Economist Barış Soydan, in his broadcast on the social media channel, evaluated the recently rising automobile prices due to the chip crisis with Arabam.com Marketing Manager Naim Çetintürk. Çetintürk, on the other hand, made a striking analysis regarding the end of the year. Çetintürk said, “At the end of the year, the price hike for new vehicles can reach 35 percent,” and made important statements about the market. Here are the details about the new and used car industry.
Economist Barış Soydan, in his newly published YouTube He talked about what happened in the new and second-hand automobile industry on his channel. Marketing Manager Naim Çetintürk, who was the guest of his broadcast, made striking statements about second-hand and new vehicles. Expressing that new vehicles will increase by 35 percent in 2022, Çetintürk stated that the purchase policy for second-hand vehicles has changed. Saying that consumers are now turning to vehicles with high mileage, Çetintürk also evaluated the effects of the chip crisis on the automotive industry. Here are Çetintürk’s analysis of the automobile market.
“A 35 PERCENT INCREASE IN CAR PRICES AT THE END OF THE YEAR”
Evaluating a news published recently in his broadcast, Barış Soydan directed the news titled “An additional 25 percent increase is expected in first-hand cars by the end of the year” to his guest, Marketing Manager Naim Çetintürk. Soydan’s question, “Are you expecting a 25 percent increase at the end of the year?” Cetintürk made some remarkable statements.
Çetintürk stated that the production cost of 25 percent until the end of the year will be higher until it reaches the consumer. He said:
“As long as there is no abnormality in the exchange rate in the rate of inflation every month on average, automobiles will increase by 3 to 6 percent in general. Therefore, at the end of an average of 3 years, if it increases by 3 percent every month, there will be a price increase of 30 or 35 percent. I don’t know what the increase rate was based on.”
“CHIP CRISIS WILL CONTINUE UNTIL 2023”
Referring to the decline in the automotive industry, Çetintürk stated that the chip crisis and the Russia-Ukraine war affected the industry deeply and that the chip crisis could continue until 2023. He emphasized that if there is no abnormality in the exchange rate, the increase in automobile prices will reach 60 percent at the end of the year. Çetintürk said, “We have now completed 1/3 of the year. And there has been an increase of 18 and 22 percent since the beginning of the year. If it continues like this, we will close the year with 60 percent. It is possible to talk about the chip crisis here. Of course, Russia and Russia. Due to the Ukraine crisis, there was a supply problem and a logistics problem,” he said.
Çetintürk stated that the chip crisis caused a loss of 60 thousand dollars to the automotive industry in 2022 and that many world brands were updating their automobile features. Çetintürk states that “Some brands are now gradually using chips for their more essential features.” he considered.
HIGH MILEAGE LOW PRICE POLICY ON SECOND HAND CARS
Making striking evaluations regarding second-hand cars, Çetintürk stated that a high-mileage-low-price policy has now been adopted in second-hand sales. Stating that the purchases will start in the spring of 2022, Çetintürk said:
“There is both a shortage of production and a contraction in the market for zero kilometer vehicles. There has been a 20 percent decline in the European market. This leads to buying second-hand cars. The market will move in the spring. When we look at the advertisements, 200 kilometer vehicles, which are at 16 percent, are 25 percent. Vehicles sold for 200 thousand liras and above increased by 4 percent last month. Vehicles purchased for 100 thousand liras started to become more popular. This activity will continue in May and June. Sales of second-hand vehicles increased by 15 to 20 percent. Vehicles with increasing prices are low-priced, high-mileage vehicles.”
“SALE OF SECOND HAND VEHICLES WILL INCREASE TO 80 PERCENT”
Stating that the sales of second-hand vehicles will be above zero kilometers by the end of 2022, Çetintürk stated that the sales may reach 80 percent. Stating that the number of vehicles produced in the country and the number of imported vehicles to the country has decreased, Çetintürk said that these conditions have reduced the number of vehicles, therefore directing them to second-hand vehicle sales. Expressing that it is basically a chip crisis, Çetintürk said that Hyundai’s turnover has decreased by 5 percent and listed the reasons for this.
Stating that Turkey has now lost its attraction in the automobile market, Çetintürk said, “Vehicle manufacturers abroad have difficulties in producing vehicles. However, the Turkish market has lost its attractiveness in terms of imported vehicles. Since the foreign exchange rate is high in Turkey, instead of selling the vehicle to a market abroad, the manufacturer is in Turkey.” When it is sent to Turkey, it tries to shrink the margins as much as possible due to the decrease in purchasing power in Turkey and the high foreign exchange rate. Therefore, the Turkish market has lost its appeal here.” said.
RENAULT AND FIAT IN SECOND HAND
Çetintürk listed the second-hand vehicles sold around 200 thousand. The ranking is as follows;
“Renault Megan and Clio, Fiat Egea, Dacia Sandero and Duster models. Ford’s Focus model is more prominent in those with high mileage. Hyundai’s i30 model and Akcent’s second hand had a fast cycle. In the Volkswagen group, it is generally “The high mileage of Polo and Golf, even the Passat, can enter this group. A 20-year-old Passat vehicle can be sold. Due to the prices, buyers may shift to older models.”
Underlining that the prices of vehicles with high mileage are more affordable, Çetintürk said, “The specific models of the Tofaş group, which we did not look back at before, are now around 45 thousand liras.” Tired vehicles started to take place in the regatta. Frankly, 40 percent of the vehicles sold are in their 20s. In the previous period, these rates were around 25 percent,” he said.