China’s automotive giants eye coop with Turkiye

February 1, 2024 admin-dominor

By News Centre

Albert Saydam, Chairman of the Board of Directors of the Vehicle
Supply Manufacturers Association (TAYSAD), met with journalists at
the press conference and made statements about the 2023 evaluation,
new goals, and expectations.

The Chairman said that Turkiye will renew the Customs Union
agreement with Europe and has strong automotive experience, and
added that the Chinese companies have a serious interest in
production in Turkiye.

Pointing out that they are currently in talks with more than one
Chinese company, Saydam said that Skywell, currently in talks for
factory investment, stands out; Chery and MG are also among the
candidates. He also noted that the number of members reached
520.

“We represent 85-90 percent of the automotive supply industry.
Our goal is to be among the top 10 manufacturers in the world by
2030. At this point, we have over 200 investments in 34 countries.
Turkish supply industry is used when Toyota manufactures plug-in
hybrid motor vehicles. If Toyota produces the engine of the vehicle
it produces for Europe in Turkiye, this shows the power of our
automotive supply industry. The problem in the Red Sea in the last
2-3 months and the 30 percent tax imposed by the European Union on
Chinese automotive brands prior to that have increased interest in
Turkiye. In fact, we are currently in talks with more than one
Chinese company. A domestic market of 1 million units, a country
that will renew the Customs Union agreement with Europe, and strong
automotive know-how. The investment will benefit everyone,” the
chairman said.

Saydam, who said that they especially expect main industry
investment, pointed out that the main industry and the supply
industry need to sit at the table again. Just as there are
disruptive technologies, digital transformation, and a
transformation in the way of doing business in the automotive
industry, the contracts signed 10 years ago must also be changed
for our healthy progress.

He emphasized that everything has changed, especially financing
costs, payment terms, labor costs, and energy costs.

“If cards are being redistributed and new rules are being set in
the world, we say let’s establish stability,” Saydam noted.

Answering the question about the situation in the domestic
market, Saydam added: “This subject is not my specialty, nor is it
the main subject of TAYSAD, but if the sales exceeded 1.2 million
units in 2023, it means we did some things right. This success took
us up 4 places and we became 14th in the world. With all these
embargoes and “Like Iran, which has supply problems, we need to
keep the market above 1 million. That’s why the SCT and MTV
structure needs to be reviewed, just like the change in the vehicle
structure. It is important for our automotive industry, economy,
and country.”

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