especially in the last two years zero vehicle While it is getting harder and harder to produce and buy, second hand The number of investments in vehicle reconditioning facilities started to increase. Investors who see the potential of the second-hand vehicle market, which exceeds 6 million units per year and whose value per vehicle reaches almost 25 thousand dollars, are almost like a dream. car It carries out all maintenance, repair, testing and cleaning processes of second-hand vehicles in facilities resembling a factory and delivers them directly to the consumer. It is estimated that the vehicle capacity of these centers will reach 100 thousand by the end of the year, and will increase to 200 thousand in 2023. While there are investments by corporate second-hand companies Carvak and VavaCars in this area, which is an important investment in terms of contributing to the circular economy, even the main manufacturers such as Renault are expected to enter the refurbished second-hand vehicle business in the coming period.
NEW INVESTMENT IN ANKARA
One of the investments in this field was realized by VavaCars in the Pendik district of Istanbul last April. At the invitation of the company, we listened to both this facility and the new investments to be made last week. VavaCars Operations Group President Taner Timirci said that this facility, which was rented from a former rubber manufacturer, has been modernized and has become a second-hand vehicle renewal center, established on an area of 22 thousand square meters and with an annual capacity of 35 thousand vehicles. Timirci stated that the average cost of establishing such a facility is $2 million and said, “We will continue to increase our investments in Turkey by realizing our renovation center investments in other provinces of Turkey. After Istanbul, we also put the second center into service in Ankara. Our Ergazi center is a facility built on an area of 22 thousand square meters and has an annual renewal capacity of 35 thousand vehicles. Thus, we have increased our total capacity to 85,000 vehicles per year.”
MEXICO’S 300K TARGET
Another investor, Mexican Carvak, has a refurbishment center for 2,000 vehicles in Istanbul. However, the company sees this center as a temporary facility to consolidate its operations in the early stages of its operations in Turkey. Aiming to sell 300 thousand used vehicles in 2025, the company aims to open a much larger renovation center in the coming period. So much so that in our meeting with Carvak CEO Mehmet Çelikol, he stated that they are looking for a place from OIZs for the renovation center. In this context, considering that an average of 800 thousand new automobiles are produced annually in Turkey, it is not surprising that second-hand vehicles coming out of the rapidly growing second-hand vehicle renewal centers will catch up with the number of new automobiles produced in Turkey in the very near future.
RENAULT MAY BRING THE ‘REGENERATE’ MODEL
Used vehicle renewal area is on the radar of not only corporate companies but also world-famous brands. In this regard, important statements were made by the Turkish executives of the French giant Renault in the past months. Renault Group Turkey CEO Hakan Doğu stated that they are investigating the issue of selling refurbished vehicles in Turkey and said, “We are currently working on it. With the system we call ‘Refactory’ in France, it means renewing the vehicles and selling them again with the factory guarantee. We have reached the final stages, I hope we will launch it in Turkey. However, the current problem is; There are no second hand vehicles. So when you open this system, if there is no second hand vehicle, there are many issues such as how to renew it. We are considering whether it is the right time to open, but we have plans.”