Automotive Sector Turkey

Transcription

1 Automotive Sector Turkey May 2014 Produced by: - 1 -

2 Table of Contents I. Sector Overview 1. Sector Highlights 2. Economic Importance 3. Main Sector Indicators 4. Automotive Sector Forecasts 5. Government Policy II. Motor Vehicle Production 1. Total Vehicle Production 2. Passenger Car Production 3. Commercial Vehicle Production 4. Leading Commercial Vehicle Producers 5. Pick-up Production 6. Bus, Midibus and Minibus Production 7. Tractor Production III.Motor Vehicle Market 1. Market Overview 2. Share of Imports 3. Passenger Car and Commercial Vehicle Market 4. Top 10 Brands in Light Vehicle Retail Sales 5. Market Shares in Passenger Cars 6. Market Shares in Light Commercial Vehicles IV.Exports 1. Motor Vehicle Exports 2. Exports Revenue 3. Biggest Exporters 4. Main Exports Markets V. Main Players 1. Largest M&A Deals from June 2013 to May Other Major Deals 3. Ford Otosan 4. Ford Otosan (cont d) 5. Tofas 6. Tofas (cont d) 7. Turk Traktor 8. Turk Traktor (cont d) 9. Dogus Otomotiv 10.Dogus Otomotiv (cont d) - 2 -

3 I. Sector Overview - 3 -

4 Sector Highlights Record Highs The Turkish automotive sector achieved a series of records in Annual sales of passenger cars grew by almost 20% and reached an all-time high figure of 664,655 units. Monthly passenger car sales also peaked to their highest ever level of 101,199 units in December. The local bus and minibus manufacturers achieved their highest ever production. The country's total automotive exports rose by 12% to USD 21.6bn, the highest level in five years. Expectations After the strong ending of 2013, the domestic motor vehicle sales lost ground and began to decline on an annual basis amid expectations of a slowing economic growth. Local automotive manufacturers' association OSD expects that the shrinking local demand affected by a recent consumption tax hike will make the industry more dependent on exports. In 2014, production is expected to be between 1.1 million and 1.2 million units with 810,000 to 850,000 of them bound for export. Export revenue is forecast at between USD 21bn and USD 22 bn. Future Investments Turkey's proximity to European markets and its expanding domestic market make the country of 77 million people an attractive destination for automotive investments. A number of international majors like Fiat, Ford and Toyota have already established their production bases in the country. Encouraged by a new incentive system, the producers have launched put fresh investments in capacity expansion. The latest news came from German truck maker MAN, which in May 2014 announced plans to shift its bus production from Germany to Ankara. Main Players The biggest passenger car producers are Oyak Renault, a joint venture between local army pension fund Oyak and French carmaker Renault, and Tofas, owned by Turkish industrial conglomerate Koc Holding and Italy's Fiat. The largest commercial vehicle maker is Ford Otosan, a joint company of Koc and U.S. automaker Ford Motor Co. Daimler's unit Mercedes Benz Turk is the biggest heavy truck and bus producer in the country. The industry has a total annual capacity of 1.6 million units. Employment Motor vehicle producers employed a total of 40,838 people at the end of 2010, up 3% from the previous year, however, still well below the level of 46,261 people who worked in the industry at the end of Engineers accounted for 11.3% of the total workforce in the automotive manufacturing sector at the end of

5 Economic Importance Turkey automotive sector in figures Automotive exports, including vehicles, parts and components, USD mn 21, Total Turkish exports 132, , , , , ,796 Automotive imports, including vehicles, parts and components, USD mn 16,935 12,464 15,019 27,278 25,541 23,937 Total Turkish imports 201, , , , , ,651 Capital inflow in motor vehicles industry, USD mn Capital inflow in manufacturing, USD mn 3,972 1, ,596 4,342 2,008 Turkey s total net foreign direct investment, USD mn 19,762 8,629 9,058 16,171 13,224 12,865 GDP growth GDP, TRY mn 950, ,559 1,098,799 1,297,713 1,416,798 1,561,510 GDP, USD mn 742, , , , , ,012 GDP per capita, USD 10,444 8,561 10,003 10,428 10,459 10,782 Annual inflation end-year, % Source: Turkstat, Ministry of Economy - 5 -

