7th Automechanika Istanbul Remains Key Auto Parts Trade Fair

Event attracts some 1,245 exhibitors with 536 from 35 countries

Growing as rapidly as the Turkish automotive industry and market, the 7th Automechanika Istanbul wrapped up on April 14, 2013, at the TUYAP Fair, Convention and Congress Center in Istanbul alongside Petroleum Istanbul 2013, with encouraging turnout compared to its last edition.

According to Messe Frankfurt, the organizer, the biennial show, spread over some 98,000 square meters, attracted 1,245 exhibitors, of which 536 came from 35 countries including Germany, Italy, France, Serbia, Croatia, the U.K., Austria, Sweden, the U.S., China, Pakistan, Singapore, Taiwan, India, Iran, Tunisia, Mexico, and so forth.

With some media reporting uncertain economic outlook in the EU, the exhibitor number still exceeded by 13% from the 2011 edition, showing to some extent Turkey's growing economy, increasing political stability and fast developing automotive industry, all of which attract international firms interested in investing, forging partnerships.

Also notable is this year's record-high 43,813 visitors, 12,359 of which being international trade visitors and buyers from 110 countries, up 62% from the 2011 edition, according to organizer's statistics.

The organizer was upbeat with the turnout, with the general managers, Aleksandar Medjedovic and Alexander Kuhnel stating that Automechanika Istanbul 2013 showed Turkey once again as a global automotive production and supply platform, offering tremendous opportunities for all participants to develop businesses and enter new markets, hence attracting many buyers from the Near East, Southeastern Europe and North Africa.

Growing Car Production
According to Uludag Automotive Industry Exporters' Union, Turkey's automotive industry achieved export goal of US$5.1 billion in the first quarter of 2013. Of the total exports, US$1.666 billion were generated from passenger cars, up 1.5% yearly, US$941 million from special purpose vehicles, US$215 million from buses, and US$97 million from other vehicles. In March, exports to Belgium, the U.K. and the U.S. increased respectively 50%, 28% and 18% yearly.

The industry will likely gain more growth momentum in 2013, as Kudret Oene, chairman of the Turkish Automotive Manufacturers' Association, reported earlier that, despite being impacted by the euro crisis last year, the industry will surely see investments at home and from abroad recover in capacity, technology, human resources and innovation this year. The reasons behind his optimism are Turkey's economic and political stability, which are gradually turning the country into a favorable investment environment for both local and foreign investors, not to mention that the government is working on incentive-based policies designed to build partnerships between domestic and overseas firms in the industry.

In the first two months of the year, some 83,830 cars and commercial vehicles were sold in Turkey for an 18.3% growth compared to 70,869 units seen in the same period of last year, according to the report by the Automotive Distributors Association. Sales in February totaled 48,307 units, up 16.9% from 41,324 units of a year earlier.

Turkey's demographic advantage leads operators, investors and observers to believe in the promising potential of this market. While the number of vehicles per 1,000 people nationwide reached 246 in 2012 from only 95 in 2003, a news report by a local magazine publisher, Automotive Exports, notes that the local demographic structure has changed positively, as an estimated 6 million people will join the over-25-year group in the next five years, which will further drive domestic demand for new cars inevitably.

The official statistics show that some 17,143,099 motor vehicles had been registered as of the end of January, during which 123,019 vehicles were newly registered, 70.4% more than a month earlier, 61.3% being passenger cars, 24% small trucks, 5.8% motorcycles, 3.7% trucks, and 5.2% buses. Passenger cars, minibuses, buses, small trucks, trucks, special-purpose vehicles, motorcycles and tractors increased 77.4%, 43.7%, 91.6%, 135.1%, 118.6%, 62.4%, 8.1% and 52.3%, respectively.

Wide-ranging Exhibits
Aside from user-friendly layout, the 7th Automechanika Istanbul also categorized wide-ranging exhibits into five major lines, parts & systems, repair & maintenance, accessories & tuning, service station & car wash and IT & management, allowing visitors easy sourcing of potential suppliers and products.

Exhibits included vehicle parts and components for drivetrain, chassis, body, electrics and electronics, system and modules for interior, exterior, drivetrain, electronic controls, equipment for vehicular service and repair, bodywork repair and painting, workshop equipment, dealership, waste disposal and recycling, vehicle accessories, special equipment, tuning, performance systems, design refinement, service station equipment car care and car wash equipment and IT products, as well as related services like vehicle insurances, financing, leasing, claims management, inspections, dealer management systems, dealership planning and construction and dealership marketing.

This year's show also saw traditional national pavilions by Germany, Italy, China, Taiwan, Serbia, the U.S. and the U.K., first-time participation from a Mexican exhibitor group, an official national pavilion from Singapore and Austria, and first-time national stands from India, Tunisia and Pakistan.

The organizer's general manager Alexander Kuhnel lauded the success of the show, saying that heavy international participation is nothing new at Automechanika Istanbul…that demand from companies from abroad for prime space exceeded all expectations.

Besides the fair having been sold out, the entire Turkish industry attended as well.

Opportunities for Taiwan
Some 20 Taiwanese companies took part in the show, exhibiting auto parts for both OEM (original equipment manufacturing) and aftermarket such as diagnostic tools, spray guns, tuning parts and machine tools.

With decades-long business ties and technological support mostly from European world-caliber carmakers, in particular from Germany, Turkish auto parts suppliers can compete with most global rivals from developed countries technologically and qualitatively, coupled with local underselling companies being the majority in the auto parts aftermarket, to make the Turkish market basically exclusive to foreign buyers, especially mediocre players.

Some Taiwanese exhibitors believe that penetrating the Turkish market calls for foreign players to be more than exhibitors and to earnestly seek partnerships with local OEMs and suppliers with strong branding potential, as the country works on assisting local companies in such strategy.

However the show still holds many opportunities for Taiwanese exhibitors from other sectors. J.C. Su, marketing director of Chi Mark Precision Industry Corp. and a maker of magnetic tools and LED lighted tools, says that compared to auto parts makers, hand tool suppliers are more likely to explore the local auto repair and maintenance segments by participating in Automechanika Istanbul, as the show attracts buyers in Turkey and from nearby countries, which, Su says, mostly lack reliable supply of high-quality, innovative hand tools, a demand which Taiwan makers can readily meet. Su may be right for his booth saw many interested buyers over the 4-day span.

Also notable is that Taiwan's machine tools are popular with local professionals as confirmed by local importers and manufacturers. Some visitors who came by the CENS booth said that Turkey has imported machine tools mostly from Germany and Italy to bolster development of the local manufacturing industries, due to in recent years acceptance of Taiwan-made tools for not just competitive prices but also excellent functionality and performance, some of which even exceed competing models from Germany and Italy. Expecting to see more partnerships between their country and Taiwan, they advised in goodwill that Taiwanese companies should step up tapping business potential in Turkey.

As Taiwan's largest export media, CENS again promoted buyer guides, and TTG (Taiwan Transportation Equipment Guide), the best-known of its kind in Taiwan, attracted ample interest with foreign buyers.

To be Annually Held
Perhaps the most important change since its inception, the show will be held annually in 2014, said the organizer, adding that the change is motivated by the growing Turkish automotive industry, designed to drive both the industry and local market.

The next Automechanika Istanbul is scheduled for April 10-13, 2014 at the same place.