Dear friends,

OSD released in this weekend its production and export report for January 2020. 
The report shows that total motor vehicle production did not increase compared to January 2019, while car production grew by 6%. In 2019, our total vehicle production was down 6% compared to 2018 and our exports were down 5% as well..
Exports continue to decline. There is a 4% fall compared to January 2019.  
As ODD says, passenger car and light commercial vehicle sales rose by 90% in January. Likewise, OSD report says the increase was 89% including heavy vehicles. However, I would like to underline that total production remains the same and exports decrease amid sharply increasing domestic market.
At this point, I wolud like to refer to KPMG Report called the 2020 Sectoral Overview for Turkey. Hereby, let us share essential messages that Report gave to all of automotive prefessionals.
1. LMC Automotive showed that world automotive sales declined in 2019, to 94 million units. Production numbers have dropped to the same level of 94 million as well.
2. Geographically the largest share in production is in Asian countries with 54%. The share of EU countries has fallen from 29.5% in 2008 to 22% in 2018. It is expected to fall by up to 5% by 2030.   
3. KPMG says the share of new business areas, which were $ 0.1 trillion in automotive revenue in 2015 at $ 5.5 trillion, will increase to $ 4.3 trillion in revenue from $ 7.7 trillion in 2030. Autonomous driving, mobility, car sharing, connectivity and electrification will determine the future of automotive industry. KPMG confirms that these will be the new sources of revenue.
4.Hybrid motor vehicles will be the intermediate solution in this transformation.
5. The new emission standards and sanctions imposed by the EU and the US are severely affecting this transformation. Starting in 2020, a 95g/ km Co2 emission limit has been introduced by EU . Manufacturers will face a penalty of € 65 for each vehicle above this limit. Moreover, the EU Parliament is poised to impose 65 gr/ km Co2 limit as from 2030. 

Dear friends, 

While the global automotive sector has undergone such a drastic transformation, we, as Turkey, should not stay out . Studies on domestic and national TOGG car show that we are technologically on the right track. But fierce competition is on the way. KPMG says 330 different electric and hybrid models will be sold in Europe by 2025.

These developments pose as much of a threat as an opportunity to our automotive industry, which exports 85% of its production. Our production lines need to be prepared for new generation vehicles as soon as possible. Not only to increase our production and exports by producing vehicles that consume fossil fuels, we would not even be able to protect the existing production rhythm. Therefore, we need to let global brands producing locally convert their production lines towards new models consuming electric energy. But let it be with no delay..

See you in my next article.

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