Automobile firms race for shrinking Turkey market

Automobile firms race for shrinking Turkey market

BURSA – Anatolia News Agency
Automobile firms race for shrinking Turkey market

Car sellers are running large campaigns to boost sales

Car companies are competing with each other to defend their sales in a shrinking market in Turkey. Recent campaigns include no interest loans and stabilized exchange rates. But, no interest loans do not apply to the full price of the cars included in the campaigns. 

Automotive production in Turkey was down 8 percent and car manufacturing was down 16 percent year-on-year in the first quarter of 2012, according Automotive Manufacturers Association (OSD) figures.

 Turkish-made automobile sales were down 17 percent, while the decrease in imported automobile sales was 22 percent in the first quarter compared with the same period in 2011.

French car brands Citroen and Peugeot provide loans with a zero interest rate for payment schemes up to 18 or 24 months or discounts for payments in advance. Renault, another major French car maker, goes even further with a “sub-zero interest rate” loan option. 

Japanese car maker Nissan, which is in an industrial and commercial partnership with Renault, has also started a campaign of zero interest rate options for some small and crossover models.

Fiat, an Italian automotive giant, has introduced zero interest rates for two-year and 15-month loan schemes. It also sells a sedan model with a diesel engine at the same price as cars with gasoline engines.
A rooted American car brand in Turkey, Ford sells its commercial vehicles of panel van and a compact panel van at a zero interest rate 20-month loan scheme. 

South Korean car maker Hyundai also provides zero interest rate loan schemes. German automotive giant Volkswagen has introduced an average of 4 percent discount for its Comfortline gasoline-engine models.

Meanwhile Turkey ranked sixth in European automotive sales in March 2012, and eighth in the first quarter.

According to figures of the Automotive Distributers’ Association, the European automotive market stagnated by 7.5 percent year-on-year in March 2012.