The annual increase in passenger car sales slowed from 109 percent in July to 88 percent in August, the data from the Automotive Distributors’ and Mobility Association (ODMD) have shown.
Last month, a total of 66,131 passenger cars were sold on the local market, down from around 86,000 cars sold in July.
People from the auto industry had expected sales to slow in August.
Experts suggest that the reason for the decline in sales last month was largely related to two factors. First, some carmakers suspended production for maintenance works,which resulted in lower production and deliveries, and second, demand for cars for “investment purposes” weakened.
Consumers see cars as an investment in the environment of high inflation. As real estate prices became prohibitively high, some consumers turned to cars as an investment to protect their savings in the past months.
In the third quarter, car sales may remain weak, according to the experts. They said the ongoing problems with accessing credits and higher prices will most likely weigh on the new car sales for the rest of the year.
Light commercial vehicle (LCV) sales increased by 55 percent in August from a year ago to 20,300.
ODMD also reported that nearly 5,600 electric vehicles (EVs) were sold in August, leaping 644 percent annually. EV sales accounted for 8.4 percent of all vehicle sales.
In the first eight months of 2023, the combined sales of passenger cars and LCVs rose by 65 percent to more than 755,000. Passenger car sales grew 64 percent to 582,000, while the EV market expanded 597 percent as some 23,000 electric vehicles were sold in January-August.