OIB PAVES THE WAY FOR TURKISH AUTOMOTIVE SUB-INDUSTRY TO INVEST IN RUSSIA
OIB PRESIDENT SAYS ‘WE PROGRESS ON THE PATH OF BEING MORE GLOBAL
The Uludag Automotive Industry Exporters’ Association (OIB) became the main sponsor of 16th Russia Automotive Forum which is the biggest and the best event in the world on the Russian automotive industry. OIB had opportunity to find out goals, foresights and expectations of Russia on automotive industry and also pointed out cooperation possibilities promoting properly Turkish automotive industry.
“Russia plans to improve automotive industry in line with its 2018 vision. Our goal is to have a significant share in this market and get more global” OIB President Orhan Sabuncu said. “There is a big gap in automotive sub-industry in Russia and Turkish automotive industry has enough capacity and competence to fill this gap. Turkish automotive industry is an opportunity Russia shouldn’t miss” Sukru Tetik, Member of the Board of OIB, Russia Coordinator of Turkish Exporters Assembly (TIM) said.
The Uludag Automotive Industry Exporters’ Association (OIB) reviews all kind of opportunity from buying to investment, from production to export in Russia.
OIB, main sponsor of 16th Russia Automotive Forum which was held between 9-11 April 2013, reinforced perception of “Turkish automotive industry” in Russian market. Russia stood out for its geographical position, strategic and political relationships and market mobility, as the economic strangulation in European Union which is the main market for Turkey in automotive industry, pushes companies to find new markets. Automotive export to Russian Federation in 2009 was 283.1 million dollars. This number rose to 940.5 million dollars last year.Potential is high in Russia OIB President Sabuncu said that they saw high potential in Russia which ranks 5th in export market of Turkish automotive industry. “We became the main sponsor of 16th Russia Automotive Forum, the most important automotive event in the country in order to show our influence in a more strong way in Russia. Russian officials invite perpetually us to invest because they believe in our competitiveness. So we took part in this conference to both express ourselves in a better way and to learn better their expectation.”
Sabuncu: We progress on the path of being more global Sabuncu pointed out that Russian Federation needs serious investments in automotive sub-industry and as OIB they introduced the country to Turkish companies and informed them about investment atmosphere. “Russian Federation aims to be country that has the most sales in Europe with its up to 4 million sales in 2018. Within the scope of the new incentive plan, Russia Federation intends to form at least capacity of 300.000 cars over 36 months for the main industry, to produce 30 percent of engines of vehicles manufactured over 48 months, to open an R&D center over 48 months and to have a localization rate of 35 percent in the first year, 60 percent in the end of the sixth years. There is localization rates scheduled by years and separately per each items in its sub-industry. Our goal is to benefit from these opportunities, to have a position in this country and to progress on the path of being more global. In the direction of this goal, we have strong cooperation with Russia and we increase our weight in Russia in this process.
One billion dollar investment by Turkish companies.
Sabuncu said that in addition to these, there are some advantages such as zero tariff, cooperate tax cut, general property tax and land tax privilege in main support items of investment incentives, adding that Turkish companies has about one billion dollar investment in Russia and up to 20 companies carry out feasibility studies for new investments. He added also that they worked on some fields such as lobby, promotion, investment, cooperation, knowledge sharing to raise trade volume through their office in Russia since 2009.
Turkey can be strategic partner of Russian automotive industry
Sukru Tetik, Member of the Board of OIB, Russia Coordinator of Turkish Exporters Assembly (TIM) who participates as a lecturer in the first of the 16th Russia Automotive Forum, drew attention to developing foreign trade relations between Turkey and Russia and emphasized that Russia is non-negligible significant market for Turkish automotive industry.
Expressing there is a big gap in Russian automotive sub-industry, Tetik said “Turkish automotive industry has enough capacity and competence to fill this gap.” He said also that Turkish automotive sub-industry can have a great success in Russia thanks to its entrepreneurship, high quality standards and rapid adaptation.
“We are ready to share our industry’s experience of sixty years. Both Turkey and Russia will benefit from cooperation and partnerships.” Remarking Russia has automotive part market of 40 billion dollars, he said Turkey needs to get more share from this market.
“We operate actively in many platforms in order to enhance our strength in Russia. We organize various activities and also participate in events regarding the sector. In addition to these, we make efforts so that our companies can feel more comfortable here. In the end of these four years, we started to see results of our efforts. Of course it motivates us much more.”
“Next a few years should be “leap year” of Turkish automotive sub-industry in Russia. We stand with our sub-industry. For those who make or develop trade contact with Russia, it is enough to call us.”
Omer Burhanoglu, vice president of the management board of OIB who was a member of the Turkish delegation attending the event, said that 16th Russia Automotive Forum helped promotion of development in Turkish automotive industry.
“The fact that OIB was main sponsor in talks our companies have with representatives of the main industry in Russia was perceived as evidence of Turkey’s interest to this market and our members was met with a different attention and approach. Our members shared us privilege of OIB business card in the meetings. We saw also again in a same way how right our choice of event is” he said.
OIB opened a stand in expo section and aroused interest of mainly foreign participants who want to invest in Russia. The Turkish delegation was also accompanied by officials from the Turkish Ministry of Economy, UIB Secretary General Mumin Karacakayalilar and his deputy Tansu Sinag.
A lot of international companies such as Daimler, GM, Ford, PSA, Manga operating in Russia and senior official domestic companies like GAZ and AvtoVaz, giants of Russian automotive industry participated in the event.
Tatarstan is highly attractive region Turkish companies such as Trakya Cam, Kastamonu Entegre, Tirsan Kardan and Coskunoz maintain their investments in The Republic of Tatarstan in the region, as Canel Otomotiv, Nobel Otomotiv, Teklas, Pilot Koltuk, Tirsan / Kaessbohrer make investments in other regions of Russian Federation. Then also there are up to 20 companies carrying out feasibility studies for new investments.