Türkiye’s auto market thrives with 3.7% growth despite high inflation

New vehicle sales in the EU increased by 4.5% in the first half of 2024, though they remain 18% below pre-pandemic levels while Türkiye’s automobile and light commercial vehicle market expanded by 3.7% during the same period, despite all the economic difficulties and high inflation.

According to the June report from the European Automobile Manufacturers Association (ACEA), new vehicle registrations in Europe rose by 4.5% in the first half of 2024, totaling approximately 5.7 million units. Despite this growth, registration volumes remain 18% below pre-pandemic levels. Performance across major European markets was relatively uniform: Spain experienced a 5.9% increase, Germany and Italy both saw a 5.4% rise, while France recorded a 2.8% gain.

Türkiye’s automotive market sees steady growth

In Türkiye, on the other hand, the automotive market expanded by 3.7% during the January–June period of 2024, according to the Automotive Distributors and Mobility Association (ODMD). Sales of passenger cars alone grew by 7.3% compared to the previous year. The Turkish car market also showed a notable 45.4% increase compared to the 10-year average June sales figures.

Electric vehicle sales surge

In Europe, the electric vehicle sector saw substantial growth in June, with Italy leading with a 117.4% increase in electric vehicle sales. Belgium followed with a 50.4% rise. However, after the end of government incentives, Germany experienced an 18.1% decrease in electric vehicle sales, while the Netherlands and France saw declines of 15% and 10.3%, respectively.

In Türkiye, the automotive market remains dominated by A, B, and C segment vehicles, which benefit from lower tax rates and constitute 87.5% of sales. SUVs are the most popular body type, accounting for 54.8% of sales, followed by sedans at 26.6% and hatchbacks at 17.4%. Electric vehicles, primarily in the C SUV segment, have seen significant growth, with sales of low-tax electric models (under 160 kW) increasing by a record 237.1%, while high-tax models (over 160 kW) grew by 40%.

Decline in diesel car sales

ACEA’s June report also noted a continued decline in diesel car sales across Europe. Italy experienced an 18.3% decline, France saw an 8.3% drop, and Spain recorded a 2.1% decrease. Similar reductions were observed in smaller EU markets. Gasoline car sales remained relatively stable during this period.