Türkiye sees record-breaking automotive sales in 2023

The Turkish automotive market delivered a record performance in 2023, with more than a million units sold for the first time, top executives of automotive brands operating in Türkiye told Anadolu, Azernews reports, citing Anadolu Agency.

The total market for passenger cars and light commercial vehicles exceeded 1 million units for the first time, said Japanese carmaker Toyota's Turkish Marketing and Sales Director Ali Haydar Bozkurt.

Executives said the Turkish automotive market is leaving behind a year of second-hand cars costing more than brand new ones, adding that last year, cars were used as investment vehicles and the availability of cars was stabilized only after the first half of 2023, thanks to the Ministry of Commerce's implementation of "normalized" measures.

Bozkurt said 2024 will be a year in which companies will conduct campaigns whenever there is an opportunity.

"The rise in vehicle prices, credit costs, and difficulties and restrictions in accessing credit may cause the market to shrink by 30%-35%. Therefore, including automobiles and light vehicles, a market volume of around 750,000-800,000 units may be realized," he added.

Ali Bilaloglu, head of Dogus Automotive, a Türkiye-based exporter, said the Turkish automotive industry is a sector that can react quickly, draw conclusions from the situation it faces, and it can rebuild its future plans.

He said they expect passenger car sales to reach 930,000 and commercial vehicle sales to reach 270,000 at the end of the year, closing the total market at 1.2 million units and a 30% contraction next year.

Hakan Tiftik, head of Borusan Automotive, a Turkish automotive company, pointed out that the market closed 2023 with record-breaking sales figures, exceeding expectations, thanks to factors such as the gradual decrease in global issues affecting the sector and the accumulated demand for vehicles over the last three years as well as increased availability.

Saying that the inflationary environment faced by the world's leading economies also affected the automotive sector, Tiftik recalled that the country made a challenging start to 2023.

"Local elections to be held in March, more developments in the region and fluctuations in global economies are factors that will determine the course in 2024," he added.

When asked about his expectations for car prices, Tiflik said that prices depend on "many parameters, especially exchange rates," and that prices will be directly affected by the "easing of vehicle availability compared to the previous period.