Turkish auto market shrinks by 27.6 percent in April
The total loss in the sector was 25.5 percent for the first four months of the year.Volatile currency rates and tough market conditions continue to negatively impact the Turkish automotive sector as the latest data shows the market contracted by over 27 percent in April.
According to data announced by the Automotive Distributors Association (ODD), the number of vehicles sold in April totaled 53,305, which marks a 27.6 percent drop from the same month last year.
For the first four months of the year, the total loss in the sector was 25.5 percent, as the market remained at 168,577.
While the car market diminished from 25 percent to 42,769 units sold, commercial vehicle sales witnessed an even steeper decline at 36.4 percent, which meant that 36,461 units were sold in April.
The ODD report cited that the remarkable turmoil in the sector stems from the rise in interest rates and foreign exchange rates, as well as tax hikes and macroprudential measures introduced by the banking watchdog, Banking Regulation and Supervision Agency (BDDK). The organization also suggested that a decrease in consumer confidence and a slowdown in economic activity, private sector investments and domestic consumption took a toll during the month.
With the aim of raising the domestic savings rate and reducing the nation’s dependence on foreign capital to finance consumption, the BDDK, in February, hiked up the price on car loan down payments.
The tough macroprudential measures, coupled with New Year hikes on special consumption taxes and higher interest rates, caused the sector to record a 17 percent loss in February in comparison to last year.