Car prices are expected to rise

President of the Automotive Distributors Association (ODD) Ali Haydar Bozkurtmade statements regarding the shrinking automobile market every month in 2022. Yenigün stated that the most important event of 2022 in the automobile market will be ‘availability’.

Speaking to Yiğitcan Yıldız from Habertürk, ODD President Ali Haydar Bozkurt “We are faced with an inflationary environment in the world. The increase in costs has increased the possibility of an increase in vehicle prices” said.

ODD President Ali Haydar Bozkurt stated that the expectation that each quarter will be better than the previous one and that the impact of the chip crisis will decrease is dominant in the predictions for 2022, “However, the Russia-Ukraine war has completely changed the situation. When we look at it today, we see that the problems arising from supply and logistics have increased. These problems are more complex, complex and have grown. This year’s estimates around the world show that 3-5 million vehicles will not be produced under normal conditions. “Supply-related problems will continue into the next year.” said.

Emphasizing that the first agenda item in the Turkish automotive industry in 2022 will be ‘availability’, Bozkurt said, “As the uncertainties regarding chip, logistics and raw materials caused by the problems caused by the pandemic continue, it becomes difficult to predict the market closure for 2022. According to the domestic market forecasts for 2022, it will be a great success to catch up with last year’s domestic market numbers.” used the phrase.

Cost increases will be reflected in prices

Ali Haydar Bozkurt, who also drew attention to the inflationary environment in the world, “On top of that, there are serious jumps in energy prices. This will cause the inflation increase trend to continue. Although the FED tries to restrain this inflationary environment with a rapid rate hike cycle, the inflationary environment will continue in 2022, both in our country and in the world. It will inevitably increase the costs of all companies and brands. The increase in costs has also increased the possibility of an increase in prices for both new and second-hand vehicles. Therefore, the system has a supply and a price side. This situation will put vehicle availability in trouble. At the same time, prices will increase due to inflation. It is more likely to continue upwards.” shared his opinion.

ODD Chairman of the Board Bozkurt also mentioned that the automotive industry constitutes a significant proportion of the state’s total tax revenues and said that steps should be taken in parallel with the developments in the world.

In this context, Bozkurt noted that the sector creates a very serious resource, including vehicle purchase taxes, VAT, SCT, Motor Vehicle Tax, tax on fuel used in vehicles, taxes paid by companies and employment created. “In order to protect and support this resource, we need to take the necessary steps together within the framework of a sustainable medium-term plan with the aim of adapting to the changes taking place in the world.” said.

‘We need to protect our competitive power’

According to the news in Cumhuriyet, Bozkurt said that the size of the domestic market is important. “The size of the domestic market is important in terms of paving the way for new investments to come to our country with advanced new technologies in order to maintain and further develop our competitive advantage in the global arena. We must be prepared for the near future, both with infrastructure and on the one hand, with legislative regulations and practices, and to preserve our competitive power in the global arena. In this case, it would be appropriate to re-evaluate and put into effect our taxation system according to the conditions of the day. Thus, it will also pave the way for the development of policies that will bring the domestic market back to 1 million levels.” made a suggestion.

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