Turkey: 2013 Turkish Automotive Sector Legal Update, Including A Peek At The New Consumer Code

Dr. E. Seyfi Moroğlu, Partner at Moroğlu Arseven, contributed to this article

Below is our assessment of legal developments in the Turkish automotive sector. Our assessment includes:

  • Consideration of new regulations in the Turkish automotive sector, introduced in response to European Union harmonization studies, government promotion issues, and consumer protection issues.
  • Consideration of amendments and new regulations regarding the type of approvals for vehicle parts, issued by the Ministry of Science, Industry and Technology, as well as a Sector Report published by TAYSAD (Association of Automotive Parts and Components Manufacturers).
  • Brief information about Car-Sharing, a new format of transportation system in Turkey.

I. Turkish Automotive Sector as of June 2013 and Plan for the Near Future

A) Manufacturing figures

According to a report published by TAYSAD, 584.621 vehicles were manufactured in Turkey between January and June 2013, a reduction of 0,3% compared to the same period in 2012. Of these vehicles, 303.783 are cars, 265.562 are commercial vehicles and 20.276 are tractors.

B) Export figures

For the period January to June 2013, 428.211 vehicles were exported from Turkey, an increase of 5% compared to the same period in 2012. Oyak Renault led the sector in this regard, exporting 142.979 vehicles between January and June 2013. Oyak Renault significantly increased its number of exported vehicles by 23% compared to the same period in 2012. According to the TAYSAD report, Toyota, Honda, Man, Temsa and Hattat Tarım have considerably reduced export activity in 2013.

The total industry export amount reached US$1,802,439,148, equal to an increase of 12% compared to the previous year.

C) Internal market figures

In Turkey, 292,106 vehicles were sold during the period January to June 2013, an increase of 19% compared with the same period in 2012. The first half of the year involved a 31% increase in imported vehicles compared to the same period in 2012.

While the sale of light commercial vehicles decreased, the sale of heavy commercial vehicles accounted for the internal market's overall sales increase.

Please note that for the January to June 2013 period, the total Turkish internal market has decreased by approximately 10%, compared to this same period in 2010.

The table below shows the figures and related rates for January to June 2012 and 2013.

D) The Ministry of Industry of Science, Industry and Technology's Legislation Activity Plan with Respect to the Automotive Sector

In 2011, the Ministry of Industry and Commerce published a Strategy Certificate and Activity Plan for 2011-2014. Within the scope of improving legal and administrative regulations, the plan includes the following steps:

  • Revise the related tax system in order to encourage use of eco-friendly vehicles,
  • Create legal regulations in order to junk older vehicles and encourage junk companies,
  • Synchronize Turkish legislation with the EU and United Nations approval regulations,
  • Carry out market surveillance and inspection studies.

Some of these steps may only be carried out after various studies are conducted. Therefore, future automotive sector updates are expected to include discussion of the activity plan outlined above.

II. Recent Product Safety Regulations in relation to United Nations Regulations and European Union Harmonization Studies

Since 1999, Turkish legislation has adapted various regulations in response to European Union approval directives and United Nations obligatory technical requirements.

These regulations include the examination standards of motor vehicles used by the Turkish Standards Institute, to be approved by the Ministry Science, Industry and Technology.

The table below outlines recent regulations notified in the Official Gazette during 2013 and legislation which will be effective within this coming year.


Official Gazette


Title of the Regulation


Related EU Directive


Notes


12/10/2013-28793


Regulation regarding Type Approval of Masses and Sizes of Motor Vehicles and Trailers


EU/1230/2012


The regulation determines new size standards for vehicles of type M, N and O.

The regulation entered into force on 01/11/2013.

Manufacturers must submit conformity certificates by 10/01/2014 (Temporary Article 1/3 of the Regulation).


05/10/2013-28786


Amendment Regulation regarding Type Approval on Emission for Air Conditioning Systems of Motor Vehicles


EC/40/2006


The regulation sets forth two restrictive amendments to the previous regulation. Briefly, the amendments consist of new duration restrictions for air conditioning systems for vehicles of type M, N and O.

The regulation entered into force on 01/01/2013.


05/10/2013-27786

28/04/2013-28629


Amendment Regulation regarding Type Approval of Motor Vehicles and Trailers


EC/40/2006

EC/46/2007


The regulation provides various execution dates (05/10/2013, 01/11/2013 and 01/01/2014) for technical changes set out in different provisions of the Regulation.


