Dear friends,

Friends who follow my articles will remember well that on May 6, 2019, I commented on the strong decline in auto sales and talked about the need for revisions in the scrap application.
Last Friday, a new Draft for Omnibus Law of 20 articles was submitted to parliament. In this draft, the article 16 below has made us all upbeat for near future: 
“Article 16 : By this article, under temporary Article 1 of Law No. 7103, it is aimed to increase the reduction in special consumption tax accrued in the first acquisition of a new vehicle of the same type, depending on the issuance or removal of vehicles of 16 years and older cars, panels, buses, minibuses, trucks, trucks, trailers and trailers, from 10,000 Turkish liras to 15,000 Turkish Liras”
As you can see, the amount of SCT to be deducted will be increased by 50% in scrap application. 
If this new rate of SCT reduction can be reflected one-on-one at the most sold domestic car prices in our country, an important discount will apparently be provided. For example, the price of the Clio joy 1.2 model will be 17%, and the price of the Megane Sedan 1.6 Joy will be 12% discounted..    
Likewise, the Fiat Egea Easy 1.4 will be 16%, the Fiat Egea Lounge Plus 1.6 will be 11% and the Honda Civic Sedan Elegance 1.6 will be 10% cheaper . Similarly, the new Toyota Corolla Hybrid model will also be 10% cheaper. 
I hope here the classification made according to the price of each car is being reviewed. Because almost none of car in local market is under the price limit of 70 thousand TL. For the new SCT reduction offered in Draft Omnibus Law, I hope all domestic car models in our country will be taken into account by considering the current prices of the engine volume 1,6 LT and below.
If that happens, I’ll tell you how to support sales:
In 2009, while I was the chairman of the Board of Automotive Distributors Association ( ODD), the 14 distinguished academicians have prepared a scientific book entitled “Road Map of Automotive Trade in the next 10 years perspective” on behalf of ODD. In this book, the price elasticity of automotive products was put forward scientifically. A price cut of 10% gives 1.96 times increase in short term sales and 4.58 times increase in long term sales respectively. As a matter of fact, the Government has enacted a tax incentive in the year the book was published. Then what happened accordingly that the price of automobiles decreased by 13.9% between 16 March and 15 June 2009 and sales increased by 30% . 
Here is the solution .If this example is taken into account, the sector that has been experiencing the worst sales performance since 2003 starts to breathe. Please pay attention to the current selling prices and let’s not lose hope by sticking to limitation of car price.  

See you in my next articles,