AUTOMOTIVE AND AUTOPARTS INDUSTRIES IN TURKEY

AUTOMOTIVE AND AUTOPARTS INDUSTRIES IN TURKEY (Prepared by Ayper Egdirici Sonmez Phone: 0312 417 22 23 / 330) SITC NO : 78 HARMONIZED NO:; 87.01, 87.02, 87.03, 87.04, 87.05, 87.09 40.11,40.13,68.13,84.07, 84.08,84.09, 84.13.30, 84.82.10, 84.83, 85.07, 85.11, 85.12, 87.07, 87.08.10, 87.08.21, 87.08.29, 87.08.31, 87.08.39, 87.08.40, 87.08.50, 87.08.60, 87.08.70, 87.08.80, 87.08.91, 87.08.92, 87.08.93, 87.08.94, 87.08.99 I-PRODUCTION TURKEY S VEHICLE INDUSTRY Turkey's economy has experienced a volatile period of growth and decline for much of the last twenty years. Like the economy, the Turkish automotive industry has gone through a series of ups and downs, particularly because the sector has remained domestically oriented. Production and sales declined in the second half of 1998 as economic austerity measures began to take effect. The outlook was not improved by a devastating earthquake in August 1999, although it left the vehicle production infrastructure relatively undamaged. The economic turmoil in late 2000, which was perpetuated by a political row in February 2001, has also negatively affected both production and sales. Despite these problems, many automotive manufacturers have invested heavily in the sector during the 1990s. Low labour costs and access to large domestic and international markets - including Eastern Europe, Central Asia and the Middle East, as well as the European Union (EU) - have made Turkey attractive to big car makers. Toyota, Mitsubishi and Hyundai have recently established plants in the country. Two manufacturers, Fiat and Renault, have located sole production of popular models in Turkey, demonstrating the increasing importance of the country as a regional manufacturer. Today the Turkish vehicle industry is one of the main driving forces in the Turkish manufacturing industry. Despite having been established only recently, the Turkish vehicle industry has achieved rapid development and become the third biggest sector after textiles and food industries, and accounts for approximately 10.5% of Turkish exports in 2001. The contribution of the automotive and autoparts sectors to the total manufacturing industry production was about 6.5% in 2000. Vehicle industry production in Turkey dates back to the mid-1950s and the industry gained momentum in the early 1960s. After manufacturing some prototype vehicles during the 1950s, the first vehicle assembly company was established in 1954 (Turk Willys Overland Ltd.) for jeep manufacturing. By 1955 trucks, and by 1963 buses were being assembled in Turkey. Then passenger car assembly companies, namely TOFAS (FIAT), OYAK (RENAULT) and OTOSAN (FORD) started operations in the following three years. In 1966 the industry also began to assemble its own cars (OTOSAN). The Turkish-made passenger car of those times ANADOL is nostalgia now. The two major producers of cars, TOFAS and OYAK-RENAULT, under Italian and French licenses respectively, established their production lines in 1971. Recently Japanese and South Korean car manufacturers have established joint-ventures in Turkey. In 1999 a Turkish truck manufacturer began to export its own design trucks to England, Spain and Portugal. As to passenger cars and small commercial vehicles, Turkish manufacturers are becoming world production centers of huge global producers, whom they have licence agreements with. Today 15 companies are manufacturing various types of vehicles such as passenger cars, buses, trucks, pickups, mini and midibuses and trailers. Six companies are producing passenger cars (FORD OTOSAN, RENAULT, TOFAS (FIAT), TOYOTA, HYUNDAI, HONDA) Nine companies are producing pick-ups and trucks (ANADOLU ISUZU, BMC, ASKAM, M.A.N., MERCEDES-BENZ, FORD OTOSAN, OTOYOL, TEMSA, TOFAS) Export Promotion Center of Turkey - IGEME, 2002 1

