The Turkey used car industry is growing, owing to increase in price of new cars and government initiatives: Ken Research

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Due to its perfect location and easy transportation opportunities, global automotive giants benefit from Turkey and they make huge investments to expand production in Turkey. Fifteen companies operating in the automotive main industry in Turkey.

Focus on Embracing Digitization, New Government Policies and Entry of Online portals in the market are major factors contributing towards development of Used Car Market in Turkey.

COVID affecting Market Growth: Due to the impact of COVID-19, there has been a substantial decrease in the denominator (new car sales) while the numerator, i.e. the pre-owned car market, has been relatively stable

In 2020, the market became very distorted that used car prices became comparable with the cost of brand-new vehicles. Supply and stock problems coupled with high prices are pushing the customers towards the used car market.

Government regulations: Turkey is affected by a number of short-term restrictions and measures being implemented by the government. As a result of these measures, there has been a decrease in sales volume, but still well positioned relative to most European countries when compared to other countries.

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Increasing demand for Used & New Cars in Turkey: Due to its perfect location and easy transportation opportunities, global automotive giants benefit from Turkey and they make huge investments to expand production in Turkey. Fifteen companies operating in the automotive main industry in Turkey and ten with their branches operates in different cities. The automotive industry is one of the largest industrial sectors in Turkey and is the hub for several European and Japanese manufacturers that invested in production facilities to cover the domestic demand while exporting in Europe, the Levant, and North Africa.

Business Model: Turkey is a production base for Ford’s Transit van line sold outside North America, Russia and China and also home to export-focused Toyota (Corolla) and Hyundai plants. A well-established local supplier network ensures high local content. France, Turkey's second main market in the automotive sector, topped the list of countries in the country's car exports.

Analysts at Ken Research in their latest publication “Turkey Used Car Market Outlook to 2026F - Driven By Increase in New Car Prices, Government Initiatives and Surge in Online Used Car Platforms” by Ken Research observed that Used Car Market in Turkey is at a rebounding stage from the economic crisis after pandemic. The rising government policies and demand for used car industry, increase in disposable income along with rising online platforms for used cars is expected to contribute to the market growth over the forecast period. The market is expected to grow at 11.8% CAGR during 2021-2026F owing to increase in prices of new cars, rise in demand for used cars and government initiatives.

Key Segments Covered in the report

Turkey Used Car Market