Car sales have dropped below a ‘red line’ of 600,000 annual sales, which might lead to dealerships closing, Toyota Turkey CEO Ali Haydar Bozkurt has said.
Bozkurt said that the number of Toyota dealerships in Turkey reflects a market expectation of 700,000 to 800,000 sales per year, and that 600,000 yearly sales is considered a “red line.”
If sales remain below this number for two consecutive years, dealerships might have to shrink their operations or even close, Bozkurt told daily Cumhuriyet on Dec. 2.
In the interview, Bozkurt said that auto maintenance shops were also seeing fewer customers as a result of a decrease in car ownership, and said “When one actor in the market loses business, other links of the chain get affected.”
Bozkurt also noted that Turkey’s auto taxes regulation is not up-to-date with international regulations and said “Most countries tax cars based on their environmental impact, which is why we need a similar system; otherwise we can’t import cars of the latest technology.”
The auto industry has been shrinking in Turkey as a result of the economic crisis. The market average for sales dropped from 1 million to 620,000 last year, and is expected to drop further to 470,000 before the end of the year.