Turkish market Forecast for 2015 (PC + LUV)
- The Turkish market (PC + LUV) traditionally progresses in fits and starts. The market collapse of 2001-2002 was followed by a restart period in 2003-2004 that lead to another period of decline in 2005-2008. Finally a new period of prosperity took over between 2009 and 2013.
- In 2014, the market is expected to lose nearly 28% of its volume and to return to levels reached in 2006, this market decline is explained by various factors, including rising interest rates and restrictions on bank loans, that thus weigh on consumers. Furthermore the weakness of the Turkish lira has resulted in increased prices of imported vehicles (in 2014, 70% of vehicles sold were imported).
- For 2015, the growth of the Turkish economy is expected to reach 4% (according to the OECD), and will especially benefit from the slow European recovery. The prospects for car sales still remain dependent on borrowing costs and the access to these loans.
- However, the Turkish market has shown in the past that it had the ability to bounce back from periods of heavy decline. The medium-term outlook remains positive and Inovev anticipates a slight market recovery of around 9% in 2015 to reach 700 000 units.
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