Esteemed Stakeholders of Doğuş Otomotiv,
History recorded 2016 as a year when the global economy was tested with tough conditions. As a result of the long-term felt fragilities, the global economy only grew below its potential by 3.1%. The interest rate increase of the Fed, highly anticipated by all capital markets, was realized in the last month of the year.
Likewise, the announcement that the Fed will continue to increase interest rates in 2017 also showed that the strong position of the US dollar against the local currencies will continue in the coming period. The election of Donald Trump as the US president and the UK's decision to exit from the EU through a referendum was the beginning of a new era for developed economies. OPEC member countries' and Russia's decision to tighten oil supply indicates to an upward trend in oil prices in the coming period.
The global automotive industry maintained its vitality
The automotive sector, one of the few industries to maintain its vitality on a global scale, passed beyond 90 million in production figures as of 2016 yearend. Even though the Chinese market continued to be a center of attraction for all major brands, the recovery in the US and European markets has been an important source of motivation for the sector's R&D activities and new launches. Albeit the global competition among major automotive brands continued in 2016 over products based on technology and design, the spread of protectionist economic policies in developed countries also led to sharper competition.
Turkey maintained its macro-economic discipline
In addition to the economic developments that threatened rising economies globally, 2016 was a challenging year for Turkey, faced with a fragile political conjuncture. Despite Standard & Poor's and Moody's having downgraded our country's credit ratings, Turkey did not compromise its budget discipline and achieved 2.4% growth according to the first nine months of the year.
Turkish automotive market showed strong performance with 1 million vehicles sold
As of 2016 yearend, the Turkish automotive market displayed strong performance, reaching a sales figure of 1 million vehicles, including the heavy commercial vehicles segment. The fact that Turkey has a strong consumption acceleration in terms of vehicle ownership ratio compared to the European market and that automotive continues to be seen as an investment tool in the public eye are determinants of the continued demand in the market. As one of the most experienced players in the Turkish automotive market, we will continue to pursue these dynamics closely and continue to improve our business performance in the coming period.
Doğuş Otomotiv will be on the forefront with competitive advantages
As Doğuş Otomotiv, we anticipate that the volatility in foreign exchange rates, which started in the last quarter of 2016, will affect the key dynamics of the automotive market. We should expect a contraction in 2017 with the foreign exchange volatility affecting the sector in a multidimensional way, from operating expenses to fuel and spare part prices right along with an increased tax burden. Therefore, we are determined to maintain our success by using our key competitive advantages effectively.
Doğuş Otomotiv: An efficiency-oriented and learning organization
As a company, that not only distributes 12 prestigious brands owned by VW Group, but also manages overall the sales, aftersales services, used vehicle business and financial services, Doğuş Otomotiv reached yet again industry-referenced successes in 2016.
Until today, we have sold 1.7 million vehicles across Turkey and are structured as an efficiency-oriented and learning organization.
Thanks to the high standards we have achieved not only in sales numbers but also in every area we serve, we were able to lead the sector in terms of customer loyalty.
Our experienced team is our most important assurance
Our skilled and experienced team continued to take important duties in 2016 to ensure that our business processes were run in line with the shared targets of our three main pillars, namely our relations with manufacturers, our authorized dealer network, and our technological infrastructure. With our stable structure supported by solid foundations, as Doğuş Otomotiv we aim to succeed on running our business processes focused on efficiency in the coming period.
Our success story will continue...
We would like to extend our gratitude to all of our stakeholders for supporting Doğuş Otomotiv's performance in 2016. As a company that plays an important role in the development of the Turkish automotive industry and raises its quality standards, we will continue our successful journey in the coming period.