Why are automobile prices not falling while the exchange rate is falling? Here is the answer

Depending on car prices in Turkey are unable to see major changes. So why do not automobile prices fall while the exchange rate is falling? Here is the answer;

car prices based on the rate in Turkey is continually updated. When the exchange rate increases, prices can see incredible increases overnight. This situation is not immediately reflected in the prices as when the exchange rate decreases. SputnikAccording to the news in the news, the first behind this is the efforts of companies that cannot keep up with the supply of high demand to progress with stocks. As it is said, producers are also responding to demand by increasing capacity utilization. However, the decline in the dollar currency cost high reveals the problem. As a result The fact that the vehicles in stock are purchased at high exchange rates prevents the discount from being reflected immediately explanation is made. In addition, the fact that the sector works with the euro, not the dollar in general, makes the fall of the dollar often meaningless for the automobile side. There are also other reasons.

“While the exchange rate is falling, automobile prices do not decrease”

Speaking on the subject, Automotive Distributors Association (ODD) President and Doğuş Otomotiv CEO Ali Bilaloğlu, “The automotive industry is a sector that mostly depends on the euro. This effect is not directly reflected only when the dollar falls with the change in parity. However, the fact that the vehicles in the stock were purchased at high exchange rates in the past period prevents the discount from being reflected immediately. said.

Also declining reflection of dollar rate as discount Giving details about Bilaloğlu, “As soon as the exchange rates decline, we cannot reflect this as a discount to our vehicles. There is a tax base barrier in front of the discount we can make. When the vehicles are nationalized, the SCT must be paid on the basis of the VAT rate.

This prevents us from making high discounts. I think that the decline in foreign currency will only reflect on automobile prices in the medium-long term. made the explanation

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Source: Teknoloji haberleri – LOG by www.log.com.tr.

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