Automotive Market Expects 10% Growth

13“This year the automotive market would achieve 10 percent more than last year; the market would reach between 820-850 thousand units”

I n Turkey, there are the number of 10 million automobiles, of which 3,2 million are over 20-year old, Ibrahim Aybar, General Manager of Renault Mais, said. He added that Turkey is going to transform to an old vehicle parking. “We must find new business models with contribution of the government to export and so we would both getting rid of the old models and gain export income,” Aybar said. Responding questions related to the automotive sector and market, Aybar shared his foresees for this year. In the case, realization of the economic stability and expectation in the scope of their prediction, this year the automotive market would accomplish 10 percent more than last year, the market would reach between 820-850 thousand units.

Persistently foreign currency increase will reflect to automobile prices Highlighting he had seen the benefit of fulfilling free-economy requirement every time, Aybar continued; “Our connections have been made in a determined foreign currency. If the currency increases, it will not affect our automobiles of which we did their connection, except the new orders in the future. So a foreign currency increase will affect the automobile prices. The consumer loans are an outstanding factor in automobile sales. For buying an automobile there are three conditions; suitable price, suitable managing cost and suitable credit condition. People are extremely sensible to finance solutions. In order to reduce monthly installments the interest rate must be lower. Currently loaning procedure is made with monthly 1 percent interest rate.”

New measurements and precautions to be active more Aybar marked the European market continued to grow, 6-7 percent increase happened, this year growth is also expected even though not in the same level. The growth in the European market would affect positively the domestic market; Aybar said “However euro/dollar parity will bring a sensibility, this year the automotive exports will realize some over of last year.” Aybar also noted light commercial vehicle performance would be higher than last year

We, as Renault, will put forward new precautions and measurements. The commercial vehicle manufacturers in Turkey have appeared with the new models. They will be also effective in the market. If any measurement will not be implemented such as K certificate and negativity in the macroeconomic conditions that I do not expect, certainly this year will be better. Over 20 percent of last year an increase will occur in the domestic market. The commercial vehicle basic growth will be more in the total market growth.” No hindrance in second hand vehicle exports In Turkey there are 10 million automobiles, 3,2 million of them are over 20-year old.

“We sell new ones but old vehicles do not exit from the cycle. Solution such as scrap for the old vehicles was implemented, but seemingly a new junk application for old vehicles will not be introduced. In this condition we must find new business models for these old vehicles for both getting the export income and removing them from the cycle. Today, the old vehicles in the EU find a market in other places of the world. The vehicles of Far East find market. Why don’t we find?”