10 Parameter to Carry the Automotive Industry to the Future

10 parameter to carry automotive industry to the future
10 parameter to carry automotive industry to the future

The first of the Sectors International Competition Strategies Joint Mind Meetings organized by Turkish Cargo and Turkishtime brought together representatives of the automotive sector. SEDEFED was also the host; Turkey's internal and external strategy in the automotive sector, the point where the industry's R & D investment, industrial 4.0 dealt exchange format, how the value created for the sector of the rings comprising the affected as the supply chain from fluctuations in exchange rates were discussed with all aspects.

The time Joint Mind Meetings X, which Turkishtime continues to organize with a traditional identity, 18 gathered automotive industrialists around the same table on Wednesday. Professor Dr. The Automotive Sector Joint Mind Meeting, moderated by Emre Alkin; Turkish Airlines Assistant General Manager (Cargo) Turhan Özen, TÜRKONFED Vice Chairman of the Board / SEDEFED Chairman Ali Avcı, Member of the Board of the Automotive Industry Association / Anadolu Isuzu Otomotiv San. ve Tic. Inc. General Manager Yusuf Tuğrul Arıkan, Vice Chairman of the Board of Directors of TOSB Automotive Supplier Industry Organized Industrial Zone / Eku Fren ve Döküm San. Inc. Chairman of the Board Mehmet Dudaroğlu, Bosch Industry and Trade Inc. Mobility Solutions First Hardware Sales Director Gökhan Tunçdöken, HyundaiAssan Otomotiv San. ve Tic. Inc. Chairman of the Board of Directors Ali Kibar, Arfesan Executive Board Member Fuat Burtan Arkan, Pimsa Adler Otomotiv A.Ş. Board Member Ömer İltan Bilgin, Farplas General Manager Ali Rıza Aktay, Tofaş Foreign Relations Director Güray Karacar, Hema Industry General Manager Osman Tunç Doğan, Autoliv Cankor Otomotiv Emniyet Sistemleri San. ve Tic. Inc. General Manager Özgür Özdoğru, Kırpart A.Ş. Şahin Saylık, Vice Chairman and General Manager of the Board of Directors; Sti. Yılmaz Sarıhan, TÜRKONFED Economic Advisor Pelin Yenigün and Turkishtime Chairman Filiz Özkan attended the meeting.

The transformation in the sector should be handled well

All over the world as well as in the automotive sector undertaking of leverage for Turkey's economy, both in size, is located in one of the most important industries in terms of both domain location. In the last century, automobile culture has spread throughout the world, while the sector has been leading the world economy. it also brings about important changes in where and how people live. In addition to radical transformations in the world automotive sector, it is worried that protectionist policies in the world trade and Brexit process may be the factors that will force the Turkish automotive sector in the coming period. Sector representatives, the main issue should be considered; while pointing out that there is a transformation in the automotive industry, he states that this transformation should be handled very well and strategies should be determined accordingly. Industry circles say that companies must work on today's problems, while making their profitability and business sustainable, and in parallel, they must do something in this field where the global market is going.

Automotive consolidates its position in the global value chain

high added value created by the automotive sector, stands in a prominent place of employment and in terms of Turkey's economy with the share of the global trade. one-fifth of Turkey's exports, the sector performs alone, when viewed in performance during the period of January to August 2019; It is seen that 20 has achieved a billion dollar export figure, transferring 85 percent of its production to overseas markets. Strong global players in the automotive main industry and domestic supplier manufacturers, the suppliers of other automotive manufacturers in the world, are also trying to consolidate their position in the global value chain with the recent drop in exchange rate fluctuations. Together with the supply industry, the 32 billion dollar export of the automotive industry continues to lead seriously. But there are also some threats for the sector. One of these threats is the developments in export markets. There is a pause in the world, especially in China, while the United States is counting. While the decline in Europe, the largest market in the sector, manifests itself, this situation casts a shadow on the export of the sector. At this point, representatives of the sector, finding new markets, says that exports should be increased.

