Page 68 - TURKRptSept19

9.1.2 Automotive sector news
In July, the Automotive Distributors’ Association (ODD) cut its vehicle sales prediction for 2019 to 340,000-380,000 units from a previous 350,000- 400,000 after tax cuts expired at the end of June.
“The automotive industry is sick... In 2019, total sales will probably be around 300,000-350,000 units,” said Ali Bilaloglu, the head of the ODD, in August.
Exports are not helping, said Haydar Yenigun from the Automotive Manufacturers’ Association (OSD), another umbrella group for the industry.
“The auto markets across the world are shrinking and this is particularly the case with Europe which is the major export market for Turkish carmakers. We will be hit hard,” he said.
Kurthan Tarakcioglu, an industry expert, argued that the market is contracting because car loans are not easily accessible, people’s purchasing power has eroded, car prices are too high, consumer confidence is low and car dealers are not motivated enough to put in the effort to seek out potential buyers.
In 2018, Turkey’s automotive market contracted 35% as a total of 620,937 units of passenger cars and light commercial vehicles (LCVs) were sold versus 956,194 units in 2017.
68 TURKEY Country Report September 2019 www.intellinews.com