Roaring into Europe

Anadolu Isuzu is making up for a decline in domestic demand with exports to EU countries

Anadolu Isuzu, which exported 964 buses last year, has found a plan to overcome the shrinking domestic market. The company increased its exports by 45 percent compared to 2017 and reached 93 million euros in export revenue. Tuncay Ozilhan, Chairman of the Board of Directors of Anadolu Group, noted that they are aiming to at least double their exports by 2023. Ozilhan emphasized that the main factor that will spur an increase in the sales of commercial vehicles in the shrinking domestic market will be the transition of the economy to a growth path.

Ozilhan met with a group of economics journalists at an event organized by Anadolu Isuzu at the Grand Tarabya Hotel and together with company executives shared the following information:

“Turkey is becoming a bus production center of Europe. As Anadolu Isuzu, we exported 7,000 buses in 10 years. There are 2,000 vehicles in Romania and 3,000 in Algeria. These figures are constantly increasing. This success was achieved as a result of our steady growth in line with our program that we started four years ago.” “Five years ago, our total ex

► ports totaled 29 million Euros. In 2018, we exported 964 buses. In return, we received export revenues of $109 million (93 million euros.) We export to 44 countries and aim to double our exports by 2023. We have export plans to South America, Central Africa and Central Asia. We made feasibility studies in these markets. We have determined that these are the markets where we can be very successful.

“Five years ago, 80 percent of

► our exports were to energy exporting countries such as Azerbaijan and Algeria. We exported more than 7,000 to 8,000 buses to these countries. When the price of oil decreased, it became difficult to export to these countries. Taxes increased, non-tariff barriers were introduced. Then we turned to EU countries. At present, 75-80 percent of our exports are made to EU countries.”

“The goal of Anadolu Isuzu is to

► increase the share of exports in total sales to 50 percent. With this target, we accelerated our R&D activities. With our AOS (Anadolu Otomotiv Sanayi) brand, we are making bus connections with right-hand drive countries such as England, Ireland and Malta. Our first shipment will take place in April.”

F rst electr c truck at the end of the year

“We will launch our first electric

► truck to municipalities in Turkey by the end of this year. There is serious demand from abroad. We are about to complete our 8 and 12 meter electric buses. The 8-meter bus carries 50 people. Our goal is to go 300 miles with one charge, which is very suitable for EU countries. In the EU, almost all cities have old settlements under protection. The electric buses are very suitable for these areas because EU countries will soon ban the entry of diesel and gasoline vehicles into these regions. We will be ready to deliver these trucks to municipalities in our country at the end of this year.” “Preparations for the 12-meter

► vehicle includes CNG. The EU has set a goal to reduce vehicle emissions to 30 percent in five years. Instead of existing fleets, they need to use both electric and CNG vehicles. In the past, we used the information we received from the domestic market to direct the vehicles we export. Now we use the information we receive from these countries for export markets and we produce models that fit the needs of each country. R&D is very important at that point. Our staff in R&D will exceed 140 people. We are pleased with the R&D incentives. It is very important to introduce R&D incentives only for export-oriented projects. 30 of the 40 R&D projects we carry out are related to export. “

“Bus building is a very labor-in

► tensive area and more tailor-made production. We still support it with innovation and R&D. We are one of the biggest bus suppliers for France. Our market share in 7-10 meter buses is 38 percent. We will sell 200 more this year. Isuzu has no support in the bus business. Altogether we did it ourselves. We sell directly to the distributor network of Isuzu in some countries around the world.”