At the last point reached, the place where the world goes has evolved into a production method that continues with self-automated and cloudy systems without human touch. In this sense, the sector; it needs little touches that will stimulate the domestic market, increase its exports, integrate it into the world, digital transformation, and create more points for Industry 4.0. Experts who stated that the main issue to be considered here is the transformation in the automotive industry; He points out that this transformation should be handled very well and strategies should be determined accordingly.

10 parameter to carry the automotive industry to the future

In the meeting, the following 10 parameter was agreed with the participation of sector representatives to create a table that would stimulate the domestic market, increase exports and integrate the sector to the world.

1- Long-term strategy program

The sector needs a long-term roadmap at many critical points, keeping from the regulation in R & D incentives. The climate of the sector is suitable for long-term planning that is not available in many sectors. In such a long-lasting sector, much longer-term roadmaps are needed for new generation vehicles. In this sense, stakeholders are expected to take a long-term strategy in the automotive sector by taking the state with them.

2 - Tax simplification and rationalization needed

Transferred VAT and MTV need to be made more rational. Article 29 of the VAT Law; Reden Deferred VATs are non-refundable ”, meaning they cannot be paid in cash. For this reason, transferring VAT is a burden on the back of the sector. As a solution proposal; these receivables may be converted into government guaranteed policies or may be used as collateral for loans received by the sector.

3- Immediate removal of deficiencies related to logistics infrastructure

especially concerned about the lack of logistics related to the point where Turkey has both the geometry of the railways. The necessity of expanding the areas of rail transport stands as an undeniable fact against the sector. The sector, which works with 75 in Europe, cannot flow through the rail at any of the goods entry and exit. especially logistics centers in Turkey are strengthening the sector's ability to compete with rail connections can be increased.

4- Defects in digital infrastructure and automation infrastructure

The place where the world goes is a production method that continues with a self-automated and cloudy system without human touch. Especially the mention of electric vehicles. Here, we are moving towards a production that requires less people but more digital infrastructure. We do not have a lack of integration in the world, but we have a lack of infrastructure and we need to complete them as soon as possible.

Determination of 5-R & D supports

1000 one R & D center in Turkey where the incentives given to R & D centers, businesses are turning to the capital. The incentive packages must be changed at the same level or added value that creates added value. A company that supplies 70 imports by market and those who supply 30 imports by the market pays the same tax at the end of the day. The incentive mechanism needs to be regulated in this sense.

6- Long-term project based loan expectation

In order to improve the investment environment, the sector needs long-term loans. The sector has difficulty in obtaining long-term loans as the credit interest rates in commercial banks are still high. As they are already working with low profits, sector representatives do not consider it reasonable to take loans with high loan interest rates. For this reason, it is foreseen that the contracts made with the main industry for a long-term project will be shown and the sector will be breathed in the long term by providing appropriate economic loans.

7- The introduction of diplomacy for new markets

Energy paying in advance where to buy Turkey, no subject is unable to use diplomacy when it comes to selling their goods. This is an area where the state should step in.

While the market is developing so fast, the sector also needs to find new markets and increase the exports there. With the sector representatives, we should focus on this issue and brainstorm what should be paid attention to and what is needed.

8- Localization of investment goods

The sector has been producing for many years, but the machine is producing goods from abroad. In fact, successful production can be done without the need for expensive machines. If the automotive industry wants to produce value-added products, it must first of all use its machinery manufacturing capability. In my words, if the sector wants to survive in this market in the future, this country has to produce its own machine.

9- Intellectual and property rights and patents

Consumer protection in Turkey, there are important laws with regard to safety of industrial products but they are not able to put enough movement. Neither of those imported licensing agreements of products produced in Turkey does not exist. This is a very serious security element. In particular, automotive safety parts are tested only in form and sold. The audit is expected to be more rigorous on both the state and firm basis.

10- The need for structural reforms

Legal reform is particularly important. Among the customers abroad, there are those who question our reliability and come to the factory. Therefore, legal and structural reforms need to be made.

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