Turkey’s vehicle production down only 1% y/y in September after strong export growth

Turkey’s vehicle production down only 1% y/y in September after strong export growth
By bne IntelliNews October 14, 2018

Turkey’s auto production declined for a sixth consecutive month but at the much reduced pace of 1% y/y to 132,931 units in September after plunging by 34% y/y in Augustdata from the Turkish Automotive Manufacturers’ Association (OSD) showed on October 12.

Units for the domestic market contracted by 68% y/y to 23,933 in the ninth month while exports were up 21% y/y to 115,039, with the figures a clear consequence of the severe depreciation of the local currency.

The August drop, registered as Turkey's currency crisis and economic turmoil took hold, amounted to the sharpest annual decline in Turkish vehicle production seen in the year to date. Annual vehicle production growth only moved into positive territory in February and March during the first nine months of 2018.

Across January-September, total vehicle production declined by 5% y/y to 1.17mn units while passenger car production alone fell 8% y/y to 769,464 units.

Total vehicle sales on the domestic market fell by 26% y/y to 479,856 units in the first nine months while export revenues rose by 13% y/y to $24bn despite a 1% y/y decline to 972,208 units in sales abroad.

The Turkish Automotive Distributors’ Association (ODD) previously reported on October 2 that vehicle sales contracted on an annual basis for six consecutive months from April to September, with consumer demand in Turkey weakening as the country slips towards what might be heavy recession.

Turkish carmaker Tofas is to suspend production at its Bursa plant for nine days in October given the contraction in demand seen in its domestic market, the company said on September 26 in a bourse filing.

Turkey's consumer sentiment reading saw its biggest decline in at least 14 years in September, falling 13% m/m. That was marked down as the sharpest monthly decline recorded since 2004 when the index was first compiled, and followed the 7% m/m drop posted in August.

The index figure of 59.3 registered in September was the lowest level seen since September 2015, data from national statistics office TUIK released on September 20 also showed.

Turkey's vehicle sales decreased by 2.8% to 983,720 units in 2017. The ODD forecasts auto sales of between 925,000 and 975,000 vehicles in 2018.

In 2017, Turkey’s auto production increased by 13% y/y to a record high of 1.67mn units thanks to rising exports. In 2016, the country’s automotive output increased by 9% to 1.49mn units.

 

 

Data

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