Automotive market would reach by the number of 2-2,5 million, if low taxation might be introduced, Mustafa Bayraktar, Chairman of ODD
I f low taxation exists, the domestic market would reach the number of 2-2,5 million, Mustafa Bayraktar, Chairman of Automotive Distributors’ Association (ODD), said.
He also noted in order to allow the sector to achieve objectives set for 2023; the sector should be rescued from the tax burden in his announcements to Anadolu Agency. Bayraktar said they would expect 3 percent growth in the country economy; even the growth would not be very close to their wished growth rate, 3 percent growth was better. Responding to the question whether last year’s constriction would be compensated when 33 percent growth of the automobile and light commercial vehicle market happened in the first two months, Bayraktar said, “The first two-month figures are not possible to depict the whole year’s picture. Last year began with constriction when compared to the previous year. Because, tax increase and raising in the foreign currencies affected the market negatively. So looking at 2015 through 2013 would be more correct. In fact, there is 13 percent growth in the market compared to 2013. We predict the automotive market will accomplish this year with 10 percent growth reaching the number of 850 thousand units.”
About discussions of interest rates and currencies’ effects for the sector, Bayraktar said; “25 points down, 50 points up do not affect much the market. We look at how much the total credit amount grows some more. From 2012 to 2013 in the total credit stock, there was over 30 percent growth. In 2014, the growth constricted up to 17 percent. After this, prediction is difficult, but we expect a new increase will happen. In the vehicle market, the share of operational leasing is very big. Some of them shift to that side. We must look at both of them together.” Reminding Turkey is a country importing energy, Mustafa Bayraktar said, “As long as our energy problem continues our current account deficit will continue as well.”
He also marked the automotive sector yielded surplus, slowing of the current account deficit made economics finance growth easy. Pointing out the biggest factor in the growth of the automotive sector was not the interest rates and change in foreign currencies; it was economic growth in being affected of the market, Bayraktar recorded, “3 percent growth led to 1.5-2 percent growth in the automotive market.”
He also stressed the demand increases especially along with the economic growth or household richness. Reflecting of the foreign currency to automobile prices when it gets raise would not happen in a short time and would take a certain time, because of in front of us there is a foreseeing time. When demand decrease you cannot brake rapidly to stop oncoming supply. Consumer might not demand by making decision immediately, but even production center is in Turkey, they have some production schedules, there is also supplier industry. It does not stop within one day. So in order to be able to manage the current stocks, adjusting prices take a certain time, he said.
The number of vehicle per 1000 people is 177 in Turkey; this figure is 650 in west Europe, 350 in East Europe, 800 in Japan, over 1000 in the USA. The car potential is 600 in Turkey per 1000 people, in the case of low taxation the domestic market would reach 2-2,5 million vehicles, Bayraktar concluded.