Car sales in Türkiye hit another all-time high in June, industry data showed Tuesday, adding to the peaks since the beginning of the year, propelled mainly by the increase in vehicle supply.

A record 110,861 passenger cars and light commercial vehicles exchanged hands last month, the Automotive Distributors and Mobility Association (ODMD) said in a statement, marking a 37.5% year-over-year increase.

In contrast, around 80,652 units were sold in the same month a year ago. June followed a May record of 111,356 units, marking a 70.9% increase on an annual basis, according to the ODMD data.

The June peak came despite a nine-day Qurban Bayram, or Eid al-Adha, holiday. The religious holiday generally lasts four days, but Türkiye extended the break to cover the period from June 24 through July 2.

Demand has been notably high as depreciation in the Turkish lira and soaring prices prompt consumers to continue to opt for cars they see as a tool to safeguard themselves from high inflation.

Annual inflation fell below 40% in May after touching a 24-year high above 85% in October last year.

The prices of vehicles soared due to supply shortages coupled with strong demand, as well as high inflation and the depreciation in the lira, which makes imports more expensive.

The currency has declined more than 28% this year, largely after the economic authorities took steps since President Recep Tayyip Erdoğan was reelected on May 28, including changing course after two years of monetary easing.

As part of the policy pivot, the country’s central bank increased its benchmark policy rate by 650 basis points last Thursday, lifting its one-week repo rate to 15%. The monetary authority has also simplified some of the macroprudential measures it had implemented in a drive to boost the lira.

Among others, sales increased amid loosening financing conditions, easing supply chain-related availability problems, and the deliveries of orders placed months ago.

Passenger car sales in June jumped 40.1% year-over-year to 89,833 units, while light commercial vehicle sales rose by 27.3% to 21,028, the ODMD data showed.

Vehicle sales from January through June also hit a record, reaching 555,867 units, an increase of 55.3% versus the first half of last year.

The total sales of the past 12 months amounted to approximately 981,000 units, only 2,000 units below the figures seen in 2016.