Rising price expectations pull forward demand in Türkiye’s auto market
Taylan Özgür Dil- ISTANBUL
As automobiles continue to be viewed as a key investment and a hedge against inflation, demand in the Turkish automotive market remains robust, with consumers pulling forward their purchasing decisions in anticipation of rising prices.
In an environment of geopolitical tensions, high interest rates and cost pressures, consumers would normally be expected to defer their purchases, leading to a sharper slowdown in the market. However, demand in the Turkish automotive sector continues to defy expectations, remaining resiliently strong.
Industry representatives say that expectations of further price hikes in the coming period have accelerated buying decisions for many consumers.
In the first four months of the year, passenger car and light commercial vehicle sales declined only marginally, falling 3 percent year-on-year to 370,000 units. In April, the market edged down just 1 percent to slightly above 104,000 units.
Data for May — a period marked by an extended holiday — may prove temporarily misleading. Even so, a contraction of around 15 percent year-on-year to roughly 90,000 units would not come as a surprise. The full impact of geopolitical developments on the market is expected to become clearer in June.
Despite tight credit conditions and rising nominal prices, another factor supporting sales has been the drawdown of unsold 2025 model-year inventory, along with a decline in real prices.
As June approaches, many brands are still working through their remaining 2025 stock. These inventories, largely consisting of imported models, have pushed companies toward more aggressive campaigns and pricing strategies.
Taken together, these dynamics indicate that car prices have continued to fall in real terms. According to official data from the Turkish Statistical Institute (TÜİK), inflation in the transportation segment — which includes automobiles — stood at 17.73 percent in the first four months of the year. By comparison, price increases for many of Türkiye’s best-selling models remained below this level.
For instance, the Renault Clio, the country’s top-selling model, recorded a price increase of around 6.8 percent over the four-month period. Renault Megane rose by 5.4 percent, Toyota C‑HR by 8.1 percent and Hyundai i20 by approximately 9 percent.
The secondhand vehicle market is mirroring this trend. Latest data from the used-car platform arabam.com shows that average listing prices ticked up to 912,045 Turkish Liras in April from 901,156 liras in March. When adjusted for inflation, however, real prices slid by 2.85 percent month-on-month.