There are some 700 producers of automotive components and services in Turkey. Many of these have a direct foreign participation in their nominal capital. More than half of these manufacturers compete in international markets and set high standards of export figures. Among them are many small and medium manufacturers with advanced technologies, constant updates and support from outside Turkey, and a dynamic company structure. 30% of the companies in the Turkish market possess international certifications, enhancing their global market position.
The production capacity of the Turkish components industry now amounts to nearly US$ 10 billion worth of goods annually. However, in 2004, the consumption rate of locally produced products was only 40%, creating a substantial demand for imported parts and components. In whatever direction the figures shift, Turkey will always have a competitive advantage on both edges: high demand for foreign production and encouraging conditions for investing in local production.
Automotive Repair Services
In Turkey, automotive repair and maintenance services are provided in two ways: small independent garages and authorized service stations.
Independent Garages
There are tens of thousands of small and medium sized garages located in virtually every part of the country.
Predominantly, they are owned by individuals operating in the smaller cities and rural areas where authorized services are less well established by the vehicle manufacturers.
These garages can cater to all brands and carry out all types of work. The technicians are free to choose any replacement brand and their services are not usually covered by warranties. These circumstances help to create a more competitive price.
Authorized Service Stations
Automotive manufacturers that have been producing in the Turkish market for a long time have already established their authorized service station networks around the country. Though they may be unable to cover every small town, they have at least one authorized service station in each city.
As the profit margins of the automotive manufacturers from the sales of vehicles are shrinking, manufacturers are looking into maintaining their revenues by increasing auxiliary services for their customers. It is expected that every manufacturer active in Turkey will continue to expand the service station network in the future.
Gas Stations
With a close affinity to the petroleum and energy industry, the gas stations also have a marked relationship with the automotive components industry: the majority of filling stations also offer repair, maintenance and tuning services which widens the market for the components and parts suppliers.
Currently, there are approximately 7,500 gas stations in Turkey. Though the exact figures are not available, many of these establishments also operate automotive servicing facilities. This is particularly common in the rural areas. These gas stations offer repair and maintenance services, car wash facilities and develop their businesses assertively by also establishing convenience stores on-site. The high potential for profit prompts the owners and operators of these stations to offer a multiple services in a ‘one-stop shop’. These receptive market conditions, combined with a growing population and increasing purchasing power, stimulate extremely favorable opportunities on all levels of operation and production.
