1 / 26

The Automotive Industry i n Turkey 2007 And Beyond?

The Automotive Industry i n Turkey 2007 And Beyond?. Prof.Dr.Ercan TEZER / OSD General Secretary (2007-09). O tomotiv S anayii D erneği / OSD A utomotive Manufacturers Association. Founded in 1974 Main Objectives Are:

rigg
Download Presentation

The Automotive Industry i n Turkey 2007 And Beyond?

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. The Automotive Industry in Turkey 2007 And Beyond? Prof.Dr.Ercan TEZER / OSD General Secretary (2007-09)

  2. Otomotiv Sanayii Derneği / OSDAutomotive 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 • ODETTE • ACEA Liaison Committee • GAID Group • TAAM • OSD is a Partner UN/WP29 and EU Motor Vehicle Technical Committee • All Relevant Information is Found in OSD Web-Site: www.osd.org.tr/

  3. FREE CIRCULATION OF CAPITAL EU ACCESSION NEGOTIATIONS DECISION EU/TR CUSTOMS UNION 2005 AND BEYOND 1989 1996 * 1995 * 1980 2002 FREE MARKET ECONOMY WTO EU FULL MEMBERSHIP PERSPECTIVE Milestones of Turkish Economy CLOSED ECONOMY Political Uncertainty Resulting In Business Indecision Changing Political and Business Habits: Towards a New Turkey Striving Private Sector

  4. MVI in World - 2006 Ranking in EU (27) Total 6 Buses 1 LCV 2 H.Trucks 6 P.Cars 9 2 Million Units in 2010 1 Million Units in 2006

  5. New and More Competitive Conditions in the Market Better Incentives Provided for the Investment of New Models Production New Possibilities to be a Global Player More Close Integration of MVI’s Between Turkey and EU More EU MVI Share in the Market Through Free Circulation of Industrial Goods Customs Union/1996 and MVI

  6. For the Free Movement of Industrial Goods Tariffs and Non-Tariff Measures Shall be Wholly Abolished Turkey Shall Implement CCT and CTP for Non-EU Countries In order to Realize in Full Free Movement of Goods, the Customs Union Decision Necessitates the Adaptation of Series Technical and Commercial Legislations This Adaptation Fully Covers Both Industrial and Commercial Fields of Activities CU Implementation

  7. Transition Period Protected Market Development of MVI in Turkey: 1960/2010 1960-1970 License ASSEMBLY 1970-1980 Localization DEVELOPMENT OF COMPONENT IND. 1980-1990 Modernization INCREASE IN CAPACITY Up-to-date Model 1990-1995 UP-TO-DATE MODEL EXPORT FULL INTEGRATION MANUFACTURING BASE 1995-2000 Free Market Research & Development, Design & Technology Management, Intellectual & Industrial Property 2000-2012 TARGET FOR 2012 : CENTER of EXCELLENCE

  8. MV Manufacturers in Turkey 85 % of Components Manufacturers ISTANBUL Izmit Adapazar ı Gölcük Bursa Ankara Eskişehir Konya Izmir Aksaray Adana Antalya

  9. iSTANBUL iZMiT ADAPAZARi BURSA Turkey FORD TURKEY IS THE SOLE PRODUCER OF TRANSIT CONNECT AND IS BECOMING THE COMMERCIAL VEHICLE PRODUCTION CENTER FOR THE EUROPEAN MARKET. TOYOTA TURKEY IS AN EXPORT BASE FOR COROLLA SEDAN AND HAS STARTED PRODUCING AND EXPORTING VERSO HYUNDAI TURKEY EXPORTS ACCENT, IS BECOMING A PRODUCTION CENTER FOR STAREX KARSAN IS A PRODUCER OF PEUGEOT PARTNER TOFAŞ IS THE THE SOLE PRODUCER OF DOBLO, IS AN IMPORTANT PRODUCTION BASE FOR FIAT AUTO AND EXPORTS DOBLO AND ALBEA RENAULT IS THE SOLE PRODUCER OF MEGANE SEDAN AND CLIO III HONDA TURKEY IS A PRODUCER OF CIVIC SEDAN AND CITY

  10. Motor Vehicle Manufacturers (2006)

  11. MVI Integration Number of Manufacturers 15 Link With Non-EU 5(% 28 of 2006 production) * JV 4 * License 1 Link With EU 7(% 70 of 2006 production) * JV 6 * License 1 Local 3(% 2 of 2006 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 • HINO L

