P.A. Turkey

Turkish auto sales stuck at the bottom

Passenger car and light commercial vehicle market down 2.4 percent in May

Domestic automobile and light commercial vehicle market decreased by 2.4 percent in May vs the year before, as lockdown and social mobility measures launched due to the corona virus epidemic continued, decreasing to 32 thousand 235 units compared to the same month of the previous year.

According to data released by the Automotive Distributors Association, automobile sales fell 7.6 percent in May to 25 thousand 73 units, while light commercial vehicle sales rose 21.6 percent to 7,162 units.

Monthly sales remained 55 percent below 71 thousand 711, which was an average of 10 years in May.

When the vehicle market is analyzed for the first five months, it increased by 20.1 percent to 183 thousand 95 units, as the demand crash due to the currency crisis and high interest rates of the previous year dissipated.

Annual forecast upgraded

Is Invest research updated its forecast for annual sales from 385 thousand to 525 thousand, corresponding to a yearly increase of 10%.  Cheap auto loans offered by state banks ought to reinvigorate demand for domestically produced brands.  Nonetheless, the percentage changes are giving a false impression of growth in the market.  In 2010-2013 annual auto sales had flirted with 1 million units per annum.  500 thousand units will not save Turkey’s gargantuan dealership and repair shop network, commented an industry insider.

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