Türkiye’s domestic automotive sales to surpass 1.2M by 2024 end

Berk Cagdas, the CEO of Turkish-based car dealer MAIS Istanbul Renault, forecasted that the Turkish auto market would exceed 1.2 million units of sales in 2024, estimating 150,000 units sold for December.

Cagdas pointed out that falling inflation, lower interest rates, economic stability and a stable exchange rate have been major factors as more and more customers spend their hard-earned disposable income on automobiles—estimating that auto sales next year would be no less than 1 million units.

Auto market demand rose in the first quarter of the year, he said, and a high number of sales were made despite the tight monetary policy and uncertainty in exchange rates after the local elections in March, worrying potential buyers and distributors.

The market expected a contraction in April because of an increase in credit costs, restrictions and difficulty getting credit after the elections, and sales started to decline.

Vehicles that do not comply with the EU General Safety Regulation II can no longer be registered, which prompted brands to deplete their stocks, while credit applications were reduced and prices fell significantly, adding that vehicles cost much less than their supposed prices, Cagdas stated.

“The number of total sector sales totaled approximately 1.1 million units, 0.5% below last year’s figures, as of November, and last year, there was a lack of vehicles, and all stocks were sold quickly, and this year, vehicle stocks were abundant, but with the lowered prices because of the GRS, the prices were reduced significantly to almost get rid of the stocks,” he said.

‘China’s advantages can’t be matched’

Cagdas remarked Türkiye has significant potential in the auto sector because of high urbanization compared to other OECD countries, saying: “There are 177 vehicles for every 1,000 people in Türkiye, versus around 570 per 1,000 in EU countries,” Cagdas added that Türkiye’s high-quality products are exported to nearly 40 countries.

Türkiye can attain a leadership position in the global auto market in production, but China’s competition is an important factor, he said, as its advantages “can’t be matched globally in terms of cost,” he emphasized.

“If we look at their advantage, a high production potential can’t be limited to domestic territories, as China exports its autos and uses all sorts of methods to attract consumers in the markets they enter, but countries are taking measures to slow down China’s efforts with tariffs and restrictions, but their efforts are for the short-term,” he said.

Cagdas also mentioned that four models of the Dacia Duster, an SUV produced by Renault subsidiary Dacia, will be manufactured in Türkiye in 2027, with an investment of over $400 million.