Turkey’s automotive sales beat expectations in December
Turkey's domestic automotive sales reached 86'473 units in December with a rise of 66% compared to the previous month. Subsequently, overall sales in the automotive industry amounted to 753'731 units in 2004, indicating a rise of 88% over 2003. The impressive rises in 2004 auto sales are attributed to the improving confidence in the economy, wide availability of consumer loans, tax incentives by the government and favorable prices due to heavy competition. In December, passenger car sales increased by 64% from a previous month to 50'197 units. On the other hand, December passenger car sales declined by 2% from a year earlier compared to 51'461 units recorded in December 2003. In passenger car market, Tofas slightly improved its market share to 5.2% in December from 5% a month ago by increasing its sales by 70% to 2'614 units. Ford also raised its passenger car sales by 55% to 4'303 units from 2'773 units, but lost market share, which dropped to 8.6% from 9.1%. Light commercial vehicle sales were recorded as 28'727 units in December, up by 54% compared to 18'653 units recorded in November. Exports also posted affirmative growth rates, putting an end its declining trend since October. Export figure rose by 46% to 54'063 units in December from 43'075 units registered in November. In addition, exports also showed a rise of 26% compared to 37'106 units registered in December 2003. In 2005, automotive sales growth is expected to decline after the recent hike in the special consumption tax on passenger cars. Overall sales are projected to fall by 15% to 640'000 units this year.