The growth of the Turkish automotive industry can be attributed to the developments that took place in the 1950s when the first Turkish automotive products were produced in 1954. Like most markets where the roots of the automotive industry are known to have been sown by their exposure to defence applications, the production of army jeeps from Willys Overland Ltd. is known to have set the ball rolling for Turkey’s automotive industry especially the components manufacturers. This investment was followed by key developments including the truck factory of Türk Otomotiv Endüstrisi A.?. in 1955, the second and third truck factories of Otosan and Çiftçiler A.?., and Istanbul Bus Karöseri Sanayi A.?. production of the Magirus buses, in 1963. The bus production was followed by the production of the first Turkish car at the Eski?ehir State Railways Factory in 1961. Aptly named as the ‘Revolution’, it was limited to the production of four prototypes. Albeit with a production demand of an estimated 5000 units. The low demand, in turn, translated to Turkey finding it tough to attain the desired levels of economies of scale and hence breakevens. The challenge was addressed only half a decade later, in 1966, with the production of the Anadol car which helped the industry move towards healthier production scales.

The Tofa? and Oyak-Renault establishment in 1969 is deemed as a significant development that helped the industry come out of a cocoon. More recently, as per the report, “Turkish Automotive Industry Agenda” conducted by the Presidency of the Republic of Turkey Investment Office and EY in Turkey, the USD 15 billion OEM investment made between 2000 and 2018 in their Turkey operations is said to have significantly expanded the manufacturing capabilities. It is believed to have led Turkey to establish itself as a key part of the international OEM value chain.

With a stronghold in the automotive components sector, Turkey today develops competitive components for the pioneers in the automotive industry, by far the country’s largest. With an expanse concentrated mainly in the regions of Bursa, Marmara Region, the component industry has also shown signs of growth in regions like Istanbul, ?zmir, Kocaeli, Ankara, Konya, Adana and Manisa. Producing components and ancillaries with a high degree of localisation looked at as highly advantageous, the strategy is said to have helped Turkey establish itself as a global automotive hub. An estimated 4000 auto component manufacturers are known to be operating in the country including an estimated 1,000 direct suppliers to Original Equipment Manufacturers (OEMs).

Frontline components

Today, a lack of domestic car manufacturers is compensated by the presence of big names such as Toyota, Fiat Chrysler and Ford with their decades-old presence in the market. Volkswagen is the latest to join the bandwagon as the latter looks to set up a factory in the region. To help sustain growth, the local manufacturers have increased their capabilities manifold. Localised production of components spans full engines and engine parts, chassis and associated spares, batteries, suspension and transmission systems, HVAC, brakes, clutches, hydraulic and pneumatic systems, glass, security systems and safety parts, rubber and plastic parts and seats to name a few. Manufacturers, especially associated with the production of shock absorbers, brakes and clutches, piston rings, oil filters, bumpers, lights, signalling parts, glassware, additives, spark plugs, tyres, lights and catalytic converters are said to be frontrunners in realising the anticipated growth.

Technical Integration for EVs and Hybrids

E-mobility has taken Turkey by storm too. With its focus on building a sustainable transport system, Turkey is striving hard towards a new chapter. This drive, in turn, requires component manufacturers to increase their capabilities in the realm of components like electric motors, battery modules, battery management system, inverters and electronic control units besides an array of supporting components. For instance, Cummins Inc. recently introduced the new version of B4.5 and B6.7 EuroVI Phase-D engines to the Turkish OEMs for their intracity and intercity bus range. When integrated with a diesel-electric driveline, the engines are claimed to hold the potential of reducing fuel consumption and related CO2 emissions by as much as 33 per cent. Such collaborations are being looked upon to help Turkish OEMs graduate to electrification and fleet decarbonisation. Among next-generation products to fuel the emobility aspirations of Turkish manufacturers are integrated e-drive modules known to combine motor, transmission and inverter into a single lightweight system. The next-generation battery-electric systems are claimed to offer a high energy density for zero-emission designs.

Allison Transmissions’ AXE Electric Axle Series for the Turkish market is specially designed to fit between the wheels of heavy-duty trucks and buses in a bid to replace traditional powertrains. Compatible with the current vehicle frames, suspension and wheel ends they are said to be well-suited to most OEM vehicle assembly processes. The series features fully integrated electric motors, a multi-speed gearbox, oil cooler and pump, and is said to be suitable for full Battery Electric Vehicles (BEV), Fuel Cell Electric Vehicles (FCEV), as well as Range Extended Electric Vehicles (REEV). For instance, the H 40/50 with Flex EV, an electric hybrid system with a 16 km range, Allison is looking at potential expansion of its electrification portfolio. Ideal for transit bus, coach and public transport applications, the system features zero-emissions capability with the engine off, including on approaching, during, and leaving passenger stops for a quieter and healthier environment.

Offering an EV charging solution from compact, high-quality AC wall boxes and reliable DC fast-charging stations with robust connectivity, ABB offers on-demand electric bus charging systems. The company’s connected chargers are said to offer ease of installation as the company commits to mobility transformation in Turkey. In its car charging portfolio, the company offers high power fast charging, DC fast charging, DC wallbox, EV Lunic wallbox and Terra AC wallbox. For heavy commercial vehicles, it offers connector charging, pantographs up/down and solutions for flash charging.

A leader in electric propulsion technology, Magelec propulsion offers axial flux powertrain solutions and high-speed transmissions for passenger cars, commercial vehicles and buses and coaches. With core products like high-tech motors – axial flux permanent magnet synchronous motors which include drive motors, inverters, gearbox and drive system accessories, the company hopes to fill the void in EV and Plug-in Hybrid Electric Vehicles (PHEV) in Turkey.

It is noteworthy that an estimated 85 per cent of the overall vehicles manufactured in the region is directed to the export markets. This includes 70 per cent to the European Union alone. Exports to countries such as Germany, France, Italy, Romania, the United Kingdom, USA, Spain, Iran, Belgium, Poland and the Russian Federation are known to comply with European and International standards. Given the proximity to the Middle-East and Europe, undoubtedly gives Turkey a distinct marketing edge over competing markets especially pertaining to benefits inherited in case of transportation and logistics. Testimony to its stronghold in the aftermarket space is an estimated 500 companies known to supply spares across engine parts, tyres and tubes, accessories for bodies, road wheels and parts, rubber parts for motor vehicles and transmission crankshafts. The high export potential, in turn, has helped Turkey attract high foreign investment.

Source:Foundry-Planet