Get ready for a wave of price hikes on cars in March!

Due to the rise in the US Dollar and Euro over the past week, automotive companies are preparing to implement interim price hikes in March.

According to a report by Cumhuriyet, automotive company executives stated that the upward movement in exchange rates has reached a level that will force them to raise prices within the month.

Executives indicate that price hikes of up to 10 percent are on the agenda for some brands. Furthermore, they point out that because there is at least 116 percent tax on turnkey sales prices, prices are rising more than they otherwise would.

For example, for a car with a pre-tax price of 500 thousand TL, an 80 percent Special Consumption Tax (ÖTV) is applied first, followed by a 20 percent Value Added Tax (KDV) on the price including the ÖTV. In this case, the price of the car rises to 1 million 80 thousand TL.

With a 5 percent price hike on this car, the pre-tax price rises to 525 thousand TL, and the price including taxes becomes 1 million 134 thousand TL. In other words, a 25 thousand TL price hike is reflected as a 54 thousand TL impact on the turnkey sales price.

News Source: 12punto