Auto Sales Slip 10.7% Jan‑July 2023 – Market Shifts and Outlook

The automotive sector recorded a sharp 10.7% decline in sales during the first seven months of 2023, signaling a potential inflection point in market dynamics.

Sales Collapse and Segment Breakdown

■Passenger car sales fell 12.14% to 502,712 units.

■Light commercial vehicle (LCV) sales dropped 5.05% to 136,253 units.

■Total vehicle sales amounted to 638,965 units, down 10.72% year‑over‑year.

■Segments A, B and C accounted for 84.4% of the market; segment C captured 55.1% (276,976 units) and segment B 29% (145,788 units).

Body Style and Powertrain Trends

■SUVs dominated with 65.5% share (329,443 units).

■Sedans followed at 20.3% (102,253 units) and hatchbacks at 13.8% (69,137 units).

■Fuel mix: gasoline cars 41.4% (208,046 units), hybrids 33% (165,924 units), electric vehicles 18.7% (94,046 units), diesel 6.1% (30,790 units), LPG 0.8% (3,906 units).

■EVs under 160 kW grew 5.3% to 16.7% share, while >160 kW models plunged 57.8% to a mere 2% share.

Light Commercial Vehicle Segment Shifts

■Van‑type LCVs led with 76.1% (103,632 units).

■Pickup trucks held 9.3% (12,700 units) as the second‑largest category.

Market Participation and Transmission Preferences

■Automatic transmissions accounted for 487,175 units (96.9% of sales).

■Manual transmissions were limited to 15,537 units (3.1% share).

Seda Çetin: This broad-based contraction in auto sales reflects eroding consumer confidence and tighter credit conditions. HFT algorithms will likely reassess exposure to the low‑price B‑C segments, while the divergent performance within the EV sub‑segments could spark short‑term volatility. In the swap market, expectations of rate cuts may modestly compress auto‑loan spreads, offering a subtle upside to rate‑sensitive positions.