25/09/2013-28776


Amendment Regulation regarding Type Approval In Terms of Emissions of Heavy Duty Vehicles (EURO 6) and regarding Access to Maintenance Information


EC/595/2009


The regulation includes a technical amendment necessary to comply with a related EU amendment.

The Annex of the regulation changed.


18/09/2013-28769


Regulation regarding Enhanced Urgent Braking Systems For Specific Types of Motor Vehicles


EU/347/2012


The regulation sets forth standards for vehicle types of M2, M3, N2 and N3.

The regulation entered into force on 18/09/2013.


18/09/2013-28769


Regulation regarding the Type Approval of the Installation of the System of Warning for Detachment of the Band for Motor Vehicles


EU/351/2012


The regulation sets forth standards for vehicle types of M2, M3, N2 and N3.

The regulation entered into force on 01/11/2013.


13/09/2013-28764


Amendment Regulation Regarding Vehicle Manufacturing, Modifications and Installation


N/A


In terms of the traffic security, the regulation states standards for vehicle types of M2, M3, N2 and N3.

The significant aspect of the amendment includes modifications for handicapped persons.

The regulation entered into force on 13/09/2013.


13/09/2013-28764


Amendment Regulation Regarding Vehicle Manufacturing, Modifications and Installation


N/A


In terms of the traffic security, the regulation states standards for vehicle types of M2, M3, N2 and N3.

The significant aspect of the amendment includes modifications for handicapped persons.

The regulation entered into force on 13/09/2013.


18/07/2013-28712


Regulation regarding Examination of Devices for Measurement of Exhaust Gas Emissions


N/A


The regulation determines standards for service units and their certificates for the examination.

In principle, the regulation entered into force on 18/07/2013. However, some provisions regarding the ordering of the new examination rules and responsibilities will enter into force on 01/09/2014.


16/02/2013-28561


Amendment Regulation Regarding the General Security of Motor Vehicles and Trailers, Systems, Components and Separate Technical Units


EC/661/2009


This amendment Regulation was necessary due to EU directives (EU/ 407/2011 and EU/523/2012). The Regulation relates to vehicle types M, N and O.

The regulation entered into force on 16/02/2013 to become effective as of 25/01/2012.


20/09/2013-28771


Statement Regarding the Application of the United Nations Economic Commission for Europe's Technical Regulations For Wheeled Vehicles and Components and Parts Installed Thereon, as well as Repeal of Some Statements


N/A


For the Harmonization of Turkish legislation with United Nations Regulation, technical standards are inserted into the annex of the statement.

These include pedestrian security, approval of light resources in vehicles, installation of warning systems for lane changing and enhanced urgent braking systems.


III. Issues in Consumer Law Regarding the Automotive Sector

Outlined below are significant recent decisions by the Court of Appeals related to consumer law in the automotive sector. These decisions also consider regulations introduced under the new Code regarding Protection of Consumers numbered 6502 published on the Official Gazette dated 28 November 2013 and numbered 28835 ("New Consumer Code"). This Code will repeal the Code on Protection numbered 4077 and will enter into force six months after the publication date.

A) The Court of Appeal affirmed a consumer's right of choice under Article 4/2 of the Turkish Code on Consumer Protection in circumstances where the consumer claims a refund on the basis of a hidden defect related to a car's coloring. However, in the event that the decision unduly affects the balance of rights or benefits between the parties, the district court should evaluate the alternative remedies of price reduction repair free of charge. (2013/8695 E. and 2013/10214 K., dated 18.04.2013).

Article 11 of the New Consumer Code does not amend the general principles regarding a consumer's right to choose a remedy. As in the old code, if a defective product exists, the consumer is entitled to choose one of the following remedies: repair free of charge, replacement of the product, termination of the agreement, and price reduction. The decision described above is significant because it introduces a new principle for the seller's benefit.

Parallel to this decision, the New Consumer Code includes a new provision which states: "In the event that exercising the consumer's right to request repair of the product free of charge or replacement of the product would impose disproportionate difficulties on the seller, the consumer may use one of the rights of termination of the agreement or price reduction. Factors relevant to determining whether exercising the consumer's right causes disproportionate difficulties in a given set of circumstances are the value of the (non-defective) product, the importance of the defect, and whether exercising the consumer's right to choose would constitute any trouble for the consumer" (Article 11/3). Therefore, gradually the consumer's right to choose a remedy with regard to a defective product has begun to be tempered for the seller's benefit.

