This document provides a market report on Turkey's automotive industry. It includes statistics on Turkey's economy, population, and automotive sector. Some key points: - Turkey has a population of 75 million and ranked 17th globally in GDP. Its automotive industry produces over 1 million vehicles annually and exports around 70% of production. - The automotive sector employs 300,000 workers and contributes significantly to Turkey's economy. Domestic vehicle sales were around 900,000 in 2011 while production capacity meets customer demand. - The report provides detailed data on Turkey's vehicle market size and forecasts, distribution channels, competitive landscape, consumer trends, and reasons for investing in Turkey's growing automotive market.

1. November 15th, 2012
Turkey Automotive Market Report
Dear Executives of .........,
You'll find a detailed collection of data/info in this report to give indepth information regarding Turkey and its
automotive market structure.
Hope you would get maximum benefit of the report on your businesses.
Best Regards
Prepared by Kurthan Tarakçıoğlu 1/8

2. November 15th, 2012
Introduction
This document is produced by Kurthan Tarakcıoğlu on the request of ......... of ........ .
The purpose of this report is to give a candid and insight view of the Turkish Automotive market with regards to .................. brand's &
vehicles' initial understanding and assessment of the potential.
Please kindly bear in mind that, consequently; key to success has two important elements;
1. To understand the market and to have genuine desire and the capabilities to compete as an OEM,
2. A financially strong prominent local partner ( ie. distributor ) to establish a strong and competent network of dealers.
Thus, we shall be at your full disposal to further assess the potential in detail in all phases of this initiative.
The statistical contents of this report are sourced from Industry Associations, related Ministiries, professional experience and contacts.
Sources;
 Automotive Distributors Association, (ODD)
 Automotive Autorised Dealers Association, (OYDER)
 Automotive Manufacturers Association, (OSD)
 The Association of Automotive Parts and Components Manufacturers (TAYSAD),
 The Union of Uludag Automotive Parts and the Components Exporters Associations (UTAYSİB),
 Research and promotion platforms, including the Automotive Technologies Research and Development Center (OTAM)
 Automotive Industry Promotion Committee (OETK)
 Turkey Investment Support and Promotion Agency
 Turkey Statistical Instıtute, (TUIK)
 Organisation Internationale des Constructeurs d’Automobiles, (OICA)
 European Automobile Manufacturers Association (ACEA)
 Turkey Researchers Association (TÜAD)
 Other published articles and professional resources.
Prepared by Kurthan Tarakçıoğlu 2/8

3. Turkey Automotive Market Report November 15th, 2012
Turkey Automotive Market Report :
Table of Contents
I. Turkey Highlights .................................................................................... ...4
II. Automotive Sector Highlights .................................................................... 6
III. Economy Overview ...................................................................................12
IV. Automotive Market Overview ..................................................................17
a) Market History........................................................................................................................... 17
b) Market Potential ....................................................................................................................... 22
c) Market Forecast ......................................................................................................................... 23
d) Used Vehicle market and its characteristics .............................................................................. 25
e) Role of Financial Institutions (banks, car finance & leasing co.s) .............................................. 27
f) Industry Structure ...................................................................................................................... 30
g) Level of competition & Market Players' attitudes .................................................................... 33
h) Geographical Regions of Turkey & the vehicle park ............................................................... 35
i) Market Segment Structure & Analysis ....................................................................................... 40
j) Trends and Drivers ..................................................................................................................... 58
V. Legal, Political, Economical & Socio-Cultural Factors .................................59
VI. Distribution and Sales Analysis .................................................................69
VII. Competitive Analysis ................................................................................73
VIII. Consumer/Customer Analysis ...................................................................86
IX. Aftersales Responsibilities .......................................................................96
X. Why invest in Turkey and its Automotive Sector .......................................98
XI. Route to Market .....................................................................................100
Back-up Tables Yearly retail sales break down by Brands..............................................104
..Vehicle car park by Brand & Provinces..................................................112
Passenger Car Ownership by Customer Segments.................................128
Prepared by 3/8

