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Key Growth Factors of The Turkish Autogas Market · 2015. 9. 17. · Italy 0,28 36% Bulgaria 0,63...
Transcript of Key Growth Factors of The Turkish Autogas Market · 2015. 9. 17. · Italy 0,28 36% Bulgaria 0,63...
Key Growth Factors
of The
Turkish Autogas Market
Yağız EYÜBOĞLU
CEO, AYGAZ
WLPGA Summit, Cartagena
29 January 2014
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We have the right size to benefit from economies of scale…
Who we are ? - A Proud Member of the Koç Group
Combined Sales / GDP* 9%
* As of year-end 2012
We continuously over perform the growth rates of Turkey…
Total Exports / Turkey’s Exports* 10%
Total Share in BIST Market Cap.* 16%
5 6
3 4
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3
5
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1980-851985-901990-951995-002000-052005-102010-12
• Aygaz is a member of Koç Group which is the only fortune 500 company in Turkey
(ranked 217th in 2012)
• Revenues of Koç Group $ 47.326 million
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Who we are? - AYGAZ
• 10th largest industrial company of Turkey
• Leading LPG distributor with 1.7 m tons sales, USD 3.1 billion revenues
• Generic brand for LPG since its foundation 53 years ago.
• #1 in Turkey, #5 in Europe
• Leader in every segment of LPG in Turkey with highest market shares
24,4%
15,7%
12,3% 8,7% 7,2%
6,2%
3,2% 22,3%
Autogas
Other
42,7%
24,2%
15,9%
4,7% 12,5%
Cylinder
Other
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Turkey’s Global Position in Autogas
Turkish Autogas Market is;
# 1 in Europe; 27% of Europe
# 2 in the world; 11% of world consumption
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SouthKorea
Turkey Russia Poland Italy Thailand Japan Australia
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2006 2007 2008 2009 2010 2011 2012
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1997 2002 2007 2013
Sales Volume - Autogas
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1000
2000
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4000
1997 2002 2007 2013
LPG Car Park
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ns)
Steady growth since 2003
LP Gas : Most widely-used passenger car fuel since 2009
With 3,9 million cars, 4 out of 10 passenger cars run on LPG !
Largest LPG Car Park in the world (17% of the world)
High number of already converted vehicles limit the growth rate.
Significant Growth in 16 Years…
9 % 16 %
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1999 2013 E
Autogas
2.7 million tons (%74)
Bulk
0,1 million tons (%3)
Autogas
0,4 million tons (%11)
Bulk
0,9 million tons (%27)
X 7
Total
3,4 million tons
Total
3,7 million tons
Cylinder
0,8 million tons (%23)
Cylinder
2,2 million tons (%63)
Market Dominance is Shifting from Cylinder to Autogas
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Why is Turkey so Successful in Autogas ?
Competitive Price
Wide Distribution Network
Product Quality and Image
Reliable Conversion Network
Availability of OEM Cars
Legislation of Supportive Laws
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Taxes on Fuels Deeply Impact the Growth of Car Park
• Autogas / Gasoline price ratio and net economic advantage of LPG is the most
important factor for growth.
• Currently the net price advantage against gasoline is ((1.76/1.05)/1.3 -1) = 29 %
DIESEL Pump
price (€/lt)
Tax
Ratio
U. Kingdom 1,69 56%
Sweden 1,62 55%
Italy 1,68 54%
Turkey 1,65 51%
Finland 1,50 51%
Ireland 1,50 51%
Denmark 1,55 49%
Slovenia 1,42 48%
Hungary 1,44 48%
Czech R. 1,42 48%
GASOLINE Pump
price (€/lt)
Tax
Ratio
Turkey 1,76 61%
Finland 1,64 59%
Netherlands 1,80 59%
Sweden 1,60 59%
U. Kingdom 1,64 58%
Italy 1,81 58%
Greece 1,73 57%
Germany 1,64 56%
Belgium 1,61 56%
Ireland 1,60 55%
LPG Pump
price (€/lt)
Total Tax
(€/lt) Tax Ratio
Turkey 1,05 0,49 47%
Denmark 1,23 0,51 42%
Lithuania 0,71 0,28 42%
U. Kingdom 1,03 0,34 40%
Hungary 0,85 0,31 37%
Poland 0,65 0,22 37%
Italy 0,76 0,28 36%
Bulgaria 0,63 0,20 31%
Latvia 0,72 0,16 30%
Slovakia 0,69 0,22 30%
*As of September 2013
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Price is the Main Motivator!
History tells us; the pump price of LPG should not be more than
65 % of gasoline in order to achieve healthy growth
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Why is Turkey so Successful in Autogas ?
Competitive Price
Wide Distribution Network
Product Quality and Image
Reliable Conversion Network
Availability of OEM Cars
Legislation of Supportive Laws
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• 10.000 LPG stations (77% of gas stations)
• Aygaz has the widest station network (1500 stations)
Wide Distribution Network Favors The Growth
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Why is Turkey so Successful in Autogas ?
Competitive Price
Wide Distribution Network
Product Quality and Image
Reliable Conversion Network
Availability of OEM Cars
Legislation of Supportive Laws
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• In the beginning, autogas was perceived as an inferior, unsafe and low
performance fuel in the minds of consumers.
It took several years with extensive communication to change this image.
2,85
3,59
2,47
3,69 3,93 3,9
3,33
3,92 4,07 4,15
3,71
4,18
3,79
4,25
3,57 3,77
4,4 4,44 4,25 4,32
4,47 4,47 4,37 4,46
Autogas is safe Autogas is environment-friendly
Autogas provides highperformance
I use it without any doubt
Perception Scores of Customers (Out of 5)
May-05 December-07 February-08 July-09 July-10 October-10
Solving The Image Problem
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We have solved the image problem!
Aygaz continously improved and differentiated its product.
2001 – First product complying with EN 589
2004 – First product special to winter conditions
2009 – 2010 First product with additives and Enhanced Formula
Product Quality and Image
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Why is Turkey so Successful in Autogas ?
Competitive Price
Wide Distribution Network
Product Quality and Image
Reliable Conversion Network
Availability of OEM Cars
Legislation of Supportive Laws
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The first contact point for LPG customers!
Quality of the conversion directly affects consumers experience.
Perception of those facilities is critical for market growth.
In Turkey: 1.000 registered conversion centers.
Reliable Conversion Network
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Why is Turkey so Successful in Autogas ?
Competitive Price
Wide Distribution Network
Product Quality and Image
Reliable Conversion Network
Availability of OEM Cars
Legislation of Supportive Laws
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Availability of OEM Cars
• 50% of the customers first decide on the brand, then decide on the engine.
• Availability of OEM LPG cars will also significantly impact customer perception.
Hyundai Fiat Chevrolet Dacia
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Why is Turkey so Successful in Autogas ?
Competitive Price
Wide Distribution Network
Product Quality and Image
Reliable Conversion Network
Availability of OEM Cars
Legislation of Supportive Laws
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Legal Support and Lobbying Efforts are Important
LPG has a dedicated law which defines the
operations and market environment in Turkey.
EMRA regulates the market.
I’ll switch to autogas if the
restriction is lifted
The main obstacle that is preventing further
development of the market is the ban of
underground parking.
It is expected to be lifted in 2014.
10% of petrol car users :
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As a Summary…
Conversion Network
Distribution Network
Price
OEM Car Production
Legislation
Product Quality &
Image
For a healthy autogas market we need a combination of all these :
Sustainable Communication
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Before Ending…
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Thank You!