NEW CAR SALES TO INCREASE BY 40%

AUTOMOTIVE factories re-started production and began to meet the demand for new cars. Low-interest loans revived postponed demand and the sector expects to reach record sales numbers in June.

New car sales increased in June as factories re-opened their doors during the normalization period after halting operation due to the coronavirus pandemic. Car dealers’ sales estimates for June exceeded 60,000. This estimate signals at least a 40 percent increase in sales compared to the same month of the previous year.

Some sector representatives believe the market could rise by 35 percent to 650,000. Increasing demand for private vehicles following the outbreak and easier access to funding through low-interest loans were the reason behind the increase in sales, according to sector representatives. Talking to Daily Dunya about the recent developments, they also made year-end estimates.

Sales began to recover in May and have gained more pace in June after nearly coming to a halt during the previous months due to the outbreak, said Murat Sahsuvaroglu, President of the Authorized Automotive Dealers Association (•YDER). Sahsvaroglu expects automotive sales in June to exceed last year. However, the sector still faces issues in vehicle availability. “European markets will supply their customers first to revive their markets and sector since 6-7 out of 10 cars sold in Turkey are imported, but the gears of production for domestic cars are turning,” said Sahsuvaroglu.

MURAT BERKEL/HYUNDAI:

“CARS COME AND GO”

Hyundai is very optimistic about how the market will perform in June. The company aims for 60,000 sales in June and has revised its year-end estimates based on increasing demand, according to Murat Berkel, General Manager of Hyundai Assan, adding that if demand continues to increase, he expects sales to reach 500,000-550,000 by yearend. The company’s sales expectation was between 430,000-450,000 before June. “But after the high demand, we revised our estimates,” Berkel said.

ALP GULAN/GULAN OTOMOTIV:

“WE COULD HAVE SOLD MORE”

Gulan •tommotiv estimates 50,000 car sales in June, according to Alp Gulan, co-founder of the company. Gulan said they could have sold more cars if there were no issues on the supply side because low-interest loans and postponed demand have merged to create a perfect storm of demand. Customers who can’t find vehicles look to the secondhand market, raising prices there. And when rental dealerships are not able to find vehicles, the number of cars in the secondhand market decreases.

ALTAN AYTAC/FIAT:

“SALES TO RISE TO 60,000̞65,000”

The highest market estimate for June came from Fiat. Altan Aytac, Brand Director of Fiat, said the company expects sales in the total market to reach 60,000-65,000 in June and 600,000 by year-end.

IBRAHIM ANAC/PEUGEOT:

“SUPPLY TO DETERMINE FIGURES”

Car sales gained pace in June, said Ibrahim Anac, General Manager of Peugeot Turkey, adding that the company expects sales to reach 55,000-60,000. Anac said the year-end expectation for the market currently stands at 600,000-650,000, but warned that the state of supply will have the last word.

NEVZAT KAYA/ASTON MARTIN:

“SALES AND SERVICES REVIVED”

Both car sales and services have significantly gained pace as of the middle of May, said Nevzat Kaya, Chairman of D&D Motor Vehicles, Aston Martin’s Turkey distributor. According to Kaya, the postponed demand increased after customers decided to avoid flights due to the outbreak and look instead at vehicles in the SUV segment.

UGUR SAKARYA/AUTOFOCUS:

“SALES MAY INCREASE BY 15,000”

Car sales may further increase by 15,000 in June if the supply is adequate, said Ugur Sakarya, Founder of Autofocus Automotive Management Consultancy. According to Sakarya, sales in June are steady. “There’s a demand boom in both the new car and the secondhand car sectors just as I said in June and I believe this pace will continue until the year-end.

MINOTO/FERHAT ALBAYRAK:

“ORDERS ARE FOR 3Q”

Ferhat Albayrak, CE• of Minoto, an online car dealership said searches and the traffic across the platform have increased significantly. There’s a high demand, but the dealerships don’t have any stock, and they are receiving orders for September and •ctober.

“The market’s performance in the last quarter is important as it will provide an insight into the year-end numbers. I expect sales to reach 600,000 at the end of 2020,” Albayrak said, adding that brands need to make proper supply planning to avoid stocking issues. The sector needs to break the cycle of low demand against high supply and high demand against low supply, according to Albayrak.

Murat Sahsuvaroglu, President of the Authorized Automotive

Dealers Association (OYDER):

Sales began to recover in May and have gained more pace in June after nearly coming to a halt during the previous months due to the outbreak.