Into Europe & beyond

A Q&A with Ali Haydar Bozkurt, the automotive industry expert who is spearheading Jameel Motors’ ongoing expansion into Europe.

A series of exciting news stories and new agreements over the past 6 months have seen Abdul Latif Jameel’s mobility sector brand Jameel Motors, significantly expand its presence in key automotive markets around the world. 

In September 2024, Jameel Motors signed an agreement with Zhejiang Geely Farizon New Energy Commercial Vehicle Group (Farizon Auto), a Chinese new energy commercial vehicle leader, to distribute Farizon Auto commercial vehicles globally in 11 countries, with a combined population of over 450 million.  The agreement initially covers electric, and later hybrid, hydrogen, and potentially methanol vehicles.  This was followed in December and January with further details as distribution agreements for the fast-growing Farizon brand in the UK, Australia and the UAE, were celebrated, driving the continued transformation of the mobility sector on an international scale. 

More agreements have rapidly followed including Changan in South Africa; Geely Auto and GAC Motor in Poland; Geely Auto in Italy; an exciting joint venture with GAC Group in the UK for GAC’s AION EV brand, and most recently, Jameel Motors’ appointment as distributor for Chery Group’s OMODA | JAECOO brands in Iraq.  This brings Jameel Motors’ geographic vehicle distribution footprint to some 13 global markets and more including aftermarket parts and components.

Leading the continued expansion of Jameel Motors in select markets in Europe is Ali Haydar Bozkurt, Chief Executive Officer Jameel Motors, Europe & Türkiye, who oversees all operations across the continent. 

He is also responsible for Jameel Motors’ extensive automotive operations in Türkiye, including distributorships for Toyota, Lexus, and BYD, as well as pre-owned vehicle businesses. 

A seasoned automotive industry leader, Ali has held various general management positions within Abdul Latif Jameel’s Turkish operations and currently chairs the Automotive Distributors’ and Mobility Association (ODMD), Türkiye’s national automotive distributors association. 

We caught up with Ali to talk about Jameel Motors’ growth, its partnerships with leading auto brands, recent market developments and his plans for the future.

Q: Could you explain your current responsibilities across Europe?

A: In addition to Türkiye, I oversee several key mobility operations for Jameel Motors across Europe, including Toyota–Lexus operations in Monaco, the GAC Motor and Geely Auto distributorships in Poland, Geely Auto in Italy, Farizon commercial vehicles in the UK and soon the GAC Group JV for AION also in the UK.  My role involves exploring new projects and acquisitions across European markets, specifically within the mobility sector.  This expanded role began in October 2023, marking a significant step in Jameel Motors’ European expansion strategy.

My current role builds on my previous European experience – I previously managed automotive operations in three German cities, along with 10 or 11 sub-dealers, as well as operations in Wolverhampton, UK.  After a successful building up our Turkish business, about 14 months ago I was offered the opportunity to take on this pan-European role. 

Q: Why is Jameel Motors expanding its presence across Europe now?

A: There are two major opportunities that influence our timing.  First, the mobility world is fundamentally changing and the whole concept of mobility is evolving.  We’re moving from internal combustion engine (ICE) vehicles to hybrid and electric vehicles.  In 10-20 years, the business model might shift further to subscription-based platforms for comprehensive mobility solutions rather than traditional vehicle ownership.  It’s not just about transporting people from A to B anymore – it’s also about transporting goods, and now we’re discussing the transportation of data through ‘smart’ mobility vehicles.

This automotive growth isn’t a recent development for Abdul Latif Jameel.  It’s in our DNA to grow both organically and inorganically.  The business has had very strong foundations in the automobile industry for more than 70 years [when Abdul Latif Jameel was appointed the official distributor of Toyota in Saudi Arabia] and we’re always exploring opportunities globally.  For instance, I visited electric adventure vehicle pioneer RIVIAN around 15 years ago to discuss potential partnership opportunities.  The Jameel family became one of the first investors in RIVIAN a few years later and an important partner.

Second, China has become a strategic player in the European market, with cost advantages and improving technology.  For Chinese manufacturers, Europe is their primary target for electric vehicle expansion.  We recognized that Jameel Motors can be an ideal partner for Chinese OEMs entering the region, but this window of opportunity won’t last forever – if we wait five years, it will be too late.  We’re focusing particularly on mid-sized European markets, like Poland, Greece, Hungary, Netherlands, Belgium, and Portugal, rather than the traditional so-called ‘big-five’ markets like Germany, France, and Italy that OEMs typically manage directly themselves. 

Q: What is Jameel Motors’ strategy with brands like BYD, Farizon, and GAC in Europe?

A: Our focus is on securing importer or distributor positions where we can manage complete brand strategies in specific countries.  While we’re currently BYD’s importer and distributor only in Türkiye, we’re actively pursuing opportunities with other Chinese brands and traditional manufacturers in Europe.  For example, with our presence in Poland and the UK, we aim to create additional operations, possibly including used car operations, replicating the successful value chain we’ve built in Türkiye.

We’re currently establishing systems, company structure, and recruitment for these operations.  This includes designing IT infrastructure and making third-party agreements with marketing agencies, PR agencies, legal firms, and customs agencies, as well as finalizing flagship showroom agreements in specific locations.

With Chinese manufacturers, we’re not expecting to reach economies of scale in the next two to three years.  We are taking a longer-term view – as strategic partner – not least because of tariffs Europe has imposed against Chinese-made products, but also because that ‘partnership’ approach of mutual trust and respect is in the Abdul Latif Jameel DNA too, as the relationship with Toyota shows.  However, we are also confident that these international trade issues will be resolved in the mid-term and Chinese manufacturers will enter these markets.