6 Main Sector Indicators Turkey automotive sector Total production (units) 1,171, ,466 1,124,982 1,234,637 1,115,233 1,166,043 Total production change, % Passenger car production 621, , , , , ,604 Pick-up production 449, , , , , ,556 Truck production 36,800 8,246 23,851 37,396 29,129 30,082 Bus production 7,526 5,931 5,268 6,907 6,427 8,345 Capacity utilization, % Total sales 526, , , , , ,124 Total sales change, % Passenger car sales 305, , , , , ,655 Light commercial vehicle sales 188, , , , , ,723 Truck sales 26,260 14,915 28,362 40,792 34,365 31,760 Bus sales 1,739 1,623 1,525 2,532 2,410 4,027 Overall commercial vehicle sales 220, , , , , ,469 Number of registered passenger cars 6,796,629 7,093,964 7,544,871 8,113,111 8,648,875 9,283,923 Number of registered motor vehicles 11,548,912 11,979,335 12,670,623 16,089,528 17,033,413 17,939,447 Source: Turkstat, OSD - 6 -

7 Automotive Sector Forecasts Automotive sector forecats 2014f 2015f 2016f 2017f 2018f Production of commercial vehicles, units 424, , , , ,322 Production of commercial vehicles, % change Production of light commercial vehicles, units 381, , , , ,338 Production of light commercial vehicles, % change Production of heavy trucks, units 29,180 29,632 30,232 30,942 31,961 Production of heavy trucks, % change Production of buses and coaches, units 14,219 15,869 17,572 19,386 21,293 Production of buses and coaches, % change Sales of commercial vehicles, units 204, , , , ,352 Sales of commercial vehicles, % change Sales of light commercial vehicles, units 169, , , , ,947 Sales of light commercial vehicles, % change Sales of heavy trucks, units 30,807 30,967 31,597 32,541 33,473 Sales of heavy trucks, units, % change Sales of buses and coaches, units 3,946 4,233 4,469 4,691 4,931 Sales of buses and coaches, % change Source: BMI, OICA; OSD - 7 -

8 Government Policy New investment incentives In June 2012, Turkey introduced new incentives for the automotive industry by launching its "New Incentive System", which is designed to attract new investments, increase exports, employment and the share of domestic products. The new list of incentives includes a decrease in the minimum investment amounts to TRY 200mn from TRY 250mn for "primary industry investments" and halving of the threshold for "sub-industry investments" to TRY 50mn. The amounts for sub-industry investments which qualify investors to benefit from regional incentives was reduced to TRY 1mn. Some automotive investments were also taken into the scope of "priority investment incentive" which will allow sector companies to take advantage of the investment incentives, regardless of the location. The automotive sector is one of the main drivers of the Turkish industry and exports and has been given a prominent place in Turkey's 2023 vision. The sector is forecast to produce four million vehicles and export three million vehicles annually. New scrap incentives The government has plans to introduce in 2014 a car scrap vehicle program which will cover around two million passenger cars that are older than 20 years. The scheme will include tax reduction, cash payments and credits for the purchase of environment-friendly vehicles. The average age of vehicles driven in Turkey is 16 years while the average age of the population is 29. In 2023, the export revenues of the sector are forecast to reach USD 75bn. Source: KPMG - 8 -

9 II. Motor Vehicle Production - 9 -

10 Total Vehicle Production Motor vehicle production ( 000) 622 1, , , ,073 1, Turkish passenger car and commercial vehicle production rose by 5% to million units in 2013, according to data of the Automotive Manufacturers Association (OSD) Passener car Total Automotive production by vehicle (2013) The total output in 2013, including tractors, totalled million, also up 5% from the previous year. The figure does not include production of manufacturers like Tumosan Traktor, Erkunt Traktor and Basak Traktor, which are not OSD members. Commercial vehicles 42.2% Passenger car production, which represents 54% of the total output, grew by 10% to approximately 634,000 units. The industry registered an all-time high passenger car production of 640,000 units in Passenger cars 54.3% Tractors 3.5% The highest growth was registered in the production of heavy trucks, which surged by 57% to nearly 4,500 units. Source: OSD

