The Turkish automotive market has annually contracted by 7.4 percent in August, marking a remarkable decline in the pace of contraction that gripped the sector since the beginning of the year
The contraction in the Turkish automotive market slowed down in August thanks to the diminished impact of the currency rate and the recovery in the commercial vehicles market.
According to figures released by the Automotive Distributors Association (ODD), sales in the sector in August 2014 were at 60,199 units, a 7.45 percent drop compared to the same month last year. In previous months the year-on-year contraction had been around 20 percent.
Encouraged by the latest figures, the ODD announced that it revised up its market expectations for the year-end, from 3.6 to 3.8 percent.
The organization said it now foresees the annual sales at around 675,000 to 725,000 units, slightly higher than its previous forecast of 650,000 to 700,000 units.
Automotive sales in the Turkish market fell to 406,967 units from January to August, a drop of 21.5 percent compared to the same period last year.
The currency rates, the rise in loan interest, the higher special consumption tax (ÖTV) and the loan limitation introduced by the banking watchdog BDDK have all combined to cause the steep plunge in the sector.
The market has been adversely affected by the weakening of the Turkish Lira against the dollar and euro, which raised the cost of imported vehicles.
However, the stabilization of foreign currency rates, the easing of political tension after the Aug. 10 presidential elections, and the robust recovery in light commercial vehicle sales, have all helped the sales slightly pick up some of the pieces after a tough seven months.
The slowdown in the momentum of the sales decline actually started in July, when the sales amounted to 59,907 units, marking a 16.3 percent annual drop.