Prices of cars have declined by up to 15 percent as more second-hand and brand-new vehicles became available in the market, Trade Minister Ömer Bolat has said.
Dealers have put the cars in their stock on the market and are offering discounts, Bolat said during a meeting with a delegation from the Motor Vehicle Dealers Federation (MASFED).
By the end of the year, there will be discounts between 15 percent to 20 percent on new cars, depending on the models and brands, Bolat added.
“This is very good for our consumers. It is very good for the car market to recover and function in a rational and stable manner. The competitiveness is back in the market,” Bolat said.
For months, people bought cars as they viewed them as an investment. After they withdrew from the market, now dealers have only “real customers” who want to buy a vehicle because they really need one, experts say.
The measures announced by the Trade Ministry and the Central Bank’s rate hike discouraged people from engaging in trade where they purchased cars only to sell them at a higher price in a very short period of time.
As the market conditions changed, companies were left with an overstock of cars. Companies who want to benefit from the still strong demand ramped up promotion campaigns.
Passenger car sales, which grew 113 percent in July and more than 96 percent in August, leaped 77 percent in September year-on-year to 79,000.
Sales had been expected to slow in the final months of 2023 due to inflation, higher exchange rates and higher car prices. The price of the cheapest car in the market was 725,000 Turkish Liras.However, sales remained strong because consumers unleashed the pent-up demand.
In September, many car brands launched campaigns. In some cases, companies offer more than a 200,000 lira ($7,200) discount on cars.
Hyundai cut the price of its Tucson model vehicle from 1.5 million liras to 1.37 million liras, while Kia offers a 100,000 lira discount on its Sportage model car. Opel also offers a discount of more than 200,000 liras on its Grandland model vehicle. Other carmakers, such as Renault, Suzuki, Nissan and MG, also follow suit.
Thanks to discount campaigns, monthly vehicle sales are expected to be around 80,000 to 90,000 in the rest of the year, with total sales, including passenger cars and light commercial vehicles, in 2023 exceeding 1 million.