POTENTIAL TO DO BUSINESS
POTENTIAL TO DO BUSINESS
Ahmet Bayraktar
Vice
President
TAYSAD
ASSOCIATION OF AUTOMOTIVE PARTS &
COMPONENTS MANUFACTURERS IN TURKEY
TURKISH AUTOMOTIVE
TURKISH AUTOMOTIVE
INDUSTRY
Turkey ID Card
Turkey ID Card
Surface
814,000
Km
2
1,565
Km Max. Length,
680
Km Average Width
Population: 72
Million (2004), Est.
85
Million by 2025
Average Population Increase:
1.5 %
(1999/2003)
3.500 US$
GNP Per Capita (2004)
6.500
US$
Purchasing Power (2004)
% 5
Real GNP Growth Rate (2004)
Inflation
12
%
(2004 Full Year) (
68 %
in 2001 )
Turkey is Active in
Regional and International Organisations
In The Western Front
An Active and Charter Member of UN and its Agencies
A Member of NATO, Council of Europe, OECD, World Bank, IMF,
WTO
An Associate Member of the EU and in Customs Union With the EU,
Candidate for Full Membership
In The Eastern Front
A Member of Islamic Conference and Islamic Development Bank
A Member of Economic Cooperation Organization and Black Sea
Turkey Keeps up With Recent Global Economic
Trends in the Region
Long Practice of Global Market Economy
Emerging Economy Applying the International Rules of
Free Trade Such as Competition Law, Property Rights
And Etc.
Country Where International Capital Movements are
Liberalized
Up to Date Infrastructure for Commercial and Financial
Activities, Telecommunication and Transportation
Turkish
Automotive
Industry
Turkish
Automotive
Industry
LOCOMOTIVE
Largest
Exporter
Leading
Investor
ECONOMICALLY
STRATEGIC
GNP
Employment
Level
of Technology
The automotive industry is one of the four locomotive, largest exporter,
leading investor sectors of the Turkish economy,
Considering its remarkable contribution to the national production and
development, to direct and indirect employment, and to the level
of
technology, automotive industry in Turkey is now a crucially strategic
sector on economical basis.
As a result of the Customs Union process initiated in
1996 new conditions were created in the market.
Importing became more and more relaxed, the ground
was set for extreme competition.
Incentives have been provided to investments
concerning the manufacturing of new and modern
model vehicles.
Technical cooperation was transformed into
“
economic co –
operation “
as a result of increasing
foreign capital shares.
Capacity
and Production
of Automotive
Manufacturers
2004
December 2004
2004 - 12 Months
Types
Capacity Production Capacity Production
Pass.Car
64.667
33.967
776.004
447.152
Truck
5.088
3.043
61.056
31.790
Pickup
15.888
30.545
190.656
301.563
Bus
588
417
7.056
4.839
Minibus
5.702
2.333
68.424
28.161
Midibus
1.295
730
15.540
9.903
F.Tractor
5.417
1.810
65.004
38.627
Total
98.645
72.845
1.183.740
862.035
Source:OSD
MVI Integration (
2004 )
Link with EU
Manufacturers
Link with Non -
EU
Manufacturers
Fiat Group
JV
Isuzu
JV
Ford
JV
Toyota
F
MAN
F
Honda
F
Mercedes
Benz
JV
Hyundai
JV
Renault
JV
Mitsubishi
L
Iveco
JV
F = Foreign
Rover Group
L
JV = Joint
Venture
Automotive
Manufacturers in Turkey
Izmir
Antalya
Adapazar
ı
Ankara
Konya
ISTANBUL
Gölcük
Aksaray
Izmit
Bursa
Eski
ş
ehir
Adana
TURKEY
Tümosan
Temsa
TTF
6
TOSB
TAYSAD Organized
Industrial
Zone
85 % of
Components
Manufacturers
BRANDS
2000
2003
2004
HONDA
9.821
11.000
15.581
HYUNDAI
19.967
14.000
29.277
OPEL
7.039
-
-RENAULT
140.159
132.000
197.353
FIAT
105.775
66.000
70.564
TOYOTA
14.715
71.000
134.377
TOTAL
297.476
294.000
447.152
BRANDS
2000
2003
2004
ISUZU - AOS
8.313
4.000
6.011
ASKAM
6.382
1.800
1.878
BMC
11.387
9.900
12.819
FORD - OTOSAN
21.098
115.000
206.760
HYUNDAI - ASSAN
11.707
21.800
28.643
PEUGEOT - KARSAN
19.355
8.300
16.885
MAN
1.671
1.950
1.986
MERCEDES BENZ – M.B.T.
