Automotive Exports August 2023

Türkiye’s online used car market to cap
prices below new car rates
The Trade Ministry has taken steps to
address the issue of inflated prices for used
cars sold online. According to the newly
published regulation, it will be prohibited
to advertise used motor vehicles at a
price higher than the manufacturer’s or
distributor’s recommended selling price
until Jan. 1, 2024.
The objective of this regulation, as stated
by the ministry, is to curb unfair practices,
prevent excessive price hikes and restore
a balanced supply-demand relation in the
automotive sector.
Prices of vehicles in Türkiye soared due
to supply shortages coupled with strong
demand, as well as high inflation and the
depreciation of the Turkish lira, which
makes imports more expensive.
Both consumers and the government
have blamed car dealers for price gouging.
The government ramped up its audits to
curb the prices and make vehicles more
affordable.
The latest step came as the ministry’s
effort to address consumer grievances and
combat hoarding and excessive pricing
practices in the automotive sector as well
as stockpiling.
This regulation, which will take effect
on July 15, applies to both individual
and commercial advertisements from all
individuals and legal entities.
Under this restriction, advertising
platforms will notify all individuals and
legal entities about advertisements that
potentially violate the regulation at the
time of placement. Any advertisement
found to be in violation of this regulation
will be considered as engaging in the
trade of secondhand motor vehicles,
and those responsible for placing such
advertisements may face administrative
fines of up to TL 300,000 ($11,534) per
advertisement.
Türkiye has also expanded and prolonged a
measure aimed at reining the surge in car
prices for another six months, the country’s
Trade Ministry announced recently.
Under a regulation unveiled last year,
companies, car showrooms and car rental
companies had to keep the cars they
acquire for six months and cover at least
6,000 kilometers before being allowed
to resell them. The measure has been
renewed to last until January 2024 and has
been expanded to include individuals as
well. Authorities have imposed more than
TL 75.17 million in fines on companies for
practices such as excessive pricing and
stockpiling, according to the Trade Ministry.
More than TL 35 million in fines also came
for violations of the “6 months, 6,000
kilometers” regulation, the statement read.
Car sales in Türkiye achieved their best
May and five-month figures ever, according
to industry data. Some 111,356 units
of passenger cars and light commercial
vehicles exchanged hands last month,
marking a 70.9% year-over-year increase.
Sales in the first five months of the year
rose 60.5% on an annual basis to 445,006
units.
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