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Increasing Demand Makes Turkish Automobile Players Optimistic for Future
May 06, 2010

From January to March 2010, the automobile sales in Turkey have risen consecutively month-on-month, promising bright future of the Turkish automobile industry.

As per the monthly statistics released by Turkish Automotive Manufacturer’s Association (OSD), Turkey’s motor vehicle productivity summed up 98,533 Units in March 2010, up 67.3% y-o-y, and up 16.66% on the month. On month-on-month basis, Turkey’s motor vehicle production has increased for the third straight month, as per the news published by SteelOrbis.

In March this year, the country’s passenger car output amounted to 55,755 Units, up 50.2% from the previous year. Commercial vehicle output reached 42,778 Units, 97% up, while the tractor production totaled 2,387 Units, 150% up, compared to March 2009.

Moreover, in March, the total production capacity utilization of the automotive industry in Turkey was 78%. In February, the utilization rate was recorded at 65%.

Backed by the increased demand in Turkey, country’s auto production is witnessing a surge. Due to the termination of OTV cuts (private consumption tax) at the end of September 2009, the Turkish automobile market started contracting in October. However, by launching attractive promotions, the Automobile manufacturers successfully managed to considerably boost the demand.

Moreover, sector’s growth is also assisted by loans offered by the banks at low interest. Apart from this, yet another factor responsible for the upsurge in customer attention are better-equipped automobiles.

The surge in Turkish auto market clearly indicates that the sector is recuperating from the economic turmoil.

Also, with sales increasing across all the price segments, the auto companies are feeling cheerful for the period ahead. The auto players will further increase production so as to meet the rising demand.

According to a market research report titled “Turkey Automobile Sector Forecast (2008-2012)” by RNCOS, the annual auto production by in Turkey is projected to increase to 1.8 Million by 2012. Also, the foreign players are eyeing Turkey as the key to penetrate the European automobile market, and so the country’s automobile production will increase with increasing foreign investment.

According to a Research Analyst at RNCOS, “Regardless of the mounting demand, the Turkish auto industry might confront some challenges in years to come, and one of the challenges is increasing steel prices. As the prices of carbon steel escalate, automobile prices will eventually go up, and this may leave a negative impact on the growth of Turkish automobile industry.”

Related Market Research Reports:
Brazil Automobile Forecast to 2013
China Automobile Sector Forecast to 2012
Hybrid Car Market Forecast to 2012