Page 70 - TURKRptSept19
P. 70
Germany’s auto production declined 12.4% in 2018 compared to 2017 and in the first six months of 2019, the country’s output fell 6.5% y/y, according to Kemal Yazıcı, deputy chairman at TAYSAD.
Big exporter Germany may be heading into a recession partly because the US trade war with China has driven down global production and demand, analysts say.
Turkey's Vehicle Industry
(units)
June
y/y
H1
y/y
P. Cars Production
74,074
-14%
492,700
-12%
Total Production
109,116
-17%
735,062
-13%
P. Cars Sales
36,024
-13%
156,378
-43%
Total Sales
43,943
-17%
200,901
-45%
P. Cars Imports
19,562
-27%
88,185
-52%
Total Imports
23,153
-27%
108,198
-52%
P. Cars Exports
62,846
-8%
419,046
-9%
Total Exports
96,879
-12%
634,768
-8%
P. Cars Exports (USD mn)
866
-10%
5,757
-12%
Total Exports (USD mn)
2,220
-15%
15,589
-7%
Tractor Production
1,588
-51%
10,570
-59%
Grand Total
110,704
-18%
745,632
-14%
source: osd
9.1.3 Construction & Real estate sector news
Homes sales in Turkey declined for a seventh consecutive month in July, data from the statistics office TUIK showed on August 20. Sales declined by 17.5% on an annual basis to 102,236 units while mortgage-financed home purchases plunged 57% y/y to 13,064 units across the country. In the first seven months of 2019, the housing market contracted 21% on an annual basis to 608,000 units sold. According to TUIK data, foreigners bought a total of 4,102 properties in Turkey in July, marking a 47% y/y increase. Iraqis topped the list with 734 purchases, followed by Iranians with 464 and Kuwaitis with 219 units. Also in the month, Saudis purchased 218 units and Russian nationals another 215 properties.
9.1.4 Retail sector news
Higher costs and saturation on the domestic market have driven Turkish companies to increasingly focus on expanding abroad over the past couple of years, according to Sinan Oncel, head of the United Brands Association of Turkey. The association represents companies in fashion, furniture, cosmetics, home textiles and department store retail. Oncel said that in 2016 Turkish brands had 2,500 stores abroad, but by June this year the number stood as high in 4,396, spread over 125 countries. “Local companies are opening on average two shops a day in foreign markets. By the end of the year, their network will reach some 5,000 shops,” Oncel said. Russia is the
70 TURKEY Country Report September 2019 www.intellinews.com
