Turkey is preparing to unveil new regulations that will aim to curb soaring new car prices, the country’s trade minister announced on Wednesday.
Vehicle prices in Turkey have soared due to persistent component supply shortages, a supply shortfall coupled with strong demand and the depreciation of the Turkish lira, which makes imports more expensive.
Businesses, car showrooms and car rental companies will now have to keep the cars they acquire for six months and drive at least 6,000 kilometers before they are allowed to sell them, the minister for public affairs has said. Trade Mehmet Muş during the Third Summit of Turkish Export Mobilization.
The event was organized by Türkiye’s main media group and Daily Sabah’s parent company, Turkuvaz Media, in the central province of Kayseri.
Inflation, high loan rates, supply chain bottlenecks and an ongoing shortage of chips are just a few of the issues plaguing the automotive industry.
Consumers and the government blamed car sellers for the price gouging. The government has intensified its audits to reduce prices and make vehicles more accessible.
“After the first registration, companies, dealers, car rental companies will not be able to sell the new vehicles they have purchased for six months and 6,000 kilometers (3728 miles),” Muş said.
The minister said the country’s competition watchdog was engaged in more detailed inspections, aimed at determining whether there had been market manipulation or common pricing between companies.
Sales of passenger cars and light commercial vehicles in Turkey jumped 9.1% year-on-year in July to 52,206 units, according to data from the Association of Automotive Distributors (ODD). January-July sales fell 7.3% to 410,110 vehicles, the data showed.
Sales fell 4.6% year on year in 2021 to 737,359 vehicles, according to the ODD. It followed a 61.3% year-over-year increase in 2020 to 772,788 units, despite the fallout from the coronavirus pandemic.