With the expectation of Special Consumption Tax (SCT) reduction, which has been on the agenda recently, the sector is experiencing stagnant days both in new vehicles and second-hand vehicles. Aydın Erkoç, Chairman of Motor Vehicle Dealers Federation (MASFED), said, “Both rising prices due to cost increase and the expectation of SCT reduction caused the market to stop. In today's conditions, we do not think that SCT reduction will be made or prices will decrease in the short term. The stagnation in the sector continues with the expectation of SCT reduction, which has been on the agenda recently in the automotive sector.”
Motor Vehicle Dealers Federation (MASFED) Chairman Aydın Erkoç stated that, in addition to the disruptions in production and logistics problems due to the chip crisis, the expectation of SCT reduction, which has been on the agenda recently, has negatively affected the market, adding that the uncertainty has created an unsafe environment in the sector. He pointed out that this situation stopped the sales.
Pointing out that many factors affecting the industry negatively and causing price increases, stating that the negative developments experienced negatively affect the citizens' vehicle ownership, "The chip crisis and logistics problems due to the pandemic still continue. In addition to the lack of vehicle entry into the market, stocking is also one of the factors that increase prices. In addition to these problems, the rumors of the SCT reduction that have been on the agenda recently also caused consumers to wait. In today's conditions, we do not think that SCT reduction will be made or prices will decrease in the short term,” Erkoç added.
AUDIT CALL AGAINST UNREGISTERED BUSINESSES
Pointing out that the regulations regarding the second-hand trade should be taken under control with inspections, Erkoç called for steps to be taken against unregistered businesses and said, “As we try to bring to the agenda every time, if the regulation for the second-hand trade is started to be implemented, the state will prevent tax loss and consumer grievances. Failure to do so also leads to higher prices. Non-professional people buy and sell vehicles without paying any taxes, and the price balance of the market is deteriorating. In addition, the fact that some companies from abroad come to our country with large capital to collect all the vehicles in the market and stockpile is a major factor in price increases.”
“SECOND HAND VEHICLE IMPORT WILL RELIEVE THE MARKET”
Emphasizing that the increase in inflation and the problems experienced in the market caused the prices to rise, Erkoç reminded the permission given to the import of second-hand vehicles in the past years, “On condition that all taxes are taken, the prices will remain stable as there will be vehicle entry into the market with the second-hand vehicle import application that will be implemented again in a way that will not affect domestic production, it will even make prices possible to decrease. Import of second-hand vehicles, which will be implemented under certain conditions for up to 3 years of age, will relieve the market as it will eliminate the problem of vehicle supply,” he added.