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Will Car Prices Fall In Turkey?

Will car prices decrease in Turkey? When will car prices drop? The expected news has arrived. Details are here…

The energy cost, which was 5 percent in cproduction in Turkey last year, rose to 15 percent with the increase in electricity and natural gas in the recent period. Domestic manufacturers said that it is inevitable that increasing costs will be reflected in vehicle prices within a few months. Here are the statements of the sector representatives… The problems in the automotive sector are growing exponentially. The announcement by EMRA that there will be an increase of 50.8 percent in the electricity used in the industry and a 49.5 percent increase in the natural gas used in the industry by BOTAS put the producers in a difficult situation. With the recent hikes, the energy cost in automotive production has increased by up to 15 percent.

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Costs Increased 3 Times

In the news in Dunya Newspaper, Toyota Automotive Turkey CEO Erdoğan Şahin evaluated the impact of energy increases on the automotive industry and said, “While our production cost was 5 percent last year, we took various measures to balance the energy cost, which increased to 10 percent this year.” We received a price increase of 15%, this rate has reached 15 percent with the new price hikes. Together with our relevant departments, we are evaluating what we can do more to absorb this increase. I think our competitiveness in exports and in the domestic market will be greatly affected,” he said.

car

New Price Increases Are Coming

Now, whatever the exchange rate and inflation, new price increases are on the way, just because of the recent energy hike. This situation will further suppress demand in the automotive market, which contracted by 17 percent in August due to rising prices and difficulties in accessing credit.

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Will Reflect In A Few Months

The representatives of the sector stated that it is inevitable that the energy increases will be reflected in the prices in a few months, “There is definitely a differentiation in prices since the profit balance over the unit cost is taken into account. Especially the domestic market is more affected. Since the price policy in exports is followed under equal conditions, similar pricing is made for all brands in exports. As the effects of the increase in the sector are generally in euro, it is lower than the domestic market. But it goes abroad with a price increase.”

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Gül Demirci

Hello, I am Gul, I write content for Expat Guide Turkey every day. Don't forget to check it out!

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