Automotive sector off to a rocky start in first 2 months

ISTANBUL- Hürriyet Daily News

The special consumption tax, which went into effect in October 2011, as well as the devaluation of the Turkish Lira, have contributed to the fall in auto sales.

All major automotive market indicators, including sales, production and export figures, were down in the January-February 2012 period, according to data released by the Automotive Manufacturers Association (OSD) on March 8.

The overall market experienced a 32 percent contraction in January and February as compared to the first two months of 2011, dropping to 75,000 vehicles sold. The automobile sector in particular saw a 27 percent contraction to 50,000 vehicles sold.

“The government’s efforts to cool the economy by making it more difficult to obtain loans, as well as the devaluation of the Turkish Lira, continue to negatively affect automobile sales,” read the OSD’s report.

The special consumption tax on light commercial vehicles, which went into effect in October 2011, also triggered a slowdown in sales. Sales of light commercial vehicles dropped 41 percent to 21,000 units sold in the January-February period, according to OSD’s data. Truck sales also saw a 41 percent drop to 3,462 trucks sold. Bus sales fell 24 percent, and heavy commercial vehicle sales also fell 36 percent.

Exports also saw a contraction in the same period. Total vehicle sales fell 8 percent, and automobile sales dropped 5 percent from 2011.