6.447
6.800
11.686
LAND ROVER - OTOKAR
4.076
2.500
3.245
IVECO - OTOYOL
8.348
4.400
4.723
MISTSUBISHI - TEMSA
5.323
2.600
6.316
FIAT - TOFA
Ş
9.397
62.000
75.484
TOTAL
113.504 241.050 376.436
In
In
the 2000s, the Turkish automotive industry
the 2000s, the Turkish automotive industry
exhibits characteristics of an industry
exhibits characteristics of an industry
focusing on
focusing on
exporting
exporting
.
.
In 200
In 200
4
4
with
with
more
more
than
than
10
10
billion
billion
$
$
it
it
ranked
ranked
as
as
the
the
second export
Automotive
Automotive
Exports
Exports
( USD
( USD
–
–
Million
Million
)
)
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2004
2005
2005/2004
SECTOR
Total
Total
Total
Total
Total
Total
Total
Total
Total
Total
Jan-Feb
Jan-
Feb
%
Total CBU
463
565
389
414
1.052
1.043
1.722
2.441
4.128
6.974
783
1.257
60%
*
Passenger
Cars
272
256
119
137
712
621
979
1.304
2.249
3.943
444
634
43%
*
Bus
130
199
189
167
213
233
267
305
478
510
82
62
-24%
* Others
61
110
81
110
127
189
476
832
1.401
2.520
257
561
118%
Total
Parts
723
809
915
1.079
1.185
1.339
1.681
1.901
2.390
3.046
428
551
29%
Total
1.186
1.374
1.304
1.493
2.237
2.382
3.403
4.342
6.518
10.020
1.211
1.808
49%
Source: U.I.B.
Exports
destine to
more than 170 countries
Italy
12%
Germany
23%
Non EU
30%
Other EU
10%
Spain
2%
Belgium
3%
U.K.
6%
France
14%
EU Share
70 %
In
2006 : 14.0 billion
$
In
2009 : 18.0 billion
$
Export
Targets
for Turkish
Automotive
Industry
Number
1
Nowadays, the shape and structure of
Turkish automotive industry is
changing.
Foreign partners have begun to see
the facilities that Turkey offers as their
production center for their global
markets.
In the very near future, Turkey will be ;
The center of manufacturing passenger cars and commercial
vehicles,
and
An alternative suppliers center for the global manufacturers.
When investments for export oriented vehicles fully
completed, Turkey will have come to a point where she will
be able to export over 1.000.000.000 vehicles annually.
Due to the high export potential and Turkey’s regional advantages, foreign
capital has been showing an increasing interest in the automotive suppliers
industry in Turkey.
For instance, after Toyota’s new investment project, new Japanese part
manufacturing companies decided to invest in Turkey
( TOSB Area )
as
well as bringing new business opportunities for local manufacturers.
As of 2003 and with European Union companies pulling the lead, there
are
185 foreign company partnerships
in the industry.
Some of well-known spare part manufacturers
Autoliv
Grammer
Toyoda Iron Works
Magneti
Marelli
Delphi
Mannesmann Sachs
Robert Bosch
Volkswagen
Hp Chemie
Pelzer
AE Goetze
Lucas
Rieter
Hayes Lemmerz
Yazaki
Monroe
Exide
Europe
Denso
Lear Corporation
Takashimaya N.Kagyo
Sango
Valeo
Almost
all
components are
produced
in Turkey
Casting
Forging
Engines -
transmissions
Power-train parts
Electrical equipment
Brake and clutch parts
Hydraulic & pneumatic
systems
Body panels
Wheels
Mirrors
Brakes
Radiators
Filters
Springs
Chassis frame and parts
Seating & inner trimming
&
safety components
Suspension systems
Fixings
Various plastics parts
Various aluminium parts
Batteries
Auto glasses
Wiper systems
Brakes
1.
Establishing production companies for producing parts and
assemblies and also raw materials which are imported in existing
situation.
2.
Moving the production of parts and components to Turkey to produce
at lower cost, get more profit and to be competitive in global market.
3.
Establishing JV with the appropriate Turkish partner who is doing the
same type of production like you.
4.
