Anıl Aba: No Car Discounts Available This Year

Title: Global Chip Crisis and Economic Tensions Impact the Automotive Industry

Subtitle: Anıl Aba Predicts No Car Discounts This Year

Date: 20.06.2023

The global automotive industry has been significantly affected by the chip crisis and economic tensions between Asian and Western countries. These disruptions and slowdowns in the supply chain have resulted in stock problems worldwide. In Turkey, the situation is further exacerbated by the fact that automobiles and motorcycles are being seen as investment instruments rather than traditional assets such as foreign currency or gold.

An expert from Yaşar University, Faculty of Business Administration, Department of Economics, Anıl Aba, has analyzed the possible future of the automotive industry. According to data from the Automotive Distributors and Mobility Association, the annual sales average in the Turkish automobile market is 700 thousand vehicles, with a capacity of up to 1 million vehicles. However, Anıl Aba highlights the confusion in the supply-demand balance within this market.

For the prices to decrease or the rate of increase to slow down, there needs to be an increase in production on the supply side, according to Aba. On the demand side, interest rates should rise, and the exchange rate should stabilize. Aba also suggests the possibility of an election-based economy in the short term. Already, 445 thousand vehicles have been sold from January to May this year, with a large number of vehicles still waiting to be picked up, given the deposit. This year, the Turkish automobile and light commercial vehicle market has surpassed the 1 million mark, breaking records. Aba believes that automobile prices will not decrease until the end of 2024.

Dr. Aba argues that the temporary prosperity in Turkey has fueled the growth of the automobile market. However, he emphasizes that a car with an economic life of 10 years is not a good investment tool compared to real estate. In market economies, prices depend on the balance of supply and demand. With low interest rates, high inflation, and an unstable economy, people are encouraged to invest. Those with high savings or credit potential buy real estate, while others opt for cars or motorcycles if they cannot afford property. Therefore, people are buying cars not only for transportation but also as speculative investment tools.

The global chip crisis and economic tensions have caused significant disruptions in the global Automotive industry. In Turkey, the situation is exacerbated by demand for automobiles and motorcycles as investment instruments. Anıl Aba’s analysis provides insights into the complex dynamics of the sector and indicates that the prices of cars may not decrease anytime soon.

 

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