BMW and Mercedes sales overtook Opel and Peugeot in October: how did that happen?

Although car prices have risen to unaffordable levels recently, a notable detail occurred in vehicle sales in October.

Data from the Association of Automotive Dealers (ODD) shows that Fiat, Ford and Renault are the best-selling brands in Turkey in October; on the other hand, it revealed that the sales of the most expensive BMW and Mercedes surpassed those of Nissan, Toyota, Opel, Honda, Citroen and Peugeot.

Thus, in October 2022, 1,025 Nissans, 1,779 Opels, 1,741 Hondas, 1,921 Peugeots were sold, while Mercedes-Benz sales reached 2,188 and BMW sales 2,496.

Another striking fact is that the sales of the most expensive brands increased at a much higher rate in October compared to the same month of the previous year.

So how did this happen despite the high level of prices and the decrease in purchasing power of the people day by day?

Source: odd

PROBLEMS IN CASH SUPPLY

According to representatives of the automotive sector who gave information to Sozcu.com.tr, the most important reason for this is the problems experienced in the supply of vehicles.

Brands with poor sales are said to experience supply issues due to supply delays, with some brands unable to supply any vehicles in October and ending the month with zero stock.

It is claimed that this may be reflected in the October retail sales data on a temporary basis.

EMISSIONS CONCERNS ALSO DISRUPTED PRODUCTION

According to information provided by the Turkish representative of a global automotive company to sozcu.com.tr, the current chip crisis in this supply problem, the inability to obtain raw materials from Taiwan, where auto parts are imported, and the reflections negatives of China-Taiwan tension in the sector’ and ‘Some chip factories burned down in Japan’ are effective.

Furthermore, another problem is that the concern that vehicles with high emissions will be penalized in some countries after 2035 pushes brands to invest in R&D instead of production.

“They have already finished with diesel in internal combustion engines. They reduced the production of gasoline. They are trying to go hybrid or electric,” the official said, continuing: “They invest in R&D and don’t give much weight to production. So as long as supply shortages continue, these problems will continue.”

OPEL SALES INCREASE 13.5%, BMW SALES INCREASE 121.4%

According to the representatives of the sector, in the total sales made in the first 10 months of the year it can be seen that this situation was transitory due to the supply problem in October.

According to ODD data, in the period January-October 2022, 22,794 Peugeots, 24,947 Opels, 36,417 Toyotas and 70,684 Renaults were sold, while BMW sold 13,282 units and Mercedes-Benz 17,000. 497 units. was limited to

However, when the sales of October 2022 are compared with the same month of the previous year, it is observed that the rate of increase of the sales of BMW and Mercedes is higher.

Consequently, in October 2022, compared to the same month of the previous year, Toyota sales increased by 1.3%, Opel sales increased by 13.52%, Renault sales increased by 32.74% , while Honda sales decreased by 22.4% and Citroen sales decreased by 45.11%. percent.

In the same period, BMW’s sales rose 121.47 percent, while Mercedes-Benz’s sales rose 154.4 percent.

‘The collapse of the middle class may have been effective’

Economists, for their part, point out that this may be ‘an indicator of the deterioration in the distribution of wealth’.

Speaking to Sozcu.com.tr, Bilgi University faculty member Prof. Dr. Cem Başlevent said: “We can interpret this situation as an indication that the rich are much richer, while the latest practices economics are hurting the middle class a lot.

“The low-interest policy has distorted the distribution of wealth. While the rich were getting richer, the middle class was collapsing,” said Prof. Dr. Başlevent also predicted that before the next election, the government might make a special tax cut or tax assessment arrangement for the broad masses that they were disturbed by this situation and eliminate this dissatisfaction.