29 Dec 23

The Turkish lease market shows stability despite resisting high costs

Following the gradual recovery from the pandemic, the Turkish lease market continues a steady and slow growth while still struggling with high fuel and lease costs, according to TOKKDER's Q3 figures. 

Turkish leasing and rental association TOKKDER has published the Q3 result for the lease market in Turkey from figures derived from 16 companies, including ALD Automotive and LeasePlan. 

The figures represent a steady growth in customer and vehicle numbers but also reflect the struggle in fuel and vehicle costs, as the Turkish market displays traditional dynamics such as long-term contracts and shallow adaptation of electric vehicles (EVs). 

The top brands in the lease market are as follows: 

Renault 17,5% 
Fiat 16,5% 
Toyota 10,8% 
Volkswagen 10,7% 
Ford 10% 
Skoda 5,2%
Peugeot 4,5%
BMW 3,7%
Hyundai 3,7% 
Audi 2,9%
Citroen 2,4%
Dacia 2,0%
Other 6,5%

Renault, Toyota, Ford, Fiat, and Hyundai have factories out of these brands in Turkey. Toyota focuses on hybrid models, including Corolla and CH-R, while Fiat manufactures light commercial vehicles (LCVs), Doblo and Fiorino, and the sedan Egea. Ford Otosan manufactures several LCVs and trucks, including the Ford Transit, which produces 160,000 yearly. Renault produces Megane and Clio in Turkey, while the Hyundai models are i10 and i20. 

Vehicle segments in the lease market are: 

Type C (medium) 47,8%
Type B (small) 28,6%
Type D (large) 12,2%
LCV 7%
Type E & F (executive and luxury) 4,4% 


Of these segments, 54,3% of the leased cars are sedans, 21,1% are hatchbacks, 15,9% are SUVs, and 0,9% are station wagons

Long-term contracts are still favoured while shrinking slowly in Turkey, while short-term contracts gained popularity since Q1.

  Q1 Q3
Less than 18 months 18,7% 17,5%
18-30 months    20,3% 22,7%
30-42 months 45,6% 41,7%
Over 43 months 16,6% 16,9%


Petrol and diesel still dominate 

Domination of diesel and petrol vehicles in the Turkish lease market continues, with diesel and petrol-fueled vehicles representing 46,2% and 44,2% of the cars in the market, respectively. Mild-hybrid vehicles (MHEVs) constitute 7,5% of the cars, plug-in hybrid vehicles (PHEV) constitute only 1,6%, and EVs constitute 0.4%. Since Q1, the EV ratio in the lease market has been stable. 

The number of customers in the lease market increased slightly, reaching a total of 26,800 by the end of Q3, from 26,700 in Q2. 

Car purchase costs stayed high, reaching an average of 52 million TL (€1,629,540) for the combined quarters. The average cost was 37 million TL (€1,159,480) in 2022. 

The average price for purchased vehicles appeared to be 1,017 million TL (€31,868) in Q1 and Q2 2023, a surge from the average price of 533,000 TL (€16,702) in 2022. The high inflation is still the determinant factor. 

Carper customer continues to increase following the pandemic:

2019 6,3
2020 6,4
2021 7,8
2022 8,8
2023 (Q1+Q2+Q3): 8,6

Expectations for the future

The growth in the Turkish lease market is expected to align with the electrification efforts witnessed in Europe, which is critical to lower fuel costs and widen the options of lease vehicles. The passenger car segment is fueled by the entrance of Tesla and BYD in 2023, as the EV-selling brands reached 27 in the country. Hopes shine on the lease market to embrace the same trend, yet it will take time for fleets to adopt EVs. 

Global brands are also making vital strategic moves, which may impact the Turkish lease market. One negative development was Volkswagen's abandonment of a huge production facility in Turkey this year. On the other hand, Stellantis will gather all commercial activities in Turkey under Tofaş (distributor of Fiat and some other global brands in Turkey) and add new models to be produced in Turkey from 2025. 

Chinese brands are also increasing their attention to Turkey, selling 43,562 cars during January-October 2023. EV sales represent 6,5% of the total sales in this period, amounting to 48,883 units, according to the Turkish Automotive Distributors' and Mobility Association (ODMD). The increase of global brands and inclination towards EVs may signal a more robust lease market in 2024. 

The main image is courtesy of Shutterstock, 2258862085.

Authored by: Mufit Yilmaz Gokmen