To establish service companies which maybe involved in,
a)
Research and development,
b)
Designing,
c)
Logistics,
5.
To establish testing centers,
6.
To establish tool making companies,
7.
To establish trading companies to sell raw materials from stock to
first and second tier suppliers.
The opportunities for the foreign investors in
Turkish automotive suppliers industry
Airbags and safety systems,
Polyethylene foam,
Polypropylene foam ( EPP )
Special fabrics and cloths used interiors,
Electronics and diagnostics,
Audio and navigation equipments,
Forged metal parts,
Duroplastic
and thermoplastic felts for interior and exterior
auto parts,
Quality fiberboard for car interiors.
Establishing Production Companies or JV For
Parts and Raw Materials
Research and Development Laboratories which can run
developments on contract basis and benefit low engineering
cost,
Design studios which can make a design on contact basis by
bringing experienced personnel when needed,
Logistics
companies are needed who can make JIT or
sequence shipment from first tier suppliers.
Today each supplier spends duplicate money to
make tests in his company,
Furthermore sends samples to European test
centers losing time and money
Possible
Investments
in Test Centers
CAN A TEST CENTER BE ESTABLISHED TO RUN SOME OF
THESE TESTS AND ALSO ACT AS AN AGENT TO SEND THE
SAMPLES TO THE APPROPRIATE LABORATORY ABROAD ?
Although tool prices in Turkey are half of the
European tool makers due to low labor cost it is not
easy to find sufficient number of qualified and
experienced tool producers.
Many plastic injection producers try to make their
tools in house which make them to make useless
investment.
Especially for large trim parts tools there is no good
tool maker.
Turkish first tier suppliers lose much of their
competitiveness by importing necessary raw
materials and keeping large stocks
–
FORD / FIAT / REANAULT approved cloths for car interiors,
–
FORD / FIAT / RENAULT approved sheet plastics,
–
Quality steel,
–
Sticking bands, tapes,
–
Accessories, such as clips, springs etc used by the
suppliers,
–
Additives used in plastics
Turkey is the only country in its own region having already
established a well-advanced automotive industry, and it has
proven itself to be a successful one in exporting every kind of
automotive products to EU countries.
Therefore, the automotive industry is strategically important
both for Turkish and foreign companies that will invest in
Turkey, a country which provides
More than 1.000.000 annual modern vehicles production
capacity,
Developed suppliers industry with the power to compete,
Young, educated and motivated man -
power,
Entrepreneurs ambitious to succeed,
Global multinational shareholders,
Adopted legislation in line with the international rules of free
trade within the context of customs union and WTO,
Easy access to potential emerging markets,
Established in 1978,
Only and most complete representative of the Turkish automotive
suppliers industry,
Member of CLEPA ( European Automotive Suppliers Association )
185 member companies ( produce for OEM and export oriented ),
Excellent reference point for local and overseas companies for
purchasing products and investments in Turkey,
Members have close ties with major European component
manufacturers ( joint ventures or licensing agreements ),