Ten companies are producing buses and mini buses (ISUZU, BMC, KARSAN, MERCEDES-BENZ, HYUNDAI, OTOKAR, FORD OTOSAN, OTOYOL, TEMSA, M.A.N.) COMPANIES IN AUTOMOTIVE INDUSTRY Company Location Products A. HONDA GEBZE/KOCAELI Passenger cars ANADOLU ISUZU O.S. ISTANBUL Trucks,pick-ups, midibuses ASKAM GEBZE/KOCAELI R. tractors,trucks,pick-ups B.M.C. IZMIR Trucks,pick-ups, buses, minibuses,midibuses FORD OTOSAN ISTANBUL/ESKISEHIR Passenger cars,trucks, pick-ups,minibuses /KOCAELI HYUNDAI ASSAN KOCAELI Passenger cars,pick-ups,minibuses KARSAN BURSA Pick-ups,minibuses, midibuses M.A.N. ANKARA R. tractors,trucks,buses M. BENZ ISTANBUL/AKSARAY R.tractors, trucks,buses,minibuses OTOKAR SAKARYA Pick-ups, buses, minibuses,midibuses OTOYOL SAKARYA R. trucks,trucks,pick-ups, midibuses O. RENAULT BURSA Passenger cars TEMSA ADANA Trucks,pick-ups, buses, midibuses TOFAS BURSA Passenger cars, pick-ups TOYOTA SAKARYA Passenger cars Source: Automotive Manufacturers Association (OSD) The Turkish vehicle industry has a total capacity of 1,016,805 vehicles, of which 662,000 is for passenger cars. The total vehicle production in 2001 was 270,685 units. The economic crisis in 2001 caused passenger car production to fall by a dramatic 63%, although the market is expected to stage a recovery, in line with the Turkish economy, in 2002. VEHICLE PRODUCTION BY TYPE 1993-2001 (Units) 1993 1994 1995 1996 1997 1998 1999 2000 2001 Passenger cars 348,095 212,651 233,412 207,757 242,780 239,937 222,041 297,476 175,243 Trucks 31,343 12,108 19,759 29,432 43,693 31,823 12,785 28,114 6,683 Pickups 19,766 9,602 16,808 21,032 32,435 45,517 37,551 68,807 76,672 Buses 1,933 1,034 1,279 2,499 3,449 3,040 2,327 4,213 2,501 Minibuses 12,084 4,924 7,645 10,171 12,935 13,910 12,894 20,597 6,486 Midibuses 7,435 2,855 3,537 5,856 9,060 10,275 6,176 11,506 3,000 Total 420,656 243,174 282,440 276,747 344,352 344,502 297,862 430,943 270,685 Source: Automotive Manufacturers Association (OSD) There are 12 commercial vehicle manufacturers in Turkey, excluding six agricultural tractor producers. Six main large-scale companies are operational in the agricultural tractor sector. The two big private sector companies (UZEL and TURK TRAKTOR) are the leading producers and exporters in the agricultural tractor sector in Turkey. Tractors Production (Units) 1998 1999 2000 2001 Tractors 60,500 27,435 37,434 15,052 Source: Automotive Manufacturers Association (OSD) Export Promotion Center of Turkey - IGEME, 2002 2

Vehicle Production by Manufacturer 1999-2001(Units) 1999 2000 2001 Anadolu Honda 6,649 9,821 5,134 Anadolu Isuzu 6,721 8,313 1,912 ASKAM 2,818 6,382 649 BMC 6,155 11,387 3,453 Ford Otosan 28,101 41,065 19,604 Hydundai Assan 17,375 31,674 3,832 Karsan 10,686 19,355 7,496 MAN 817 1,671 1,175 Mercedes-Benz Turk 2,769 6,647 2,769 Opel Turkiye 4,297 7,039 2,080 Otokar 3,234 4,076 2,176 Otoyol 5,175 8,348 2,726 Oyak Renault 125,026 140,159 96,860 Temsa 3,488 5,323 597 Tofas 65,510 115,172 117,360 Toyota 9,041 14,715 2,862 Total 297,862 430,943 270,685 Source: Automotive Manufacturers Association (OSD) The table outlines total vehicle production by manufacturers in 1999 and 2001. ANADOLU HONDA, with its plant at Gebze near Istanbul manufacturing passenger cars, commenced operations in 1998. The company was formed as a 50:50 joint venture between Turkish Anadolu Group and Japanese carmaker Honda. In April 2002 the Anadolu Group sold its 47% stake in Anadolu Honda to Japanese carmaker Honda Motor. TOFAS, the joint venture between Fiat Auto and Koc Holding, remains traditionally