Cardata/Yalçın: Turkey’s Automotive Market Will No Longer Fall Below 1 Million Units

Foreks - Hüsamettin Yalçın, General Manager of Cardata, the largest data and used pricing company in the automotive sector, stated that they expect a strong close in both the new car market and the used car market by the end of 2024. Emphasizing that total sales in the new car market reached 1 million 68 thousand 260 units as of November, Hüsamettin Yalçın said, "In December, this figure is expected to rise to over 1 million 200 thousand units with sales between 160 thousand and 180 thousand. In this case, it seems quite possible for the new car market to surpass last year’s record of 1 million 232 thousand 635 units. The success can likely be attributed to postponed demand, the allure of new model launches, a partial increase in fleet purchases, and the effects of year-end sales campaigns. The growth trend that began in the used car market starting from the summer months is set to continue until the end of the year. Particularly, the increase in new car prices has driven demand for used cars, and with this trend expected to persist in December, total sales are anticipated to exceed 7 million units, setting a new record. Reaching these outcomes in a year where credit availability is tight, inflation remains high, and purchasing power is not at desired levels illustrates the robustness of the automotive sector’s dynamics and adaptability. These dynamics reveal that despite the challenges faced throughout the year, the Turkish automotive sector continues to maintain a growth trend in demand and sales and is preparing for new records. In the coming years, we do not expect the new car market to drop below 1 million units, nor the used market to fall below 7 million units," he said.

Evaluating the market in light of current data, Cardata performed an assessment regarding the 2024 new and used car market. Cardata General Manager Hüsamettin Yalçın noted that the market reached 121 thousand 94 units in November, marking a 5.3% increase, with total sales rising to 1 million 68 thousand 260 units over an 11-month period. He stated that the allure of postponed demand and new model launches continues to sustain consumer interest, adding, "Consumers seeking to protect their money against inflation but unable to buy a home or real estate are turning towards new cars. Thus, year-end sales and credit campaigns by brands will continue to significantly support sales. Additionally, the fleet sector’s partial increases in purchases, especially those looking to meet year-end targets, will contribute significantly to the total market volume and could further elevate December sales. Sales in December reaching levels between 160 thousand and 180 thousand units seem quite likely. In this case, it wouldn’t be surprising if total sales for 2024 reach approximately 1 million 240 thousand units, surpassing last year’s record of 1 million 232 thousand 635 units. In light of all these dynamics, a new record completion for the year is strongly anticipated," he remarked.

The price increases in new cars have invigorated the used car market! Hüsamettin Yalçın emphasized that the sales growth trend that began during the summer months in the used car market is expected to persist until the end of the year, stating, "Used car sales have been consistently increasing since July, reaching a remarkable increase of 51.54% in October, with sales hitting 680 thousand 849 units. Thus, the contraction in the market for the first ten months of the year has been reduced to 2.71%, and it is confidently expected that this gap will close by the end of the year, surpassing the performance of 2023. Among the reasons for this activity in the used car market are the continuous increase in new car prices, consumer purchase tendencies against currency risk, and particularly the influence of dealerships and other sellers involved in commercial activities. Consumers are shifting towards used cars, especially due to the rise in new car prices, while increased supply and competition are also invigorating the market. By the end of 2024, a new record in the used car market might emerge; we expect total sales to exceed 7 million units. Particularly, we might observe a strong close in used cars due to the dynamics in the new car market in December. In light of these dynamics, the upward trend in the market throughout the year will continue unabated until the end of the year."

The Turkish automotive market is preparing for new records! Cardata General Manager Hüsamettin Yalçın stated that they expect a strong year-end closure in both the new and used car markets in 2024, "This success is likely due to postponed demand, new model launches, partial increases in fleet purchases, and year-end sales campaigns. Especially, the rise in new car prices has increased demand for used cars, and if this trend continues in December, total sales are projected to exceed 7 million units, setting a new record. As a result, we anticipate strong year-end performance in both the new and used car markets. Achieving these results in a year marked by tight credit, high inflation, and insufficient purchasing power showcases the strength of the automotive sector’s dynamics and adaptability. These dynamics illustrate that, despite the challenges faced throughout the year, the Turkish automotive sector is maintaining its growth trend in demand and sales, preparing for new records. We do not expect in the coming years for the new car market to drop below 1 million units or the used market below 7 million units," he concluded.