Turkey’s Automotive sales shrank by 34.2% in January

Today's Zaman (Istanbul) - Automobile sales declined by 34.2 percent in January, compared to the same month of the previous year, according to data released by the Automotive Distributors' Association (ODD).

The data show that 29,545 vehicles were sold in January compared to sales reaching to 44,892 units in January 2011. The top brand sold in January was Renault, with 4,710 vehicles, followed by Volkswagen at 3,848 and Ford, which sold 3,671 vehicles. Brands such as Fiat, Hyundai, Honda, Dacia, Opel and Toyota were also on the list of top 10 sales. Two Ferraris and two Bentleys were also sold in January.

Experts say the rise of interest rates on loans compared to previous months and the cold weather conditions affected consumer interest in purchasing automobiles. ODD General Coordinator Hayri Erce noted that the slowdown in automobile sales started in the third quarter of 2011 and declined by 11.75 percent in the last quarter. He said the private consumption tax (ÖTV) on certain products -- such as cars, mobile phones, tobacco and alcoholic beverages -- are also responsible for the slowdown in car sales. Underlining the negative effect of global economy forecasts on the automotive sector, Erce said that the data suggest that car sales are expected to range between 775,000 and 825,000 vehicles in 2012.