Automotive Exports March 2021
Automotive Exports March 2021
Automotive Exports March 2021
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Inventory<br />
shortages push<br />
used car prices<br />
up in Turkey<br />
Stock shortages in Turkey’s automotive<br />
industry have pushed used car prices to a<br />
high level, but a major automotive dealers<br />
association said the stock availability<br />
problem is expected to be resolved soon.<br />
Murat Şahsuvaroğlu, the head of the<br />
Authorized <strong>Automotive</strong> Dealers Association<br />
(OYDER), said the stock availability problem<br />
will be resolved in Turkey.<br />
Şahsuvaroğlu said the inventory shortage<br />
was largely caused by the coronavirus<br />
effect on the supply chains of the European<br />
carmakers.<br />
“Turkey imports cars mainly from Europe,<br />
which supplies essential parts from<br />
China. However, China is struggling with<br />
production delays due to coronavirus,” he<br />
said.<br />
With the recent coronavirus outbreak<br />
disrupting major automakers’ supply chains<br />
over shortages of Chinese parts, Turkish car<br />
dealers have been unable to hold any stock<br />
of new cars. The lack of stock availability<br />
and waiting lists ranging from two to three<br />
months have pushed customers to the<br />
used car market. Car dealers reported that<br />
the surging demand in the used vehicle<br />
market pushed prices as high as TL 250,000<br />
($41,032) for several mainstream models.<br />
Ahmet Ataseven, a car dealer at a secondhand<br />
automotive market in Samsun<br />
province, said the prices have gone up by<br />
almost 50% within months due to the stock<br />
shortage.<br />
“A model that was sold for TL 30,000<br />
($4,924) in January is now could find a<br />
buyer for TL 45,000 ($7,386),” Ataseven<br />
said, adding that even dealers at the used<br />
car market are facing stock difficulties.<br />
Despite the stock shortages, passenger<br />
car and light commercial vehicle sales in<br />
Turkey almost doubled in January and<br />
February in 2020, according to <strong>Automotive</strong><br />
Distributors’ Association (ODD) data.<br />
Surging demand for passenger cars helped<br />
prop up sales growth as they jumped 98%<br />
year-on-year in January and February<br />
to 59,743. The sales are expected to<br />
be around 550,000 to 600,000 in 2020,<br />
according to Ali Bilaloğlu, head of the ODD.<br />
The automotive industry had faced<br />
multiple problems last year after high<br />
volatility in foreign exchange rates in the<br />
second half of 2018, followed by a high<br />
increase in interest rates on loans, which<br />
led to a sharp decline in domestic demand.<br />
Last year was rather difficult for the<br />
industry, as passenger car and light<br />
commercial vehicle sales declined by 22.8%<br />
year-on-year to 479,060. Several measures,<br />
including tax exemptions, incentives and<br />
a cheap loan campaign by public lenders,<br />
brought some relief.<br />
75 <strong>March</strong> <strong>2021</strong>