11 Passenger Car Production Passenger car production ( 000) Total Production for domestic market Turkish passenger car manufacturers produced some 149,000 units for the local market in 2013, down by 9% compared to the previous year. Some 76% of the passenger cars manufactured in 2013 were bound for export, up from 72% in The export ratio stood at 69% in Company share in passenger car production (2013) Toyota 16% Hyundai Assan 16% Oyak Renault, owned by Turkish army pension fund Oyak and France's Renault, is the biggest passenger car producer in Turkey. Oyak Renault 52% Tofas 13% Honda Turkey 2% The other local passenger car producers are Tofas, a joint venture between Turkish industrial and financial conglomerate Koc Holding and Italy's Fiat, Toyota, Hyundai Assan and Honda. Source: OSD

12 Commercial Vehicle Production Total and commercial vehicle production ( 000) 1, , , ,073 Commercial vehicle production (2013) 1, Commerial vehicles Total (without tractors) Turkey's commercial vehicle production, excluding tractors, decreased by 1% to around 492,000 units in The highest commercial vehicle output of 549,000 units was recorded in Pick-ups hold the dominant position in Turkish commercial vehicle production. Local pick-up manufacturers made around 411,000 units in 2013, down 4% from the previous year. Pick-ups are followed by minibuses and heavy trucks with shares of 8.0% and 5%, respectively. Pick up 83% Heavy truck 5% Minibus 8% Bus 2% Light truck 1% Midibus 1.1% In 2013, the capacity utilisation rate in heavy truck manufacturing stood at 63%, compared to 75% for lights commercial vehicles and passengers cars and the average 73% for the entire motor vehicle manufacturing industry. Bus and minibus manufacturers achieved capacity utilisation rates of 93% and 77%, respectively. Source: OSD

13 Leading Commercial Vehicle Producers Commercial vehicle makers by units (2013) Tofas 33% Ford Otosan 57% Karsan 3% Mercedes Benz Turk 5% Other 3% Shares of commercial vehicle makers when pick-ups excluded The biggest local commercial vehicle producers are Ford Otosan and Tofas, both part of Koc Holding's automotive division. Ford Otosan is a joint venture with Ford and produces pick-ups, minibuses and heavy trucks. Tofas produces pick-ups in addition to passenger cars. Otokar 5% Karsan 3% Mercedes Benz Turk 28% Mercedes-Benz Turk, the local unit of Germany's Daimler, manufactures trucks and buses. Ford Otosan 53% Anadolu Isuzu 6% Temsa 4% Man Turkey 2% Karsan, which ranked fourth in terms of produced units in 2013, manufactures trucks, buses and minibuses in addition to pick-ups. Source: OSD

14 Pick-up Production Total and pick-up production ( 000) 1,147 1,095 1,189 1,073 1, Pick-ups are the second most produced motor vehicle in Turkey after passenger cars Total Pick-up Pick-up producers shares in output (2013) Tofas 39% Pick-up production decreased by 11% to around 411,000 units in The industry registered its highest output of some 479,000 units in The largest pick-up producers in the country are Ford Otosan and Tofas, followed by Karsan. Otokar also produced a small number of pick-ups in Ford Otosan 58% Karsan 2% Source: OSD

15 Truck Production Total commercial vehicle and truck production ( 000) Truck production rose by 3% to over 30,000 units in The industry has the capacity to produce 62,200 trucks annually Commerial vehicle Trucks Production of large trucks (12 tonnes and over) declined by 3% to around 25,600 units in Truck producers' share in output (2013) Ford Otosan 21% Output of smaller trucks (GVW tons) surged by 57% to nearly 5,500 units in 2013 after a slump of 40% in the previous year. Mercedes Benz Turk 61% Karsan 3% Anadolu Isuzu 10% Temsa 4% Otokar 1% In 2013, the biggest truck producer in terms of units produces was Mercedes Benz Turk, followed by Ford Otosan and Anadolu Isuzu. Source: OSD

16 Bus and Minibus Production Bus, midibus, minibus production Turkish bus production rose to an all-time high of 8,345 units in 2013, up 30% from the previous year Shares of bus producers in output (2013) Man Turkey 16% Minbuses Bus Midibuses Otokar 15% Mercedes Benz accounted for almost half of the bus production, followed by Man and Otokar. Minibus producers also registered an all-time high output of 37,750 units in 2013, posting a 29% year-on-year growth. Ford Otosan accounted for 98% of the minibus output in 2013, followed by Karsan with 2%. Otokar manufactured 40 minibuses. Mercedes Benz Turk 48% Temsa 14% Karsan 7% Anasolu Isuzu 1% Minibus production also recorded a high growth rate of 24% to nearly 5,200 units with Otokar accounting for 51% of the output. Anadolu Isuzu had a 38% share and Temsa accounted for the remaining 11%. Source: OSD

