Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Turkish auto sales in July shot up 387pc to 87,401 units from July 2019 levels, according to Automotive Distributor’s Association (ODD). The auto sales are expected to reach 710,000 units by the end of 2020, according to the auto sector’s analysis. 


The steep growth in car sales in July was driven by cheap loans and easing COVID-19 lockdown restrictions. Of the total sales, 69,427 units of passenger cars were sold, up 610pc from prior year and 17,974 units of light commercial vehicles were sold, up 350pc from the prior year July. 


Following the positive July sales, January-July sales rose 60pc from the prior year period to 314,469 units, according to the association. Passenger car sales rose 59pc to 273,022 units while LCV sales rose 65.8pc in July from the prior year to 68,447 units in Jan-July. 


Prices of cars may rise but it will be offset by the pent-up demand which was deferred for years, according to the auto body, and new car sales will continue to rise. Car registrations have lined up for months to come. 


Demand for automobiles in the country has rose since early June on the back of three public lenders – Ziraat Bank, VakıfBank and Halkbank, that introduced low-interest loan packages for individual and corporate customers for new and used cars. 


Carmakers must ramp up production to meet the high consumer demand which will inevitably surge demand for steel, aluminium, lead and zinc used as raw material for production. Several car component manufacturers will get a boost too following the healthy auto sector’s growth. Car manufacturers have short inventories due to low production during lockdown months. 


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