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New Passenger Vehicle and Light Truck Market / Imports
Turkey’s passenger vehicle and light commercial vehicle total market decreased by %34 in the first eleven months of 2018 compared to the same period of the previous year, to 543,231 units, of which 425,478 are passenger vehicles. In Turkey, light commercial vehicles also have a remarkable share with 22%, due to cultural factors linked to transportation preferences.
Almost 63% of the vehicles market is met by imports. However, due to the high increase exchange rate, there was a sharp decrease in imports starting from September, and this resulted in a total 35% decrease in imports in the first eleven months of 2018 compared to the same period in 2017. In the first eleven months of 2018, Turkey has paid a total of $4.9 billion for importing passenger cars and light commercial vehicles.
Medium/Heavy Duty Vehicle Market / Imports
In the commercial vehicle group, market was around 18,408 units, and imports during the same period was approximately $790.1 million. In 2017, during the same time period, market for the commercial vehicles was 25,368, decreasing by 27% going into 2018, again due to high inflation rate in two digits after some decades.
Auto Part Imports from the U.S.
According to the United States Department of Commerce, Bureau of the Census figures, there is an increase of approximately 15% in the importation of top ten items of auto parts from the U.S. in the first nine months of 2018, compared to the same period in 2017. In 2017, while the amount of auto parts imported was $170.2 million, it increased to $196.3 million in the first nine months of 2018.
Market Entry & Barriers
American products compete with European products that maintain price advantages because of lower transportation and logistics expenses, and zero customs duties. Turkey is also a member of the EU Customs Union. In addition, American companies compete with cheap Asian products. In some segments of the industry, such as automotive chemicals and lubricants, the easiest way for an American supplier to overcome the freight disadvantage is to supply its products in bulk and have the products repackaged for retail in the local market. They may also bring products in a concentrated form, add ingredients and then package them in Turkey. This is how most American companies are successful in the market.
Major procurements are realized by private business. However, large fleets of vehicles owned by the municipalities and the central government, also define the sector.
Market Entry