Transcript Slayt 1

OTOMOTİV SANAYİİ DERNEĞİ
AUTOMOTIVE MANUFACTURERS ASSOCIATION
The Automotive Industry in Turkey
2010 And Beyond?
Prof.Dr.Ercan TEZER / OSD General Secretary
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
 ENX
 GAID Group
 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:
www.osd.org.tr/
OSD is Organizing & Conducting Joint Actions
in Different Fields
OSD Working Groups
Environment
Technical Legislation
Human Recourses & Safety
Quality
Supplier Management
Marketing
Finance & Investment
Export & Imports
IT
Automotive Industry

Global
(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
Global Delocalization
“To be Manufacturer in Potential Markets and Enjoy With Low Operational Cost”
1970
Japan
USA
1980
1950
1960
1980
S.America
And
Others
Europe
1990
1970
PRC
Korea
Global Production (1995/2009) and Future ( x Million)
120
108
110
100
90
80
70
65
60
50
50
54 53
52
56
58
56
59
61
67
69
73
73
70
67
61
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
24
40
J.D.POWER Associates
World Total Production – 2008/2009
(x 1.000)
13.791
1) CHINA
7.935
2) JAPAN
5.712
3) USA
5.210
4) GERMANY
3.513
5) S.KOREA
3.183
6) BRAZIL
2.633
7) INDIA
2.170
8) SPAIN
2.050
9) FRANCE
1.557
10) MEXICO
1.490
11) CANADA
12) IRAN
13) ENGLAND
1.300
1.090
14) THAILAND
968
15) CZECH REP.
975
16) POLAND
879
17) TURKEY
870
18) ITALY
843
19) RUSSIA
20) BELGIUM
OICA
724
523
1
2
3
4
5
6
7
8
9
10
2008
JAPAN
CHINA
USA
GERMANY
S.KOREA
BRAZIL
FRANCE
SPAIN
INDIA
MEXICO
11.576 1
9.299 2
8.694 3
6.046 4
3.827 5
3.216 6
2.568 7
2.542 8
2.332 9
2.168 10
2009
CHINA
JAPAN
USA
GERMANY
S.KOREA
BRAZIL
INDIA
SPAIN
FRANCE
MEXICO
13.791
7.935
5.712
5.210
3.513
3.183
2.633
2.170
2.050
1.557
Ranking in EU (27) 2009
Total
7
Buses
LCV
H.Trucks
P.Cars
2
1
9
8
Chnc.
48,3%
-31,5%
-34,3%
-13,8%
-8,2%
-1,0%
12,9%
-14,6%
-20,2%
-28,2%
2009 Total World Production (x 1.000)
Chng.
12.944
8.759
-32,3%
SOUTH AMERICA
3.938
3.799
-3,5%
EU 27 COUNTRIES
18.432
15.235
-17,3%
3.339
1.759
-47,3%
40,0
TOTAL
70.520
61.366
-13,0%
CHINA
9.299
13.791
+48,3%
INDIA
2.332
2.633
+12,9%
10,0
2010 Q1
Chng.
