OSS Association, 2023 Evaluated!
OSS Association, 2023 Evaluated!
The upward trend in the automotive aftermarket continued in the last quarter of 2023. In the last quarter of 2023, the sector increased its sales, exports and employment, and expects an 8.82 percent increase in sales in 2024 on a dollar basis. According to the 2023 Year-End Sectoral Evaluation Survey of the Automotive After Sales Products and Services Association (OSS); in the last quarter of 2023, there was an average increase of 15.11 percent in domestic sales in dollar terms compared to the same period of 2022. While 56.8 percent of producer members planned to invest in the next three months, "exchange rate and the increase in exchange rates" were the main problems observed in the third quarter of 2023. OSS members state that "supply problems" declined compared to the previous period. Ali Özçete, President of OSS, said, "There are many important topics affecting the automotive after-sales sector in 2024 and in the coming years, such as the production of spare parts required for electric and autonomous vehicles, digitalization, automation and the widespread use of robotics. We anticipate that these trends will have an upward impact on demand in the automotive and automotive aftermarket sector, especially in electric vehicles."
The Automotive Aftermarket Products and Services Association (OSS) evaluated the last quarter of 2023 in the automotive aftermarket through a survey organized with the participation of its members. According to the OSS Association's 2023 Year-End Sectoral Evaluation Survey, the automotive aftermarket continued the upward trend that started in the last quarter of 2022 throughout 2023. According to the survey; in the last quarter of 2023, domestic sales increased by an average of 15.11 percent in dollar terms compared to the last quarter of 2022. In this period, sales of distributor members increased by 12.59 percent in dollar terms, while this rate was 18.92 percent for producer members.
8.82 percent increase in sales in dollar terms is expected in 2024!
The survey also included expectations for 2024. Accordingly, it was observed that the sector expects an increase of 8.82 percent in domestic sales on a dollar basis in 2024. The survey also points to an average increase of 5.38 percent in sales in dollar terms in the first quarter of the year compared to the same period last year. Stating that there was no change in the collection process in 2023, which was 60 percent in 2022, 25.8 percent of the OSS Association members stated that the collection process has gotten better, while 19.4 percent stated that it has gotten worse. The survey average, which is evaluated out of 100 and was 60 in 2022, decreased to 52.7 in 2023.
Total employment closed the year with an increase!
63.4 percent of the surveyed members increased their employment in 2023. 28 percent of the members maintained their employment in the said period. Compared to 2022, the rate of members who stated that their employment decreased remained at 8.6 percent. The employment rates of producer and distributor members were close to each other.
The biggest problem is the increase in exchange rates!
Problems in the sector again constituted one of the most striking sections of the survey. While "Exchange rate and exchange rate increase" came at the top of the problems observed by the members in 2023 with 69.9 percent, it was observed that the "supply problems" observed throughout the year decreased compared to the previous year. 48.4 percent of the members described "Cargo cost and delivery problems" as the second biggest problem for the sector. 46.2 percent of the respondents pointed to problems in cash flow and 38.7 percent to problems at customs. In addition, 36.6 percent of the participants listed legislative changes and 14 percent listed loss of business and turnover as important problems.
56.8 percent of producer members are planning investments!
The survey also scrutinized the investment plans of the sector. According to the survey, the rate of members who plan to make new investments in the next three months was 48.4 percent, above the previous period. In the previous survey, 43.8 percent of producer members planned to invest, while this rate rose to 56.8 percent in the new survey. This rate decreased from 50 percent to 42.9 percent among distributor members. It was observed that 17.2 percent of the surveyed members predicted that the sector would improve in the next three months. The rate of those who said it would get worse was 32.2 percent.
Both production and exports closed the year with an increase!
The average capacity utilization rate of producers in 2023 was 81.62 percent. This rate was 74.48 percent in 2022. In the last quarter of 2023, members' production increased by 16.49 percent compared to the previous quarter. In the last quarter of 2023, members' exports increased by 13.38 percent in dollar terms compared to the last quarter of 2022.
2023-2024 assessment from OSS
Sharing his assessments and predictions for the 2023-2024 period in line with the last quarter surveys, OSS President Ali Özçete said, "2023 was a year of records for the automotive and automotive aftermarket sectors. In 2023, when the highest vehicle sales in history was realized with more than 1.2 million vehicles as a sector; the sale of electric vehicles with almost 5 times the difference compared to 2022 created an important awareness in order to revise consumer trends and sales strategies for the coming years. We can say that the vehicle chip problem, which put the automotive industry into a serious supply crisis at the beginning of 2023, has completely disappeared for the end of 2023 and 2024. However, the tensions caused by the Russia-Ukraine war, which was one of the factors that affected the year we closed, will have less impact on the sector in 2024. Unfortunately, 2023 was a year that included major problems such as the ruins of the February 6 earthquake, exchange rate volatility, increased borrowing costs, high inflationary environment, accessibility to credit, and exorbitant fluctuations in second-hand prices due to delays in the supply of new vehicles.Bunların yanında sıfır araç fiyatlarının yükselmesiyle birlikte her aracın bir değer oluşturması, mevcut araç sahiplerinin araçlarına periyodik bakım, onarım ve bunun gibi konularda daha hassasiyetle yaklaşmasını sağladı; ayrıca orijinal yedek parça fiyatlarının ciddi derecede yükselmesi kullanıcıları aftermarket pazarına yönlendirerek otomotiv satış sonrası sektörünü ciddi anlamda hareketlendirdi.
In 2024 and in the coming years, there are many important issues affecting the automotive aftermarket sector, such as the production of spare parts required for electric and autonomous vehicles, digitalization, and the widespread use of automation and robotics. As the automotive aftermarket sector, we strive to renew ourselves and increase our capacity every day in order to respond to all these needs. We can say that these changes will significantly affect supply chain dynamics and the relationships between service providers. The most fundamental change in electric vehicles compared to today's fossil fuel vehicles is the replacement of around 5,000 parts in internal combustion engine vehicles with completely different new parts, digitalization and the application of in-vehicle software systems. The fact that electric vehicles will have fewer moving parts and require less maintenance and repair than traditional internal combustion engine vehicles will create changes in the demand for service and labor in the automotive after-sales sector. At this point, Automechanika 2024 Fair, which will be held between May 23-26, 2024, of which we are the main supporter, will offer an environment where all these technological developments will be shared for automotive industry professionals in addition to the products and services exhibited this year. " he said.
Stating that they think that vehicle dealers will start the year a little uneasy due to the economic uncertainty of 2024 and the vehicle supply problem being replaced by accumulated excess stocks, OSS President Özçete said, "We anticipate that we will continue with a positive forward trend in the 2nd and 3rd quarters of the year. When we look at the global scale, electric vehicles are among the issues that concern our sector the most this year. China's strong investments in the electric vehicle market have created some uneasiness in European countries in terms of production and exports. In Turkey, the interest in electric vehicles and the investments made are at very high levels. When we examine 4 different quarters of 2023, record levels of electric vehicle sales figures were achieved compared to the previous year. We anticipate that this situation will continue to increase in 2024. We can say that our country is at a key point in the electric vehicle competition between Europe and China due to its production potential and geographical location. We are one of the countries that contribute the most to the automotive and automotive aftermarket sectors on a global scale. Domestic production in the aftermarket market will continue to progress towards its goals by increasing its strength day by day with our strong organized distributors and the alternative brand advantages they offer."