Turkish automotive sector expects interest rate cut

Published 15.08.2016 22:10

While banks have responded to a call from President Recep Tayyip Erdoğan to revive the markets by drop their interest rates on home loans, the automotive sector expects interest rate cuts on loans for automobile purchases.

Authorized Automotive Dealers Association (OYDER) Chairman Alp Gülan said that in comparison to the previous year the automotive sector experienced losses in sale numbers. Explaining that in July sales remained below 30 percent of sales from same period of the previous year, Gülan said an interest rate cut would be highly crucial for the automotive sector to balance the decrease in sales.

He said that 58 percent of automotive sales use loans, and pointed out that the most important point affecting sales in the sector was interest rates and terms for loans.

Toyota Turkey Marketing and Sales CEO Ali Haydar Bozkurt indicated that loans were preferred in auto sales, adding that the automotive sector was sensitive to changes in interest rates.

Hyundai Assan General Manager Önder Göker said: "The solutions recommended for the home loans have immediately shown effect. If a similar discount is applied to auto loans, it will make great contributions to sales."

Nissan Turkey General Manager Sinan Özkök said that while automotive brands feature product and price campaigns, they try to balance sales with financial campaigns. He said that what mattered for the sector is finding the appropriate financial option for customers and that as for cost, interest rates are the major element considered.

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