Vehicle prices have changed a lot in recent years. The problems experienced both in the economy of our country and in the automotive sector have caused many people to postpone their automobile dreams. Well, what has changed in the automotive industry from yesterday to today, will second-hand vehicle prices decrease, should we expect a SCT reduction? Automobile Journalist Emre Özpeynirci answered our questions.
In our country, it has become quite difficult to buy a car, whether it is new or second hand. Even the prices of vintage cars, most citizens exceeding their earnings rose to one level. The prices of new cars have reached astronomical dimensions.
Many problems such as the pandemic process and then the chip crisis automotive deeply affected the industry. Without further ado, Auto Journalist To Emre Özpeynirci Let’s leave it alone and see what awaits us in the automotive industry in the upcoming period.
First of all, how is the automotive sector and production in the world? A pandemic period that slowed the industry down considerably and the chip crisis was overcome. What process are we in now?
Automobile Journalist Emre Özpeynirci
While the automotive market in the world, that is, its sales approached 100 million units in 2018, it remained at 81 million units in 2020 with the pandemic and 84 million units in 2021 with the increasing effect of the chip crisis. Regarding the year 2022, when the chip crisis and supply problems continue predictions are not good either.. At the end of the year, a sales like 2021 is expected. Production is parallel to them. That is, their capacity utilization it’s pretty low. It is predicted that it will reach 100 million units again, if the parameters continue like this, it will not be before 2025.”
‘If it continues like this, the exports of the Turkish automotive industry will be in great danger’
”closely related to Turkey. The situation in Europe is also very bad. The market, which exceeded 17 million units in 2018 and 2019, decreased to 13 million units in 2020 and 2021. Projected sales for the end of 2022 are 12.2 million units. In other words, it is also very important for the Turkish automotive industry. a threatening situation. It is predicted that 17 million units will be reached again in Europe by 2025 at the earliest. While the global production loss in the first 6 months of the year exceeded 2.6 million units, 1 million of this was in Europe. In other words, if it continues like this, the exports of the Turkish automotive industry will be in great danger. Because we have an industry that exports 80-85% of what we produce to Europe.”
How would you interpret the automotive industry, its production and sales in Turkey? It is on everyone’s agenda that there are no new vehicles available at the dealerships. What developments await us in the future?
“As you know, in Turkey, the dreamed market of 1 million units was reached in 2015-2017, but as of 2018, there is a market stuck between 500 thousand and 800 thousand units due to the economic crisis, then the pandemic and finally the supply problems. This year, at the level of 2021, so Between 750-800 thousand pieces It is expected to close.”
‘The automotive industry is experiencing the most uncertain period in its history’
“Vehicle supply is at an extreme and the most uncertain period in the industry’s history lives. They can’t even plan a week ahead. If we move on to the reasons for the sale of every vehicle that comes, there is a demand that has been postponed since 2018. They are still waiting for the vehicle. Latter automobile turned into an investment vehicle. Because it has become the only product that does not lose value in high inflation. As such, opportunists want to come out and take advantage of it. Balloon prices are formed, astronomical figures fly in the air in the second hand because there is no new vehicle.
I think supply problems and the increase in automobile prices will continue. Because there is neither a loosening in the exchange rate nor a decrease in inflation nor a decrease in international production costs. This shows that cars will go up every month unless otherwise is the case.”
There is an opinion that ‘no matter what the prices are, zero sales continue’. Is this a correct inference, if so to what do you attribute the reason?
“We are a country with a population of 85 million. In the first 6 months, 3.3 out of every 1000 people bought a new car. When you look at it like this sales are not so bright it’s understandable. We rank 29th out of 31 countries in Europe. Since supply is below demand, alooks like the cars are selling out. However, look at Europe, automobile sales fell by 20 percent in the first 6 months. Why, because they do not see the car as an investment tool. The price hikes came, the supply fell, and the buying stopped. When we have few vehicles and their prices are high, a black market has emerged.”
Kılıçdaroğlu’s statements, giving the president the authority to reset the SCT formed the agenda. This decision was already a predetermined decision, but it excited many people. What are your views on this process?
“Many seem confused when the CHP leader’s statement and the communiqué stating the President’s powers in the SCT tax bases come one after another by chance. I received hundreds of messages; “Does the SCT reduction reach the end of the month?” he is asked. I shared it on social media, but let me pass it on to you; The communiqué published in the Official Gazette is that the authority given to the President by decree months ago was published in the Official Gazette. So there is no new or different situation.
The promise of the CHP leader is; election promise. In other words, he states that if they win in the election, they will lower the SCT. Considering that it is about 10-11 months before the elections, we are yet to make an expectation on this issue. quite early It has to be said.”
‘It would be a great optimism to expect a SCT reduction in the near future’
”Is there a SCT reduction right now? My answer is; How realistic can it be to expect a SCT reduction from the government, which has not updated the SCT tax deduction, which has become mandatory, and the 450 thousand TL exemption tax base for disabled vehicles, let alone the SCT reduction? Finally; Even if the government is going to make a SCT reduction as an election investment, my personal guess is maybe it will think about it 1-2 months before the elections. In summary; reading yesterday’s news, Waiting for excise duty reduction I think it would be great optimism. Of course, the SCT reduction directly lowers the new and second-hand prices and triggers sales, but I don’t expect it to happen in this environment.”
Sometimes there is movement in the second-hand market, and sometimes there is stagnation. How do you think prices will change in the coming days?
”Since there are no zero vehicles, naturally people have slipped into the second hand. But remember, the second-hand market in Turkey is 10 times the size of the new automotive market. Institutional interest in this place has also increased a lot. Due to the declines in automotive production, second-hand market will attract more attention in the coming period. The partnerships, investments and the entry of international companies into the market clearly show this.”
Finally, in your eyes, why has buying a car become so difficult and even a dream for some? The automobile is now used as an investment vehicle. What are your thoughts on this?
“Because the purchasing power has decreased in Turkey. Today, a young person who has just started a job can even buy a second hand car at the age of 10. He should receive a salary of 14-15 thousand TL. In order to buy a new car, households need to earn more than 50 thousand TL. That’s why most of the cars are bought by those who have savings, for investment purposes. More than 95 percent of the population no purchasing power to buy a new car. People’s right to buy a new car has been taken away.”
In this content, we listened to the opinions of Automobile Journalist Emre Özpeynirci about the automotive industry. The automobile is a necessity for everyone, it is no longer a luxury consumption. turned into a need must not be forgotten. You can also express your thoughts and opinions on the subject in the comments.