Autogas Market Evolution in Turkey Can Toydemir Operations Director - IPRAGAZ SHV Energy - Turkey
Interesting Facts
0,4% 35,6%
38,2% 25,8%
LPG
Gasoline
Diesel
Autogas Market Evolution in Turkey
Unknown
Branded Operation Increase Awareness
Branded Operation
√ √ √ √ √
LPG companies’ wish Alternative fuel (its own canopy)
Retail Shaping the market New consumption
Commodity
√ √ √ √ √
Fuel companies’ wish
Subsegment of fuel (another pump) Wholesale Department Cannibalisation
Autogas Market Evolution in Turkey
Cost Saving is the Market Creator ?
Autogas Market Evolution in Turkey
Turkish LPG Market Growth Profile Changed Dramatically
Growth % -
135%
113%
109%
260%
-4%
-8%
20%
22%
7%
6%
11%
4%
10%
Autogas Market Evolution in Turkey
6%
7%
1%
2%
4%
6%
Interesting Milestones of Autogas Market in Turkey 1990-1995 Individual users by non regulated conversions with LPG cylinder in bonnet. 1996 ; TSE ECE R 67 standard, 1995 - 2000, the market reached almost 1,3 million ton and lobbying against autogas 2000, Autogas PCT (Private Consumption Tax) increased 62 times. VAT (Value Added Tax) increased from % 17 to % 40. In addition to these, economic crisis led to shrinking of LPG market. 2000 – 2009 fuel distributors established their own LPG distribution companies. The market enlarged up to 2,5 million ton. 2009 Competition Authority announced contract duration as of Sept 18th, 2010. (5 years) 15 - 40 years of usage rights barriers was broken especially for small-sized distribution companies.
Competition Authority approve the right to sign autogas contracts together with fuel contract. Autogas Market Evolution in Turkey
Variety of Cars and Conversion Kits encouraging Automotive Market 15%
€ 3.000
2%
€ 2.500
€ 2.000
€ 1.500 83% A Class Automotive
B,C Class Automotive
D,E,F Class Automotive
€ 1.000
€ 500
A & B & C CLASS CARS
B & C & D CLASS CARS
Autogas Market Evolution in Turkey
E & F CLASS CARS
€0
Conclusion : Transport and Energy Policy (Ministry, Associations, Sectoral Groups) (Law, Legislation, Regulation, Fuel Prices, Fuel Taxing, Incentives, Substitution,…)
CAR OWNER Availability of OEM solution Cost of OEM Cost of Retrofit Possible Saving Safety/Reliability of LPG Maintenance cost Car lifetime Second Hand Value Tax / Regulation
AUTOGAS CAR OEM / Retrofit After Market Autogas Kit Conversion
LPG SUPPLIER AUTOGAS STATION
Land Allocation/ Permit Process / Margin
Product Specification EN589 Storage Capacity (%Propane ?) Logistics capability /ADR
Profit / Payback
Competition
Reducing Transport Cost Reducing CO2 Emission
Fuel Companies (diesel)
71 billion liter LPG (41million ton) 12 million ton less CO2 Autogas Market Evolution in Turkey
CNG Companies