Latest Developments in the Turkish Automotive Market
After reaching record sales figures in 2023, the Turkish automotive market started 2024 with a contraction. In January, automobile and light commercial vehicle sales in Turkey decreased by 13,9% compared to the same period last year, falling to 68 units. In this process, especially A, B ve C While a 29% decrease was observed in vehicle sales in the segments, D, E ve F Sales of luxury cars in the segment increased by over 32%.
Growth and Structural Change in the Luxury Segment
According to data from the Automotive Distributors and Mobility Association (ODMD), the market share of luxury vehicles has increased by 7,3% in the last year, reaching 17,7%. This situation is considered as an indicator of the structural change in the automotive market in Turkey. Husamettin Yalcin, Cardata's CEO, states that this change is closely related to the decrease in the car purchasing power of low and middle-income citizens.
- Challenges of the Middle Class: High inflation and difficulties in accessing credit make it difficult for the middle class to buy a car.
- Increase in Luxury Consumption: Consumers with high purchasing power tend to turn to the luxury segment because they have easier access to financing.
- Impact of Electric Vehicles: Imported electric vehicles are becoming more accessible thanks to tax advantages, accelerating growth in the luxury segment.
Effects of New Regulations
New legal regulations made as of 2024 have changed the market dynamics. The introduction of a 40% domestic requirement for vehicles exempt from SCT with disabled support and the extension of the resale period to 10 years have led to a contraction in sales in the luxury segment. However, these regulations have also increased the share of domestic production. The domestic share, which was 29,1% in December, increased to 31,6% in January.
Market Share of Electric and Hybrid Vehicles
While sales of gasoline and diesel vehicles are decreasing in the Turkish automotive market, the market share of electric cars is increasing rapidly. In January, the market share of gasoline cars decreased from 64,4% to 48,5% compared to the same period last year. The share of hybrid cars reached 29,7%. Sales of electric vehicles increased their market share to 6% with 225 units. As a result, the total market share of electric and hybrid vehicles exceeded 11,1%.
Future Prospects in the Turkish Automotive Market
This structural change in the automotive market may cause owning a car to become a luxury consumption in Turkey. If this trend continues, it is likely that there will be a permanent change in the structure of the market, with models accessible to the middle class decreasing. Yalçın, credit terms ve tax system highlights the need for re-evaluation.
As a result
These changes in the Turkish automotive market affect the purchasing power of consumers and market dynamics. The growth of the luxury segment, the difficulties in purchasing cars for the middle class and new regulations are the most important factors that will shape the future of the market. Whether this trend will continue in the coming years will determine the direction of the Turkish automotive market.
