Motorcycles overtake cars

Demand for motorcycles, which has emerged as a substitute for cars due to declining purchasing power, has also changed the market landscape.

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For the first time in Turkey's history, more motorcycles are being sold this year than cars. Motorcycles, which surpassed cars by a small margin for the first time in July, widened the gap in September. As sales accelerated beyond expectations, motorcycle manufacturers raised their year-end target to 900 thousand.

Sales of motorcycles, which gained momentum with the demand from the courier market during the pandemic, accelerated even further this year due to high increases in car and fuel prices. Especially with the growing interest in low-segment electric motorcycles, the gap between motorcycle and car sales came to the point of closing in the first half of the year. With nearly 430 thousand units sold in the first half of the year, Turkey surpassed Germany, Italy, and France to take the top spot in a report where McD evaluated the performance of 40 countries in Europe.

While the momentum in motorcycle sales increased further in the second half of the year, car sales slowed down. Thus, with July, motorcycle sales surpassed cars for the first time in Turkey's history by approximately 9 thousand units. The gap, which rose to 55 thousand units in August, widened even further in September. According to data released by the Motorcycle Industry Association (MOTED) the other day, the number of motorcycles registered to traffic last month increased by 153 percent compared to the same period in 2022, reaching 94 thousand 783 units. Thus, motorcycle sales increased by 147.3 percent on an annual basis in January-September 2023, reaching 732 thousand 114 units. According to data from the Automotive Distributors and Mobility Association (ODMD), car sales in September increased by 76.7 percent compared to the same month of the previous year, reaching 78 thousand 971 units. Car sales in the January-September 2023 period increased by 67 percent on an annual basis, reaching 666 thousand 890 units.

MOTED President Başarı Erbaş pointed out that the implementation of the Artes system not only prevented informality in the sector but also that those who could not afford cars turned to motorcycles, which accelerated sales. Erbaş said, “Rising costs and falling purchasing power have increased demand for motorcycles, which have a more accessible price compared to cars. On the other hand, the fact that people have discovered motorcycles as a means of transportation for short distances is another factor increasing sales. Furthermore, I think that allowing the use of motorcycles up to 125cc with a Class B driver's license will also be an important factor for the increase in sales.” Erbaş stated that the government's increased support for the motorcycle sector has also reflected positively on sales. It is stated that the government has removed some bureaucratic obstacles that were slowing down sales in the motorcycle market and is following a more moderate policy regarding taxes. Erbaş stated that the growing market has also increased the appetite of foreign firms to produce in Turkey.

REVISION TO YEAR-END FORECAST

MOTED had set its year-end sales forecast at 500-550 thousand units in May. However, sales performed above expectations, and the sector reached its year-end target in July. In parallel with the accelerating sales, MOTED revised its year-end forecasts upward this week to 900 thousand. If this figure is reached, the sector will have almost doubled its 2022 sales. 415.5 thousand motorcycles were sold in 2022. The ODMD's year-end expectation for car sales is 800-850 thousand units.

THE GAP WILL WIDEN IN 2024

Motorcycle manufacturers expect sales to reach 1 million next year. In the car market, there are concerns that a contraction of between 10 and 30 percent may occur next year. Another important factor that will accelerate sales is that 125cc motorcycles will soon be usable with a Class B driver's license. MOTED officials announced that they expect this legal regulation to be enacted within the next month.