Cengiz Eroldu, Chairman of the Automotive Industry Association (OSD), who assessed the Turkish automotive industry’s half-year results and current developments in the automotive industry, spoke about developments in global markets, the impact of European market contraction on Turkey and current economic policies.


Due to rising automobile prices along with inflationary pressure and rising exchange rate, the number of models below the 80% SCT segment fell below 10. A limited number of vehicles from less than 400,000 TL remained in Turkey. The fact that the SCT scales of 45%, 50% and 70% have lost their function in the face of price increases has created an expectation of new regulation in the SCT bases on both the consumer and brand side.

According to OSD President Cengiz Eroldu, whose remarks are echoed in the news of the Dünya newspaper, it does not seem possible that a reduction in the TBS will come to the fore in the short term, in this period when the offer is far behind demand and the country’s economy needs more tax revenue.

Regarding the topic, Eroldu said, “In the current context, it doesn’t seem right to me to say ‘Let’s lower ÖTV’ when we don’t cultivate goods on the one hand. The Ministry of Finance has the most recent information on the SCT. They know better than we do how many vehicles are sold in which tax bracket. Currently, there is some demand in Turkey. As long as this demand continues so fast and when you consider the country’s financial record, the reduction in TBS doesn’t seem very rational, frankly. But after a certain point the demand will start to decrease, so I think the problem can be assessed. We haven’t discussed it in the OSD board, but that’s my personal opinion,” he said.


OSD President Cengiz Eroldu said that the first 6 months of this year have not gone too badly in terms of automotive: “Our production increased by 1.5% compared to the same period of the year. n the previous year, our capacity utilization increased from 65% to 67%. . Although it lags behind previous years, there is improvement. There is an increase of 1.2% in terms of units and 5.3% in terms of amount despite parity. In addition to all these positive data, only the automotive market in Turkey fell by 8.8% in the first half. Although this is a better figure than the drop in the European market. The Turkish market actually showed better results than European markets in the first 6 months,” he said.

The increase in auto production caught the eye in auto industry data announced by the OSD in June. Automobile production, which fell for consecutive months due to the chip crisis and rose only 0.3% in May, rose 38.7% on an annual basis in June and rose to 86,585 units.

Total auto production, on the other hand, rose 26% on an annual basis in June and stood at 135,000,424 units. Thus, automobile production in the first six months of the year decreased by 8% compared to the same period of the previous year and became about 383,000 units, while total production during this period increased increased by 1.5% to 649,000,311 units.

“The flea crisis has eased”

Automakers, who had predicted the negative divergence in chip supply would end, raised their year-end targets slightly in May. OSD Chairman Cengiz Eroldu in his statement at the time announced that they had raised the sector’s export growth forecast from 11-12% to 14-24%, and that they had increased the expected rate of increase in production in the range of 8-15%. at 10-18 percent. Eroldu emphasized that they have maintained this target despite all the negativities in the market and said, “The first 6-month chart also shows an improvement over last year. Production losses due to materials and chips were high in the first 6 months in the Turkish automotive industry, but we expect them to be somewhat more compensated in the second period.


Expressing that the decline in demand in export markets and the evolution of the Turkish economy pose risks for the sector, Eroldu said: “There are no great expectations in Europe, the largest market . Rising inflation and falling figures in Europe could pose a problem for Turkey’s automotive industry in terms of exports. This should not be seen as an export leg only, it seems that the increase in prices in the domestic market will lead to some easing. The second half will therefore be a little more difficult.

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