Automotive market expanded 37 percent in November

Automotive market expanded 37 percent in November

Automotive market expanded 37 percent in November

The combined sales of passenger cars and light commercial vehicles increased by 36.7 percent in November from a year ago to 82,300.

Passenger car sales grew 37.8 percent year-on-year to exceed 59,000, data from the Automotive Distributors and Mobility Association (ODMD) showed, rising from 47,000 from October.

Last month 23,000 light commercial vehicles were sold on the local market, a 34 percent increase from November 2021.

In the first 11 months of 2022, automotive sales declined by 1 percent compared to the same period of last year to 668,000 units, with passenger car sales plunging 2.4 percent on an annual basis to around 506,000.

The sales of light commercial vehicles, however, rose 3.4 percent to 162,000 in January-November.

Last month, 1,275 electric vehicles were sold in Türkiye, accounting for 2.2 percent of all vehicle sales. Electric vehicle sales grew 198 percent from November 2022. Since the start of the year, electric vehicle sales amounted to 6,214 units, up more than 152 percent from a year ago.

Hybrid vehicle sales grew 14 percent in the same period to 51,500, according to data from ODMD.

Last month, price thresholds for a special consumption tax (SCT) on vehicles were updated, a move that was expected to lead to lower prices for certain models.

The lower SCT limit was raised from 120,000 Turkish Liras ($6,400) to 184,000 liras for vehicles with engines smaller than 1600cc, while the upper limit was hiked from 200,000 liras to 280,000 liras.

The SCT brackets for electric cars were also changed. Accordingly, the lower limit was increased for electric vehicles with engines smaller than 1800cc, from 130,000 liras to 228,000 liras, while the upper limit was lifted from 170,000 liras to 350,000 liras.

Experts said that after the new tax adjustments, car prices for some models and brands are expected to decline by 77,000 liras at most.

A 45 percent tax rate will be levied on vehicles with engines smaller than 1600cc whose price is below 184,000 liras.

The rate will be 50 percent for vehicles within the price band of 184,001 liras and 220,000 liras, while it will be 60 percent for vehicles priced up to 250,000 liras.

The tax rate was set at 70 percent for vehicles that cost up to 280,000 liras, while other cars will be subject to an 80 percent tax.