The
automotive sales, which fuel the growth in
Turkey's imports and economy, started to narrow compared to previous months. According to
Automotive Manufacturers Association (OSD) data, automobile sales amounted to 33'410 units in July, down by 11.3% compared to previous month. Local automobile sales regressed by 0.9% while the drop in imported automobile sales was recorded as 15%.
The decline in automobile sales is attributed to the cut in
scrap discount on cars at the end of May and the increase in consumer credit.
However, July automobile sales indicated a rise compared to previous year. When compared with the same period of 2003, local automobile sales were up by 107.9%, imported automobile sales increased by 134.7% and total automobile sales soared by 126.3%.
In the first seven months of the year, automobile sales reached 269'082 units with an increase of 242.7% compared to the same period of last year. Imported car sales increased by 264.9% while local car sales were up by 199%.
In 2004, automobile sales are expected to amount only 430'000-450'000 units, if the sales will continue at this acceleration. The auto market may shrink further next year, according to market analysts. The primarily reasons for this expectation are; current account deficit and its finance, debts of repayment, the forecast of FED's interest rate increase and the inflationary pressure of oil.