1.738
2.953
69,9%
749
958
27,9%
3.260
4.370
34,0%
197
249
26,4%
1.610
2.541
57,8%
SOUTH KOREA
688
974
41,6%
TURKEY
143
258
80,4%
TOTAL
12.126
18.647
53,8%
CHINA
2.567
4.554
+77,4%
594
870
+46,5%
SOUTH AMERICA
EU 27 COUNTRIES
OTHER EUROPEAN
COUNTRIES
JAPAN
INDIA
7,3 7,9 4,7
3,4
3,0 2,3 3,7 2,8 5,1
-4,8
-2,8
0,0
-10,0
-20,0
2009 Q1
7,9
-30,0
-40,0
2009Q3
-8,2%
2009Q1
3.513
2008Q3
3.827
20,0
2008Q1
-31,5%
2007Q3
7.935
NAFTA
20,7
30,0
11.576
SOUTH KOREA
50,0
2007Q1
JAPAN
53,8
2006Q3
OTHER EUROPEAN
COUNTRIES
AND
TURKEY
60,0
2006Q1
NAFTA
2009
2010Q1
2008
-18,8
-24,9
-36,2
-50,0
OICA
Changes in Total Production By Regions 2008/2024
1,53
World Total
2,33
BRIC
3,07
India
2,46
China
1,95
Russia
1,59
Brasil
2,25
2,19
Others
Asia/Pasific
1,63
E.Europe
1,36
1,36
N.America
Mercosur
1,09
1,03
1,01
W.Europe
Korea
Japan
0
1
2
3
4
Production Moves From West To East & North To South
J.D.POWER Associates
Production BRIC Countries 2008 / 2024 (x 1.000)
50.000
Russia
Brazil
China
India
38,699
40.000
30.000
20.000
16,612
Change
X 2,33
10.000
0
2008
Russia
Brazil
China
India
BRIC
Total World
J.D.POWER Associates
2024
2008 (%)
2024 (%) 2024/2008
1.837
3.579
1,59
3.060
4.851
1,59
9.344
23.002
2,46
2.371
7,268
3,07
16.612 (23) 38.699 (35)
2,33
70.738
108.373
1,53
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
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
Competitiveness to be a Global Player
Towards
 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
More
Development of MVI in Turkey: 1960/…..
1960-1970
License
ASSEMBLY
Protected
Market
DEVELOPMENT OF
COMPONENT IND.
1971-1980
INCREASE IN
CAPACITY
1981-1990
1991-1995
EU/TR
Customs Union
Free Market
Global
Competition
Localization
Modernization
UP-TO-DATE MODEL
EXPORT
1996-2000
Up-to-date Model
FULL INTEGRATION
MANUFACTURING BASE
2001-…..
Transition
Period
Entrance of
Toyota, Honda,
Hyundai
Research & Development,
Design & Technology Management,
Intellectual & Industrial Property
TARGET FOR NEAR FUTURE : CENTER of EXCELLENCE
MV Manufacturers in Turkey
85 % of
Components
Manufacturers
İSTANBUL
İzmit
Gölcük
Bursa
İzmir
Adapazarı
Ankara
Eskişehir
Aksaray
Adana
MV Manufacturers in Marmara Region
Motor Vehicle Manufacturers (2010)
Motor Vehicle Manufacturers (2010)
Companies
Ownership
TOFAŞ/FIAT
O.RENAULT
TOYOTA
HYUNDAI ASSAN
HONDA
Partner
Capacity
Product
Vehicle/Year
JV
FIAT
JV
RENAULT
P.Cars
FDI
TOYOTA
JV
HYUNDAI
FDI
HONDA
P.Cars Total
FORD OTOSAN JV
FORD
HYUNDAI ASSAN JV
HYUNDAI
KARSAN
Local
PEUGEOT
B.M.C.
Local
Local
CV
M.BENZ TÜRK
JV
M.BENZ
ANADOLU ISUZU JV
ISUZU
TEMSA
Local
Local
OTOKAR
Local
LAND ROVER
M.A.N.
