Alper Kanca, chairman of the Turkish Association of Automotive Parts and Components Manufacturers (TAYSAD), has said the association is determined to become a global automotive hub by 2030. The Turkish automotive supply industry, whose largest market is Europe, is taking steps toward its goal of becoming a global power.
Kanca stated, “The Turkish automotive supply industry will reach its goal of becoming a global automotive hub in 2030 through the ‘Design, Technology and Logistics’ formula. With its more than 360 members in various parts of Turkey, TAYSAD provides employment for more than 150,000 persons. Our members have a turnover of $23 billion and exports of $9 billion. Seventy-seven of our members have accredited R&D centers. TAYSAD members invest everywhere in the world. Fifty-nine of them have invested in more than 156 facilities in 40 countries. Thus, TAYSAD is exhibiting a strong presence in the world automotive industry.”
Turkey exports the most vehicles to Europe
Kanca said, “2016 was a year in which there were very many positive developments in the Turkish automotive industry. However, there also were events that threatened to undermine economic stability and democracy. The automotive sector drives production, employment and exports in Turkey. The sector is 17th in the world in domestic market sales and sixth in European automotive sales. I say with pride that we are the country in the world that exports the most to Europe. At the end of 2015, EU countries had imported 843,000 vehicles. Following Turkey is Japan, with 480,000, South Korean, with 376,000, and the U.S., with 250,000.”
Kanca said TAYSAD believes there will be a global increase in total vehicle production, and there has been an increased interest in new vehicles manufactured in Turkey this past year. “The Toyota C-HR and the Tofaş Egea, two large projects being carried out in Turkey, are receiving a great deal of attention,” he said. “The Toyota C-HR, the first hybrid and crossover vehicle produced in Turkey, has begun mass production. Sixty percent of the Toyota production plant’s capacity in Sakarya will be used for the C-HR, which got off the ground due to a €350 million ($368 million USD) investment. Ninety percent of the C-HR manufactured will be exported. On the other hand, Tofaş’s Egea model is quickly on its way to breaking records. The plant manufacturing them puts out 1,500 of them per day, making it the fastest-producing plan in the Turkish automotive sector. Tofaş’s Egea model has received great demand both from within Turkey and abroad. Therefore, a decision was made to set up a second frame assembly line. Egea will now be manufactured on a single conveyor belt, through which production will increase two-fold. An investment of €50 million ($53 million USD) will be made.”
Foreign-owned companies are increasing investments in Turkey
Not only OEMs like Toyota and Fiat, but international Tier 1 suppliers also are demonstrating their confidence in Turkey through investments. Kanca assessed the situation, saying, “Foreign company investments in Turkey make us hopeful about the future. To give an example, the German automotive supply industry company ElringKlinger will invest in a plant in Bursa. Freudenberg decided to establish a Turkey and Middle East regional distribution platform in Bursa. The first shock absorber manufacturer in Turkey, Maysan Mando, is planning to invest a total of $130 million by 2019 to expand the range of products it makes in Turkey. Taking all of these into consideration, we see that the states of the world have confidence in the investment environment in Turkey. This makes us very proud as Turkey.”
Turkey invites European countries to collaborate
Kanca said that, “As Turkish automotive supply industrialists, our investments have begun to bear fruit. They are continually growing and we plan new investments with our partners. Foreign investors and all of our stakeholders abroad are able to transform Turkey’s potential, speed and ability to do business into opportunity. As Turkish automotive industrialists we continue to invest in Europe and want to strengthen economic integration with European countries. In order to mutually increase the confidence built with European countries, we expect positive support and cooperation from our EU partners. This situation will bring mutual economic, political and social benefits to both sides.”