Turkey s largest vehicle producer. In October 2000, Tofas began production of the new Fiat model DOBLO, a light van/multi-purpose vehicle, which is aimed largely at the export market. The Doblo is exported mainly to European Countries. The other major vehicle producers are FORD OTOSAN, a joint venture between Ford and Koc Holding which first began assembling Ford cars in 1984. Ford Otosan also opened a third factory in Kocaeli in April 2001 in order to extend its market share. The Ford Otosan Kocaeli factory, which has a 150 000 unit commercial vehicles capacity annually, will export 65% of its whole production. HYUNDAI ASSAN also produces pickups and minibuses while Ford Otosan manufactures medium trucks, pickups and minibuses. The company is a joint venture between South Korea s Hyundai Motor Company and the Turkish company Kibar Holding. The Izmit plant is Hyundai s only passenger car plant in Europe. MAN based at Ankara, produces articulated tractor units, medium trucks and buses as part of a joint venture with German MAN. MAN is one of the smallest commercial vehicle manufacturers in Turkey. OYAK RENAULT, the largest producer of passenger cars in Turkey, manufactured 96,860 units in 2001. Oyak Renault is a joint venture between The Turkish Oyak Group and the French carmaker Renault. TOYOTASA is a joint venture between the local Sabanci Group, Toyota and Mitsui and began producing passenger cars in 1994. Sabanci Holding sold its 25% stake to Toyota in October 2001. Toyota now has a 90% shareholding in Toyotasa. The name of company was changed from Toyotasa to Toyota Motor Manufacturing Turkey following the buy-out. OPEL TURKIYE is a 100% subsidiary of General Motors (GM) and had been operating in Turkey since 1990 at a plant in Torbali, near Izmir. Opel Turkey stopped production at its Izmir-Torbali plant in July 2002. The plant was not sold after production stopped, and Opel plans to develop its commercial facilities there. Export Promotion Center of Turkey - IGEME, 2002 3

ANADOLU ISUZU is a joint venture between Turkey s Anadolu Group, which has a 50% share, and Isuzu Motors and the Itochu Corporation (35%), the remaining 15% of the equity being traded on the Istanbul Stock Exchange. Its main area of operations is the production and marketing of commercial vehicles, including light trucks, pick-ups and buses. CHRYSLER KAMYON produces commercial vehicles under licence from Chrysler. In January 2002, the company changed its name to ASKAM Kamyon. BMC was incorporated with the Cukurova Group in 1989. In light commercial vehicle production, the company manufacturers Levend 3.0, Levend 80 TDI and 1.8 light trucks. It also produces two heavy commercial vehicles; BMC Professional and BMC Fatih. KARSAN Otomotiv assembles commercial vehicles in Turkey under licence from PSA Peugeot-Citroén. In 2001, Karsan was the second-largest commercial vehicle producer in Turkey with 7,496 units, including mini-buses, midi-buses and light trucks/vans. MERCEDES-BENZ TURK was founded in Istanbul in 1967 as a joint venture between Daimler-Benz A.G., Mengerler Ticaret and Has Otomotiv under the name of Otomarsan. Today, the partners of the company are Daimler-Chrysler. The name of the company was changed to Mercedes-Benz Turk in 1990. The company is the largest full-size bus producer in Turkey. OTOKAR manufacturers a range of commercial vehicles. It produces passenger vans, mini-bus, pick-up, police team vehicle and mobile patrol vehicle. OTOYOL is owned by Turkish conglomerate the KOC Group and by IVECO-Fiat. It produced a total of 2,726 units in 2001, which included trucks, light trucks, midi-buses and mini-buses. TEMSA Otomotiv is a manufacturer of Japan s