OSS Association Evaluated the Second Quarter of 2023!

The upward trend in the automotive aftermarket, which started in the last period of last year, continued in the second quarter. In the second quarter of 2023, the sector, which increased its sales, exports and employment, expects a 2.65 percent increase in sales on a dollar basis in the third quarter of the year despite the increase in exchange rates. According to the Automotive After Sales Products and Services Association's (OSS) Sectoral Evaluation Survey for the 2nd Quarter of 2023, there was an average increase of 11.76 percent in domestic sales in the second quarter of the year compared to the same period of 2022. While 44.1 percent of producer members were planning investments, the main problem observed in the second quarter of 2023 was "exchange rate and exchange rate increase". OSS members also state that "problems in cash flow" continue to be among the priority problems. Commenting on the results of the survey, Ali Özçete, Chairman of the Board of Directors of the OSS Association, said: "The increase in mobility due to the summer months had a positive impact on the sector. The supply and demand ratio in the automotive market, which will directly affect automotive after-sales, has stabilized. We observe that difficulties in accessing liquidity and increases in costs have caused a contraction in cash flow in our sector. With a favorable regulation on loan interest rates and easier access to credit, the sector will become more active."

The Automotive Aftermarket Products and Services Association (OSS) evaluated the second quarter of the year in the automotive aftermarket through a survey organized with the participation of its members. According to the OSS Association's Sectoral Evaluation Survey for the 2nd Quarter of 2023, the automotive aftermarket continued the upward trend that started in the last quarter of last year in the second quarter as well. According to the survey; in the second quarter of 2023, domestic sales increased by an average of 4.26 percent in dollar terms compared to the last quarter of last year. Again in the second quarter of the year, there was an average increase of 11.76 percent in domestic sales compared to the same period of 2022. In this period, the rate of distributor members who increased their sales by more than 50 percent was 9.1 percent, while this rate was 8.3 percent for producer members. Cash flow problems stood out as the main factor in the slowdown in the growth trend.

6.76 percent increase in sales expected in the third quarter!

The survey also included expectations for the third third quarter of the year. Accordingly, despite the high exchange rate, domestic sales in the sector are expected to increase by 2.65 percent in dollar terms in the third quarter of 2023. The survey also points to a 6.76 percent increase in sales compared to the same period last year. The rate of OSS Association members who stated that there was no change in their collection processes, which was 60 percent in the first quarter of 2023, increased to 61.8 percent in the second quarter of 2023. Compared to previous surveys, there was an increase in the proportion of members who expressed the process as negative.

Employment continued to increase!

41.2 percent of the surveyed members increased their employment in the first quarter of the year. 44.1 percent of the members maintained their employment in the said period. Compared to the first quarter of 2023, the rate of members who stated that their employment decreased remained at 14.7 percent. It was noteworthy that the employment rates of producer and distributor members were close to each other.

The biggest problem is the dollar exchange rate and its increase!

Problems in the sector again constituted one of the most striking sections of the survey. While "the increase in the exchange rate and exchange rate" came at the top of the problems observed by the members in the second quarter of 2023, "problems in cash flow" continued to be among the priority problems. 91.2 percent of the members described the exchange rate and exchange rate increase as the biggest problems for the sector. 55.9 percent of the respondents pointed to problems in cash flow, while 35.3 percent pointed to supply problems. In addition, 35.3 percent of the participants listed cargo costs and delivery problems, and 23.5 percent listed legislative changes as important problems.

44 percent of 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 remained behind the previous period with 44.1 percent. While 61.5 percent of producer members planned to make investments in the previous survey, this rate dropped to 33.3 percent in the new survey. The rate among distributor members, which was 32.45 percent, increased to 50 percent in this period. It was observed that 35.3 percent of the surveyed members predicted that the sector would improve in the next three months.

Production and exports continue to increase!

The average capacity utilization rate of manufacturers in the second quarter of the year was 79.17 percent. This rate was 71.54 percent in the first quarter of 2023. In the second quarter, members' production increased by 7.92 percent compared to the previous quarter. In the second quarter of the year, members' exports increased by 2.5 percent compared to the previous quarter and by 4.58 percent compared to the same period of 2022.

Decline in interest rates and easier access to credit will mobilize the sector!

Evaluating the survey results, Ali Özçete, Chairman of the Board of Directors of the OSS Association, said, "The increase in mobility due to the summer months has positively reflected on the sector. The supply and demand ratio in the automotive market, which will directly affect the automotive after-sales, has stabilized. We observe that difficulties in accessing liquidity and increases in costs have caused a contraction in cash flow in our sector. With a favorable regulation on loan interest rates and easier access to credit, the sector will become more active."