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International Business Convention Meetings for the Automotive Industry

Bursa, TURKEY | November 14-16, 2017

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Turkey: A centre of excellence in automotive industry

 

Why Turkey?

“Turkey’s 2023 target is to take place among the world’s 10 largest economies in the 100th year of the Republic. Such a country in the economic top ten list can produce its own automobile brand, it is a reachable target”.

Toyota Turkey CEO Orhan Ozer

Key economic indicators:

 

  • The 15th biggest automotive producer in the world and the 5th in Europe in 2015
  • The country accounts for 25% of the automotive production occurring in Central and Eastern Europe
  • The automotive industry is one of the main drivers of the manufacturing sector in Turkey and employs more than 400,000 people
  • Turkish automotive industry is an export champion with its 16% share in total export. 75% of production in Turkey is destined for foreign markets

  • Turkish automotive part exports have increased 11% between 2010-2014. They represent 1.11% of world exports
  • In Turkey, there are 50 R&D centres belonging to automotive manufacturers/suppliers which are operational and the total amount spent on R&D reaches TRY 14.8 billion in 2013 with compound annual growth rate (CAGR) of 22.5%

  • In Turkey, there are 12 OEMs producing over 1.3 million units of vehicles yearly. The localization rate of OEMs varies between 50 and 70%. There are around 1,100 first-tier companies working directly with them. With 28 of them ranking among the 50 largest global suppliers, there are more than 250 global suppliers using Turkey as a production base
  • Turkey increased its vehicle production from 374,000 in 2002 to over 1,170,445 units in 2014, representing a CAGR of around 10%

Turkish market is attractive because:

  • Automobile penetration in Turkey (165 cars per 1,000 people) is behind the European average of 500. This indicates ample opportunities for carmakers in the domestic market
  • The customs union agreement signed between Turkey and the EU in 1995, allows customs free export to EU
  • The Turkish automotive sector expects an investment from a new manufacturer within the next 5 years

Automotive – A key sector in the region of Bursa

  • Being the 4th largest city of Turkey, Bursa is one of the worldwide bases for automotive manufacturing
  • In line with the OEM plants, OESs are mostly located in Bursa, Kocaeli and Istanbul. In Bursa, there are more than 350 automotive industry suppliers and 600 foreign companies; including global giants Fiat, Bosch, Renault
  • The city has 18 organized industrial zones & 1 free trade zone
  • Its strategic geographic location provides logistics connections

Facts & Figures

Bursa employs 70 000 employees comprising 25% of those working in the automotive industry in Turkey

The city undertakes 60% of Turkey's overall automotive manufacture and 15% of Turkey's automotive industry business

Bursa's export reached USD 11.7 billion in 2015

The city has a strong R&D capability and unit labour costs are lower than the ones in European countries


Automotive sector in Bursa aims to:

  • Increase its sales potential and access to global markets via new railway and highway investments to be finished shortly
  • Benefit from developing domestic market
  • Benefit more from the advantages of state supports
  • Become a global R&D and design centre

General Organisation: advanced business events (abe)
35/37 rue des Abondances - 92513 Boulogne-Billancourt cedex - FRANCE
T.: +33 (0)5 32 09 20 01 - Fax: +33 (0)1 46 03 86 26 - Email: automeetingsturkey@advbe.com
abe – SAS capital 50 000 € - RCS Nanterre B 515 013 506 00024 – NAF 8230 Z