Mitsubishi trucks, small trucks, buses and midi-buses under licence from Mitsubishi. Temsa manufactured 597 units in 2001. Most of the vehicle manufacturing companies are organised under the Automotive Manufacturers Association. (OSD, Otomotiv Sanayicileri Dernegi) MOTORCYCLE-MOPED INDUSTRY As the domestic demand increased, two and three-wheeled vehicles sector has developed in a short period.at present there are 5 companies manufacturing motorcycles and mopeds in Turkey (Beldeyama, Egemosan, Ramzey, Honda, Kuralkan). Total capacity for motorcycles-mopeds is 143,000. Three manufacturers are certified with ISO 9002. About 250 parts manufacturing companies are suppliers of the motorcycle manufacturers. Bicycle manufacturing is also a well developed industry in Turkey, meets the domestic demand and has capacity for exports as well. Turkey is a net exporter of bicycles. Manufacturers Manufacturer Location Products BELDEYAMA Istanbul Moped, Motorcycle EGEMOSAN Izmir Moped, Motorcycle RAMZEY Istanbul Moped HONDA Istanbul Motorcycle KURALKAN Istanbul Motorcycle Source: Motorcycle and Moped Manufacturers Association Export Promotion Center of Turkey - IGEME, 2002 4

AUTOPARTS INDUSTRY PRODUCTION Turkey has had a strong component sector more than 30 years, and in recent years has developed a highly competitive components industry providing products compatible with brands such as GM, Mercedes, BMW, Opel, Toyota and Ford. The Turkish autoparts industry with its large capacity, wide variety of production and high standards, supports automotive industry production and the vehicles in Turkey (approximately 7.3 million vehicles) and also has ample potential for exports. The Turkish automotive and autoparts industry is concentrated in the Marmara Region, mainly in Bursa. Two major car factories and two Organized Industrial Zones are in Bursa. Other important cities are Istanbul, Izmir, Kocaeli, Ankara, Konya, Adana and Manisa. A new development in the Turkish Autoparts Industry is the establishment of TAYSAD Components Manufacturers Industrial Zone (TOSB). The Association of Automotive Parts and Components Manufacturers (TAYSAD), started the TOSB project for its members in 1999. TOSB, covering a 2500 hectare area in Kocaeli is expected to provide to TAYSAD members larger production sites, modern environmental facilities, proximity to vehicle manufacturers, training and conference facilities, interfirm cooperation and a technology and innovation center. Due to the high export potential of the sector and the regional advantages of Turkey, the autoparts sector has been attracting foreign investors. At present the number of foreign investors in the autoparts sector is 138. Most of the world leaders in the sector have joint-ventures with Turkish companies. Autoparts industry manufacturers are exerting intense efforts for quality certificates. 115 members of TAYSAD have quality certificates such as ISO 9000 Series. In fact, Turkish autoparts manufacturers are the pioneers of Turkish companies for The European Quality Award. BRISA, a tyre producing company, was the first winner of The European Quality Award in 1996. Then, BEKSA won the The European Quality Award in the category of small and medium sized enterprises in 1997. BEKSA, which was established in 1987, produces steel cord and bead wire for tire reinforcement and hose wire for high pressure hoses. The production value of the autoparts industry was about 4.6 billion U.S Dollars in 2000. The Turkish autoparts industry produces almost all parts and components except spark plugs. At present, the local parts and components production consists of : Engine and engine parts Power train parts and components Brake and clutch parts and components Hydraulic and pneumatic systems Suspension systems Security systems Rubber and plastic parts Chassis frame and parts Castings and forgings Electrical equipment and parts, lighting systems Batteries Auto glass Seats Turkish automotive manufacturers are in direct contact with 1120 local autoparts manufacturers for procurement and 70% of these companies are SME s. It is known that the total number of autoparts manufacturers in Turkey far exceeds 1120. Export Promotion Center of Turkey - IGEME, 2002 5

