Türkiye has expanded and prolonged a measure aimed at reining the surge in car prices for another six months, the country’s Trade Ministry announced Wednesday.
The prices of vehicles in Türkiye soared due to supply shortages coupled with strong demand, as well as high inflation and the depreciation in the Turkish lira, which makes imports more expensive.
Households have been seeing vehicles as an investment tool to shield themselves from soaring prices. Easing supply chain-related availability problems have also led to increased sales since the beginning of the year.
Under a regulation unveiled last year, companies, car showrooms and car rental companies had to keep the cars they acquire for six months and cover at least 6,000 kilometers before being allowed to sell them.
The measure has been renewed to last until January 2024 and has been expanded to cover individuals as well, the Trade Ministry said in a statement Wednesday.
The regulation aims at preventing unfair practices, including exorbitant prices and stockpiling, in the automotive market, particularly when it comes to the online sales of secondhand cars.
Türkiye's annual inflation had hit a 24-year high of 85.5% in October, before more than halving and lastly declining to below 40% in May.
Both consumers and the government have blamed car dealers for price gouging. The government ramped up its audits to curb the prices and make vehicles more reachable.
Authorities have imposed more than TL 75.17 million in fines on companies for practices such as excessive pricing and stockpiling, according to the Trade Ministry. More than TL 35 million in fines also came for violations of the "6 months, 6,000 kilometers" regulation, the statement read.
Car sales in Türkiye achieved their best May and five-month figures ever, according to industry data. Some 111,356 units of passenger cars and light commercial vehicles exchanged hands last month, marking a 70.9% year-over-year increase.
Sales in the first five months of the year rose 60.5% on an annual basis to 445,006 units.