Turkey’s September auto sales down 2.39 percent

ISTANBUL - Reuters

Local car sales fell 2.39 percent year-on-year to 67,963 units in September. DHA photo

Turkish automotive sales fell 2.39 percent year-on-year to 67,963 vehicles in September, the Automotive Distributors’ Association (ODD) announced yesterday.

Sales in the first three quarters of the year rose 10.48 percent to 586,345 units, the ODD said in an emailed statement.

Automotive sales in Turkey are expected to rise to 820,000-860,000 vehicles this year, from 777,761 in 2012 when the sector was hit by a shrinking export market in Europe and weaker domestic demand.

The expected decision of the United States Federal Reserve (Fed) to end its bond buying program gradually has resulted in significant amounts of capital outflow from the emerging markets, including Turkey, triggering the losses in Turkish Liras against the euro and dollar.

This has put the market under pressure as mainly imported cars are sold in the market and 67 percent of local purchases are made by bank loans. Automotive companies tend to increase the prices in a gradual manner to prevent any sudden stop in consumer demand.

The most preferred automotive brand was Volkswagen in Turkey in the first nine months of the year, with the sale of 80,508 units. It was followed by Renault with 74,933 units and Ford with 71,900 units.