II-EXPORTS EXPORTS OF THE AUTOMOTIVE SECTOR The main automotive industry exports were US$1,885 billion in 2001. In 2001 153,631 vehicles were exported out of a production total of 430,713. Exports are about 80% of production. Turkey exported 151,757 passenger cars, 6,576 buses and 42,175 trucks in 2001. The export value of passenger cars, trucks and buses was US$973 million, US$371 million and US$321 million respectively. Exports of the Automotive Industry (Value: US$1000) (Quantity: Units) Products 1999 2000 2001 Q V Q V Q V Passenger Cars 74,954 688,107 82,882 624,265 151.757 972.924 Truck-Pick ups 2,031 32,150 8,283 81,089 42.175 370.643 Buses-Minibuses- 7,518 265,328 56,307 270,154 6.576 320.643 Midibuses Tractors 2,931 31,706 5,934 45,872 4.007 45.041 R.Tractors -- 600 -- 500 -- 161.671 Others 354 7,367 225 7,797 379 14.066 Total 87,788 1,025,259 153,631 1,029,677 204.894 1.884.774 Source: State Institute of Statistics (SIS) The main export markets for the automotive industry are Germany, France, Italy, United Kingdom and Russian Federation. In 2001 63% of automotive industry exports in value were delivered to EU Countries. Exports of motorcycles-mopeds were US$4.2 million (8,590 units), US$5 million (11,902 units) and US$9 million (12.746 units) in 1999, 2000 and 2001 respectively. Major export markets were Tunusia, Morocco, Egypt, and Burkina Faso in 2001. As to the exports of bicycles, export figures were US$7 million (118,007 units), US$7 million (129,558 units), 7.2 million (119.155 units) in 1999, 2000 and 2001 respectively. Major export markets were Finland, Germany, Macedonia and F.R. of Yugoslavia in 2001. Export Promotion Center of Turkey - IGEME, 2002 6

AUTOMOTIVE INDUSTRY EXPORTS OF TURKEY BY COUNTRIES (Value: US$1000) COUNTRY 1999 2000 2001 Germany 317.689 214.566 424.418 France 262.694 247.746 285.756 Italy 56.040 136.748 293.829 Spain 209 3.929 54.960 Russian Fed. 9.600 16.664 45.765 Algeria 78.476 61.136 39.207 S.Arabia 525 14.362 37.591 Romania 3.516 31.553 37.843 Egypt 43.051 38.651 36.986 Belgium-Lux. 655 2.342 28.093 Portugal 366 914 26.556 UK 4.111 1.507 23.037 Poland 382 3.325 19.117 Hungary 6.038 3.261 18.279 Tunusia 6.823 7.071 18.889 Austria 3.036 4.238 17.570 Holand 361 2.310 16.411 Bulgaria 8.254 7.740 15.017 USA 18.670 33.933 15.549 Israel 1.802 1.559 13.541 Ukraine 2.499 1.161 10.441 Syria 6.128 4.470 10.328 Denmark - 1.998 9.477 Others 201.157 188.493 386.114 TOTAL 1.025.259 1.029.677 1.884.774 Source: State Institute of Statistics (SIS) Exports of the Autoparts Industry Turkey's autoparts industry exports are increasing rapidly year by year, with the focus on replacement components. In 2001 the value of autoparts industry exports was US$1.4 billion. The main autoparts products exported are tyres and tubes, engine parts, accessories for bodies, road wheels and parts, brake and servo brakes, electrical ignitions, engine parts, batteries and parts. In fact, Turkey exports many cars, buses and trucks in parts. In terms of breakdown of autoparts exports by province, Bursa, Istanbul, Kocaeli and Izmir have the major share. Turkish autoparts products are destined for a wide range of countries in the world. The main export markets are Germany, Italy, France, the United Kingdom, Spain, Belgium-Luxembourg, the United States, Pakistan, Poland, India, Egypt, Austria and Greece. In 2001 about 60% of autoparts exports were directed to the EU Countries. Turkish autoparts exporters follow European and international standards and norms. Turkish companies are supplying major European producers such as OPEL, VW and Ford. Export Promotion Center of Turkey - IGEME, 2002 7

