Page 60 - TURKRptAUG19

The Automotive Distributors’ Association (ODD) predicts that vehicle sales will amount to between 350,000 and 400,000 units this year. In 2018, Turkey’s automotive industry 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.
Turkish automakers produced a total of 735,000 vehicles in the first half of 2019, marking a sharp 13% y/y decline, data from the Automotive Manufacturers’ Association (OSD) shows. Passenger car output dropped 12% y/y to 492,000 units in January-June while light commercial vehicle (LCV) production fell 14%. According to the OSD report, local carmakers exported as much as 86% of the vehicles they manufactured in the first half of the year. However, their export revenues declined 7% on an annual basis to $15.6bn. Local companies shipped a total of 634,000 vehicles to foreign markets and 419,000 of those vehicles were passenger cars. The association also reported a sharp 45% y/y contraction in the local market in the first half. Only 200, 000 vehicles were sold on the domestic market in January-June while sales in the passenger car segment were down 43% y/y to 156,000 units. The performance of the auto industry was strikingly poor across the first half given the fact that the government granted deep tax reductions on cars to stimulate consumer demand. The industry will probably see a deeper contraction in the coming months as those tax reductions expired as of July.
Sales declined 16% y/y to 43,000 units in June. That followed the 56% y/y and 55% y/y contractions in April and May. Auto sales in Turkey have declined in every single month since April 2018.
Turkey’s auto market may contract as much as 80% in July says Honda executive. Turkey’s ailing auto market may see a very deep contraction in July, according to the deputy general manager of Honda Turkey. “Sales could drop as much as 80% in the month. Potential buyers still expect a move from the government to extend the special consumption tax on cars and because of this expectation they are delaying their purchases,” Bulent Kilicer said. The tax reduction on cars expired as of end-June. Kilicer underlined that the market kept shrinking despite the tax cut. He predicted that only 10,000-15,000 cars would be sold in July. “That is a 75%-80% decline compared to a year ago,” he said. Sales have almost come to a halt as tax reductions expired, confirmed Haydar Yenigun, head of the Automotive Manufacturers’ Association (OSD).
Turkey's Vehicle Industry
(units)
June
y/y
H1
y/y
60 TURKEY Country Report August 2019 www.intellinews.com