Turkey
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American products compete with European products that maintain price advantages because of lower transportation and logistics expenses, and zero customs duties. Turkey is also a member of the EU Customs Union. In addition, American companies compete with cheap Asian products. In some segments of the industry, such as automotive chemicals and lubricants, the easiest way for an American supplier to overcome the freight disadvantage is to supply its products in bulk and have the products repackaged for retail in the local market. They may also bring products in a concentrated form, add ingredients and then package them in Turkey. This is how most American companies are successful in the market.
Major procurements are realized by private business. However, large fleets of vehicles owned by the municipalities and the central government are also important to the sector.
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 or termination. However, in the automotive aftermarket sector, a commission rate of 5–10 percent is most common. Representatives provide proforma 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.
According to the Under Secretariat of Foreign Trade of the General Directorate of Imports, the importation of used or reconditioned parts for automobiles and/or vehicles is prohibited in Turkey. The Turkish Government only permits limited importation of used equipment or machinery. Items permitted for importation are listed and published in the official Gazette. Used or reconditioned parts for automobiles and/or vehicles are noticeably absent from this list.
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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 and any technology related to the EVs have a good market in Turkey.
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Market Entry
Current Market Trends & Demand