Dear friends,

Today, the SCT and VAT reductions applied on motor vehicle sales since November 2018 were extended until June 30, 2019. Of course, this decision is a positive message for domestic market sales experiencing a serious slump . Now, let’s take a brief look at our automotive industry for the first two months of 2019.
The total automotive market contracted 53% on year-on-year basis, the OSD bulltein says.
In the same period, total automotive production decreased by 14% compared to last year.
Exports in this period, compared to last year fell by 8%.
In fact, considering that SCT and VAT reductions continue, it is not easy to predict how much sales will be affected positively by this new extension of time.
On the other hand, ACEA data shows that automobile sales in EU countries, which is our largest export market, fell 2.9% in the first two months. We understand that the process of WLTP compliance is still in progress. This reduces our exports and eventually decreases total production.
Consequently, the automotive sector is experiencing a tough year as anticipated.
Well, what’s the solution? How will automotive sales be improved in our country?
Repeatedly saying, we have a solution. Remedy is to have national economic growth by producing in stability.
As the economy grows by producing, national income per capita will increase so as to keep up with the basic car price.
When it comes to stability, bank interest rates will decrease towards 1% and less per month and loan opportunities will be more attractive.
Other than that, solutions only reduce pain, treatment is not for sure.

See you in a better economic environment.

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