 2007
Approximately 15 Million Vehicles Are To Be Sold In Turkey
To Reach To The Level Of Bulgaria In 10 Years
(Whose GDP Per Capita Are Rather Similar)

25. The Assets & Potential of MVI of Turkey
Automotive Culture 50 years of production tradition
High Sense of Quality TQM, Lean Production, 6 Sigma
Labour Peace unionized work force / collective bargaining since
Qualified, Well-Trained, Motivated Labour Force at Competitive Cost
Flexible Working Hours 7.5 hours / shift - 3 shifts / day - 6 days / week; Rate of Absenteeism < 1.5 %
Entrepreneurship $ 10 billion worth of Investment
Partnership With World-Leading Manufacturers
Experienced Local Component Industry / Supplier Base
Unsaturated Domestic Market With High Potential of Demand
More Incentives on R & D and New Investments
Developed Infrastructure & Services in the Region
Logistics, Energy, Transport, Banking, Communication
Manufacturing Facilities With State-of-the-Art Technology

26. Recent Developments on R&D Activities
A New Incentive Scheme is Now Covering R&D Activities in Companies to be Effective This Year Such As:
100 % Deduction of R&D Expenses From Corporate Tax Came into Operation in 2008
Tax and Social Security Funds Payment Exemption for Those Working in R&D Activities
Government Assigned Yearly $ 300 Million to TUBİTAK in Order to Support R&D Activities and Targeted to Increase R&D Expenses up to 2 % of GNDP in 5 Years
Automotive Technology and R&D Center – OTAM(*) was Established in Istanbul Technical University-ITU with $ 12 Million to Start off
TUBİTAK-MAM is Providing Large Scale of Basic Services for R&D
(*) OSD, ITU (Istanbul Technical University) , TAYSAD (Assoc. of Component Manufacturers), UIB (Union of Vehicle & Component Exporters) are the Partners of OTAM

27. By Means of Additional Investment At Least $ 5 Billion
Prospects of the Turkish Automotive Industry
In The Short Term Production: Over 1,0 Million
Exports: Over 0,8 Million Already Realized
In The Medium Term Production: ,0 Million
Exports: ,5 Million Can be Achieved
Direct Employment Of 600,000
Total Exports Of $ 50 Billion
By Means of Additional Investment At Least $ 5 Billion

28. Thank You For Your Interest
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