Turkey Financial News

Posted by meb at November 26th, 2008

Automotive exports, which have long been the engine driving Turkey’s export boom, are now being threatened by the increasingly negative effects of the ongoing global financial crisis.

Industry exports have entered a period of negative growth after enjoying a long period of continuous growth. Auto exports decreased by a record high of 42 percent during the period between Nov. 1 and Nov. 23 compared to the same period a year previous. According to Uludağ Exporters’ Union (UİB) data, the stagnation seen in European markets in the second half of this year is starting to appear in Turkey, causing export growth to shudder to a halt.

At the beginning of the year, things were far brighter than now. Turkey’s auto exports increased by 79 percent in January compared to the same month in 2007, amounting to $2.2 billion, with healthy export numbers staying above the $2 billion mark until August. Steady growth ceased after the summer, with the emerging global financial crisis on the horizon. Figures for August and beyond have been characterized by fluctuating and unpredictable demand. (more…)

Posted by meb at November 12th, 2008

Turkish automotive output shrank more than 20 percent in October, industry data showed on Tuesday, as the vital export sector felt the impact of the abrupt downturn in European vehicle demand.

Turkey’s Automotive Industry Association (OSD) said vehicle production tumbled 20.5 percent year-on-year to 80,301 units during the month, while exports slid 27.5 percent to 54,928.

Car production fell 24.2 percent during the same period to 45,057 units, with car exports dropping 32.5 percent, it said.

The Turkish automotive sector has enjoyed strong growth in recent years, which continued in the first half of 2008, but it has since turned negative. In September output dipped 0.8 percent. (more…)

Posted by meb at October 29th, 2008

The Turkish automotive sector, which has been feeling the effects of the current crisis in global markets, is hoping to escape the turmoil with the help of a reduction in the Private Consumption Tax (ÖTV) that the government plans to institute in the near future.

The auto sector has fallen on hard times. Many car dealers have had to revise their targets for 2008. The sector longs for the kind of situation it found itself in at the end of last year, when car sales were up.

Vedat Gizer, president of Çukurova’s Authorized Car Dealers Union (YODER), said yesterday that the auto sector was struggling with stagnation and that they were looking forward to the tax reduction. “We had been seeing a boom, especially in the last four months of 2007, but now car sales are about to cease totally,” he explained. He underlined that with the recent increase in foreign exchange rates the sales of imported cars have declined dramatically and many companies will not be able meet their targets for 2008. “People will think twice before purchasing a car because of the uncertainty in the economy and the increase in interest rates,” he said, emphasizing that most consumers take out loans when buying a car. He noted that the forthcoming reduction in the ÖTV, recently announced by Finance Minister Kemal Unakıtan, would help automotive companies reach their targets. (more…)

Posted by meb at July 11th, 2008

Turkey saw a 31.8 percent increase in the production of vehicles in the first six months of 2008 compared to the same period last year.

According to a statement released by the Automotive Industry Association (OSD) yesterday, 708,962 vehicles were produced between January and June, while 537,955 had been produced in the same period last year.

A total of 113,168 automobiles were produced last month, indicating a 1.6 percent decrease compared with the same month last year. Total production, however, increased by 12.9 percent in the first six months of the year over the same period last year. (more…)

Posted by meb at June 17th, 2008

A new report has revealed that Turkey’s exports of motor vehicles to Russia grew by 116 percent to $697.6 million in the first five months of the year compared to the same period last year.The report from the Automotive and Sub-Industry Products Exporters’ Union (UTAYSİB) noted that total exports from the automotive sector increased by 46.14 percent to $11.3 billion between Jan. 1 and May 31.

Turkey exports motor vehicles and spare parts to a number of countries in Europe, Central Asia, North America and Africa. Germany, France, Italy and Britain last year topped the list of countries importing motor vehicles and spare parts from Turkey. (more…)

Posted by meb at May 19th, 2008

The Turkish automotive sector increased exports by 53 percent to $8.67 billion in the first four months of 2008 over the same period last year.

According to Automotive Manufacturers’ Association (OSD) data, the exports of the entire auto industry grew by 57 percent to $5.98 billion, while the exports of just the automotive spare parts industry increased by 44 percent to $2.69 billion in the January-April 2008 period compared to same period last year. (more…)