17 Tractor Production Turkish tractor production and market ( 000) The Turkish tractor manufacturers produced 56,407 units in 2013, up 4.5% from the previous year, according to data of the Turkish Association of Agricultural Machinery and Equipment Manufacturers (Tarmakbir) Production Market Share of manufacturers in tractor production (2013) Hattat Tarim 4% Other 28% The Turkish tractor market expanded by 4% to 52,285 unit in The capacity utilisation rate of Turk Traktor and Hattat Tarim, the two tractor producers, which are OSD members, decreased to 42% in 2013 from 77% in the previous year. The other tractor producers in Turkey are Tumosan Traktor, Erkunt Traktor and Basak Traktor. Turk Traktor 68% The Turkish tractor manufacturers exported 15,872 units worth USD 341mn in Exports declined 2.0% in number terms but rose by 5% in value terms. Source: Tarmakbir, OSD

18 III. Motor Vehicle Market

19 Market Overview Motor vehicle market in units ( 000) The total Turkish motor vehicle market grew by 31% to around 893,000 units in The sales registered an all-time high 911,000 units in Total market Passenger car Monthly motor vehicle sales monthly change (%) Monthly motor vehicle sales registered an all-time high of nearly 135,600 units in December In the beginning of 2014, the market started to slow down. The total sales decreased by 7.7% on the year in the first four months of Sales of passenger cars grew by 19.5% to an all-time high 664,655 units in Monthly passenger car sales peaked to its highest ever level of 101,199 units in December The growth rate of passenger car sales slowed down to an annual 6.4% in the first four months of Source: OSD

20 Share of Imports Total market and imports in units ( 000) Imports accounted for 69% of the total motor vehicle market in 2013, up from 63% from the previous year Total market Imports An all-time high of 615,609 imported vehicles were sold in Turkey in Light vehicle market in units ( 000) 1, Domestically-produced Imported Total The share of imports in light vehicle sales was 71% in 2013, up from 65% in the previous year. Sales of imported light vehicles rose to all-time high 607,472 units in 2013 due to the increased passenger car sales. Source: OSD

21 Passenger Car and Commercial Vehicle Market Passenger car sales ( 000) Light commercial vehicle sales ( 000) Domestically-produced Imported Total Domestically-produced Imported Total Comments Imports met 78% of the demand for passenger cars and represented 48% of the domestic sales of light commercial vehicles in The respective figures stood at 74% and 42% in the previous year. The sales of imported passengers cars registered all-time high 517,527 units in The sales of light commercial vehicles declined by 15% to nearly 189,000 in Source: ODD

22 Top 10 Brands in Light Vehicle Retail Sales Sales of Top 10 brands in units for 2013 ( 000) The top three best-selling brands in the passenger car and light commercial vehicles segment in 2013 were Volkswagen, Renault and Ford. Sales of Volkswagen branded passenger cars and commercial vehicles totalled some 112,000, all of them imported. Market shares of top 10 brands (2013) Sales of Renault branded passenger cars and commercial vehicles totalled some 108,300 units, including around 44,500 imported vehicles. Hyundai 5.8% Toyota 4.5% Peugeot 4.0% Opel 6.6% Dacia 4.3% Mercedez Benz 3.6% Fiat 11.4% Ford 12.7% Other 21.4% Sales of Ford vehicles stood at around 108,200, with imports accounting for 55% of the total. Fiat sold nearly 97,600 passenger cars and commercial vehicles, about 17,200 of them imported. Opel followed with almost 56,000 units sold, including some 300 made in Turkey. Renault 12.7% Volkswagen 13.1% Source: ODD

