Despite Israel's cool diplomatic relations with Turkey, Israeli imports of Turkish assembled cars has continued unabated, reaching almost 18,000 cars in 2012, for an aggregate value of hundreds of millions of dollars. The numbers will grow, as new models assembled in Turkey, with potential sales of thousands of units in Israel, begin arriving in 2013 and early 2014.
The first of these new models is the new Toyota Corolla, which will arrive in Israel from Turkey in the fourth quarter of 2013, after years of direct imports from Japan. Toyota Motor Manufacturing Turkey will begin assembling the 11th generation Corolla for the European market at the Toyota plant in Sakarya in June, with an initial run of 100,000 cars a year. Although the new Corolla has not yet been unveiled, it is reportedly much larger and roomier than the current model, and Toyota Motor Corporation (TSE: 7203; NYSE: TM; LSE: TYT) gave a preview at the Detroit Auto Show earlier this week.
Next in line is the new Hyundai i10, production of which will begin at the company's plant in Kocaeli later this year. Hyundai Motor Company Ltd. (KSX: 5380; LSE: HYUD) will export its cars to Israel from Turkey, instead of from its plant in India. The new i10 is larger than the current model, has a wider wheel base, which will narrow the difference with the i20. Sources in Turkey say that Hyundai is considering producing a mini-sedan on the same chassis.
The Honda Motor Company Ltd. (TSE: 7267; NYSE: HMC) assembly plant in Turkey is due to come on line in 2014. It will produce a compact recreational car on the chassis of the Honda Jazz, which will directly compete against the Nissan Juke, which is manufactured in the UK. Honda unveiled the new car at the Detroit Auto Show.
All these cars, in addition to the new Renault Cleo, which will arrive in Israel in mid-2013, will increase Turkey's share of Israel's car market to around 15%.
Published by Globes [online], Israel business news - www.globes-online.com - on January 17, 2013
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