Dear friends,

ODD has released domestic passenger and light commercial vehicle sales on last Friday. Result is gloomy! There is 48% shrinkage in the first four months compared to the same period last year. In April, the sales were slumped by 56% on a monthly basis. 
This situation of the domestic market is of course based on the continuation of macroeconomic uncertainties. As we always share, our citizens who do not have enough annual income to buy car are always disturbed by uncertainties and postpone their purchase. ın fact, they have to buy car with credit. That’s why they need to count on their future. In addition, citizens having average income look for an interest rate that they can afford the installments If there is no environmentt to meet these expectations , the purchase intention is diminished. This is what happened today. The average annual income of our citizens is below $ 10,000 and the base price of an average car is 17 to 18 thousand dollars. Furthermore, other burden for them is the interest rate which rose up to 2,5% per month. We already shared this point in my previous articles. It is obvious that our citizen’s annual income has to keep up with the turn key price of a base automobile in local market. 
At this stage, let’s look at the SCT change in the scrap car application scheme .The last ammendment made by the Council of Ministers on May 1, 2019. calls for 10 thousand TL of SCT per car having up to 70 thousand TL of turn key price. But is there a car available today at this price? Almost none. Thus, scrap car scheme can not give the desired revival in the market. Today, the current price of the most preferred and selling cars in the market is between 100 and 120 thousand TL. Consequently, it is necessary to review SCT incentives .Isn’t it?

Wishing you a productive and and prosperous week,