Car sales hit 300,000 in first quarter: Industry

ISTANBUL

The combined sales of passenger cars and light commercial vehicles will likely reach a quarterly record of 300,000 in the January-March period, according to representatives of the auto industry.

In March alone vehicle sales could reach some 120,000 units, they said.

In the first two months of 2024, the auto market expanded by 41 percent from a year ago as a total of 186,000 vehicles were sold.

Passenger car sales grew more than 52 percent annually to 146,318, while the year-on-year increase in light commercial vehicles was 9.8 percent to 39,343, according to the latest data from the Automotive Distributors and Mobility Association (ODMD).

Consumers rushed to dealers to buy cars before the local elections, anticipating that the government may resort to further monetary tightening, which could lead to higher loan rates. Potential buyers expect hikes in the prices of brand new and used cars for the remainder of the year, which gave a boost to sales during the first quarter.

Sales in March were strong due to demand from disabled individuals, who wanted to benefit from the special consumption tax exemptions on cars and purchases by rental companies, according to experts.

In March, almost four out of 10 cars were sold to individuals who provided medical reports showing that they have disabilities.

Meanwhile car dealers offered discounts of up to 10 percent, ahead of the elections.

Experts, however, differ on the outlook in the car market in 2024 with some forecasting a 30 to 35 percent contraction in sales this year.

Last year, a record 1.23 million passenger cars and light commercial vehicles were sold in Türkiye.

However, representatives of Stellantis Group in Türkiye are more optimistic about the prospects.

They forecast total vehicles sales at 1.1 million units this year.