Global Automotive Export Resource Guide | Page 228

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Tires, brake linings, gearboxes, and clutches are the major imported items in the parts industry. Generally, imported parts are used in supplying imported vehicles, to OEMs for vehicles to be exported, or where there is no local production, such as for CV drive shafts, catalytic converters and tapered roller bearings. Imports are also found where production shortages occur.

Examples include power steering hydraulic systems, bearings, and v-belts. Parts, which need to be replaced frequently because of poorly maintained roads, heavy traffic, traffic accidents, and poor fuel quality, can also be considered as "best prospects." Examples include: shock absorbers, brakes, clutches, rings, filters, bumpers, lights, and signaling equipment to name but a few. As Turkey continues to move towards European Union integration, equipment meeting stricter EU guidelines from emission control to automobile safety and standards tests, will equate to increased sales of advanced auto parts.

Electric Vehicles Market

According to the Turkey Electric and Hybrid Vehicles Association, TEHAD, data, there were 2361 units sold in the first half of 2018, of which 98 units were 100% electric, and the rest, 2263 units, with hybrid option.

Turkish hybrid vehicles market is growing. The most popular model in 2018 was Toyota C-HR, similar to 2017. Auris and RAV4 followed Toyota C-HR hybrid.

In the electric models, market has shown high interest to the newly introduced Jaguar I-Pace. TEHAD officials state that the incentive provided by the Turkish Government to electric vehicles as a discount in Special Consumption Tax (OTV) on these vehicles helped the sales amount. Conventional vehicles market has shown a 40% decrease, due to the economic situation in the country, however such a decrease has not occurred in the electric/hybrid market.

Heavy Duty Market

In January-November 2018; heavy commercial vehicle market compared with the same period of the previous year with 25,368 units decreased 27.4%, to 18,408 units. Truck market in 2017 was 14,112 units and showed a little decrease in 2018 and was 7,223 units in the first seven months of 2018. With an interpolation, one would expect a market with approximately 12% decrease in 2018.

Specialty Equipment Market

Very few people would predict a fast-growing automotive accessories and specialty equipment market in Turkey, looking at the economic indications, and especially the very low per capita income of the citizens. Plus, Turkey has very strict rules on automobile codes: Legally, one cannot make any modifications on autos. However, Turkey has a very young population: Of the total 81 million people living in Turkey, nearly 50 percent is below the age of 30. Again, of the total population, 5-10 percent handles nearly the half of the total income of the country, and this is the target group of the Automotive Accessories and Specialty Equipment suppliers in Turkey. Accessories and specialty equipment market in Turkey include both interior and exterior car styling units, such as seat covers, mirrors, sun-roofs, fog lights, special security systems, foils for coloring the windows, aerodynamic products, like spoilers, hi-fi systems, air conditioning units, windshield wipers, emblems, custom wheels, coated windows, etc. in addition to the performance enhancing units. This segment of the market represents around 10 percent of the total auto parts aftermarket.

best prospects