Türkiye Records Best-Ever 5-Month Car Sales

Car sales in Türkiye achieved their best May and five-month figures ever, industry data showed, as households continue to see vehicles as an investment tool to shield themselves from soaring prices. Some 111,356 units of passenger cars and
light commercial vehicles exchanged hands last month, the Automotive Distributors and Mobility Association (ODMD) said in a statement, marking a 70.9% year-over-year increase.

The figure also represents a 69.1% increase according to 10-year average May sales, the data showed. The previous record May was registered in 2016, when around 93,900 units exchanged hands. The May figure compared to 65,167 units sold in the same month a year ago. Sales stood at 54,734 units in May 2021, 32,235 in 2020, 33,016 in 2019 and 72,755 in 2018. Demand remains notably high as consumers continue to opt for cars they see as a tool to safeguard themselves from high inflation. Among others, easing supply
chain-related availability problems has also led to increased sales since the beginning of the year. Annual consumer price inflation in Türkiye has moderated over the last six months, easing lastly to 43.68% in April, almost halving from 85.1% registered in October last year – a 24-year peak. It is seen dropping below 40% in May, to its lowest since late-2021, according to surveys, as the government’s decision to provide natural gas free of charge offset price rises in other goods.

The government has endorsed monetary stimulus over the last several years, aiming to achieve price stability by slashing
borrowing costs, boosting exports and flipping chronic current account deficits to surpluses. Passenger car sales in May
jumped 68.5% year-over-year to 87,218 units, while light commercial vehicle sales rose by 79.9% to 24,138, the ODMD data showed. Sales in the first five months of the year rose 60.5% year-over-year to 445,006 units, the association said.
In January-May, passenger car sales increased by nearly 58.8% to 340,037 units. The light commercial vehicle market rose
66.3% to 104,969 units.