Automotive Exports September 2020

July auto sales
in Turkey
impressive
Animesh Kumar, Director
of Automotive Consulting at GlobalData
Following the news that automotive
sales in Turkey grew by 387.5% yearon-year
in July 2020, according to
Automotive Distributors Association
Animesh Kumar, Director of Automotive
Consulting at GlobalData, a leading
research and consulting company, offers
his view:
“The surge in sales is impressive but not
unbelievable in light of Turkey’s effective
response to the COVID-19 crisis. While
economic impact was inevitable, the
Turkish Government and the Central Bank
of the Republic of Turkey (CBRT)’s timely
and effective actions such as the 21-point
stimulus package, reduced interest
rates and the deferral of social security
premiums helped the country overcome
challenges.
“The low interest rates and attractive
packages helped automotive customers
overcome the concerns regarding economic
uncertainty. Attractive, low-interest vehicle
loans for two-wheelers, as well as new and
used passenger vehicles has significantly
driven customer’s interest towards personal
mobility.
“Another key factor that contributed to
the surge in automotive sales since June
is easing of country-wide movement
restrictions. June and July witnessed
significant pent-up demand from March,
April and May, when the country was
majorly under lockdown to contain the virus.
“It is questionable as to whether the spike
in sales is sustainable. It depends on, firstly,
whether there is a significant demand of
vehicles left in the domestic market. In
order to leverage the attractive packages,
customers may have pulled forward their
purchases and the demand for vehicles for
2020 may have been largely exhausted.
The second point is whether the local
manufacturers that were more focused
on exports can respond to the domestic
demand to maintain adequate supply.”
September 48