IPANEWS

Turkey’s automotive continues to struggle as shrinks by 35%

The automotive market in Turkey continues to be the victim of the country’s tough economic outlook as it shrinks further. The automotive market fell to around 35 %, falling to 641, 541 vehicles while the automobile sector shrank to 33 % and fell to 486, 321 in 2018.

According to figures given by the Automotive Industry Organisation (OSD, total production decreased to 9 % and occurred as 1.550.150 vehicle when compared to last year while production in automobiles declined by 10 %, and occurred as 1.260461 automobiles.

The new figures also revealed production in commercial vehicles declines around 5 % in 2018 when compared to 2017. In the same period, light commercial vehicle production increased by six percent when compared with the previous year. That means the shrinking, as compared to 2017, stood at 41%.

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In the same period, light commercial vehicles dropped by 42 % while heavy commercial vehicles shrank by 33% at the end of the year.

The numbers show a relative decline in heavy commercial vehicles,  derived from the base effect while there is a 60 % shrink that is observed in the last three years.

Exports’ decrease keeps rising

In the revealed figures, automotive exports declined around one percent and released as at 1.318.869 units in 2018. In the same period, automobile exports declined by five percent and occurred as 875.147 units in 2018.While the export increased by 11% due to the dollar parity changes also increased by 11% in the Euro base.

With this figure, Turkey exports valued at 32.2 billion US dollar automotive sector while this number occurred as 12.3 billion dollars in the automobile in 2018. In the Euro base, the automobile exports stayed the same and occurred as 10.5 billion Euro.

Meanwhile, some economic package brought forward to stimulate vehicle sales did not bear any fruits. The special consumption tax (ÖTV) and Value Added Tax (KDV) reduction in the automotive sector sales shrank to around 33,75.

Due to the decline in the automotive sector, Anadolu Isuzu company announced that in certain periods, they will have a production break.  This year alone, the car-making company said it will have twenty-six days free of any production.

Turkey’s automotive continues to struggle as shrinks by 35%

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