Possible price increase supports Turkish automotive sales

The expectation for price increase with exchange rates and the rise in interest rates supported Turkish automotive sales in May. Passenger car sales increased 26.1 percent in May due to the high demand of customers before the possible price increase. According to the Turkey's Automotive Manufacturers Association (OSD) report, production, sales and exports continued increasing last month. Overall sales rose 16.3 percent in May, while passenger sales increased 26.1 percent. In the first five months of the year, automotive sales amounted to 293,000 units, up 13.1 percent year on year. Passenger car sales increased 14.9 percent year on year to 167,000 units in the first five months of the year. In May alone, passenger car sales reached 48,521 units. Imports accounted for 71 percent of sales. In the given period, tractor market rose 34 percent, bus market 51 percent and truck market 29 percent. Overall automotive production rose 13.4 percent to 94,606 units in May while passenger car production increased 20.1 percent to 53,465 units. In the first five months of the year, automotive production amounted to 403,000 units, up 12.2 percent year on year while passenger car production grew 18.3 percent to 221,000 units. Automotive exports increased 11 percent year on year to $5.6 billion in January-May 2006 period.