Automotive Exports December 2019

Automobile sales double after cheap
loan campaign by Turkish public
Automobile sales in Turkey doubled
in October from the previous month,
thanks to the public lenders’ campaign
that offers cheaper car loans to
consumers buying locally-made
vehicles from select manufacturers.
In a joint statement on Sept. 26, the
three state lenders, Ziraat Bank,
Halkbank and Vakıfbank said they were
launching a campaign that offered
low-interest loans for buying locally
produced cars.
The three banks slashed the monthly
cost of 18-36 month loans – for cars
produced in Turkey and priced between
TL 50,000 and TL 120,000 – to rates
between 0.49% and 0.69%.
The lenders said they would also
offer 30-60 months – for commercial
vehicles sold for TL 72,000 and TL
120,000 – loans at monthly interest
rates between 0.49% and 0.69%. The
financing package will available from
Oct. 1 to Dec. 31.
Turgut İnal, the chairman of İnallar
Automotive that is responsible for
Citroen, Hyundai, Honda, Kia and
Mazda sales and service in the
northwestern province of Bursa,
said the campaign brought down the
interest rates below the psychological
limit of 0.99%.
Sales increased by 100% compared to
September, İnal told, indicating that
they expect this situation to continue at
the same pace until the end of the year.
He further stressed that they have
difficulty meeting the demands. “There
is no parking place in front of car sales
dealers on weekends. We are seeing
some very serious demand, which was
unexpected. If demands continue at the
same pace, the stocks of all brands in
Turkey will run out by the end of the
year,” he added.
He noted that Honda and Hyundai
benefited from the campaign, while the
other brands reached an agreement
with banks, explaining that brands
outside the campaign had to provide
appropriate conditions to compete with
domestically-produced vehicles.
“There is mobility in all brands,
especially Honda and Hyundai,” he
continued. “There is a serious demand
for B and C segment vehicles. The
delivery times of the vehicles we sell
are also extended. We are currently
delivering in the range of 10-15 days.”
İnal noted the importance of such a
campaign, which comes after monthslong
narrowing in the market. High
volatility in foreign exchange rates,
followed by a high increase in interest
rates on loans led to a sharp decline in
domestic demand.
“As long as inflation and interest rates
fall, not only automotive but all kinds of
consumption will increase,” he added.
Toyota Plaza Akkoyunlu Sales Manager
Ramazan Güleryüz, on the other hand,
said that the sector experienced a
December 2019
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