Automotive


We have pioneered the creation of the Turkish automotive market and its export drive towards global markets, thus representing the nation In the world arena with our exellence in production and R&D…


23%

Market share of Koç Holding Automotive Companies, which are industry leaders
TL

3.5 BILLION

Investments of Koç Holding Automotive Companies


Koç Group maintained market leadership with a 23.4% share in the automotive sector, which contracted 10% in 2014.


Developments in the automotive sector in 2014

In 2014, unit sales in the Turkish automotive industry were 807 thousand, a decline of 10% compared to 2013. The factors behind the slowdown in sales were:

  • Increasing interest rates,
  • Rising vehicle prices due to fluctuations in foreign exchange,
  • Increasing special consumption tax rates for passenger cars applicable as of 1 January 2014,
  • Restrictions brought by the Banking Regulation and Supervision Agency (BRSA) on vehicle loans,
  • High base year,
  • Volatility in financial markets and low level of economic activity and consumer confidence before the elections in March.

However, there were positive developments in domestic demand in the second half of the year due to decreasing political uncertainties and a relatively positive economy. The contraction slowed down in the shrinking economy was observed in the 3rd quarter of the year. A monthly basis growth was recorded in light commercial vehicles as of September and in the medium commercial vehicles as of August. Growth was recorded in all segments in the last quarter of the year. There was intensive price competition in the sector throughout the year.

On the other hand, in the European light commercial vehicle market - Turkey’s largest export market - there was an 11% rise in sales volume according to the data announced by the European Automobile Manufacturers Association (ACEA).

The bus market which expanded in 2013 as a result of Istanbul Metropolitan Municipality bids, in particular, and of other high quantity purchases of the municipalities, contracted in 2014 due to the fact that the purchases were almost completed. New Mayors, after local elections left behind 2014, completed the year relatively without making purchases due to adaptation period.

The trailer market grew with the impact of the increase in trailer (suitable for train loading) demand compared to previous year. However, uncertainties at the South East border had a negative impact on the market. There was growth in the light truck market compared to the previous year.

The approach of procuring armored and tactical vehicles from domestic resources continued in line with the strategy that gives priority to the national and domestic projects in the defense industry of our country.

Developments in the tractor market in 2014

As of 2014 Turkey is in the 4th position in the world tractor market that reached 1.5 million tractors. While the tractor market contracted all across the world in 2014, only in Turkey and North America was there an increase in the market. This situation offers significant opportunities to producers. According to Turkish Statistical Institute data, more than half a million of the 1.6 million tractors in Turkey have outdated technical specifications. This situation significantly increases the renewal potential of the tractor sector. If this potential is considered wisely, an important amount of productivity rise is expected in the agricultural sector in the upcoming period. In parallel to the increasing importance of industrial agriculture in global markets and in Turkey, Turkish tractor market is expected to show rapid growth in the coming period. For this process to carry on properly, it is vital to expand the incentives for modern agriculture techniques and agricultural mechanization. In addition, it is anticipated that the export potential of the sector will surge with the compulsory implementation, in 2017, of international standards like the 4th generation emission value in the domestic market.

Koç Holding Automotive Group

Koç Holding maintained its leadership with a 23.4% share in the automotive market, which shrank by 10% in 2014. Ford Otosan became 3rd in the automotive market with an 11.6% market share while Tofaş was in the 4th place with an 11.4% market share.

2014 was a year of transition for Ford Otosan as it completed the investment program it started in 2010 and launched new products while increasing its production capacity. Due to the product transition, there was a temporary weakness in production, sales and export figures. However, sales gained momentum with the new generation Ford Transit introduced in March, and Ford Courier introduced in May. After it was launched in B-segment light commercial vehicles, Ford Courier became the bestselling vehicle of its segment every month in the June-December period.

Achieving 19% of Turkey’s total production in 2014 on its own, Tofaş exported about 142 thousand vehicles for the year. With the decision announced by the Company at the end of 2014, to make a US$ 520 million investment and manufacture hatchback and station wagon models, the new model projects’ total investment amounted to US$ 1.4 billion. Doblo’s export to North America also started up in 2014.

Otokoç Otomotive achieved about 62 thousand new vehicle sales with an 8% market share, while becoming the leader among corporate brands in second hand vehicle sales with 20 thousand sales. Within vehicle rental activities, operations were launched in Kazakhstan as the 3rd investment abroad after Azerbaijan and North Iraq.

Otokar completed 2014 as the leading bus manufacturer of Turkey for the 5th time and maintained its position as Turkey’s leading manufacturer of land vehicles in the defense industry. In 2014, Otokar introduced “Doruk LE”, a bus suitable for the disabled, and Engelsiz Sultan Maxi, a wheelchair accessible shuttle type bus; and it also added the environment friendly buses with Euro 6 emission level to its portfolio of products. Being Turkey’s largest private capital company in the defense industry, Otokar was listed in the country’s inventory in 2014 with the URAL, a tactical armored vehicle that was developed in 2013. Preferred by more than 30 countries in the field of defense industry, Otokar added two new countries to this list in 2014.

With the 45,823 tractors manufactured in 2014, TürkTraktör broke a new record in its 60 year history. Structuring its activities in line with the goal of creating value added for the development of Turkey’s economy and agriculture, TürkTraktör opened a second plant in 2014 in Adapazarı Erenler. New production plants raised TürkTraktör’s production capacity for both domestic and international markets.