Automotive Exports August 2023

Car sales in
Türkiye hit new
peak in June, H1
Car sales in Türkiye hit another all-time
high in June, industry data showed, adding
to the peaks since the beginning of the
year, propelled mainly by the increase in
vehicle supply.
A record 110,861 passenger cars and light
commercial vehicles exchanged hands
last month, the Automotive Distributors
and Mobility Association (ODMD) said in a
statement, marking a 37.5% year-over-year
increase.
In contrast, around 80,652 units were
sold in the same month a year ago. June
followed a May record of 111,356 units,
marking a 70.9% increase on an annual
basis, according to the ODMD data.
Demand has been notably high as
depreciation in the Turkish lira and soaring
prices prompt consumers to continue to
opt for cars they see as a tool to safeguard
themselves from high inflation.
Annual inflation fell below 40% in May
after touching a 24-year high above 85% in
October last year.
The prices of vehicles soared due to supply
shortages coupled with strong demand, as
well as high inflation and the depreciation
in the lira, which makes imports more
expensive.
The currency has declined more than
28% this year, largely after the economic
authorities took steps since President
Recep Tayyip Erdoğan was reelected on
May 28, including changing course after
two years of monetary easing.
As part of the policy pivot, the country’s
central bank increased its benchmark
policy rate by 650 basis points, lifting its
one-week repo rate to 15%. The monetary
authority has also simplified some of
the macroprudential measures it had
implemented in a drive to boost the lira.
Among others, sales increased amid
loosening financing conditions, easing
supply chain-related availability problems,
and the deliveries of orders placed months
ago. Passenger car sales in June jumped
40.1% year-over-year to 89,833 units, while
light commercial vehicle sales rose by
27.3% to 21,028, the ODMD data showed.
Vehicle sales from January through June
also hit a record, reaching 555,867 units,
an increase of 55.3% versus the first half
of last year. The total sales of the past
12 months amounted to approximately
981,000 units, only 2,000 units below the
figures seen in 2016.
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