CEO 360 Degree Perspective of The Automotive Industry in Turkey Opportunities for OEMs and Suppliers in Turkey M67B-18 August 2011 Disclaimer • Frost & Sullivan takes no responsibility for any incorrect information supplied to us by manufacturers or users. • Quantitative market information is based primarily on interviews and therefore is subject to fluctuation. • Frost & Sullivan research services are limited publications containing valuable market information provided to a select group of customers in response to orders. 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M67B-18 3 Table of Contents Objective and Scope 16 Research Methodology 17 Key Industry Participants 18 Executive Summary 19 • Top Strategic Factsheet-Light Vehicle Market in Turkey 20 • Turkey’s Demography-An Overview 21 • Turkey’s Economy-An Overview 22 • Turkey-Urbanization Trend 24 • Istanbul Megacity-Car Ownership and Commute Trend 26 • Global Light Vehicle Sales 2020-Regional Overview 27 • Global Light Vehicle Production 2020-Regional Overview 28 • Market for Cars in Turkey 29 • Turkish Light Vehicle Market Overview-Light Vehicle Sales and Production 30 • Light Vehicle Production by Segment 31 • Light Vehicle Sales by OEMs 32 • Light Vehicle Sales - Market Share Analysis by OEMs 33 M67B-18 4 Table of Contents • Light Vehicle Sales - Market Share Analysis by OEM’s Country of Origin 34 • Role of Ministry and Key Organisations in the Implementation of Automobile Industry Plan 35 • Customer Segmentation based on Vehicle Length and Price Analysis 36 • Vehicle Variant versus Sales and Price Analysis 37 • Standard versus Optional Feature Analysis 38 • Dealer Point Analysis by OEM 40 • Dealer Point Analysis by City 41 • Dealer Point Revenue versus Profitability and Customer Payment and Services Options 42 • E-Mobility in Turkey-An Overview 43 • Renault’s Electric Vehicle Strategy-A Case Study 44 • Turkish Automotive Industry - SWOT Analysis 45 Urbanization in Turkey-Impact on Mobility 46 • Global Mega-trend: Three Main Trends in Urbanization 47 • Global Mega-trend: Rise of Megacities 48 • Global Mega-trend: Top 49 Megacities by 2025 49 • Global Mega-Trend: Trends in Megacities 50 • Global Mega-trend: Three Key Challenges 51 • Turkey’s Urbanization Trend-An Overview 52 M67B-18 5 Table of Contents • Istanbul Megacity - Demography and Landscape 54 • Istanbul Megacity-Land Use and Density 55 • Istanbul Megacity-Car Ownership and Commute Trend 56 • Istanbul Megacity-City Planning 57 • Istanbul Megacity-Key Developments 58 Turkey Automotive Industry - An Overview 59 • PESTLE Overview of Turkey 60 • Turkey’s Interest Rates versus Consumer Loan Rates 61 • Market Drivers and Restraints 62 • Excise Duty and Tax Structure for Passenger Vehicles 63 • National Automotive Policy 64 • Turkish Automotive Belt 65 • Joint Ventures, Partnerships and Alliances 66 • Structure of Turkish Automotive Industry 68 • Automotive Exports from Turkey 69 • Light Vehicle-Production, Export, Sales and Imports 70 • Light Vehicle - Sales and Import 71 • Incentive Instruments for Automotive Investment 72 M67B-18 6 Table of Contents • Tax Exemptions and Other Incentives for Automotive Investments 73 • Foreign Direct Invest Framework 74 Turkey Light Vehicle Market - An Outlook 75 • Turkish Light Vehicle Market Overview-Light Vehicle Sales and Production 76 • Light Vehicle Production by Segments 77 • Light Vehicle Production by OEM 78 • Light Vehicle Sales by OEM 79 • Light Vehicle Production versus Capacity 80 Turkey Light Vehicle Market-Key Analysis 81 • Customer Segmentation based on Vehicle Length versus Price Analysis 82 • Vehicle Variant versus Sales and Price Analysis 85 • Standard versus Optional Feature Analysis 88 • Standard versus Optional Feature Analysis-Renault 89 • Standard versus Optional Feature Analysis-Ford 90 • Standard versus Optional Feature Analysis-Fiat 91 • Dealer Point Analysis by City 92 • Dealer Point Analysis by OEM 94 M67B-18 7 Table of Contents • Dealer Point Analysis by OEM versus