23 Market Shares in Passenger Cars Shares of local producers in passenger car sales (2013) Shares of imported brands (2013) Tofas (Fiat) 27% Hyundai Assan 12% BMW 4.0% Peugeot 4.5% Toyota 4.3% Mercedes- Dacia 5.6% Benz 3.9% Hyundai 5.8% Toyota 9% Renault 6.4% Other 26.5% Oyak Renault 43% Honda Turkey 8% Opel 10.8% Ford 11.3% Volkswagen 17.1% Comments Retail sales of locally-produced passenger cars totalled 147,128 units. Oyak Renault held the largest share of 43% in the sales of Turkey-made automobiles, followed by Tofas and Hyundai Assan. Volkswagen ranked first in terms of retail sales of imported passengers cars with a with a 17.1% market share, followed by Ford and Opel with 11.3 % and 10.8%, respectively. Source: ODD

24 Market Shares in Light Commercial Vehicles Shares of locally-made light commercial vehicles (2013) Shares of imported vehicles (2013) Fiat 42% Peugeot 9.3% Dacia 7.4% Citroen 6.9% Peugeot 3% Mercedes Benz 11.6% Fiat 4.0% Toyota 2.7% Mitsibishi 2.7% Isuzu 2.9% Ford 50% Citroen 4% Karsan 2% Other 1% Renault 12.8% Other 7.7% Volkswagen 26.4% Comments Retail sales of locally-produced light commercial vehicles totalled almost 99,000 in Ford Otosan and Tofas (Fiat) dominated the segment with shares of 50% and 42%, respectively. Volkswagen led in the retail sales of imported light commercial vehicles with a 26.8% market share, followed by Renault and Mercedes Benz, with 12.8% and 11.6%, respectively. Source: ODD

25 IV. Exports

26 Motor Vehicle Exports Total production and exports in units ( 000) 1,172 1,125 1,235 1,115 1, Turkish exports of motor vehicles rose by 13% to almost 843,500 units in Over 72% of the output was exported Total output Exports Passenger cars represented 57.4% of the total vehicle exports. Turkish produces exported 484,500 passengers cars in 2013, up 17% compared with previous year. Exports by vehicle type (2013) Commercial vehicles 41% Commercial vehicle exports increased by 9% to 344,000 units in Of these, nearly 301,000 were pick-ups. Truck exports declined by 3% to some 15,000 units. Passenger cars 57% Tractors 2% Exports of minibuses were the fastest growing segment. They surged by 111% to about 34,700 units. Source: OSD

27 Exports Revenue Automotive exports in value (USD bn) The value of Turkish automotive exports, including vehicles, parts and components, rose by 12% to USD 21.6bn in 2013, according to data of Turkey's Automotive Industry Exporters Union (OEIB) Total auto exports Vehicles Breakdown by vehicle type (2013) Trucks and pick-ups 31.4% The automotive industry accounted for 14% of the country's entire exports in 2013, ranking first in value terms, followed by the chemicals and textiles industries. Vehicle exports increased by 13% to USD 12.5bn in 2013, while parts and components exports grew by 10% to USD 9.1bn. Passenger cars 54.9% Buses 7.5% Tractors 2.7% Other 3.6% Exports of passenger cars grew by 13% in value to USD 6.9bn and represented 55% of total vehicle exports in Source: OEIB

28 Biggest Exporters Biggest exporters by units ( 000) Oyak Renault kept its leading export position in The company sold over 266,500 units abroad, up by over 17% from the previous year. Ford Otosan came second as it increased its exports by 9% to 208,700 units. Shares of auto exporters (2013) Tofas 19.0% Tofas ranked third with 160,300 exported units, up by 4% from Ford Otosan 24.7% Oyak Renault 31.6% Toyota 10.3% Hyundai Assan 10.3% Turk Traktor 1.7% Other 3.2% The list of top five exporters also includes Toyota and Hyundai Assan with 86,900 and 85,500 units, respectively. Source: OSD

29 Main Exports Markets Top 10 markets for 2013 ( 000 USD) Share of biggest markets (2013) 3,052 2,403 2,120 1,710 Romania 2.7% Slovenia 2.4% USA 3.6% Spain 3.6% Belgium 4.6% Russia 5.4% Other 34.1% 1, Italy 8.0% UK 9.9% Germany France UK Italy Russia Belgium Spain USA Romania Slovenia France 11.3% Germany 14.3% Comments Germany is the biggest market for the Turkish automotive exports. In 2013, Turkey exported vehicle, parts and components worth USD 3.05bn to Germany, up 4.5% from the previous year. Exports to France rose by 3.5% to USD 2.4bn and shipments to the UK surged by 55.5% to USD 2.1bn making it the third biggest international market for the Turkish automotive industry. The only two shrinking markets for the Turkish automotive companies among the top 10 were Italy and the United States. Exports to Italy edged down 0.2% to USD 1.7bn, while exports to the United States declined by 10.8% to USD 761mn. Source: TIM

