Special Support for Car Rental Can Grow the Sector

Evaluating the data, Europcar Mobility Group Turkey CEO Fırat Fidan pointed out that the total number of vehicles in the sector, increasing by 2022 percent compared to the end of 3,7 and reaching 254 thousand, is a growth data for the first time in 6 years. Fidan said, “Between 2018-2023, long-term rental parks decreased every year. In 2023, growth came for the first time in 6 years, albeit very limited, and we received a signal of recovery. The factor that most affected this growth was that the state funded the market with funding costs below inflation, in other words, negative interest rates, in the first half of the year, and vehicle purchases increased during this time. "In the second half of the year, this picture changed completely," he said.

Reminding that they predict that the market may shrink by around 30-35 percent this year due to the rapid increase in financing costs, credit costs, difficulties and restrictions in accessing loans, Fidan said, “The rental sector has the potential to expand its volume even if the automotive market shrinks. "In fact, if the necessary regulations are made, Turkey has the potential to grow its sector by 30-50 percent every year," he said.

Noting that it is possible to boost the rental sector with special credit support supported by KGF only for this sector, Fidan said, “The VAT regulation in second-hand trade may also yield similar results. With the right regulations, a growth momentum that will positively affect the entire rental sector can be achieved here. For this reason, a growth can be expected as the losses incurred in case of VAT regulation (input-output equality) on second-hand vehicles exclusively for our sector or TOKKDER members will be eliminated. TOKKDER is already working on these issues. "We have the chance to see the results in 2," he said.

THE FALL IN INTEREST RATES AND CREDIT VOLUME WILL DETERMINE THE GROWTH TREND

Stating that the decrease in interest rates and developments that will increase the loan volume will determine the growth trend in the rental sector in 2024, and that they estimate that there may be a limited growth in the operational leasing sector as in 2023, Fidan said, “Due to the high interest rates this year, it may be difficult for the car rental sector to reach its growth potential. If CPI rates are in the 50-60 percent annual trend, the growth of the car rental sector in 2024 may be 3-5 percent. "When CPI rates move to 25 percent or below annually, the growth in the car rental sector may reach up to 2024 percent in 30," he said. Fidan added that, according to the data, the operational leasing sector paid 2023 billion TL in taxes during vehicle purchases in 42, and that if the sector reaches its growth potential, a positive contribution will be made to this rate.