Turkish Automotive Industry met at the 11th Aftermarket Conference!

Turkish Automotive Industry met at the 11th Aftermarket Conference!
31 May 2021, Monday 11:00
The "Transformation" in Automotive Supply and Aftermarket Industries is discussed!

Turkish automotive industry met at the 11th annual Aftermarket Conference this year. In the event which is the only organization of its industry regarding aftermarket products and services; innovations in the automotive industry, upcoming opportunities, and challenges are examined at both global and national levels. Automotive Suppliers Association of Turkey (TAYSAD) Board Chairman Albert Saydam, making the opening speech of the conference, highlighted that the traditional vehicle concept has been changed with electric and hybrid vehicles and said, "With this transformation, the automotive supply industry should improve its product range. We should concentrate on investments abroad and evaluate different business models." 

Turkish Automotive Aftermarket Association (OSS) Board Chairman Ziya Özalp said that the transformation in the traditional vehicle concept through electric vehicles will have much more serious effects on Turkish automotive aftermarkets by 2035. 

Automotive Industry Exporters' Association (OİB) Board Chairman Baran Çelik said, "Batteries and software have a major role in costs regarding the electric and new generation vehicles. The aftermarket industry will be affected by this transformation, and action in this direction must be taken right now.

The 11th annual Aftermarket Conference was held this year in cooperation with Automotive Suppliers Association of Turkey (TAYSAD), Turkish Automotive Aftermarket Association (OSS), and Automotive Industry Exporters' Association (OİB). During the conference which welcomed numerous experts from Turkey and abroad by hosting a global-scale meeting, current practices, challenges, and opportunities of the industry were discussed. Representatives of manufacturers, suppliers, distributors, and independent services also attended to the organization which was held as a video conference.

"The future has come earlier than planned."

TAYSAD Board Chairman Albert Saydam in his opening speech of the conference underlined that due to the effect of the pandemic, every aspect of daily life across the world has experienced a faster transformation than expected and said, "There is no such thing as being prepared for change. The future containing the change has already arrived. And this is not a situation that we, as the automotive industry are accustomed to and enjoy." Mr. Saydam, emphasizing that the traditional vehicle concept is transformed with the electric and hybrid vehicles also said, "Connected and driverless vehicles will come into our lives in the following period. With this rapids transformation, the automotive supply industry should improve its product range. Studies on the possibilities of expanding to new foreign markets should be conducted by adding new products to the product range. We should concentrate on investments abroad. We should study towards options such as distribution network and warehouses. We should evaluate different business models. Our firms should strengthen their sales and marketing competencies by cooperating with the submodule or upper-module manufacturers."

"Our expectations for 2021 remains at about 20 percent."

OSS Board Chairman Ziya Özalp referred to the pandemic toll of the automotive aftermarket industry and said, "Among the two main branches of our industry, manufacturers have near 30 percent and distributors have about 25 percent of growth in 2020 compared to 2019 in TL. These promising figures emerged in such unprecedented conditions enables us to keep our 2021 expectations regarding our industry around 20 percent." Mr. Özalp stated that currency fluctuations, supply shortages, global container crises, and cargo costs in Turkey are among the challenging issues the industry faces. 

"Aftermarket is getting more and more important."

OİB Board Chairman Baran Çelik said that the automotive industry which has become the export champions for 15 years in a row, realized about one-fifth of Turkish exports by itself. Stating that the chip crisis emerged following the pandemic period had a negative impact on the automotive industry, Mr. Çelik discussed the transformation in the automotive industry as well. Mr. Çelik said, "The added value in the export vehicles and components from Turkey currently is at good levels. However, that added value will decrease rapidly as the electric and new generation vehicles increase. Batteries and software have a major role in costs regarding these vehicles. And investing in battery technologies and vehicle software becomes more important in preserving the added value. In addition to these, digital gauge panels, camera and sensor technologies, charging equipment, power distribution systems, fuel cells, innovative materials, and multimedia systems stand out as the fields that should be invested in. The aftermarket industry will be affected by this transformation as well, and action in this direction must be taken right now. Both the importance and the size of aftermarket are increasing in our country and in international markets." 

The conference continued with the presentations with the participation of the experts, following the opening speeches. In this scope, LMC Automotive Global Sales Insights Director Jonathon Poskitt talked about the "Automotive Industry Global Evaluation" issue, and DELOITTE Global Automotive Industry Leader Harald Proff gave a presentation titled "Automotive Aftermarket Industry General Evaluation". ROLAND BERGER's project manager Dr. Robert Eirich and senior partner Alexander Brenner talked about "Consolidation, Mergers, and Acquisitions in Automotive Aftermarket Industry" and "the Effects of Covid-19's on Aftermarket" issues. On the second day of the conference, Parts and Services General Manager of Turkey of PSA, operating under the umbrella of Stellantis, Mehmet Akın explained PSA Turkey Eurorepar Brand, and ERCS Structuring. Also, CLEPA Senior Industrial Consultant Frank Schlehuber, FIGIEFA Technical Director Ronan Mc Donagh and VALEO Country Director Burak Akın attended the panel on Technology, Trends, and Innovation.