Demand in Automotive Sector Will Move to Second-Hand Vehicles

Demand in Automotive Sector Will Move to Second-Hand Vehicles

Aydın Erkoç, President of the Motor Vehicle Dealers Federation (MASFED), stated that the changes in production, supply and consumer habits, together with the pandemic, deeply affected the automotive industry. Erkoç, who made important explanations about the situation and future of the sector, also gave advice to the sector stakeholders.

Aydın Erkoç: "Mobility in second-hand car sales will begin with the problems experienced in the supply of zero vehicles, changes in consumer habits due to the pandemic and the arrival of summer months"

Corona virus (Covidien-19) epidemic because, as the whole world that Turkey also entered the difficult of all sectors, second-hand automotive sector also is negatively affected by this epidemic expressing Aydin Erkoç, when assessing the automobile sales figures in the world and summer Since the start of normalization in Turkey He stated that the demand for second-hand cars may increase.

Evaluating the sales figures of the first three months of 2020, Erkoç said, “As sales are decreasing now, the rise in second-hand car prices has also stopped. However, if we compare with the first three months of last year, the second hand vehicle market is more active this year. While automotive sales were 2 thousand 2019 in March of 456, when we look at March 674, sales were 2020 thousand 501. However, there was a serious decline in March in the second hand market, which was 921 thousand 2020 in February 611, due to the effect of the pandem. ''

'' Due to the problems in the supply of zero vehicles, the demand will shift to the used car ''

Stating that the increase in foreign currency and the production of zero cars stopped during this period, the negativities in vehicle supply will affect the second-hand vehicle trade, and added:

'' The spread of the epidemic all over the world and the countries where production was going through a difficult period caused the automotive companies to stop production. Most of the automotive companies started production by the end of April, but it will be like June and July for all factories around the world to start production in full efficiency. Logistics of the new vehicles that started production to our country and the start of sales can be found in August, September and October. These indicators show us that there may be difficulties in supplying new vehicles this year. Considering that there will be individualization in transportation as in all sectors in the world after the pandemic, I think that the consumer car purchases will increase and all demand will shift to the second-hand vehicle due to the problems in zero vehicle supply. In addition, with the changing consumer habits, it predicts that the demand for transportation types such as car rental, car sharing, public transportation will decrease, and I think this will increase the potential of the second-hand automotive industry. ''

'' Our stakeholders in the sector should evaluate this process well ''

Erkoç also advised the stakeholders of the sector to develop a healthy and sustainable growth model while evaluating the second hand industry. We advise them to give importance to promotional activities and to consolidate in favorable terms as they are necessary for them to compete with global companies that may or may have recently entered the sector. ''

"We expect support from our state"

Erkoç underlined that the second-hand automotive industry is a large sector that creates added value, supports foreign currency to remain in the country, employs millions of people, and provides input to approximately 45 sectors from industry to notary, from finance to financial institutions. We look forward to the support of the necessary legal and legal regulations to be put into operation as soon as possible to ensure continuity. It is our greatest expectation to provide locations that will enable our companies to trade in more modern norms. ''

Reminding that the obligation to obtain a certificate of authorization in the second-hand vehicle trade, which will bring a standard to the sector, organized by the Ministry of Commerce and the Ministry of Environment and Urbanization, was extended until August, Erkoç said, “The hope for the authorization of the second-hand vehicle trade will not be extended again. We are excited as we are waiting, '' he said.

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