Published On: Thu, Nov 29th, 2018

Turkey’s automotive market will continue to shrink in 2019

Turkey’s automotive market will continue to shrink in 2019

There is no doubt that the automotive industry is one of the locomotive sectors of Turkish economy. In fact this sector has also taken its place among the leading group in Europe with a giant production capacity. However it seems that the recent developments the country has gone through are likely to have a negative impact on the performance of this sector as well.

After having reached the 1 million unit sales figures, Turkey’s automotive market has entered a downsizing period. The market is expected to continue to shrink in 2019 and start to climb again after 2020. Also experts do not believe the sector will see a sales figure of 1 million again, before 2023.

It is reported that that sharp decline in the performance of the market has been due to the fluctuations in currency rate and increase in interest rates.

Professionals in the industry suggest the government to pull the rate of Special Consumption Tax to a reasonable level and increase domestic production by focusing on the domestic automotive project and attract FDI to the country so as to ease the impact of the contraction in the sector.

The report prepared to cover the issue says the market, which has been shrinking since May 2018, has shown a 41 per cent contraction compared to the 2017 May-September period, pointing to the lowest level in the last four years.

The report also says Turkey’s automotive market will break a sales record with 1.2 million units in 2025.

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