Exports of the Autoparts Industry (Value: US$1000) PRODUCTS 1999 2000 2001 Tyres and tubes 240,315 262,554 337,148 Brake linings 4,849 4,518 5,116 Spark-ignition reciprocating or rotary internal combustion piston 7,126 21,491 44,841 engines Diesel or semi-diesel engines 8,670 8,617 5.074 Engine parts 189,789 222,052 342,462 Engine pumps 7,302 6,694 6,190 Ball Bearings 7,009 11,353 15,586 Transmission shaft and cranks, bearings 22,198 27,949 28,511 Batteries and parts 22,737 27,895 35,708 Electrical ignition or starting equipment of a kind used for sparkignition 32,758 37,606 48,629 or compression -ignition internal combustion engines Electrical lighting or signalling equipment 10,654 10,330 10,238 Bodies for the motor vehicles of headings 4,444 5,611 7,525 Bumpers and parts there of 5,125 5,779 6,052 Safety seat belts 5,929 15,135 36,059 Accessories of bodies 78,904 81,436 102,095 Mounted brake lining 14,042 19,780 13.338 Brake and servo brakes 31,641 35,524 47,627 Gear boxes 7,787 11,454 15,547 Axles 16,243 17,174 17,519 Road wheels and parts 88,548 105,907 108,632 Suspension shock-absorbers 11,858 11,999 12,541 Radiators 9,283 11,818 15,099 Silencers and exhaust pipes 2,162 3,077 3,875 Clutches 9,621 10,364 24,424 Steering wheels, steering columns and steering boxes 1,754 2,258 2,657 Air conditioners 1,895 1,753 3,953 Others 103,028 115,532 125,377 TOTAL 945,762 1,095,660 1,421,823 Source: State Institute of Statistics (SIS) Export Promotion Center of Turkey - IGEME, 2002 8

Autoparts Industry Exports of Turkey by Countries (Value : US$1000) Country 1999 2000 2001 Germany 239,615 275,463 344,369 Italy 110,981 106,391 178,168 France 79,560 117,517 208,266 United Kingdom 73,331 72,596 81,984 USA 29,612 43,925 43,142 Spain 34,331 29,994 36,187 Belgium-Lux. 32,456 53,190 53,304 Pakistan 18,563 12,874 6,823 Poland 18,158 14,941 11,073 Israel 7,120 7,563 9,565 Egypt 17,121 28,772 30,282 Austria 13,045 16,257 20,903 Greece 12,562 10,385 14,041 Iran 10,607 22,004 32,396 Australia 1,973 2,237 10,064 Algeria 10,140 11,303 11,807 UAE 5,114 7,970 7,334 Brasilia 1,555 4,595 12,736 Moroco 9,645 10,209 13,616 South African Rep. 9,140 16,894 12,892 Russian Fed. 9,912 16,803 27,493 Slovenia 635 5,661 12,401 Ukraine 5,700 7,382 9,745 Others 227,840 279,259 239,910 TOTAL 945,762 1,095,660 1,421,823 Source: State Institute of Statistics (SIS) TRADE FAIRS OF 2001 16 trade fairs related to the automotive and autoparts industry will be held in Turkey in 2001. Some of them are listed below. 2002 5TH INTERNATIONAL AUTOMOTIVE SUPPLY INDUSTRY, COMPONENTS, ACCESSORIES in Konya in October AUTOSHOW 2002 in Gaziantep in October GAP AUTOMOTIVE 2002 1ST AUTOMOTIVE, TRANSPORTATION VEHICLES & SERVICES in Diyarbakır in October 2002 INTERNATIONAL AUTOMOTIVE SUPPLY INDUSTRY COMPONENTS ACCES & SERVICE EQUIPMENT in İstanbul in December AUTOSHOW in Adana in September AUTO SHOW' 2002 AUTOMOTIVE & AUTOMOTIVE ACCESSORIES in Mersin in October Export Promotion Center of Turkey - IGEME, 2002 9

III- IMPORTS Turkey's main automotive industry imports were 374,937 units in 2000 and 98,185 units in 2001. Most imported products are passenger cars, pick-ups and trucks. Imports of automotive industry are mainly from Japan, South Korea and EU Countries. AUTOMOTIVE INDUSTRY IMPORTS (Quantity: Units) (Value: US$1000) PRODUCT 1999 2000 2001 Q V Q V Q V Passenger Cars 130,522 1,325,123 279,037 2,596,275 75,254 588,036 Truck-Pick ups 40,052 391,290 84,820 799,726 19,816 201,224 Buses-Minibuses- 3,420 71,080 5,464 127,369 1,079 32,279 Midibuses Tractors 1,916 78,944 4,654 198,279 1,289 59,233 R.Tractors 813 823 1,455 Others 766 79,354 962 89,240 747 67,096 TOTAL 176,676 1,946,605 374,937 3,811,712 98,185 949,323 Source: SIS AUTOMOTIVE INDUSTRY IMPORTS BY COUNTRIES (Value : US$1000) (Quantity : Units) COUNTRY 1999 2000 2001 Q V Q V Q V Germany 39,633 608,346 81,192 1,184,278 31,400 308,764 France 27,801 287,342 69,249 576,174 19,706 200,239 Spain 27,852 245,603 58,958 471,337 20.115 131.907 Belgium-Lux. 17,881 172,650 53,822 488,864 3,639 40,259 Japan 15,772 169,299 16,950 186,482 5,555 57,469 The United Kingdom 6,561 84,137 12,740 129,705 1,907 25,348 The Netherlands 5,095 73,510 6,548 126,937 1,464 29,061 S. Korea 10,145 68,690 16,871 123,518 4,623 27,928 Italy 5,203 65,746 20,515 188,659 1,780 21,860 USA 575 18,334 1,195 40,359 810 13,282 Austria 216 6,363 777 22,517 289 9,297 Russian Fed. 6,182 21,272 11,417 45,768 810 13,282 Others 13,761 125,313 12,321 227,114 6,625 71,941 TOTAL 176,676 1,946,605 374,937 3,811,712 98,185 949,323 Source: SIS Autoparts imports, which were US$896 million in 1994, reached to US$1.7 billion in 2001 with increasing amount of foreign investment in Turkish autoparts industry. Major parts imported were tyres (US$104 million), internal combustion piston engines (US$301 million), engine parts (US$150 million), accessories of bodies (US$335 million) and gear boxes (US$82 million) Export Promotion Center of Turkey - IGEME, 2002 10

IMPORTS OF AUTOPARTS INDUSTRY Value: $1000) PRODUCTS 1999 2000 2001 Tyres and tubes 142,046 200,706 104,164 Brake linings 5,037 7,650 7,194 Spark-ignition reciprocating or rotary internal combustion piston 116,233 126,096 98,128 engines Diesel or semi-diesel engines 257,940 422,928 301,109 Engine parts 141,466 212,725 149,663 Engine pumps 47,624 55,483 35,888 Ball Bearings 28,647 28,754 22,896 Transmission shaft and cranks, bearings 109,260 116,000 82,932 Batteries and parts 34,664 38,762 26,591 Electrical ignition or starting equipment of a kind used for spark-ignition 57,027 54,462 50,317 or compression -ignition internal combustion engines Electrical lighting or signalling equipment 41,482 54,309 29,240 Bodies for the motor vehicles of headings 1,903 4,101 5,208 Bumpers and parts there of 15,837 18,239 9,442 Safety seat belts 4,630 7,076 4,408 Accessories of bodies 439,506 716,706 335,215 Mounted brake lining 23,961 33,173 23,023 Brake and servo brakes 51,452 68,530 46,992 Gear boxes 74,083 126,681 82,208 Axles 63,358 108,496 48,843 Road wheels and parts 11,152 13,268 13,919 Suspension shock-absorbers 19,670 31,338 16,726 Radiators 12,264 18,159 8,548 Silencers and exhaust pipes 12,578 26,662 18,915 Clutches 26,927 30,368 16,429 Steering wheels, steering columns and steering boxes 35,750 43,148 22,808 Air Conditioners 12,381 17,516 6,864 Others 213,655 279,161 161,389 TOTAL 2,000,792 2,897,123 1,724,058 Source: SIS IMPORTS OF AUTOPARTS BY COUNTRIES (Value : 1000$) Country 1999 2000 2001 France 472,850 596,698 373,303 Germany 392,788 574,361 397,713 Japan 231,181 371,283 94,028 Italy 221,507 392,024 379,155 The United Kingdom 217,005 313,206 159,172 Spain 112,770 125,097 56,723 South Korea 82,970 159,932 32,444 USA 63,765 52,753 38,100 Belgium-Lux. 34,112 39,336 15,769 Brasilia 25,180 29,821 27,035 Others 116,612 211,467 112,958 TOTAL 2,000,792 2,897,123 1,724,058 Source: SIS Export Promotion Center of Turkey - IGEME, 2002 11