FDI
MAN
CV Total
Total
400.000
360.000
150.000
100.000
50.000
1.060.000
330.000
25.000
28.000
20.000
18.500
13.155
10.500
8.800
1.700
455.655
● 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
1.515.655
Sector
MVI Integration
Number of Manufacturers 13
Link With Non-EU
* JV/FDI
* License
* JV/FDI
* License
6
(% 82 of 2009 production)
2
(%
5
2
Local
1 of 2008 production)
Link With Non-EU Manufacturers
Link With EU Manufacturers
FIAT GROUP
FORD
MAN
M.BENZ
RENAULT
ROVER GROUP
PEUGEOT
(% 17 of 2009 production)
4
1
Link With EU







5
JV
JV
FDI
JV
JV
L
L





ISUZU
TOYOTA
MITSUBISHI
HONDA
HYUNDAI
JV
FDI
L
FDI
JV
History of the Production (x1.000)
1.100
635
1.200
Passenger Cars
1.000
Total
870
510
800
Total Production:
3,000
1,147,000
600
in 1963
in 2008
421
348
431
297
400
200
3
243
213
271
175
1963
1964
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
0
110
47
High Fluctuations In the Past Have Had A Particularly Negative Effect On The
Development And Competitiveness Of The Industry
Changes in Last 7 Years; 2009 and 2010 (x1.000)
1.200
1.000
1.400
Exports
910
850 1.200
820
800
400
508
630
823
262
400
870
347
200
2002/2008 X 3,5
2002/2008 X 3,3
0
2002 2003 2004 2005 2006 2007 2008 2009 2010
Total Market
770
741 759
800
666 634
600
527
576
30
25
2002 2003 2004 2005 2006 2007 2008 2009 2010
Exports / Million $
24,7
21,2
20
15,5
15
398
400
20
16,8
12,6
10,6
10
200
879
534
600
359
0
1.000
1.050
800
552
200
1.099 1.147
988
1.000
697
600
Production
174
5
2002/2008 X 3,6
0
6,9
4,6
2002/2008 X 5,4
0
2002 2003 2004 2005 2006 2007 2008 2009 2010
2002 2003 2004 2005 2006 2007 2008 2009 2010
2003/2009 Results and 2010 Estimation
2003
2008
2009
2010
534
1.147
870
900 - 1.000
359
910
630
700 - 850
6.900
24.700
16.800
18.000 - 22.000
Production
(1.000)
Exports
(1.000)
Exports
(Mio-$)
September
2009
Production
Exports
Market
2010
January - September
(%)
2009
2010
(%)
Total
86.271
96.453
11,8
615.997
784.302
27,3
P.Cars
50.320
54.046
7,4
374.927
443.236
18,2
Total
59.589
64.333
8,0
435.303
560.962
28,9
P.Cars
36.899
37.375
1,3
278.519
332.224
19,3
Total
83.403
66.585
-20,2
433.164
484.237
11,8
P.Cars
52.162
42.477
-18,6
281.032
312.403
11,2
2011
2010
4 Year
2009
2008
2007
2006
2005
2004
2003
100
2002
2001
2000
4 Year
1999
1998
1997
1996
1995
1994
1993
1992
Crises  Changes in Total Market (x 1.000)
120
4 Year
%
80
60
40
20
0
Exports Share in Total Production is Over 72 %
1.600
100
%
(X 1000)
1.400
1.200
71
Rate of Exports in Production
1.000
Total Production
% 72
P. Cars
% 76
73
71
75
79
72
64 62 62
60
50
30
600
40
22
400
0
Exports
Production
Exports (%)
80
70
800
200
90
12 13
3
2
5
8
30
20
9
10
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
10
8
15
37
42
31
37
91
104
202
262
359
508
552
697
345
453
269
326
329
400
405
326
468
286
357
562
823
879
988
3
2
5
12
13
8
9
30
22
71
73
64
62
62
71
820
910
1.100 1.147
75
79
629
870
72
0
The Automotive Market is An Unsaturated One
800
600
566
485
429
400
World Bank / P.Cars/1.000 Inhabitants in
2007
383
299
257
200
87
Turkey
Bulgaria
Hungary
Poland
Greece
Spain
Germany
0
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)
The Assets & Potential of MVI of Turkey
 Automotive Culture
 High Sense of Quality
 Labour Peace
50 years of production tradition
TQM, Lean Production, 6 Sigma
unionized work force / collective bargaining since
1963
 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 %
$ 10 billion worth of Investment
Entrepreneurship
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
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
Prospects of the Turkish Automotive Industry
o In The Short Term
Production:
Over 1,0 Million
Exports:
Over 0,8 Million
o In The Medium Term Production:
Exports:
Already Realized
2,0 Million
1,5 Million
Can be Achieved
Direct Employment Of 600,000
Total Exports Of $ 50 Billion
By Means of Additional Investment At Least $ 5 Billion
OTOMOTİV SANAYİİ DERNEĞİ
AUTOMOTIVE MANUFACTURERS ASSOCIATION
Thank You For Your Interest
INTERNET
http://www.osd.org.tr
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