Sales of auto spare parts up in Turkey

By Azernews

By Suayip Alabay

Domestic auto spare parts sales in Turkey increased by 43.5 percent in 2021 compared to the previous year, Yeni Shafak has reported.

The survey conducted by the Turkish Automotive After-Sales Products and Services Association (OSS) among its 230 members revealed that this figure exceeded 42 percent for distributor members and it approached 46 percent for producers.

"This year, domestic sales are expected to increase by 23.5 percent. Auto spare parts manufacturers' capacity utilization has approached 85 percent," said OSS Association President Ziya Ozalp.

According to the OSS Association's 2021 Year-End Evaluation survey, the positive trend in employment, along with the dynamism in domestic sales and exports since early 2021, was also consistent throughout the year. It was discovered that the positive trend is expected to continue in 2022.

According to the survey, domestic sales increased by an average of 15 percent when compared to the third quarter of 2021. Domestic sales increased by 37 percent in the fourth quarter of 2021 compared to the same period in 2020.

According to the findings of the study, participants expected a 7 percent increase in domestic sales in 2022 compared to the fourth quarter of 2021. It was also stated that participants anticipate a 22.5 percent increase in domestic sales in the first quarter of 2022, as well as a 23.5 percent increase overall for the year compared to the relevant phases of 2021.

The capacity utilization rate of producer members increased as well. In 2021, the average capacity utilization rate of manufacturers approached 85 percent. The average capacity utilization rate in 2020 was 80.5 percent. The members' production volume increased by 10 percent on average in the fourth quarter of 2021 when compared to the third quarter of 2021. Furthermore, production increased by 19.6 percent on average in the fourth quarter of 2021 compared to the fourth quarter of 2020. Looking at the year as a whole, production increased by 20 percent on average in 2021 compared to 2020.

Another noteworthy aspect of the study was the increase in employment rates. The employment rate for distributor members increased from 52.2 percent to 64 percent, while the producer employment rate increased from 58.3 percent to approximately 76 percent. The survey also revealed the sector's investment plans. In this context, 38.2 percent of members planned to invest in the first quarter of 2022.

Ozalp emphasized that the pandemic period had altered many habits in the automotive after-sales services sector, as well as rearranged business models.

"The difficulties encountered in imports and customs as a result of the pandemic and taxation will continue to raise concerns about the availability of necessary parts... Sales in the sector increased in 2021 when compared to 2020. Expectations for demand and sales remain high. This year, we anticipate that our industry will grow faster than the rate of inflation," Ozalp stated.

Renault, Nissan, and Mitsubishi Motors have announced a €23 billion ($26 billion) investment in joint electric vehicle development over the next five years. According to a joint statement issued by the companies, the alliance of Renault, Nissan, and Mitsubishi will launch 35 new electric vehicle models over the next nine years, powered by five common platforms, as part of its "2030 electric vehicles plan."

The companies stated that a strategy aimed at reaching a capacity of 220 gigatonne-hours in battery production over the next five years will be followed, and that €23 billion ($26 billion) will be invested in joint production platforms, batteries, and operating systems over the next five years.

Other automobile manufacturers, on the other hand, have significantly increased their investments in electric mobility. Toyota announced a $70 billion investment in electric vehicles in December 2021. German automakers have also stated that they intend to invest more than €150 billion ($167 billion) in electric vehicles.

Following the Special Consumption Tax regulation passed in January, there was a 3 percent to 10 percent discount on zero-kilometer vehicles. However, there was a significant increase in demand for used cars. Individual sellers who postponed their sales processes due to fluctuating exchange rates re-posted their used vehicles in classified ads. As a result, the number of announcements of less expensive vehicles priced between 100-150,000 TL ($7,500-11,200) and 200-250,000 TL has increased.

On the other hand, the rates of vehicle announcements of 250,000 TL ($18,700) and above decreased slightly. Vehicles priced between 100 and 150,000 TL ($7,500-11,200) had the highest share of advertisements in January 2022, with a rate of 16.4 percent. Vehicles priced between $50,000 and $100,000 TL ($3,700 to $7,500) accounted for 15.1 percent of the advertisements. While vehicles priced between 150 and 200,000 TL ($11,200-15,000) accounted for 14.3 percent of all advertisements, vehicles priced above 350,000 TL ($26,200) accounted for 17.9 percent during the same time period.