Turkish LV sales decline 76 percent in October

The Turkish new light-vehicle market declined by 76.5% year on year (y/y) in October to 21,571 units, according to data released by the Automotive Distributors' Association (Otomotiv Distribütörleri Derneği: ODD). Of this total, passenger vehicle sales fell by 76.2% y/y to 16,809 units during the month, while light commercial vehicle (LCV) sales stood at 4,762 units, down 77.6% y/y. In the year to date (YTD), the country's light-vehicle market is down 32.6% y/y at 485,027 units, comprising 379,274 passenger vehicles, down 30.7% y/y, and 105,753 LCVs, down 38.5% y/y. On a YTD basis, C-segment vehicles account for 55.7% of total passenger vehicle sales in Turkey, with sedans being the most preferred vehicle type, accounting for 50.7%. In the LCV segment, vans accounted for 68.5% of total LCV sales in the YTD, followed by light trucks with 12.2%, pick-ups with 10.5%, and minibuses with 8.8%. Vehicles with an engine capacity of less than 1,600 cc witnessed a decline in sales by 30.8% y/y, while those with an engine capacity between 1,600 cc and 2,000 cc saw a 33.9% y/y drop in sales.

Significance: The Turkish light-vehicle market has been on the decline for the past seven months. While the Turkish lira's depreciation may have been temporarily halted, inflation is rising and lending has weakened. To add to the problem, the United States recently doubled the tariffs on Turkish steel and aluminium. According to IHS Markit's forecast data, sales of light vehicles in Turkey will reach 645,000 units this year, down 32.5% y/y.

This article was published by S&P Global Mobility and not by S&P Global Ratings, which is a separately managed division of S&P Global.