At the event, Mr. Omer Sozutek, International Relations and Business Development Director, said: “We are looking at the Indian market for the long term. We are exploring the possibility of entering the Indian bus market either on our own or through a strong local partner. We hope to be in India by 2010”.
Temsa, established in 1968, began its automotive business operations in 1984 by signing technical licence and distributorship agreements with Mitsubishi Motors Corporation of Japan. Having initiated production of coaches, midi-coaches and light trucks in 1987 at its Adana facilities, it currently manufactures the Diamond and Safari coaches, Powerbus, Prestij and Metropol midi-coaches as well as the Mitsubishi Fuso Canter light trucks for the Turkish market.
Temsa exports 85 per cent of its coaches to 40 countries. The Adana plant in Turkey has an annual production capacity of 1,000 coaches, 2,000 midi-coaches and 7,500 light trucks. The company has recently set up a new plant in Egypt last year, through which it is catering to the North African market, the Middle East and Gulf countries. Globally Temsa does a turnover of $215 million, and sold nearly 3,000 buses in 2008.
Temsa is an important member of the Sabanci Group and is committed to creating distinctive and lasting products of the highest quality. The Sabanci Group is composed of 65 companies, many of which are recognized market leaders in their respective sectors. The group has several joint ventures in Turkey across many product lines. In fact, the Temsa plant in Egypt was established through a joint venture with a local company. In a sense Temsa and the group it belongs to are quite open to having joint ventures and working with local partners.
“We would like to become a world class bus manufacturer. To achieve this we are making our strategy to first become a regional power house. Outside Turkey, we set up a manufacturing facility in Egypt which became operational this year. Now we are evaluating other markets. In our study so far, India looks like a very good market for setting up of a manufacturing facility. Hopefully by the middle of 2009 we will have a clearer picture of our plans for the Indian market”, says Mr. Sozutek.
Temsa is currently in discussion with a few Indian companies, including the New Delhi-based JBM Group for a possible joint venture. Currently a team from Temsa is in India conducting a feasibility study, and a final decision will be taken very soon. JBM is a strong candidate for partnering in the Indian market, adds Mr. Sozutek.
Mr. Sozutek said: “The bus manufacturing facility in India will primarily cater to the Indian market and will also become a regional hub for exports to other Asian markets. We do know that India has FTAs with a few countries and many more are in the pipeline. We hope to take advantage of these concessions”.
It is important to note that if Temsa decides to go ahead with the Indian facility. This will be the first bus manufacturing facility for the company in the whole of Asia.
Temsa is an integral bus manufacturer. The company sources best of aggregates like engine, transmissions, axles and other components and assembles them and builds bus bodies as per its own designs. For buses exported to Europe, Temsa uses engines from MAN, DAF and Cummins. In India, Cummins could be a possible partner for engines, hinted Mr. Sozutek.
Temsa is also planning to follow the same integral coach concept in India as well. The company is planning to source most of the components from the domestic market for which it has already visited more than 30 component suppliers in India. “We are satisfied with levels of quality and in future we will use Indian vendors as a component supply base for export to our international operations as well”, adds Mr. Sozutek.
Temsa has a complete product range from 7 to 14 metres in city, inter-city and luxury bus segments. In 2008 the company introduced Avenue, a full-fledged low-floor city bus for the European market. For the Indian market the company is looking at all segments – luxury, city and midibus. Temsa is traditionally strong in the coach segment but is strengthening its business in the city bus segment as well.
“The Indian bus market is witnessing a complete makeover. Volvo set standards in the luxury and city bus segment. Mercedes has just made an entry in the luxury bus segment. Tata Motors’ JV with Marcopolo has done wonders to its city bus business with the DTC buses in Delhi showcasing its strength. Tata’s acquisition of Spanish company Hispano has helped it in improving its products in the luxury bus segment. Ashok Leyland is building on its own capabilities and also with its JV with Irizar. The recent DTC order is a shot in the arm for Ashok leyland. The bus segment is moving to global standards, and Temsa with its strong product line-up and technology can provide high quality at competitive prices, according to Mr. Sozuktek.
The Temsa team which also attended the Vibrant Gujarat Summit feels that Gujarat could be a possible destination for setting up its manufacturing facility. The company has not spoken to or approached any other State Government as yet.
In an earlier interaction, Mr. Mehmet Buldurgan, Temsa President, said: “Temsa’s vision is to be a world class global brand. It began on this journey in 2001 and focused its attention further on becoming a builder of quality coach and midi-coach vehicles suitable for West European markets. Coach production is a job which requires high technology, experience and know-how. Temsa has proved itself over the years, particularly in European markets, with its high quality and reliable products”.
