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Market Trends & Demand
There is a wide variety of vehicle models available in Turkey, however the market is dominated with European brands, also increasing the need for European parts. In addition to the large number of models manufactured in Turkey, a significant large number of models are imported. Almost all the models from every brand have a good market in Turkey.
All of the major international petroleum refiners are present in the Turkish auto chemicals and lubricants market. Companies such as Castrol-BP, Shell, Exxon-Mobil, Texaco, Total, M-Oil are present and offer the full range of motor oils, lubricants and fuel additives. Additionally, firms that are only involved in the lubricants business also operate in the Turkish market, such as the Fuchs, a German company. Domestic production is met by several large producers and 100 additional small to medium-sized companies involved in the car care market.
Suppliers’ agents play an essential role in marketing and sales. In fact, because of the complicated import procedures, it is almost impossible to sell without a competent agent in the country. In Turkey, agency/representation/distributor agreements are private contracts between agents and their foreign suppliers. There are no unusual regulations, which govern commission rates, termination, etc. However, in the automotive aftermarket sector, a commission rate of 5–10 percent is most common. Representatives provide pro forma invoices to the importers, including their commission in the price, and expect the foreign supplier to reimburse the commission amount to their account after the sale is realized.
The Turkish import regime prohibits the importation of remanufactured, rebuilt, used, reconditioned vehicles and parts. Only the current year or the following year models/newly manufactured parts can be imported.
Best Prospects for U.S. Exports
Aftermarket Summary
The Turkish automotive parts/service equipment industry has expanded as Turkish automotive production and imports have increased. Today Turkey produces spark plugs, carburetors, fuel injection systems, and several transmission parts. The sector provides parts to the new vehicles as well as the aftermarket for the automobile fleet exceeding 22 million units.
Currently, share of locally manufactured parts in the production of OEMs is around 40%. Parts manufacturers chose the way to be more aggressive in the export markets. Currently, 51% of the local parts production is exported.
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