Required Condition for SCT Deduction in Automobile Announced

Automotive Industry Association (OSD) announced how many automobiles were produced in Turkey in the first 6 months of 2022. According to the statement, in the first half of the year 649 thousand 311 units automobile was produced. This figure means an increase of 2 percent on an annual basis. 466,995 of the cars produced were exported. This represents an increase of 1.2 percent on an annual basis. Judging these numbers OSD Chairman of the Board Cengiz Eroldu He also made statements on the subject. of Eroldu SCT The announcement will annoy citizens who await regulation and hope that prices will drop.

According to the statement made by Cengiz Eroldu, waiting for the SCT to fall, not realistic. According to Eroldu, the demand is very high and there is no point in reducing the SCT while it is still the case. “In my personal opinion, it is not very realistic to expect a SCT reduction in an environment where demand is high. If consumer demand falls, there may be an expectation in this direction.‘ said Eroldu, thus achieving his dream of SCT reduction. has closed the doors. In other words, according to Eroldu, if we want a SCT reduction, we must first stop buying cars that we find ‘expensive’.

“The chip crisis is over, inflation has begun”

OSD President Eroldu said that the effect of the chip crisis that broke out during the COVID-19 period has now decreased, this time. inflation He says the pressure is disrupting the industry. Moreover, not only Turkey, inflation in Europe affecting the industry. “On the one hand, there are material shortages in Europe. Inflation continues to increase. Ukraine war brought uneasiness there is. Interest rate hike expectations, issues that will reduce demand. When we put all of these together, there is a possibility that the demand in Europe will go down even more. That’s why we need to go for new market diversification.” Eroldu underlined that Turkey should send cars to places outside of Europe as well. According to Eroldu, inflationary pressures will complicate the second half of the year.

“The cars on the streets are very old”

One of the issues that Cengiz Eroldu mentioned was the age of the vehicles in Turkey. This both the industry and the environment Mentioning that it affects Our average age in a car is 13.6. Light commercial vehicles 13.1. 17 for heavy commercial vehicles, 24.3 for tractors. So we have a rather old park. Half of the park is over 11 years old. The proportion of vehicles that hit the road before 2000 is 48 percent. These vehicles constitute 80 percent to 90 percent of environmental pollution. This of course shows the problem. In terms of environment and energy efficiency, this 21.5 million vehicle park in Turkey is a must. on the rejuvenation some work needs to be done.

“Monetary policies need new regulations. Existing policies put producers in trouble”

One of the issues mentioned by OSD President Cengin Eroldu is government monetary policies it happened. Eroldu, who criticizes the current policies, “Unpredictable fiscal policy arrangements in Turkey are starting to create some problems on the automotive industry. The monetary regulations taken by the Central Bank and the Ministry of Finance make the work of industrialists and exporters somewhat difficult. The most important of these of the export price Obligation to convert 40 percent to TL. There are currently problems in Turkish Lira loans provided by Eximbank. Such as limiting the use of TL loans by companies with foreign currency assets. These are the same for the new investors coming to Turkey. issues that complicate the environment. We must not stray too far from the conditions of a free market economy. This brings some challenges for the automotive industry as well.” said.