NEWS Automotive        02/07/2019

Automotive sales in Turkey fall 44.8% in first half of 2019

The  Automotive Distributors Association (ODD) disclosed that sales of cars and light commercial vehicles in Turkey were 42,688 units in June 2019, 16.4% lower than the figure for the same month of the previous year. Sales of cars fell 12.6% to 36,024 units, and sales of light commercial vehicles fell 32.1% to 5,890 units in June 2019 compared with the same month of the previous year. It was in March and April of 2018 when the domestic automotive market started to go into freefall. The sales of cars and commercial vehicles in the month of June over the last four years shows how bad a hit Turkey’s domestic market has taken. The figures are 91,540 (2016), 83,658 (2017), 51,037 (2018), and 42,688 (2019). Following the 2016 peak of 91,540 units, June domestic sales have fallen by 53.4% to 42,688 units in 2019.

 

June 2019 however has offered some respite and hope for the domestic market. There was a smaller fall of 16.4%, whereas the fall in the previous month of May 2019 was 54.6%. There was also a 9 day Ramazan religious holiday in June. One can only hope that this trend will continue in the months ahead. A drawback is that there has been no indication of the Turkish government extending its tax break which ends at the end of June.  The government had reduced as from November 1st, 2018 the special consumption tax on motor vehicles with engines under 1600 cc to 15%, and the VAT on commercial vehicles to 1% from 18%. On the other hand, it is possible that many buyers in June had guessed that the government would not extend its tax incentive, and had decided to buy early in June before prices increased. In which case, June sales may be just a one-off recovery, and we will have to see the July figures before  drawing any conclusions about any revival in domestic sales.

 

In the first half of 2019, sales of cars and light commercial vehicles in Turkey were 195,144 units, 44.8% lower than the figure for the same period of the previous year. Sales of cars decreased 43.3% to 156,38 units, and sales of light commercial vehicles decreased 50% to 38,766 units.

 

In the first half of 2019, sales of diesel automobiles were 56.1% and sales of automatic gearbox automobiles were 66.3%. Of commercial vehicle sales, 27,584 (71.2%) vans, 4,963 (12.8%) light trucks, 3,104 (8%) minibuses,

and 3,115 (8%) pick-up trucks were sold.

 

Click here for report (Turkish)

 

 



Turkey’s net minimum wage has been raised 26.05% to TL 2,020 (USD 381) as of 01.01.2019       Migration communication helpline 157 available for foreigners in Turkey       Read our homepage articles on developments in the Turkish economy       Turkey’s annual inflation rate falls to 15.01% in August 2019       Turkey’s unemployment rate decreases to 12.8% in May 2019       Read our BUSINESS section for latest sectoral and corporate news       Turkey’s population is 82,003,882 as of 2018 yearend       Number of foreigners visiting Turkey in 2018 increases by 21.8% to 39.5 million       Turkey’s private sector foreign debt is USD 225.8 billion as of 2018 yearend       Turkey’s economy contracted by 2.6% in the first quarter of 2019       Turkey shows surplus of USD 538 million in its 12 month rolling current account balance in June 2019