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The industry’s shipments to foreign markets fell by 30% y/y to $1.7bn in March.
The sharp decline in April was due to the contraction in demand on the European market, which takes nearly 75% of the Turkish auto industry’s overall shipments.
For instance, car sales in Spain dropped 97% while in France the decline in sales was nearly 89%.
In January-April, Turkey’s auto sector exports fell by 28% y/y to $6.4bn.
Auto parts producers work at 20% capacity​, Kemal Yazici, deputy chairman of business group TAYSAD, said on April 27.
Exports of companies that supply auto parts plunged by 17% on an annual basis in March, calculated TAYSAD, which represents some 400 firms.
It predicted that the total revenue loss of the automaking and auto parts supply industries would be around $5bn this year.
Carmakers’ capacity utilisation rate (CUR), which dropped to 20% in April, will gradually increase to 85% by September, said Yazici.
Alper Kanca, the head of TAYSAD, was confident that the resumption of production at carmakers would not trigger a second wave of coronavirus (COVID-19) infections.
Experts have concluded that in order to achieve lower costs, the automaking industry in Turkey must push production beyond 1mn units.
“Ten of thousands of small businesses have been closed for weeks. They are our customers. Those people buy cars and buy parts from our member companies,” Kanca said, suggesting that the auto industry will recover only when activities across all sectors of the economy revive.
Turkey’s automakers manufactured only 11,000 vehicles in April, marking a sharp 91.3% y/y decline​, data from the Automotive Manufacturers' Association (OSD) have shown.
Passenger car output dropped 88% y/y to 9,700 units.
Local carmakers shipped 11,000 vehicles to foreign markets, representing a 90% decline from a year ago, while export revenues fell by 77% y/y to $614mn.
April also saw a total of 27,000 vehicles sold on the local market versus 24,000 units in the same month last year with passenger car sales contracting 11% y/y to 21,800 units.
In the first four months of the year, auto production fell 28% on an annual basis to 352,000 units. Passenger car output dropped 24% y/y to 245,000 units in the period.
The automaking sector’s export revenues stood at $7.75bn in the period, down from $10.6bn a year ago.
9.1.3 ​Construction & Real estate sector news
50​ TURKEY Country Report​ June 2020 ​ ​www.intellinews.com
Only 43,000 homes were sold in Turkey in April, marking a sharp 55.5% y/y decline, data from the national statistics authority, TUIK, ​showed​.