Turkey’s August automotive sector sales narrow from July
Turkey's vehicle sales maintained its downward trend in August compared to previous month. When compared with the previous month, total market regressed by 3% last month and light commercial vehicle sales by 8% while passenger car sales were up by 1% on the back of imports. However, August vehicle sales showed an upward trend compared to the same period of last year. The intensive decline in light commercial vehicle sales mainly grew out from the tax arrangement. The 4% increase recorded in imports put an end to the decrease in passenger car sales. In August, automotive sector exports dropped by around 50% compared to previous month due to annual maintenance and production cuts last month. However, exports of passenger car and light commercial vehicle were up by 26% and 70% from a year earlier in August, respectively. In the fourth quarter, demand is expected to strengthen again due to the decline in interest rates, the strong expectations of Turkey's EU membership and the alleviation of negative factors in tax arrangement.