Turks left with only poor second-hand car choices amid realities of country’s economic crisis

Turks left with only poor second-hand car choices amid realities of country’s economic crisis
By Akin Nazli in Belgrade August 2, 2021

Some 56% of the 2.3mn second-hand cars that changed hands in January to June in Turkey were more than 10 years-old, while 82% were older than five years-old, data compiled by EBS Danismanlik showed on July 28.

The cheapest new passenger car in Turkey is sold for Turkish lira (TRY) 300,000 ($35,831) due to the effects of tax hikes and lira depreciation, Emre Ozpeynirci wrote on July 31 in Para Kule. The net minimum wage in Turkey, embroiled in an economic crisis even prior to the arrival of the coronavirus crisis, stands at TRY2,826 ($338). Around 40% of the workforce earns the minimum wage. The median wage, meanwhile, has been nearing the level of the minimum wage.

Even second-hand cars are now proving out of reach to many Turkish consumers. Second-hand car sales, which broke records in 2020, were down 25% y/y in H1. 

“Realities in Second-hand Auto Market” – Shares of second-hand car sales based on age groups during January-June 2021.

Also in H1, Turkey remained the sixth largest passenger car market in Europe based on new car sales. With 3.73 cars sold per 1,000 population, Turkey left Romania behind.

January-June 2021, passenger car sales. “Nüfus” = Population. “Pazar” = Market (passenger car sales in units).

A total of 310,325 passenger cars were sold in Turkey in H1, up 52% y/y thanks to the base effect caused by the coronavirus pandemic impacts seen in the same period of 2020.

The market share of sedans fell to 41% from 44% in H1 2020 while the SUV share rose to 34% from 28%. The Hatchbacks share declined to 23% from 25% in H1 2020.

Also in January-June, 263 passenger car models of 41 brands were sold in Turkey, Ozpeynirci wrote on July 10.

Tofas’ Fiat Egea Sedan was the market leader with a 9.51% share in the passenger car market in H1.

Romanian automaker Dacia’s Duster model remained the market leader in Turkey's SUV segment, with 9,323 units sold.

Local carmaker Tofas’ (TOASO's) Fiat Egea Cross followed the Duster at 9,014 units.

Toyota’s locally-produced C-HR and Hyundai Assan’s locally-produced Bayon models were also popular in the SUV segment.

In the hatchback segment, Oyak Renault’s locally-produced Renault Clio was the market leader with 17,907 units sold in H1, followed by Hyundai Assan’s locally-produced Hyundai i20 at 8,120 units.

In the sedan segment, Tofas’ locally-produced Fiat Egea took first place with 29,515 units sold, followed by Toyota’s locally-produced Corolla at 24,931 units.

Oyak Renault’s locally-produced sedan Megane was third at 16,311 and Honda’s locally-produced Civic was fifth at 12,786 units.