CDs are the biggest investment hurdle

The auto industry, which has been deeply affected by negative aspects such as the increase in exchange rates, inflation and the chip crisis, is trying to recover despite all this. Cengiz Eroldu, president of the Association of the Automotive Industry (OSD), said that Turkey has a very favorable situation to attract investment. Now, in a place where CDS (credit risk premiums) are so high, external borrowing costs are very high. In my opinion, one of the most important obstacles to investment is Turkey’s indebtedness. “Financial costs have gone up a lot,” he said.

Announcing OSD data from January to September 2022, Eroldu noted that they increased capacity usage from 60% to 66% at the end of the first 9 months, and there was a 2.4% increase in the number of exports . Eroldu said: “All figures in Turkey are in US dollars, but the auto industry imports and exports in euros.

LOSS OF PARITY AFFECTED

Here, of course, there is a loss of 2 billion impressions. This is not a real loss, but of course when you change from the euro to the dollar, there is a loss due to the parity effect,” he said. Expressing that rising costs are also an advantage for exports, Eroldu said: “We have to see the numbers here. In other words, our increase in numbers is 2.4 percent. We interpret these as good numbers for these difficult times, especially this year, of course, we have had serious installations affected by the chip.

The auto market shrank 8 percent

In the January-September period this year, auto exports increased 2.4 percent per unit, while auto exports decreased 1 percent. In this period, total exports amounted to 687 thousand 966 units, while automobile exports amounted to 396 thousand 604 units. In January-September, the total market decreased 6 percent compared to the previous year and amounted to 549 thousand 630 units. In this period, the car market shrank 8 percent to 399,224 units.