As the Russian-Ukraine war is delayed by a month, the supply crisis in global automobile production is also expanding. Turkish brands are beginning to lower their sales targets, while global car production is expected to lose 5 million units. Skoda, one of the most affected brands of the war, has cut its year-end sales target by nearly 50%. Expectations for the market as a whole have also fallen.
According to Aysel Yücel news from the Dünya newspaper; Skoda Turkey’s general manager Zafar Bashar said many parts were unavailable in car production due to the war between Ukraine and Russia following the chip crisis associated with the pandemic. , Says: We are supplying wire harnesses and there have been major changes to our vehicle production plans. In the past, customer, economic, or political cohesion was protected when making market forecasts. However, technical issues from the factory did not serve as a basis for forecasting the market. Previously, we planned to have enough vehicles to come and sell. However, the information is provided by the factory and we act accordingly. “
“This year’s target was actually to sell 50,000 units. Our product range also made this possible,” Bashar said, saying that the production turmoil has lowered the year-end sales target. Our goal is to exceed 25,000 units. Under normal conditions, we planned to sell at least 6000 new Fabia products on the market, but we will sell 10% of total sales during this period to Fabia. I’m aiming to do it. ” Due to increasing vehicle availability issues in the automotive market, total sales forecasts for the end of the year are also low. At the beginning of 2022, industry representatives predicted that the market would exceed last year. The market for automobiles and light commercial vehicles was at the level of 737,000 units in 2021. The goal for this year’s sector was to exceed 780,000 units. However, both supply problems and soaring vehicle prices make it almost impossible to reach this goal.
ODD: The whole equation has changed
Hayri Erce, General Coordinator of the Automotive Distributors Association (ODD), said the war changed the entire equation for 2022. It will decrease a little more quarterly and will be fully resolved by the end of the year. In 2022, we believed that the market determinant was the exchange rate. However, the Russian-Ukraine war has entered the equation as a new parameter. 2022 will be difficult due to the fact that the war will cause many raw material supply crises and slow economic growth. “
“Demand will shrink”
“It’s a huge success if we capture domestic market sales at the end of last year,” Hayri Erce said, pointing out that there are domestic markets where demand will be tight. Els said: The demand side is still alive. People want to somehow protect their money because the exchange rate has an upside risk. The car is considered an investment vehicle. Meanwhile, fleet sales activities continue. However, if the war continues, it will have a negative impact on both domestic markets and exports. Experience the domestic market, where demand is becoming more and more demanding. There was a supply problem last year due to strong demand. Now this supply problem will continue, we will see a break in demand, “he said.
“Availability is back in the foreground”
Alp Gulan, Chairman of the Board of Directors of Gulan Automotive, points out that supply problems in the domestic market are becoming more serious. We are looking for alternative solutions, but in general, it will be a year of increasing chip and cable supply problems and a record rise in raw material prices forcing the industry. “
Car hiking waves started at 5%
The Russian-Ukraine War caused record price increases for some raw materials such as palladium, nickel and steel. Logistics costs have also increased. Automakers have begun to reflect rising production costs in their prices. Tofas and Renault are one of the brands that raised prices in March, according to information received from dealers. According to data from car data analysis firm Cardata, car prices in the A, B and C segments rose by an average of 5% between February 25 and March 25. Industry representatives say car prices will continue to rise gradually.
In the second-hand market, supply is declining and prices are rising
Melih Mutlu, General Manager of Otoshops, focused on rising prices and supply issues in the second-hand market and summarized the latest market developments. “Demand for second-hand goods has increased compared to January and February. We are in a time when there are consumers. Especially with the growing demand for used hybrid cars, the availability of new cars is still very high. It is at a low level and we believe that the supply problem due to the war will continue to grow .. New car prices continue to rise regularly. As a result, used car prices are rising in direct proportion. The average of the period from January to March is 8%. “It can be said that there was an increase. The market is expected to become active in April, but the supply of used cars is decreasing due to the low sales of new cars.” Told.
Car brands have an up-to-date price list on their website for those who buy a new car. According to the recently announced price list, models with less than 500,000 TL have been announced one by one. According to the list price, the cheapest models of brands sold in Turkey are:
Citroen C31.2 PureTech Manual 335,000 Lira
Dacia Sandero Stepway 1.0 Turbo 368,000 900 Lira
Fiat Egia 1.4 Fire Easy 265,000 900 Lira
Honda City 1.5L VTEC Automatic 382,200 Lira
Hyundai i10 1.2MPI Manual 285,000 Lira
KIA Picanto 1.0L Manual 299000900 Lira
Mitsubishi Space Star Automatic 303,250 Lira
Nissan Micra 1.0 Manual 388,000 800 Lira
Opel Corsa 1.2 Manual 379000 900 Lira
Peugeot 208 1.2 Manual 362,000 500 Lira
Renault Clio 1.0 Sce Manual 311 Thousand Lira
Seat Ibiza 1.0 Evo Manual 320,000 Lira
Skoda Fabia 1.0 Manual 379000 900 Lira
Volkswagen Polo 1.0 Manual 371,000 300 Lira