Turkish auto market normalizes, says OSD

ISTANBUL

The total demand this year will increase that of 2010 with increasing production, says Kudret Önen, the president of the Automotive Industry Association (OSD). DHA photo

The Turkish automotive market, which witnessed record demand in 2011, is on its way to stabilizing this year despite contraction, said an industry report yesterday. The local automotive industry continued its downward trend in terms of exports, the domestic market and production in August, a report by the Automotive Industry Association (OSD) said.

The domestic market shrank 15 percent to 486,000 vehicle sales in the first eight months of the year compared with the same period last year, according to OSD data. Total automotive exports also contracted by 10 percent to 476,000 items in the same compared period. Total automotive production decreased 11 percent, while the contraction in automobile production was higher at 18 percent.

“We encountered a record level of demand stemming from [favorable] macroeconomic conditions. In the first eight months of the year, the market started to normalize, contrary to [extraordinarily] high demand in 2011. Demand continues to decrease as expected in the market due to [government] policies aimed at slowing the economy. Demand is on a more balanced course, contrary to 2011. We estimate that the total demand in 2012 will exceed that of 2010 with increasing production,” said OSD President Kudret Önen.