Turkish Auto Sales : Sharp Drop, Exports Up in 2002

Turkish Auto Sales : Sharp Drop, Exports Up in 2002

Turkey's sale of autos took a sharp plunge by 77% for the period of January-March 2002, while exports of main automotive and subindustries reached USD$857.9 million, up 1% from the same period in 2001. At the same time, car exports dropped 4% to USD$246 million. In addition, the number of automotives exported in the same period reached a total of 49,967. This figure revealed a 5% increase compared to the first quarter of 2001. These figures are from Turkey's Automotive Industry Association (OSD) and were announced on April 10. Imports made up 57% of cars sold in the domestic market in the first three months. While sales of imported cars showed a drop of 73% from 14,214 units to 3,819 units. Meanwhile, auto production rose by 6% to 44,321 units in the same period due to a healthy export of 36,000 cars. Analysts report this was in spite of the continuing contraction in domestic demand. Production of commercial vehicles also decreased. Figures reflect a 68% drop for minibuses, 41% decrease for busses, 25% for large trucks, 11% for midsize busses, 1% in pickup trucks. At the same time, small truck production increased by 58% while tractor output declined 56% in the first quarter to 2,452 units. Financial reports indicate the overall market for the automobile sector contracted by 64% with a total of 14,171 auto products sold in the first three months. Tofas optimistic about domestic demand Officials at Turkish automaker, Tofas, a major auto exporter, commented they expect a recovery in domestic demand to pickup in April or May of this year. Tofas, a joint venture between Italy's Fiat and Turkish industrial group, Koç, told the media that Turkish clients fear for the future. The group says they believe a more optimistic outlook is in order. As Tofas Turkish Plant A.S. Commercial Director, Feruccio Raspino explained, he feels that Turkey will manage its economic growth and echoed the sentiment of others who see some signs of recovery returning in April or May. Raspino cited statistics that demonstrate what he calls “very poor figures” for the number of autos per person in Turkey. Nevertheless, Tofas saw some positive signs in exports since it shipped 20,036 units of automotive products in the first three months of this year. Auto production for Jan-March 2002 Tofas Fabrika Tofas produced 23,986 vehicles in 2002, first quarter. This revealed a 16% decrease for the same period in 2001. Monthly production data showed the downward trend in production changed direction. This meant that Tofas was able to increase its production in March by 10% compared to March 2001. Ford Otosan Though Ford's three-month production went down by 34% to 3,327 vehicles, it was able to raise production by 8% to 1,300 vehicles in March 2002 compared to the same period last year. Sales For the month of March 2002, total passenger car sales dropped by 54.4% to 3,414 cars. In the first quarter of 2002, overall car sales were 5,481, revealing a 77% decline compared to the same period for 2001. Total LCV sales decreased by 12.7% in March 2002 to 2,677 vehicles. For first quarter, overall LCV sales turned out at 6,158 vehicles, representing a 49% cumulative drop in comparison to March 2001. Exports Overall automotive and CKD exports increased by 1% to USD$857.8 million for the first quarter of 2002. While vehicles saw a 6% increase, CKD exports saw a 4% decrease. Market report summary Market reports indicate that automotive production for March ended up with an overall 34% annual increase. First quarter statistics showed a 4% decrease for the same period in 2001 with 68,458 cars manufactured. Experts reveal the reason for the 4% was due to an increase in exports. They say this covered total production on the whole. Analysts are summing up the auto sector by suggesting that first quarter results demonstrate no recovery in the domestic market with indications that contraction is continuing. Reports reveal that the trend seemed to reverse in March of this year, but, experts say, base effect is the determining factor. Many analysts concur that they don't expect real recovery to begin until the third quarter, at the earliest. They stress this would be mainly dependent on interest rates on consumer loans. Experts basically sum up the first three months of 2002 for automotive production figures as coming in sharply below last year's. Analysts report this was expected by most market watchers, which simply indicates to them the depth of the continuing recession. Meanwhile, reports show Ford Otosan with a bit more of an optimistic outlook, indicating a strong recovery in exports for the remainder of 2002.