Energy hike on car prices is on the way

Problems in the automotive industry are growing exponentially. The Energy Market Regulatory Authority (EMRA)’s announcement of a 50.8% increase in the electricity used in the industry and a 49.5 percent increase in the natural gas used in the industry by BOTAŞ put the producers in a difficult position.

With the recent hikes, the energy cost in automotive production has increased up to 15 percent. The sector officials emphasize that it is inevitable that the increasing costs will be reflected in the vehicle prices in a few months and emphasize that the price advantage for imported vehicles will narrow. It is stated that the high increase made is at a level that will cause the market to lose in exports as well.

‘IN A FEW MONTHS IT IS REFLECTED IN THE PRICES’

From Dünya to Aysel Yücel Expressing that it is inevitable that the energy hikes will be reflected in the prices in a few months, Hyundai officials said, “Because the profit balance over the unit cost is taken into account, there is definitely price variability. Especially the domestic market is affected more. Since the price policy is observed on equal terms in exports, similar pricing is applied to all brands. “As exports are generally in Euros, the effects of the increase in the industry are lower compared to the domestic market. However, it goes abroad with a price increase,” he said.

INCREASED OVER 200 PERCENT IN THE LAST TWO YEARS

Increasing industrial production costs all over the world with the effect of the pandemic and the Russia-Ukraine war continue to push automobile prices up. In Turkey, on the other hand, prices are rising much faster due to the increase in the exchange rate and the tax system. In the last two years alone, automobile prices in Turkey have increased by more than 200 percent. Now, regardless of exchange rate and inflation, new price increases due only to the latest energy hike are on the way. This situation will further suppress demand in the automotive market, which contracted by 17 percent in August due to rising prices and difficulties in accessing credit.

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