The increase in exchange rates has also started to affect car prices. Car brands, which were already experiencing a shortage in supply due to the impact of the chip crisis, had to update their prices in accordance with the latest exchange rates. While the 11-month price increase rate in the car was 28 percent, the price increase rate experienced in the last 10 days was 20 percent.
To explain this situation through the figures, according to the data of the Association of Automotive Distributors (ODD), 97 percent of the 475 thousand 312 cars sold in Turkey in the January-October period were A, B, C and D segment vehicles.
When we consider the prices in these four groups, which make up almost all of the market, we see that the average price of A, B, C and D segment cars increased to TL 512,446 from TL 400,333, in January 2021 and to TL 512,446 on 18 November 2021 before the Central Bank’s decision to cut rates. Therefore, it is concluded that there has been a 28 percent increase in car prices in 11 months.
However, the rise in exchange rates after the Central Bank’s decision to cut rates triggered a new hike in the car. In particular, the increase in foreign currency on November 23 raised the new average price of zero-mileage A, B, C and D segment cars in Turkey to 616 thousand 133 TL.
An expert in the sector said, “Purchasing power has fallen a lot due to these economic factors. Vehicle sales also do not increase unless purchasing power increases. We predict that in 2022, there will be a small availability of zero vehicles again, vehicle prices will continue to rise, and the car market will be at the level of 2021.”
He also suggested that cars will continue to be seen as an investment in the coming year, “Most of those who buy vehicles in 2022 will be those who see the fleet and car as an investment vehicle. There will be those who will try to preserve the value of their money by buying cars. It is no longer a dream for a middle-income person to buy cars at these prices” he shared his opinion.
