Auto Sales In Turkey Fall 8 Percent In January

TTAC Staff
by TTAC Staff
auto sales in turkey fall 8 percent in january

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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  • L'avventura L'avventura on Feb 06, 2014

    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.

    • RobertRyan RobertRyan on Feb 06, 2014

      @L'avventura Which in turn will eventually impact on the US negatively. Not a happy time for anyone.

  • Magnusmaster Magnusmaster on Feb 06, 2014

    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.

    • See 6 previous
    • RobertRyan RobertRyan on Feb 08, 2014

      @Inside Looking Out No far from Communists, but are suffering a ly from Capital outflow after the winding back of US stimulus.Add some strange Governmental deciisions... Then you have problems.

  • Big Al from Oz Big Al from Oz on Feb 06, 2014

    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.

  • SteelyMoose SteelyMoose on Feb 07, 2014

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