Explanation of automobile prices from ODD – news

The Turkish automotive market has been following a fluctuating graphic in recent years. While sales of 1 million units were once seen in the market, both the increase in the exchange rate and the outbreak of the pandemic in the intervening time prevented the market from rising to 1 million units again.

If we look briefly at the past 5 years of the automotive market, a total of 956 thousand 194 automobiles and light commercial vehicles were sold in Turkey in 2017. Thus, the market had tested the 1 million units limit for the 3rd year in a row.

While the total market decreased to 620 thousand units in 2018, when the fluctuation in exchange rates started, it decreased below 500 thousand units and decreased to 479 thousand units in 2019.

In 2020, the coronavirus pandemic, which swept the whole world, shrank the automotive market by approximately 25 percent in Europe, which is next to Turkey, but sales increased by more than 60 percent due to the explosion of demand in the domestic market, which had been delayed since 2018.

Thus, in 2020, 772 thousand 788 cars and light commercial vehicles were sold in Turkey, which differed positively from other markets in the world.

In 2021, the increase in vehicle prices due to the rise in exchange rates and the production problems that started with the chip crisis and then continued with the logistics and supply crises left their mark on the automotive market.

However, despite all these negativities, while the demand for new vehicles did not decrease, on the contrary, the problem of finding a vehicle, which has continued until today, entered our lives. As a result, the automotive market left behind 2021 with 737 thousand 350 units, at a similar level to the previous year.

The market, which started 2022 with similar problems, continued to shrink for four consecutive months. In the January-April period, the total market for automobiles and light commercial vehicles in Turkey decreased by 18.5 percent and amounted to 212 thousand 85 units.

‘THE MOST IMPORTANT PROBLEM OF 2022 WILL BE AVAILABLE’

There are undoubtedly more than one reason for the current developments in the automotive market. At this point, Ali Haydar Bozkurt, the new Chairman of the Board of the Automotive Distributors Association (ODD), to whom we extended the microphone, drew a broad perspective on the contraction in the market.

Making a special statement to Habertürk, Ali Haydar Bozkurt stated that the expectation that each quarter will be better than the previous one and that the effect of the chip crisis will decrease in the predictions for 2022, said, “However, the Russia-Ukraine war has completely changed the situation. When we look today, we see that the problems related to supply and logistics have increased. “These problems are more complex, complex and have grown. Estimates made worldwide this year show that 3-5 million vehicles will not be produced under normal conditions. Supply-related problems will continue into the next year,” he 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 of the pandemic continue, it becomes difficult to predict the market closure for 2022. According to the domestic market forecasts for 2022, last year’s domestic market It will be a great success to catch up with their traditions,” he said.

‘PRICES ARE RISING TO RISE’

Drawing attention to the inflationary environment in the world, Ali Haydar Bozkurt said, “There are serious jumps in energy prices on top of this. This will cause the inflation increase trend to continue. Although the FED tries to restrain this inflationary environment with a rapid rate hike cycle, inflationary pressures in our country and in the world The environment will continue in 2022. This 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 affects vehicle availability. “At the same time, the possibility of prices to continue upwards increases due to inflation,” he shared.

‘TAXATION SYSTEM MUST BE RE-evaluated’

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, the tax on fuel used in vehicles, the taxes paid by companies and the employment it creates. We need to take the necessary steps together within the framework of a sustainable medium-term plan with the aim of achieving harmony,” he said.

Explaining that the size of the domestic market is important, Bozkurt said, “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 our competitive advantage in the global arena. “We need to be prepared and maintain our competitive power in the global arena. In this case, it would be appropriate to re-evaluate and put our taxation system into operation according to the current conditions. This will pave the way for the development of policies that will bring the domestic market back to the 1 million level.”