Market Shows Resilience Despite May Slowdown in Automotive Sales
The Turkish automotive market has seen a robust performance in the first five months of the year, with car and light commercial vehicle sales rising by 6% year-on-year to reach 471,743 units. Despite a slowdown in May, which saw a 10.1% drop in total sales to 100,305 units compared to the same period in 2023, the overall market shows strong growth potential.
January-May Sales Overview
Data from the Automotive Distributors and Mobility Association (ODMD) reveals a 10.25% increase in car sales, totaling 375,097 units. Conversely, light commercial vehicle sales declined by 7.9%, amounting to 96,646 units.
In May alone, car sales fell by 8.19% year-on-year to 80,260 units, while light commercial vehicle sales decreased by 17% to 20,045 units. Despite these declines, experts attribute the lower figures to base effects and highlight that 100,000 units in a month is still a significant volume, marking a 45.7% increase compared to the ten-year average for May.
Dominance of SUVs
The most popular vehicle type remains SUVs, which lead the market followed by sedan and hatchback models. In terms of segments, cars from the A, B, and C segments, which benefit from lower tax rates, constituted 87.8% of the market. The C segment held a 55.6% share with 208,714 units sold, and the B segment followed with 31.6% share, selling 118,670 units.
Fuel and Transmission Preferences
Fuel preferences among buyers showed that 66.1% of the cars sold were gasoline-powered. Hybrid vehicles accounted for 14.4% of sales, diesel for 10.5%, fully electric and extended-range electric vehicles for 8.3%, and LPG-powered vehicles for 0.7%.
Automatic transmissions dominated the market, with 90.5% of cars sold equipped with automatic gearboxes, totaling 339,296 units. Manual transmission vehicles accounted for only 9.5% of sales, with 35,801 units sold.
Market Resilience
The Turkish automotive market’s performance in the first five months of 2024 indicates a resilient demand despite the challenging economic environment. The preference for SUVs and vehicles with lower tax rates continues to drive the market, along with a strong inclination towards gasoline and automatic transmission vehicles. With nearly half a million units sold, the sector remains a vital component of the Turkish economy, reflecting both consumer confidence and market adaptability.
Source: Trthaber / Prepared by Irem Yildiz