B) The Court of Appeals decided that if the consumer still possesses the car in question, the consumer (plaintiff) cannot request interest on a refund claim which is based upon a hidden defect in the car's coloring. (2013/3426 E. and 2013/7058 K., dated 20.03.2013). The New Consumer Code does not affect application of this decision.

C) The Court of Appeals decided that if a consumer obtains credit to purchase a product and then later claims a refund on the basis of a defect in the authorized technical service, the interest which the consumer has paid to the bank cannot be charged to the defendant. This is because there is no unjust enrichment in relation to the technical service because the defendant has received no income from the consumer's use of credit in these circumstances. (2012/5689 E. and 2012/9013 and dated 03.04.2012).

Article 30 of the New Consumer Code addresses tied loans, where credit is given to the Consumer by a party other than the car's seller specifically for purchasing that product - both the loan and sales agreements are deemed to be an economic unity. Where the consumer obtains credit as part of a tied loan and then later the consumer seeks to terminate the sales agreement or receive a price reduction on the basis that the product was not delivered (or not properly delivered), the seller and the creditor shall be severally responsible. If the consumer exercises his/her right to receive a price reduction, the tied load shall also be reduced at the same rate. If the consumer exercises his/her right to terminate the agreement, the seller, provider and the creditor shall be severally responsible to reimburse the consumer for the payments he or she made up to the termination date. The creditor's responsibility is limited to one year from the date of delivery (or one year from the date of the sales agreement where the product is not delivered). The creditor's liability is also limited to the amount of the credit granted.

D) The Court of Appeals decided that if a consumer requests replacement of a defective product based on repetitive breakdowns (more than two) and the consumer continues to use the defective product even after opening a law suit, this use does not affect the manufacturer's liability under Article 4 of the Turkish Code on Consumer Protection (Code numbered 4077). (2009/4-246 and 2009/297 dated 01.07.2009). Article 4 in the old Code is the equivalent of the Article 8 of the New Consumer Code and Article 14 of the Warranty Regulation.

IV. Recent Investment Incentive Amendments Applicable to the Automotive Sector

The Communiqué on State Support to Investments ("Communiqué") outlines various matters related to investment incentives available in relation to the Turkish automotive sector. Article 2 of the Communiqué states there are three types of the incentives: General Investment Incentives, Incentives for Large Scale or Regional Investment, and Sector Based Incentives.

The Amending Communiqué on State Support to the Investments ("Amending Communiqué") affects investments made from 19 June 2012. If investments meet certain criteria, the Amending communiqué states they are deemed to be priority investments and may be eligible to receive reductions in tax rates, insurance premiums and interest rates for bank credit, among other benefits. According to Article 4 of the Amending Communiqué, the following investments are deemed to be priority investments within the scope of Article 17 of the Communiqué:

  • Investments in the motor road vehicles industry valued at TRY 300 million or more,
  • Motor investments valued at TRY 75 million or more,
  • Investments related to motor parts, drive line parts and automotive electronics valued at TRY 20 million or more

Investments made in Region V are also deemed to be priority investments and are eligible for the associated incentives, irrespective of whether the investment meets the thresholds stated above (please see the table below for information about which cities are included in Region V). However, investments located in Region VI will not benefit from the incentives. For these investments, the specific incentives determined for Region VI will continue to apply.

V. Car-Sharing: A new format of transport

Recently, the Turkish automotive sector and consumers have discovered Car-Sharing as an alternative to car rental. Car-Sharing has been common in other countries for approximately 25 years. Car-Sharing allows consumers and companies to rent a range of cars, from specific places, for any period desired by the consumer.

Consumers who wish to benefit from the system become members of the car-sharing company's system via the relevant website. These systems provide the consumer with a username and password, as well as a member card. This card allows consumers to make reservations for any car and rental period, collected from pre-determined places.

Car-Sharing sector leaders in Turkey are Mobicar and Yoyo. These systems are attractive to customers, companies, or other groups because they allow easy use of a variety of comfortable cars, on a day-to-day basis. This eliminates the disadvantages of urban transport and reduces car ownership rates, without eliminating the inherent comfort of private transportation.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
 
Some comments from our readers…
“The articles are extremely timely and highly applicable”
“I often find critical information not available elsewhere”
“As in-house counsel, Mondaq’s service is of great value”

Related Topics
 
Related Articles
 
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
 
Email Address
Company Name
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Registration (you must scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.

Disclaimer

The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.

General

Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions