During the recent years, Turkish automotive sector has been turned into a fully-fledged industry with the ability of design and extensive production capacity from partnerships mainly based on assembly.
In the world, the automotive industry is regarded as one of the most important branches of industry in terms of both size and scope. With its high added value, the employment it creates and its share in the global trade, the automotive sector is of great importance for the Turkish economy. Exporting to a number of countries, the sector gives a surplus in terms of foreign trade balance, while it contributes to the development of many sectors such as electronics, software, plastic, fuel oil, energy, textile and chemistry. Powerful global players in the main automotive industry and domestic sub-industry manufacturers serving as the supplier of other automotive manufacturers in the world have an important place in the global value chain.
There were big fluctuations in the domestic market in 2019 for the automotive sector.
In 2019, the automobile and light commercial vehicle market in Turkey contracted by 23% compared to last year, and total sales volume was 479,060 units. In 2019, the automobile sales decreased by 20% compared to the previous year to 387,256 units, while the light commercial vehicle sales decreased by 32% to 91,804 units.
Established in Bursa in 1969 and operating as a manufacturer in the automobile sector, OYAK Automotive Logistics Group company OYAK Renault is one of Renault’s highest capacity production facilities outside Western Europe with an annual production capacity of 360 thousand automobiles and 750 thousand engines. The company produced 342,777 automobiles in 2019 with an increase of 1.8% compared to the previous year, and achieved 295,275 units in automobile export with an increase of 5.3% compared to the previous year. Considering the data mentioned, OYAK Renault has succeeded to rank first in the sector in terms of quantity in both automobile production and automobile export. The company ranked ninth in the general ranking of Turkey and fifth in the sectoral ranking in the list of top one thousand exporters for 2018 as announced by the Turkish Exporters Assembly (TIM). In the Turkey’s Top 500 Industrial Enterprises List of the Istanbul Chamber of Industry for 2020, which was prepared based on the data from 2019, OYAK Renault ranked 4th in the production to sales category.
Offering automobile sales and after-sales services, our group company MAİS has achieved a 17.7% market share with its sales volume (automobile + light commercial), despite the shrinking market in 2019. With 78.201 units sold during the same period, the company maintained the tradition of being the most preferred passenger car successively for 20 years in the Turkish automobile market.
In 2019 where a 23% contraction in new vehicle sales in the automotive market was seen, the vehicle loan balance of the financing companies decreased by 27% compared to the previous year, and ORFİN’s loan balance also decreased by 28% to TRY 2.04 billion.
Operating in the field of automotive financing, ORFİN Finansman A.Ş. gathers together all the loan and related insurance products needed for the sales network of Renault MAİS, and offers high quality automotive financing solutions to its clients through advantageous campaigns and wide product and service range.
In 2019, ORFİN Finansman A.Ş. aimed to offer new and creative financial solutions to the customers of Renault and Dacia brands at its sales points, and provided loan to approximately 21 thousand new and used vehicles sold by MAİS.
According to the data of the Central Bank of the Republic of Turkey, total vehicle loans stock by the end of 2019 was approximately TRY 40,299 billion, down by 15% compared to 2018. As of the end of 2019, the total volume of vehicle loans of financing companies has increased to TRY 19,113 billion, and total volume vehicle loans of banking sector has increased to TRY 21,185 billion.
The advantageous geographical position of Turkey offering an easy access to; Europe, Central Asia, Middle East and North Africa allows Turkey to act as a base for cargo transportation in the region. In “The Logistics Performance Index” (LPI) report published by the World Bank and evaluating the logistics performance of 160 countries, Turkey ranked 34th in the list with 3.42 points in 2016, and ranked 47th with 3.15 points in the latest data published in 2018.
According to the TURKSTAT data for 2019, the exports from Turkey are made through sea by 62%, road by 22% and air by 12%, while the share of rail is 0.6%. Compared to the previous year, the share of sea decreased by 3%, while other modes of transport have increased slightly.
OMSAN Lojistik, a subsidiary of OYAK Automotive Logistics Group operating in the logistics sector as one of the pioneering and innovative companies, offers logistics services within the scope of domestic and international land, sea, air and rail transport, storage, distribution, warehouse management, home and office logistics, customs clearance and insurance services for the pioneer firms of many sectors including, in particular, automotive, iron-steel, cement-construction, fuel, textile, retail and communication sectors.
As the first and only private logistics company receiving the railway operating certificate in Turkey in 2017, OMSAN increased its transportation volume in 2019 from 2.6 million tons to 3.4 million, up by 32%, compared to the previous year.
In the Top 500 Service Exporters in Turkey survey, OMSAN ranks 58th in the entire list and 19th in freight shipment and logistics category, and is also listed among the top 500 companies with highest amount of foreign exchange inflow to our country.