City 95 • Dealer Point Selection Criteria (Top 5) 96 • Dealer Point Revenue versus Profitability and Customer Payment and Services Options 97 E-Mobility in Turkey 98 • E-Mobility in Turkey-An Overview 99 • Roadmap for EV Market in Turkey 100 • Incentives and Taxation Policies for Electric Vehicles 101 • Renault’s Electric Vehicle Strategy-A Case Study 102 • Electric Vehicle Production by OEM-Roadmap 103 • Electric Vehicle Model Line-up for Domestic Sales 104 • Electric Vehicle Model Line-up for Domestic Sales by Vehicle Segment 105 • EV Charging Infrastructures in Selected Cities 107 • Electric Vehicle Eco-System in Istanbul Megacity 108 Key Conclusions 110 • Conclusion 111 About Frost & Sullivan 112 M67B-18 8 List of Figures Automotive Industry: Other Macro-Economical Statistics (Turkey), 2010, 2011, 2012 and 2013 21 Automotive Industry: Demography Details 2 (Turkey), 2010-2013 21 Automotive Industry: Economy (Turkey), 2007, 2010 and 2015 22 Automotive Industry: Fuel Prices (Turkey), 2007-2011 23 Automotive Industry: Urbanization Trend (Turkey), 2010 and 2023 25 Automotive Industry: National Automotive Policy (Turkey), 2010 64 Automotive Industry: Joint Ventures, Partnerships and Alliance (Turkey), 2010 66 Automotive Industry: Incentive Instruments for Automotive Investment (Turkey), 2010 72 Automotive Industry: Tax Exemption and Other Incentives for Automotive Investment (Turkey), 2010 73 Automotive Industry: Foreign Direct Investment Framework (Turkey), 2010 74 M67B-18 9 List of Charts Automotive Industry: Automotive Production and Top 5 OEMs Share (Turkey), 2010 and 2018 20 Automotive Industry: Automotive Sales and Top 5 OEMs Share (Turkey), 2010 and 2018 20 Automotive Industry: Population Statistics (Turkey), 2010, 2015, 2020 and 2025 21 Automotive Industry: Age Demography (Turkey), 2010 and 2025 21 Automotive Industry: GDP Details (Turkey), 2007-2015 22 Automotive Industry: Fuel Prices (World), 2010 23 Automotive Industry: Urbanization Trend (Turkey), 2010 24 Automotive Industry: Urbanization Trend (Turkey), 2010 and 2023 25 Automotive Industry: Car Density in Istanbul Megacity (Turkey), 2010 and 2025 26 Automotive Industry: Light Vehicle Sales (World), 2010 and 2020 27 Automotive Industry: Light Vehicle Production (World), 2010 and 2020 28 Automotive Industry: Market for Cars (Global), 2010 and 2015 29 Automotive Industry: Light Vehicle Production and Sales (Turkey), 2007-2018 30 Automotive Industry: Light Vehicle Production (Turkey), 2010 and 2018 31 Automotive Industry: Light Vehicle Sales (Turkey), 2010 and 2018 32 M67B-18 10 List of Charts (continued) Automotive Industry: Market Share Analysis of Top 11 OEMs (Turkey), 2009 and 2010 33 Automotive Industry: Market Share Analysis by OEM’s Country of Origin (Turkey), 2009, 2010, 2018 34 Automotive Industry: Role of Ministry (Turkey), 2010 35 Automotive Industry: Customer Segmentation (Turkey), 2010 36 Automotive Industry: Vehicle Variant versus Sales and Price (Turkey), 2010 37 Automotive Industry: Standard versus Optional Feature Analysis (Turkey), 2010 38 Automotive Industry: Standard versus Optional Feature Analysis for Renault (Turkey), 2010 39 Automotive Industry: OEM Dealer Point Analysis (Turkey), 2010-2018 40 Automotive Industry: Dealer Point Analysis by City (Turkey), 2010 41 Automotive Industry: Dealer Revenue versus Profitability (Turkey), 2010 42 Automotive Industry: Customer Payment Option (Turkey), 2010 42 Automotive Industry: Original versus Substitute Part Option (Turkey), 2010 42 Automotive Industry: E-Mobility-An Overview (Turkey), 2010 43 Automotive Industry: Renault-Electric Vehicle Offering (Turkey), 2010 44 Automotive Industry: Urbanization Trend (World), 1950-2025 47 Automotive Industry: Megacities-Structure (World), 1950, 2000 and 2025 48 M67B-18 11 List of Charts (continued) Automotive Industry: Top 49 Megacities (World), 2025 49 Automotive Industry: Impact of Urbanization (World), 1950-2025 50 Automotive Industry: Key Obstacles (World), 2010 51 Automotive