Gökhan Sığın, Chairman of the Board of Directors of the Turkish White Goods Manufacturers Association (TÜRKBESD), stated that domestic sales of white goods in the first quarter of the year increased by 28 percent compared to the same period of 2023.
During the press conference organized by TÜRKBESD, the results regarding the first quarter of 2024 for the white goods sector were evaluated.
Speaking at the meeting, Sığın explained that Turkey is the largest production base in Europe and the second largest in the world in the white goods industry.
Pointing out that the sector is a significant player with a production capacity of 33 million units and an export capacity of 23 million units, Sığın made the following assessment:
“While providing direct employment to 60,000 people, the sector competes with the world through investments in R&D, digital transformation, and green transformation. With our sales and service network consisting of thousands of SMEs and our auxiliary industry, we have a strong cooperation that we are proud of and sets an example. Thanks to this strong ecosystem we continue to be a significant driving force in the growth of the Turkish economy.”
Sığın stated that according to the first quarter data of the year, while the white goods sector saw a 28 percent increase in domestic sales compared to the same period of the previous year, there was a 5 percent decrease in exports.
“We continue to maintain our production and employment levels” Gökhan Sığın emphasized that exports have been continuously declining in the past two years and they anticipate that this trend will not change in the short term. He highlighted that despite the contraction in global markets, the sector has shown a stable trend in the domestic market.
Addressing the main reason for the decline in exports as the contraction in global markets, Sığın said, “However, we continue to maintain our production and employment levels with the strength we gain from the domestic market.”
Regarding recent practices such as reducing the number of installments for credit card payments and increasing credit interest and commission rates, which have been brought to the agenda, Sığın expressed that these practices pose a risk for the domestic market. He stated, “Reducing the current 9-installment limit for white goods, which are typically used for an average of 10-12 years, will negatively affect consumers. This situation will lead to a contraction in the domestic market. This brings up the issue of disruption in the production and employment structure of the white goods sector, which compensates for the difficulties encountered in exports with the strength of the domestic market.”
“The incentive of the Inward Processing Regime has greatly contributed to Turkey’s exports” Fatih Özkadı, Vice Chairman of the Board of Directors of TÜRKBESD, stated that reviewing the costs of the Environmental Contribution Fee (GEKAP) that started in 2020 and making the necessary revisions in the Environmental Law are important.
Özkadı explained that the incentive of the Inward Processing Regime has greatly contributed to Turkey’s exports.
Özkadı stated that the estimated cost of GEKAP paid last year could be approximately 1.6 billion Turkish Liras, emphasizing that this is a burden not only on producers but also on consumers.
source: aa.com.tr/ prepared by Melisa Beğiç