Auto sales in Turkey leapt by 127.5% y/y to 49,000 units in October, after rising 82% on an annual basis in the previous month, according to data from the Turkish Automotive Distributors’ Association (ODD).
Even though the October reading reflects the base effect, local lenders’ moves to cut borrowing costs of late—vehicle loan rates fell to 0.49-0.69% from the 1.40%s in October—have also contributed to the sharp rise in sales. Turkey’s central bank is now expected to slash its policy rate further with the country’s level of annual inflation on November 4 hitting a three-year low of 8.55% in October. That may boost car sales further.
The ODD also reported that in October passenger car sales, which grew 101% y/y in September, jumped 138% on an annual basis to 40,000 units.
The light commercial vehicle (LCV) market expanded 91% y/y with 9,000 units sold in October.
Despite the strong sales performance recorded over the past two months, total auto sales were still 32% lower in the first 10 months of 2019 year on year.
In January-October, the country’s passenger car market contracted 29% y/y to 268, 624 units while LCV sales fell 42% y/y to 62,000 units.
The ODD said it expected total vehicles sales to be between 450,000 and 500,000 units this year. The association forecasts 525,000-575,000 sales on the local market next year.
In 2018, Turkey’s automotive market contracted 35% with a total of 620,937 passenger car and LCVs units sold versus 956,194 units in 2017.