By on February 6, 2014

2014 Renault Fluence

Vehicle sales in Turkey fell 8 percent in January to 32,670 vehicles from the previous high of 35,523 units in January 2013 according to national industry group Otomotiv Distribütörleri Derneği and Automotive News.

Sales for the outgoing year rose 10 percent to 856,378 units from 777,761 in 2012.

ODD predicts sales of 800,000 to 860,000 units moved from the showroom to the road in 2014, but warns a tax hike on passenger vehicles and banking regulations meant to curb the growth of Turkey’s current account deficit would put a dent on the forecast.

Turkey’s market could be in for more losses as a wave of bearishness on the health of emerging markets has become the predominant model of thinking among financial observers. Turkey in particular was expected to be a bright spot in the automotive world once the BRIC markets had matured.

 

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12 Comments on “Auto Sales In Turkey Fall 8 Percent In January...”


  • avatar
    L'avventura

    It was expected. Turkey doubled their interest rates due to US Fed tapering.

    They had to make a very hard choice. Either have GDP growth and massive inflation, or increase currency value, weaken export power, and curb inflation.

    They choose the hard way. Slow the economy, double interest rates, and save their economy in the long run.

    This is going to be a very hard choice for many and more developing countries. China especially.

  • avatar
    Magnusmaster

    Here in Argentina the situation is much worse due to government incompetence. It is estimated auto sales will drop 20 percent this year due to depreciation and massive tax hikes. Auto manufacturers, among other businesses, can no longer get hard currency from the central bank (they need dollars to pay debt, fuel and prevent hyperinflation), so they have to borrow or ask cash from their headquarters, and they cannot take their profits out until the situation normalizes.
    If they borrow dollars they can get them from the central bank in 12 months but those that made investments to substitute imports will get priority. I expect there will be less cars on dealerships as manufacturers will have difficulty to pay suppliers.
    Oddly enough the situation in Argentina was the catalyst for the problems in emerging countries but it was all caused due to insane government policies, the Fed had nothing to do with it. It shows how irrational investors are.

    • 0 avatar
      RobertRyan

      @Magnusmaster
      Talked to a woman who has a relative who married an Argentine and lives in Buenos Aires . She said even the middle class have resorted to growing food. That sounds pretty bad.

    • 0 avatar
      Big Al from Oz

      @Magnusmaster
      I real feel sorry for the people of Argentina.

      Your political situation on what is on offer doesn’t leave much scope for a fair system across the board.

      I read an interesting article on the problems confronting many of the ex-Spanish colonies. It stated that the problems confronting many Latino countries was started during the colonial era of the Spanish.

      Essentially large tracts of land was owned by an individual (fuedal) and ‘serfs’ so to speak didn’t have the capacity or ability to raise enough collateral to challenge the ruling elite.

      You still have that culture of the very few ‘rich’ controlling most assets, leaving little collateral for the average person.

      Argentina needs policy to increase the wealth of the middle class.

      You will find countries that don’t have freehold title of land or the ability to have access to freehold title fairly are not performing as well economically.

      The study in the end stated that the goal of any country is to have relatively easy access to freehold title to land if it is to be successful.

      The theory behind this is that ownership of property gives a person the ability to invest.

      Just wanting the access to cheap consumer products will make a country better. To have these consumer products like cars you need security.

      Argentina has the ability to have one of the highest standards of living int he world again like it did a little over one hundred years ago like your neighbours in Uraguay.

    • 0 avatar
      d002

      Turkey has plenty of its own problems, and dare I mention Thailand ? The shenanigans in that country precipitated the last BRIC crisis.

    • 0 avatar
      charly

      Cars seems to me like a big import bill for Argentina so isn’t increasing car taxes massively a smart way to depress the import bill?

    • 0 avatar
      JD321

      It’s not incompetence…Kirchner is a thieving psychopath.
      The civilized fully human individuals always suffer the most in a socialist/collectivist monkey society.

  • avatar
    Big Al from Oz

    Turkey is conforted with several problems.

    1. Cheap money from the US passing through the EU is irresponsibly funding Turkey’s ‘development’.

    2. There is a clash of cultures. A culture like the ‘Western’ culture is a complex tool for survial. The Islamic culture isn’t as progressive, hence the inability for it to modernise effectively.

    3. It is involved and has it’s fingers in an area that has much political instability, even within it’s own borders.

    Combine those issues and you have a problem.

  • avatar
    SteelyMoose

    On first glance at the cover pic, I thought the plate said “Flatulence.” I thought, cool, a new CNG version!


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