Automotive Exports August 2023

Electric car sales up as Türkiye’s EV drive gains pace Sales of electric vehicles (EV) in Türkiye skyrocketed in the year through May, propelled by the launch of the country’s first indigenous car and arrival of new brands. Some 7,526 battery-power cars exchanged hands during the January-May period, according to the <strong>Automotive</strong> Distributors and Mobility Association (ODMD) data that showed overall vehicle sales in Türkiye achieved their best May and five-month figures ever. Sales of electric vehicles thus rose by a whopping 326.64% from a year ago, when some 1,764 EVs exchanged hands, according to the data. Sales in May alone jumped by 457.18% to 2,095 units, compared to 376 in the same month of 2022. Their gasoline-electric hybrid rival saw sales jump nearly 60% year-over-year to 37,988 units, as per data. Battery-powered and hybrid vehicles boosted their market shares to 2.21% and 11.17%, up from 0.82% and 11.09% in the first five months of last year, respectively. Cars powered by gasoline held a 68% share in the overall sales in the January-May period, down from 69.8% a year ago, while that of diesel vehicles rose to 17.3% from 16.1%. Overall, some 111,356 units of passenger cars and light commercial vehicles were sold in May, marking a 70.9% year-overyear increase. The figure also represents a 69.1% increase according to 10-year average May sales. Sales in the first five months of the year rose 60.5% year-over-year to 445,006 units, according to the ODMD. Demand remains notably high as consumers continue to opt for cars they see as a tool to safeguard themselves from high inflation. Among others, easing supply chain-related availability problems has also led to increased sales since the beginning of the year. Annual consumer price inflation in Türkiye has moderated over the last six months, easing lastly to 43.68% in April, almost halving from 85.1% registered in October last year – a 24-year peak. As expected, the battery-powered cars trend is gaining a fresh impetus as Türkiye’s first domestically produced electric vehicle Togg hit the roads. The ODMD data suggested some 306 Togg T10X were delivered in May, although the carmaker had said it planned to deliver 1,000 units in May, out of 20,000 units projected for this year. The fully electric C-segment SUV ranked just second to Mokka, manufactured by German carmaker Opel, owned by Stellantis, and held 4.07% in market share in May. Mass production of T10X was launched last October and deliveries started in late April. The vehicle is initially being sold with one engine type and two battery options. It <strong>August</strong> <strong>2023</strong> 10