Some 100,000 people in Türkiye have been put under scrutiny after being suggested to have been responsible for exorbitant increases in prices in the automotive market, the country’s treasury and finance minister said Tuesday.

Minister Nureddin Nebati’s remarks came as the government unveiled a new regulation aimed at reining in the surge in prices of new cars.

Prices of vehicles in Türkiye have been soaring on the back of persistent shortages of components, supply shortfall coupled with strong demand and the depreciation in the Turkish lira, which makes imports more expensive.

"100,000 taxpayers who bought and sold more than a certain number of vehicles without having a tax record, causing exorbitant price increases and the formation of an informal economy in the second-hand vehicle market, have been caught on the radar of our ministry," Nebati said in a statement.

"As in the real estate sector, we will not give an opportunity to those who disrupt the supply-demand balance by making artificial price increases in the vehicle sector."

Inflation, high loan rates, supply chain bottlenecks and an ongoing chip shortage are just a few of the problems that have been plaguing the auto industry.

Both consumers and the government have blamed car sellers for price gouging. The government ramped up its audits to curb the prices and make vehicles more reachable.

Nebati said detailed inspections were made about dealerships and individuals who buy and sell new and secondhand vehicles.

"We have started to take necessary actions against real and legal persons who do not fulfill their tax obligations and cause speculation in the market. On-site inspections are also ongoing," he noted.

Separately, companies, car showrooms and car rental companies will now have to keep the cars they acquire for six months and cover at least 6,000 kilometers before being allowed to sell them, a decree in the Official Gazette said Tuesday.

Sales of passenger cars and light commercial vehicles in Türkiye jumped 9.1% year-over-year in July to 52,206 units, according to the data from the Automotive Distributors Association (ODD). The January-July sales were down by 7.3% to 410,110 vehicles.

Sales fell 4.6% year-over-year in 2021 to 737,359 vehicles, according to the ODD. It followed a 61.3% year-over-year increase in 2020 to 772,788 units, despite the fallout of the coronavirus pandemic.