Turkey’s automotive market is losing momentum, with March sales expected to fall to by some 97,000 units to 100,000 as rising oil prices and uncertainty linked to the February 28 US and Israeli strikes on Iran begin to weigh on demand, the Ekonomim news outlet reported.
The slowdown marks a clear shift from last year, when March sales of passenger cars and light commercial vehicles reached a record 116,900 units.
The conflict has driven up energy costs and unsettled buyers, with both individual customers and fleet companies holding back on purchases, sector representatives said.
Honda Turkey Vice President Bülent Kılıçer said the cooling demand was already visible across the market and warned that price increases could follow.
“Sales campaigns are still ongoing, and prices have not yet increased, but forward-looking risks are already affecting demand,” Kılıçer said. He added that higher oil prices and inflation could force distributors to raise prices.
Rising fuel costs are increasing production, logistics and insurance expenses, putting pressure on vehicle prices, he said.
Alp Gülan, chairman of Gülan Automotive, said expectations for March had initially been stronger but weakened after the conflict began.
“Sales in March were expected to exceed 100,000 units, but demand fell after the war began,” Gülan said, adding that the market is now expected to close the month below that level.
He also pointed to tighter financing conditions as another factor weighing on demand.
“Fleet companies had postponed purchases in anticipation of lower interest rates, but increasing borrowing costs changed those plans,” he said, noting that commercial loan rates rose from around 36 to 37 percent to 42 to 43 percent.
Passenger car and light commercial vehicle sales had already declined in February, falling 2.97 percent year-on-year to 88,039 units, according to data from the Automotive Distributors and Mobility Association (ODMD).
Higher fuel costs are also pushing companies toward electric vehicles, particularly in fleet purchases.
Industry players say uncertainty over production and logistics costs, especially for petrochemical and plastic components, is growing and could lead to further price increases in the coming months.
They also cite risks including a possible chip shortage and signs of stagnation in the second-hand market.