Q: What are your ambitions for Jameel Motors in Europe?

A: While it’s early to give concrete figures due to changing regulations and customs duties, our clear target is to achieve 5% market share in each market we enter within five years.  Our second five-year plan aims to increase this to 8%-10% market share, regardless of the brand or market.  We’re being selective about our partnerships, focusing on five or six promising brands that share our values and show potential for the future.

We recognize that there is likely to be significant consolidation in the new energy vehicles market over the next few years, including Chinese brands.  That’s why we’re moving quickly but selectively, so we are in the best position to capitalize on emerging opportunities.  We’re well-placed for this expansion with our sector strength, excellent team, and strong global automotive connections across finance, legal, operations, distribution and marketing.

Q: How does the pace of EV adoption vary across European markets?

A: The adoption rate varies significantly by market.  Norway leads with almost 80% pure electric vehicle sales and might stop selling ICE engines or even hybrids entirely in the next year or two.  However, markets like Italy or Poland aren’t yet ready for widespread electric vehicle adoption.  In Türkiye, electric vehicles were around 9%-10% of total sales last year, though this was affected by the customs tariffs levied on Chinese vehicles – otherwise, it might have been more than 15%.

While the direction is clearly moving toward electric vehicles, some markets will move slower than others.  This isn’t just about consumer preference – practical considerations like charging infrastructure and living conditions play a major role as well as the regulatory environments.  For instance, in places like Italy where many people live in apartments without dedicated parking, charging infrastructure is a significant challenge.

Q: How do government incentives for EVs differ across these markets?

A: Government support has evolved significantly.  Previously, governments offered substantial incentives, such as tax breaks, free city-center parking, or exemptions from congestion charges.  Nowadays, we’re seeing a shift from consumer incentives to manufacturer penalties.  With the new Corporate Average Fuel Economy (CAFÉ) regulation in Europe, for example, manufacturers must reach specific CO₂ thresholds or face penalties per excess gram of CO₂. 

There is widespread recognition that people aren’t willing to pay more for environmental reasons alone – they need to benefit through either reduced running costs or lower total cost of ownership.  That’s why manufacturers are focusing on refining their product mix – balancing how many electric vehicles, hybrids, plug-in hybrids, or ICE vehicles they can sell to achieve compliance with the relevant regulations.

Q: How have Chinese EV brands evolved in recent years, and how are they perceived in Europe?

A: The transformation has been remarkable.  When I first visited China 16-17 years ago, their understanding of quality was totally different, and they had no plan to comply with European standards.  Visiting again last year, the change was dramatic – their manufacturing sites are now highly automated, the production quality is impressive, they are much more internationally focused, and staff frequently speak fluent English.

We started working with Chinese brands earlier in North Africa, like MG Motor in Morocco, before launching BYD in Türkiye last December.  Customer response has been very positive.  With BYD in Türkiye, we’ve sold around 11.000 units so far, with customer satisfaction exceeding expectations.  It’s a very exciting time in the global automotive market.  I believe that in 10 years, we’ll see at least three Chinese names at the very top of the list of leading OEMs.

Q: How are Chinese manufacturers dealing with European tariffs?

A: The existing tariffs regime means it is not always feasible for Chinese brands to serve markets in Europe directly from China.  They need to establish production within the region.  That’s why they’re coming to places like Türkiye, which is within the European customs union.  BYD, for example, will start production in Türkiye within two years to export vehicles to European countries.

Over time, I believe a balance will be achieved between the prices of Chinese brands and traditional OEMs.  As quality continues to improve and with it, product cost, Chinese brands will inevitably review their pricing, while traditional brands will continue working to reduce their costs and remain competitive. 

Q: What are the key differences between Türkiye and other European markets you’re targeting?

A: The most significant difference is the tax system.  Türkiye has one of the highest vehicle taxation regimes in the world.  For cars below 1.6 liters, there are three different price thresholds reaching up to 80% additional tax.  For 1.6 to 2 liter engines, it jumps to 150%, and above 2 liters, it reaches 220% meaning when you buy a car with a 2-liter engine, you’re effectively buying one car for yourself and two and a half cars for the government.  In contrast, European countries simply charge VAT on cars.

Economic conditions also differ significantly.  Türkiye has high inflation, resulting in high operational financial costs.  Bank loan interest rates can be around 5% per month in Türkiye, compared to 7%-8% annually in Europe, for example.

However, Türkiye has unique advantages.  With 85 million people, it has Europe’s largest and youngest population, with an average age of 29.  Car ownership per capita in Türkiye is still low – about 260 units compared to Europe’s average of 600 units – showing huge potential if we can address the financial issues. 

Q: How is Türkiye’s EV charging infrastructure developing?

A: While not perfect, Türkiye’s charging infrastructure is actually better than many European countries and developing rather rapidly.  The government is providing incentives to e-charging companies, and public charging investments are increasing on highways and throughout the country.  So the situation is improving all the time.

Q: What do you see as the biggest challenge for EV adoption?

A: The biggest challenge isn’t infrastructure or range – it’s charging time.  Currently, it takes approximately 40-50 minutes to reach 80% charge.  People expect charging times similar to filling up with gasoline, which averages 12 minutes.  If manufacturers can achieve that 12-minute target for a 400-500 km range, which is what normal ICE engines provide, I think we’ll see a big change in electric vehicle take-up.  Once charging times get closer to 10 minutes, we expect people will stop buying ICE vehicles altogether.  This is what the entire industry is working towards.