30 V. Main Players

31 Largest M&A Deals from June 2013 to May 2014 M&A Activity Date Target Company Deal Type Stake % Buyer Country of Buyer Deal Industries Deal Value USD (mn) May-14 BMC Privatization 100 Ethem Sancak - private investor Turkey Motor Vehicle Manufacturing 356 Oct-13 Mutlu Holding Acquisition 100 Metair Investments Limited South Africa Motor Vehicle Parts Manufacturing 217 Mar-14 Mutlu Aku Tender offer 21 Metair Investments Limited South Africa Motor Vehicle Parts Manufacturing 50 Mar-11 Titan Jantsa Acquisition 50 Titan Europe plc United Kingdom Motor Vehicle Parts Manufacturing 12 Sep-13 Tuvturk Istanbul Minority stake purchase 17 Tuvturk Guney; Tuvturk Kuzey Turkey Automotive Repair and Maintenance 5 Sep-13 Jantsa Block trade 2 Global Emerging Markets Group (GEM) United States Motor Vehicle Parts Manufacturing 3 Aug-12 Jantsa IPO 3 Institutional and private investors Turkey Motor Vehicle Parts Manufacturing 2 May-12 TT Motor Minority stake purchase 25 Fatma Neslihan Telli - Turkey private investor Motorcycle, Bicycle, and Parts Manufacturing 2 Dec-11 TT Motor Minority stake purchase 25 Gurtas Tarim Urunleri Turkey Motorcycle, Bicycle, and Parts Manufacturing 2 Jun-13 Yoyo Minority stake purchase 25 Partner Fleet Solutions Turkey Passenger Car Rental and Leasing 1 Source: EMIS DealWatch

32 Other Major Deals Other Major Deals Date Country of Seller Target Company Deal Type Stake % Buyer Country of Buyer Deal Industries Deal Value Apr-12 Spain Kaufil Sealing Technologies Acquisition 49 Standard Profil Turkey Motor Vehicle Parts Manufacturing n.a. Jan-12 China Fuzhou Rocket Enterprises Acquisition Orhan Holding Turkey Motor Vehicle Parts Manufacturing n.a. Jan-13 Germany Mercedes-Benz hydraulic steering systems assets Acquisition 51 Hema Endustri Turkey Motor Vehicle Parts Manufacturing n.a. Jan-13 Turkey Standard Profil Acquisition 40 Actera Group Turkey Motor Vehicle Parts Manufacturing n.a. Jun-13 Mexico Hydraulic hose production plant Acquisition 100 Orhan Holding Turkey Motor Vehicle Parts Manufacturing n.a. Oct-12 Turkey Genel Servis Acquisition 100 Mapfre Spain Automotive Repair and Maintenance n.a. Feb-14 Turkey STG Otomotiv; Sila Teknik Acquisition 100 Orhan Holding Turkey Motor Vehicle Parts Manufacturing n.a. Feb-14 Turkey Autoking Acquisition n.a. Pera Capital Turkey Automotive Repair and Maintenance n.a. Mar-13 Germany TrelleborgVibracousticcommerci al vehicle air springs business Merger HSS Otomotiv Germany; Turkey Motor Vehicle Parts Manufacturing n.a. Feb-14 Turkey Martur Sunger Minority stake purchase n.a. Ustunberk Holding Turkey Motor Vehicle Parts Manufacturing n.a. Source: EMIS DealWatch

33 Ford Otosan Financial performance (TRY mn) Highlights 10,445 9,768 11,405 Ford Otosan makes pick-ups, minibuses and trucks. The company was founded in 1959 as a joint venture between Turkish conglomerate Koc Holding and Ford. Ford Otosan shares are listed on Borsa Istanbul stock exchange In May 2014, Ford Otosan opened its third factory in which the company invested USD 511mn and which raised its annual capacity in Kocaeli to 400,000 units. The company s truck plant in Inonu has an annual capacity of 11,000 units. Exports 64% Revenues Net profit EBIDTA Revenues (2013) Domestic 36% Ford Otosan is the largest motor vehicle seller on the domestic market with a 12.9% share in The company holds an 8.3% market share in passenger cars, ranking third largest player in the segment for Ford Otosan ranks second in the light commercial vehicle segment with a market share of 20.7% and is first in the medium commercial vehicles segment with 33.2%. Ford Otosan is also the second largest seller of trucks with a 21.3% share. The company's main exports markets are North America, UK, Germany, and France. Source: Company data

