Several measures, including tax exemptions and incentives, relieved the Turkish automotive market, which has faced multiple problems recently, according to Haydar Yenigün, the head of Turkey’s Automotive Manufacturers Association (OSD).
He said the industry expects a rebalancing process and an increase in sales in 2020.
The automotive market sales figures were around 1 million units during 2015 and 2017 but dropped to 670,000 last year and are expected to decrease even further to 400,000-480,000 this year, Yenigün told an event in Istanbul Wednesday.
“We expect a rebalancing process next year, sales will rise by 15-20% to reach around 600,000 units,” he noted.
High volatility in foreign exchange rates last year, followed by a high increase in interest rates on loans led to a sharp decline in domestic demand. The government, however, introduced tax cuts in November to reinvigorate consumption. It later extended the cuts until the end of June.
Sales of passenger cars and light commercial vehicles in Turkey surged 127.5% year-on-year in October, according to Automotive Distributors Association (ODD) data. The surge followed an 82.35% year-on-year increase in September, both of which come amid a drop in borrowing costs since the Central Bank of the Republic of Turkey (CBRT) kicked off an easing cycle in its monetary policy in July.
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