The Turkish auto market is expected to exceed 1 million units in sales next year thanks to the country’s monetary easing efforts and lowering inflation, Berk Cağdaş, the CEO of Turkish-based car dealer MAIS Istanbul Renault, told Anadolu Agency (AA).
Auto market demand rose in the first quarter of the year, he said, and a high number of sales were made despite the tight monetary policy and uncertainty in exchange rates after the local elections in March, worrying potential buyers and distributors.
Still, sales remained relatively robust in general throughout the year and they already surpassed 1 million units before year-end, following also strong demand in 2023.
The market expected a contraction in April due to an increase in credit costs, restrictions and difficulty getting credit after the elections, and sales started to decline.
He said the news that vehicles that do not comply with the EU General Safety Regulation II can no longer be registered prompted brands to deplete their stocks, while credit applications were reduced and prices fell significantly, adding that vehicles cost much lower than their supposed prices.
"The number of total sector sales totaled approximately 1.1 million units, 0.5% below last year’s figures, as of end-November, and last year, there was a lack of vehicles and all stocks were sold quickly, and this year, there was an abundance of vehicle stocks but with the lowered prices due to the GRS, the prices were reduced significantly to almost get rid of the stocks," he said.
Cağdaş said the Turkish auto sector could reach around and even exceed 1.2 million units sold by the end of this year, estimating 150,000 units sold for December.
Türkiye has significant potential in the auto sector due to high urbanization compared to other Organisation for Economic Co-operation and Development (OECD) countries, he said.
"There are 177 vehicles for every 1,000 people in Türkiye, versus around 570 per 1,000 in EU countries," he said.
Cağdaş stressed that falling inflation, lower interest rates, economic stability and a stable exchange rate have been major factors, as more and more customers spend their hard-earned disposable income on automobiles, estimating that auto sales next year would be no less than 1 million units.
Türkiye can attain a leadership position in the global auto market in production but China’s competition is an important factor, he said, as its advantages "can’t be matched globally in terms of cost."
"If we look at their advantage, a high production potential can’t be limited to domestic territories, as China exports its autos and uses all sorts of methods to attract consumers in the markets they enter, but countries are taking measures to slow down China’s efforts with tariffs and restrictions, but their efforts are for the short-term," he said.
He mentioned that Türkiye’s high-quality products are exported to nearly 40 countries, adding that four models of the Dacia Duster, an SUV produced by Renault subsidiary Dacia, will be manufactured in Türkiye in 2027, with an investment of over $400 million.