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Turkish Auto Parts Companies Dip Toes into Chinese Market

Industry News 2018-06-08

China International Auto Parts Expo (CIAPE) will be held in Beijing International Exhibition Center from September 13th to 15th. As the focus country, Turkey will exhibit as a national delegation this year. TAYSAD and OIB will organize over 100 quality Turkish auto parts companies to exhibit at the expo. A senior CEO delegation will also participate in the expo as exhibitors and visit Chinese auto enterprises.

Accompanied by the organizing committee of CIAPE, Mr. Suheyl Baybali, chairman of TAYSAD, visited Chinese auto factories from June 14th to July 2nd and sought for cooperation with Chinese companies.

SG Automotive Group- Technology upgrade will bring new market opportunity

Mr. Suheyl Baybali, chairman of TAYSAD, visited the workshop of the pick-up truck and SUV and test drove the SUV manufactured by SG Automotive Group, to which he gave the thumbs-up. According to the person in charge of the international market from SG Automotive Group, its pick-up truck and SUV have not only gained popularity in the Chinese market but also made their way into the market of South Asia and Latin America. Currently, it is developing the Russian market. However, there are some obstacles for SG to develop the European technology market. Turkish companies have the European market standard and abundant experience in developing auto manufacturing technology. This is one of the purposes of Mr. Suheyl Baybali’s exhibiting delegation at CIAPE—to introduce their European technology and their experience in working with European auto factories to Chinese auto and auto parts enterprises and to help Chinese companies to develop the European market more smoothly.At the beginning of 2013, the joint-venture between Dongfeng’s commercial vehicle and Volvo’s commercial vehicle brought new opportunities to the two companies. Volvo’s technology lays a foundation for Dongfeng’s long-term development, and at the same time the huge potential of the Chinese market brings new space for development to Volvo’s commercial vehicle. This is undoubtedly a successful case which brings a new development pattern for Chinese auto companies to introduce advanced technology of foreign countries and to boost the development and upgrade of Chinese companies. It is hopeful that the delegation of Turkish auto parts enterprises find cooperative partners in China and develop new market together.

BMW Brilliance Automotive –Production capacity of factory in Tiexi, Shengyang  400,000, huge business opportunity in OEM localization

Mr. Suheyl Baybali visited the factory of BMW Brilliance Automotive and realized the great importance BMW has attached to the Chinese market. The production capacity of the newly built factory in Tiexi District, Shengyang reaches 400,000. Mr. Baybali was very excited about the number. It means great development opportunity for BMW suppliers. Turkish auto parts enterprises enjoy good cooperative relationship with European auto manufacturing companies as well as the strict quality control system. Some of them cooperate with BMW in Germany. They think highly of the space for development for BMW Brilliance. BMW Brilliance will implement the localization strategy in the future. According the strategy, localizing the production will be an important bargaining chip in the cooperation between OEM suppliers and BMW Brilliance. TAYSAD will be discussing the possibility of localizing production with Chinese enterprises during CIAPE in September.

Sino-Truk- Speed up the process of internationalization and plan to build factories in Turkey

Mr. Baybali visited the locomotive and A7 series heavy truck factory of Sino-Truk. Sino-Truk entered the international market with the heavy truck that conforms with the EURO Ⅰ emission standards . Sino-Truk’s export volume has enjoyed a steady increase since this year. So far Sino-Truk has received orders of more than 140, 000 vehicles and remains top among heavy truck companies in China. Sino-Truk plans to make big investment in Turkey in the future. Mr. Baybali’s visit lays the foundation for Sino-Truk’s investment in Turkey. Mr. Baybali introduced the status quo and development plan of Turkish auto parts industry to the leaders of Sino-Truk and answered their questions about the emission standards of heavy trucks imported to Turkey in the year 2015 and the supporting policies the Turkish government provides for foreign enterprises that make investment in Turkey. Mr. Baybali hopes that Turkish auto parts associations can assist Sino-Truk by utilizing their local resources and influence to remove some of the obstacles Sino-Truk might encounter during its investment in Turkey. During the visit, Mr. Baybali decided to organized over 30 quality Turkish auto parts enterprises to meet with the technical personnel of Sino-Truk after CIAPE in September and discuss the feasibility of cooperation in Sino-Truk’s building factories in Turkey.

It is reported that Mr. Baybali also visited many other auto enterprises such as Great Wall, Foton, Benz Beijing etc. The 7th China International Auto Parts Expo will begin on September 13th at which Chinese and Turkish enterprises will negotiate about their cooperation in detail.