Members reached international standards in production of
components at competitive cost and quality.
TAYSAD
Association
of
TAYSAD Members
Who
Has JV (2003)
TAYSAD MEMBER
FOREIGN PARTNER
COUNTRY Capital Share ( % )
ASSAN HANİL OTOMOTİV SAN. TİC. A.Ş. Hanil E Hwa Korea 40AUTOLIV CANKOR OTOMOTİV SAN. VE TİC. A.Ş. Autoliv Sweden 100 BAMESA ÇELİK SERVİS SAN. VE TİC. A.Ş. Arcelor France 40
Bamesa Group Spain 60
BELTAN YEDEK PARÇA VE MAKİNA SAN. VE TİC. A.Ş. Vibracoustic Germany 25 BOSAL MİMAYSAN METAL İŞLEME SAN. VE TİC. A.Ş. Bosal Holding BV Belgium 72,5 BOSCH FREN SİSTEMLERİ SAN. VE TİC. A.Ş. Robert Bosch GmbH Germany 80 BOSCH SAN. VE TİC. A.Ş. Robert Bosch GmbH Germany 100
CEVHER DÖKÜM A.Ş. Teksid Italy 30
EGE FREN SAN. VE TİC. A.Ş. ArvinMeritor USA 49 FEDERAL MOGUL İZMİT PİSTON VE PİM ÜRETİM TES. A.Ş. Federal Mogul USA 42,5 FEDERAL MOGUL SAPANCA SEGMAN-GÖMLEK ÜRT.TES.A.Ş. Federal Mogul Michigan 50 HP PELZER PİMSA OTOMOTİV A.Ş. HP Chemie Pelzer GmbH Germany 51
İNCİ EXIDE AKÜ SAN. A.Ş. Exide Corp. USA 50 LUCAS ELEKTRİK SAN. VE TİC. A.Ş. Lucas Industries PLC UK 12 MAKO ELEKTRİK SAN. VE TİC. A.Ş. Magneti Marelli Spa Italy 43 MATAY OTOMOTİV YAN SAN. VE TİC. A.Ş. Magneti Marelli Spa Italy 28 MAYSAN MANDO OTOMOTİV PARÇA SAN. TİC. A.Ş. Mando Corp. Korea 50 MECAPLAST OTOMOTİV ÜRÜNLERİ SAN VE TİC. A.Ş. Mecaplast SAM Monaco 100 NURSAN ELEKTRİK DONANIM SAN. VE TİC. A.Ş. Valeo Electronics&Connective Systems France 40 ORTADOĞU RULMAN SAN. VE TİC. A.Ş. Germany 7 PİMSA POLİÜRETAN İMALAT SAN. VE TİC. A.Ş. HP Chemie Pelzer GmbH Germany 10 RESINEX BMY PLASTİK KİMYA SAN. VE TİC. A.Ş. Ravago Plastics Belgium 35 RÖZMAŞ CHUO OTOMOTİV YAY SANAYİ A.Ş. Chuo Spring Co. Ltd. Japan 50 RÖZMAŞ METAL SAN. VE TİC. A.Ş. Münevver Ceylan Özcan Germany 3 SACHS BELDESAN SÜSPANSİYON SİSTEMLERİ SAN.TİC. A.Ş. ZF Sachs AG Germany 50 SAİ AUTOMOTIVE POLİFLEKS SAN. TİC. A.Ş. Faurecia France 100 SANGO OTOMOTİV ÜRÜNLERİ SAN VE TİC. A.Ş. Sango Co Ltd Japan 100 TAKOSAN OTOMOBİL GÖSTERGELERİ SAN. VE TİC. A.Ş. Magneti Marelli Italy 2,5 TEKERSAN JANT SAN. A.Ş. Michelin Kronprinz Germany 20,1 TİRSAN LEMFÖRDER AKS MODÜLLERİ SAN. TİC. A.Ş. ZF Lemförder Germany
TOYOTETSU OTOMOTİV PARÇ. ÜRETİM VE TİC. A.Ş. Toyoda Iron Works Japan 100 VALEO OTOM. SİSTEMLERİ END. A.Ş. Valeo France 100 ZATEL PRES DÖKÜM SAN. VE TİC. A.Ş. TMCI AG Switzerland 25
Dirilgen Holding AG Switzerland 8 ZF TÜRK SAN. VE TİC. A.Ş. ZF Friedrichshafen AG Germany 100
TAYSAD
Members
70%
OTHERS
%30
TAYSAD
Members
% 65
Others
%35
Production
Exports
40.000 employees
Quality Certificates
No of
Companies
ISO 9001
66
ISO 9002
63
QS 9000
44
ISO/TS 16949
47
Others
(TUV,VDA,ISO,TSE
14000 etc.)
51
DAIMLER -
CHRYSLER
OPEL
FORD
VW
MERCEDES
TOYOTA
DAF
IVECO
GM
VAUXHALL
SAAB
RENAULT
F
İ
AT
DACIA
LEYLAND
MF STEYR JOHN DEERE CATERPILLAR MACK TRUCKS DAEWOO ISUZU SAPCO BMW HONDA PEUGEOT PERKINS VOLVO IRAN KHODRO NISSANThe quality of TAYSAD members has
reached
international standards.
TAYSAD members
supplying
to
major
overseas
OEM
If
you are
looking for ;
a new market for growth,
new sources to increase competitiveness,
a place to make a profitable investment
TAYSAD MEMBERS,
WITH THEIR STRONG ABILITIES,
ARE READY TO
MAKE USE OF
THE OPPORTUNITIES OF GLOBAL PRODUCTION
We
maintain
that
TAYSAD Industrial Organized Zone is the RIGHT
PLACE, and
TAYSAD members are the RIGHT PARTNERS for
THANK YOU
THANK YOU
FOR YOUR KIND ATTENTION