Cash Flow Pressures Mount in the Automotive Aftermarket

Cash Flow Pressures Mount in the Automotive Aftermarket - AutonoumNews
Cash Flow Pressures Mount in the Automotive Aftermarket - AutonoumNews

Financial pressure intensified across Turkey’s automotive aftermarket in the third quarter of 2026, according to a survey by the Automotive Aftermarket Products and Services Association (OSS). Cash-flow problems topped members’ concerns: 80.9% of respondents identified them as a major challenge. Rising costs, lost business and delivery difficulties also put pressure on companies.

Cost increases ranked second, cited by 70.6% of members, while 52.9% reported losing business or turnover. A further 47.1% pointed to freight costs and delivery delays. Taken together, the results show how financing constraints and operating expenses are affecting businesses across the supply chain.

Sales growth remained almost flat

Domestic automotive aftermarket sales rose by just 0.03% in dollar terms in the third quarter compared with the same period a year earlier. Results differed between business groups: distributor members recorded a 2.61% decline, while manufacturers reported a 3.18% increase.

Collection conditions also weakened. The survey’s assessment score for collections fell from 39.9 in the previous quarter to 37.5. The decline points to continued difficulty collecting payments, adding to the pressure on companies already reporting cash-flow problems.

Investment plans and factory capacity declined

Members became less inclined to investors. The share planning a new investment within the next three months fell from 20.3% in the previous survey period to 14.7% in the third quarter of 2026.

Manufacturers’ average capacity utilization dropped from 73.93% to 68.06%. Production fell 0.68%, and exports declined 0.16% in dollar terms over the period. These figures suggest that manufacturers were operating with more unused capacity as output and overseas sales edged down.

Employment outcomes varied across companies

More than half of surveyed members, or 52.9%, kept their workforce unchanged. Meanwhile, 22.1% increased employee numbers, while 25% reduced them. The split indicates that employment decisions differed across companies, despite the broader pressures reported in the survey.

Members expect domestic sales to fall in the final quarter

Survey participants expect domestic sales in the fourth quarter of 2026 to decline by 1.30% in dollar terms compared with the same quarter of the previous year. The forecast follows near-flat sales growth in the third quarter and reflects members’ cautious outlook for the end of the year.

OSS Chairman Ali ร–zรงete said cash-flow and collection difficulties were making financial planning harder for businesses. He also highlighted cost pressures, weak demand and limited access to financing as factors constraining companies. ร–zรงete said restoring investment appetite would be important for the sector’s long-term growth.

Key figures from the OSS third-quarter survey

Top reported challenge: Cash-flow problems, cited by 80.9% of respondents.

Other major pressures: Cost increases (70.6%), business or turnover losses (52.9%), and freight costs or delivery delays (47.1%).

Domestic sales: Up 0.03% year over year in dollar terms; distributors fell 2.61%, while manufacturers rose 3.18%.

Investment plans: 14.7% of members planned an investment in the coming three months, down from 20.3% in the previous period.

Final-quarter outlook: Members forecast a 1.30% year-over-year decline in domestic sales in dollar terms.

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