Crisis in Turkey: view on the market
A couple of months after the outbreak of the crisis in the operational leasing sector in Turkey, we take another look at this challenging but at the same time promising market.
Tokkder, the car rental and leasing association in Turkey, has just shared their report "Turkish Operational Leasing Sector Report of 2018 3rd quarter", based on market research findings.
In the third quarter of 2018, new passenger car sales in Turkey decreased by 26% compared to the same period in 2017 (Source: ODD). The Turkish operational leasing sector also shrunk by 6,2%, for the first time in 10 years. The vehicle fleet of the Turkish operational leasing sector operates approximately 343,287 units.
This decrease was expected after the current crisis and Fleetcorp's bankruptcy. Optimistically, this figure can be expected to be around 330,000 at the end of the year.
Operational Leasing Companies that cannot find financial resources due to the crisis will continue to suffer for a while and 2019 will be a very difficult year for the current players as fleet leasing is a long-term risk management business. At the moment, all companies face very high risks which they can hope to fix it by the end of 2019. It is obvious that companies that cannot manage the risks in this process will experience a further decrease. But in 2020, the sector will resume growth with stronger players and with new players that will enter the market.
Facts & figures
- The number of customers, 60,034, is 4.5% less than in the same period last year. Renault continues to be the preferred brand with a 26.2% market share in the operational leasing sector, followed by VW with 14.5% and Fiat with 12.5%. Ford closes the top five with 10.5%.
- Half of the car park (52%) is made up of C segment vehicles, B segment accounts for 26.4% and D segment for 13.7%.
- 93.5% of vehicles are diesel and 52% have an automatic transmission.
Image: traffic in Ankara
Author: Nevzat Girgin