  12. Automotive Component Industry In Turkey • Around 1000 Component Suppliers: 350 Of Them Are Global Supplier • International Accreditation: Quality – ISO 16949, Environment - ISO 14001 • Well Educated Work Force: Around 250.000 • Cost Advantage: High Productivity and Relatively Less Labor Wage • Significant Experience In Their Field • Able To Meet Global Standards • Able To Compete In International Markets • Experience In Exporting Products

  13. History of the Production(x1.000) Total Production: 3,000 in 1963 987,000 in 2006 High Fluctuations In Recent Years Have Had A Particularly Negative Effect On The Development And Competitiveness Of The Industry

  14. Changes in Last 6 Years(x1.000) Exports Production X 3.58 X 3.40 Total Market Exports / Million $ X 3.43 X 4.26

  15. Exports Sharein Total Production is Over 70 % % (X 1000)

  16. The Role Of Exports In The Automotive Industry Rate of Exports in Production Total Production % 69 P. Cars % 79

  17. The Automotive Market is An Unsaturated One Vehicle/1.000 Inhabitants in 2005 Approximately 5 Million Vehicles Need To Be Sold In Turkey In 5 Years So That The Vehicle Intensity Can Reach The Level Of Countries Whose Economies Are Similar To That Of Turkey

  18. Tax Burden On Vehicles Is Very High In Comparison With Europe Passenger Cars (<1600 cc.) Light Commercial Vehicles Heavy Commercial Vehicles • Tax Rates Affect The Demand And The Production Level Directly • Tax Policies Should Ensure Stability In The Market • Tax Rates Should Be Adapted Gradually To The Level Of EU Rates

  19. Capitalizing On Those Strengths That We Possess, In The Short Term Production: 1 Million Exports: 0,7 Million Already Realized In The Medium Term Production: 2 Million Exports: 1,5 Million Can be Achieved Which Corresponds To An Employment Of 600,000 Persons And Exports Of $ 25 Billion However, This Requires An Additional Investment Of At Least $ 5 Billion Prospects of the Turkish Automotive Industry

  20. What Will Lead to New Investment • A New Investor Will Search For The Opportunity To Develop New Products At Moderately Lower Cost. • All Automotive Products Become Obsolete In The Long Term, Therefore Current Models Need To Be Renewed Within 2-3 Years. • So The Continuity Of The Business Would Heavily Depend On The Ability To Design And Launch New Products. • In Order To Realize New Projects At Competitive Cost These Are Needed: • R&D Capabilities (Vehicle And Component Manufacturers) • More Effective R&D Incentives • Advantages In Investment Cost • Project-Based Investment Incentives For Both Vehicle And Component Industry In Major Exports Projects

  21. Global Firms Make Their Investment Decisions On The Basis Of Competitive Advantages. Investing In Turkey Is 15 % Cheaper Than Western European Countries And Comparable To New EU Member Countries. New EU Member Countries Benefit Also From Their Advantage Of Proximity To The Main Markets. Tax Incentives Nullify The Relative Disadvantage Of Geographical Position And Help Turkey Gain A Significant Competitive Advantage. Countries Create Competitive Advantages Through Tax Incentives Turkey Can Be Considered By Global Investors As An Alternative Only If Tax Incentives Are Provided

  22. Recent Incentives Proposal On Investment • Government Declared To Decrease Corporate Tax Rate From 30 % To 20 % And Cancelled Investments Allowance 40 % • Tax Council Proposed To Make Reduction On Corporate Tax Rate Up To 90 % To Those “Big Investments”: • OSD Proposed The Following Scheme:

  23. Investment Allowance Replaced with Lower Corporate Taxation (Customs, VAT Exemptions Are Also Applicable) Corporate Tax Exemption is Also 40 % For R&D Expenses R&D Expenses is Subsidies up to 50 % in Order To Promote Quality And Productivity Improvement And Increase Competitiveness In Global Markets (R&D Incentives are Paid on the Basis of Projects Mainly for Product and Process Development) Incentives on Investment and R&D

  24. 40 % Deduction of R&D Expenses From Corporate Tax Came into Operation in 2005 Government Assigned $ 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 $ 10 Million to Start off TUBİTAK-MAM is Providing Large Scale of Basic Services for R&D OSD Has Been Active in all R&D Developments on Behalf of MVI Other Development on R&D Activities

  25. Optimising Capacity Utilisation Increasing The Size Of The Domestic Market Continuation Of Exports Increasing The Competitiveness Cost Reduction By Means Of Productivity Improvements Encouraging More Innovation In The Industry Developing The Vehicle And Component Industries Concurrently Establishing And Building On Strategic Partnerships Effective Cooperation On “Pre-competitive” Level The Strategy and Action Plan

  26. Thank You For Your Interest INTERNET http://www.osd.org.tr e-MAIL osd@osd.org.tr

More Related