4. Turkey Automotive Market Report November 15th, 2012
Official Name of Country Republic of Turkey
I. Turkey Highlights
Capital City Ankara
Government Parliamentary Democracy
Population 75 million (2011)
Labor Force (Population) 26.7 million (2011)
» In recent years, new terms have emerged to describe the Median Age 29.7 (2011)
largest developing countries such as BRIC that stands for Area 783,562.38 km²
Brazil, Russia, India, and China, along with BRICET (BRIC + Bulgaria, Greece, Syria, Iraq, Iran,
Neighboring Countries Azerbaijan, Armenia, Georgia
Eastern Europe and Turkey). These countries do not share
Istanbul (13.3 million), Ankara (4.8 million),
any common agenda, but some experts believe that they Izmir (3.9 million), Bursa (2.6 million), Adana
are enjoying an increasing role in the world economy and on Major Cities (Population) (2.1 million)
political platforms. Currency Turkish Lira (TRY)
GDP USD 772 billion (2011-Current Prices)
GDP Per Capita USD 10,444 (2011)
Exports Value USD 135 billion (2011)
Imports Value USD 241 billion (2011)
Foreign Direct Investment USD 15.9 billion (2011)
Number of Companies with
Foreign Capital 29,283 (2011)
Inflation Rate 10.4% (CPI-2011)
Germany (10.3%); Iraq (6.2%); UK (6.0%);
Major Exports Markets Italy (5.8%); France (5.0%) (2011)
Russia (9.9%); Germany (9.5%); China
Major Imports Sources (9.0%); USA (6.7%); Italy (5.6%) (2011)
» 216 countries ranked in terms of GDP growth, Turkey Customs Union Agreement with the EU
ranked 15th among 216. Correct to say that Turkey is among
Free Trade Agreements with Albania,
the fastest growing economies. Bosnia Herzegovina, Chile, Croatia, EFTA
» 227 countries ranked from largest to smallest GDP, Turkey member countries (Switzerland, Norway,
Iceland and Liechtenstein), Egypt,
ranks 17th. Accordingly, Turkey is classified among the Georgia, Israel, Jordan, Macedonia,
wealthy in the world economy. Montenegro, Morocco, Palestine, Serbia,
Trade Agreements Syria, Tunisia
Prepared by 4/8

5. Turkey Automotive Market Report November 15th, 2012
» Turkey is a Muslim but secular and democratic country in
the Mid-East (the only real democratic one).
» Income per capita is ~10.500U$. 226 countries ranked from
highest to lowest in terms of per capita income, ranks
Turkey 86th.
» 75% of the population live in urban areas.
» Revenue distribution: 20% of population holds 83% of
wealth. The trend for income distribution is improving at a
slow but constant rate.
» The population of Turkey stood at 75 million with a growth
rate of 1.31% per annum. 238 countries ranked in
descending order in the world population and Turkey is the
17th most populous country.
» 17,8% of the population is located in İstanbul.
» Median age is 29,7. Population is much younger compared
with European countries, almost 50% is below age of 25.
» The total length of the highways in Turkey is around 62,000
km, whereas railway’s length is only 10.940 km. A significant
part of governmental (public) spending is on transportation
infrastructures (highways, railroads, airports).
» Second largest member of NATO.
» Turkey's unemployment rate is ~10% and improving.
» Human resources generally good and very hard working.
» Growth in real estate is significant.
» The present government's political motto is to position
Turkey as the 10th largest economy in the world by 2023,
which will be the 100th anniversary of the Turkish
Republic.
Prepared by 5/8

