Turkey will not introduce a ‘cash for clunkers’ programme in the near term to boost the country’s automotive sector, local newspapers reported on Monday, quoting industry minister Nihat Ergun.
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The news sent auto stocks lower in early trading in Istanbul.
Turkey was expected to introduce the incentive programme following the expiration of the government’s special consumption tax cuts on the sector, Reuters reported.
“There shouldn’t be any expectations in the short term for a scrappage plan, a scrappage plan won’t happen in the short term.” Yeni Safak newspaper reported Ergun as saying
Turkey’s automotive sector is the country’s leading exporter and includes companies such as Dogus Otomotiv, General Motors Turkey, Honda Turkey, Hyundai Assan, Karsan Otomotiv, Tofas, a joint venture between Italy’s Fiat and Koc Holding, and a Toyota venture.
“[The] Turkish automotive market is set to face a bumpy road ahead over the next six months … Despite a very low base year, we expect that Turkish auto sales will decline by around 8% year-on-year in the fourth quarter of 2009 and eventually end up the year around previous year’s levels,” said Cemal Demirtas, senior analyst at Oyak Securities in a note cited by Reuters.
