Turkish automotive sector maintains upward trend

Turkish automotive sector maintains upward trend

As per the data published by Automotive Manufacturers Association (OSD), domestic auto sales rose by 10% in May compared to the previous month. When compared with April, passenger car sales increased by 14% while light commercial vehicle sales soared by 4%. Sales were expected to shrink on an annual basis in May due to the ascension in exchange rate as well as the increase in interest rates and vehicle credits. However, the share of imports in passenger cars reached a record level of 74%. In the first five months of 2004, the sales of passenger cars and light commercial vehicles surged by 265.4% on an annual basis to 289'512 units. Council of Ministers decided to cut scrap discount on cars to TL 2.25 billion in May. This situation did not reflect to the May sales, but the passenger car and total sector sales are expected to tend downwards for the full year. Last month, Renault took the first place with 9'762 units in automobile sales and followed by Ford with 7'539 units and Opel with 6'242 units. Automotive sector output also indicated an increase in May. Accordingly, production, excluding tractor, in the Turkish automotive sector rose by 78.3% to 78'676 units. Last month, passenger car output reached 41'717 units with an increase of 64% while commercial vehicle output increased by 97% to 36'959 units.