6. Turkey Automotive Market Report November 15th, 2012
II. Automotive Sector Highlights the number of vehicles sold in the domestic market was around 900,000 in
2011.
The Turkish automotive industry, consisting of 17 domestic and foreign
principal producers supplemented by approximately 4,000 sub-industry
Turkey’s automotive industry’s foundations date back to the early
companies, directly employs some 300,000 qualified workers.
1960s, when the first efforts to develop and produce the first
Turkish-made passenger car were undertaken. During a period of
Turkey’s GDP per capita in recent years has exceeded USD 10,000 due to its
rapid industrialization and progress, this key sector transformed
growing economy and stable fiscal structure, with capacity increasing in line
itself from assembly-based partnerships to a fully-fledged industry
with domestic demand. The number of vehicles per 1,000 persons, which
with design capability and a massive production capacity. Matching
was approximately 149 in 2011 (108 cars per 1,000 people), indicates the
and surpassing international quality and safety standards, today’s
strong potential of the sector.
Turkish automotive industry is highly efficient and competitive with
its value-added production.
In addition to the professional associations and unions, such as the
Automotive Manufacturers Association (OSD), the Association of Automotive
The sector’s export and R&D capacity is supported by high
Distributors (ODD), the Association of Automotive Parts and Components
productivity levels, thanks to cooperation between the key
Manufacturers (TAYSAD), the Union of Uludag Automotive Parts and the
components of the industry, with its subdivisions, positive
Components Exporters Associations (UTAYSİB), research and promotion
interaction created in the joint university-industry projects and
platforms, including the Automotive Technologies Research and
advanced logistics facilities. The Turkish automotive industry fully
Development Center (OTAM), Automotive Industry Promotion Committee
complies with EU environmental and technical standards, as well as
(OETK) and Automotive Autorised Dealers (OYDER), actively guide the sector.
other international legislations. A production capacity that easily
International relations and the representation power of these institutions
meets customer expectations is one of the industry’s strong points.
contribute to the global strength of the Turkish automotive sector.
Improving in a way that preserves its innovative and flexible
Ambitious targets for the near future have been set for the Turkish
structure in the intensely competitive environment, the Turkish
automotive industry, including achieving two million units in vehicle
automotive industry has elevated the country to a prestigious
production, an export volume amounting to USD 50 billion, the realization of
global position, ranking 16th among automotive manufacturing
various R&D and P&D operations worth billions of US dollars and the
countries in 2010, producing more than 1 million vehicles, while it
formation of an "automotive production hub" that employs 600,000 workers
is the largest commercial vehicle producer in Europe. Around 70
and manufactures globally recognized quality and value-added products.
percent of the domestic production is being exported. Meanwhile,
Prepared by 6/8

7. Turkey Automotive Market Report November 15th, 2012
European Passenger Car Market (2011) European Light Commercial Vehicle Market (2011)
GERMANY 3.173.634 FRANCE 426.655
TURKEY 270.920
FRANCE 2.204.229
UNITED KINGDOM 260.153
UNITED KINGDOM 1.941.253 GERMANY 233.422
ITALY 1.748.143 ITALY 170.634
SPAIN 808.059 SPAIN 104.372
TURKEY 593.519 BELGIUM 61.428
NETHERLANDS 58.654
BELGIUM 572.211
SWEDEN 46.337
NETHERLANDS 556.123 POLAND 42.692
AUSTRIA 356.145 PORTUGAL 34.881
SWEDEN 304.984 AUSTRIA 32.531
POLAND 277.430 DENMARK 24.327
FINLAND 14.491
CZECH REPUBLIC 173.282
CZECH REPUBLIC 13.269
DENMARK 168.707
HUNGARY 11.433
PORTUGAL 153.433 IRELAND 11.346
FINLAND 126.123 ROMANIA 9.458
GREECE 97.682 SLOVENIA 6.482
IRELAND 89.896 GREECE 6.357
SLOVAKIA 5.735
ROMANIA 81.719
LUXEMBURG 3.423
SLOVAKIA 68.203 BULGARIA 2.927
SLOVENIA 58.417 ESTONIA 1.968
LUXEMBURG 49.881 LITHUANIA 1.824
HUNGARY 45.097 LATVIA 1.456
BULGARIA 19.136
ESTONIA 15.350
LITHUANIA 13.223
LATVIA 8.849
Prepared by 7/8

8. Turkey Automotive Market Report November 15th, 2012
» Major players have been established in Turkey for 30-40 » Automotive market is mostly effected sector from negative economic
years and have comparably stronger dealer net-works. developments.
» 47 brands are competing in the passenger car market. » Diesel penetration of the passenger car market is 62%.
» ~1000 exclusive dealers exist in the market. » Diesel market consumer demand is shifting to diesel A/T models.
» Tough competition and decreasing profitability especially in » Sedan models preferred.
the retail business will be changing the business » Consumer credit monthly rates of ~1% is convenient ground for car
environment. (consolidation at dealer level, emergence of purchase.
group dealers, increase in the appetite of importers » Operational fleet rental business will continue to expand.
investing in the retail side. » 66% of households does not have a car (GfK)
» BER (Block Exemption Regulation) is a strong corner stone.
» Government applies high purchasing taxation policy.
» Market driven by price, consumers incredibly price
sensitive. Automotive Total Vehicle Park as of 2011:
P.Car Truck Pick-up Minibus Bus Total
» High potential but volatile unsaturated market with
8.113.111 728.458 2.611.104 389.435 219.906 12.062.014
postponed demand.
1000
900
800
700
600
500
400 864
762 817
300 695 717
607 622 594 557
200 507 477 436 494
361 379 364
100 263 271 258 267 304
192 161
0
'90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12
Total Market (PC+LCV) x 1000
Prepared by 8/8