34 Ford Otosan (cont'd) Sales units ( 000) Retail sales units ( 000) Domestic Exports Export revenues (USD bn) Production units ( 000) Source: Company data

35 Tofas Financial performance (TRY mn) Highlights 7,336 6,705 7, Revenues Net profit EBIDTA Tofas produces passenger cars and pick-ups. The company was founded in 1968 as a joint venture between Turkish conglomerate Koc Holding and Italian automaker Fiat. Currently, each partner owns 37.9% of Tofas and the rest is publicly held. The company is listed on the Istanbul and Luxembourg stock exchanges. Major indicators Gross margin Operating margin Profit before tax margin Net margin Tofas' production plant is located in the northwestern industrial city of Bursa and has an annual capacity of 400,000 units, the highest in Turkey. Fiat ranked fourth on the Turkish motor vehicle market with a market share of 11.4% in It was second in light commercial vehicle sales with a market share of 25.1% and fifth in the passenger car market with a 7.6% share. EBITDA margin Source: Company data

36 Tofas (cont'd) Total sales in units (2013) Exports in units (2013) Light commercial vehicles, 170,196 Passenger cars, 97,015 Light commercial vehicles, 116,842 Passenger cars, 43,477 Domestic sales in units (2013) Exports by country (2013) Passenger cars, 53,538 Germany 7.5% UK 13.5% Belgium 4.4% Spain 5.7% Rest of Europe 13.1% South America 10.2% MENA 7.8% Light commercial vehicles, 53,354 France 10.4% Italy 20.9% Other 6.5% Source: Company data

37 Turk Traktor Financial performance (TRY mn) Highlights 1,801 1,974 2,175 Turk Traktor produces tractors and imports combines, cotton pickers and other farming equipment as well as construction equipment Revenues Net profit EBIDTA Revenue breakdown (2013) The company, which employs around 2,600 people, is a joint-venture between Turkish conglomerate Koc Holding and Case New Holland. In 2007, Turk Traktor merged with tractor importer New Holland Trakmak. Exports 32% Turk Traktor has a market share of 49% in Turkey and has an annual production capacity of 35,000 tractors and 25,000 engines. Domestic 68% The company's shares are listed on Borsa Istanbul stock exchange. Source: Company data

38 Turk Traktor (cont'd) Total sales units Exports by brands in units (2013) NH 79.1% 31,152 25,597 24,624 9,601 14,565 14, Exports Domestic Case IH 20.9% Domestic sales by brands units (2013) Production in units 40,630 39,574 38,530 NH local 88.1% Case IH local 9.8% NH imported 1.8% Case IH imported 0.4% 5,466 5,192 3, Tractor Transmission Source: Company data

39 Dogus Otomotiv 4,808 Financial performance (TRY mn) 5,132 6,602 Highlights Dogus Otomotiv is the leading motor vehicle importer in Turkey. It distributes 14 brands in the country, including Bentley, Bugatti, Seat and Skoda The company was established in 1993 by Turkish conglomerate Dogus Group to distribute the Volkswagen, Audi and Porsche brands. Net sales Net profit EBIDTA Total new vehicle sales units ( 000) Dogus Otomotiv was the biggest passenger car retailer in the country in 2013 with a market share of 19.3%. The company had the largest share of 17.8% in the combined light vehicle market, including light commercial vehicles. Dogus Otomotiv ranked third in the light commercial vehicle market segment. The company is listed on the Borsa Istanbul stock exchange, where 34.5% of its share capital is in free float Dogus Group is also active in finance, construction, media, tourism, property, energy and food services. Source: Company data

40 Dogus Otomotiv (cont'd) New passenger car sales in units ( 000) New premium car sales in units ( 000) New commercial vehicle sales in units ( 000) Used car sales in units ( 000) Source: Company data

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