The automotive aftermarket sector is more hopeful than in the second quarter!

automotive aftermarket; It welcomed 2022 with the upward trend of domestic sales, exports and employment. The sector, which left behind the first quarter of the year with increases in sales, exports and employment, is even more optimistic than in the second quarter. According to the Association of Automotive Aftermarket Products and Services (OSS) 2021 year-end industry assessment survey; The rate of members planning to invest in the second quarter of the year reached 45%. In the first quarter of this year, an average increase of 50% was recorded over the same period last year based on turnover, while an average increase of 43% in sales was expected in the second quarter of the year compared to the same period. period of the previous year. “Supply issues” occurred at the start of the sector’s difficulties.

Assessing the first quarter of the year specifically for the automotive aftermarket, board member and general secretary of the OSS association, Ali Özçete, said: “There is an increase in employment . The most important reason for this is that distributors, which have been concentrated in Istanbul for years, have started to spread all over the country in the last three years. In addition, companies anticipate an increase in turnover in the second quarter. “This is an expectation of an increase above inflation,” he said.

The Association of Automotive Aftermarket Products and Services (OSS) focused on the first quarter of this year with a survey it organized with the participation of its members. According to the OSS Association Q1 2022 industry assessment survey; The sector, which left behind the first quarter of the year with increases in sales, exports and employment, is even more optimistic than in the second quarter. In the study; It was determined that there was an average increase of 19% in domestic sales in the first quarter of this year compared to the last quarter of 2021. In the first quarter of the year, sales increased on average 50% compared to the same period of the previous year. It was also revealed that participants expect an average increase of 12% in domestic sales in the second quarter of 2022. Members also announced that they expect an average increase of 43% in domestic sales in the second quarter this year compared to the same period last year. Collection processes were also addressed in the study. A majority of respondents, such as 70%, said there were no changes in collection processes in the first quarter of this year compared to the last quarter of last year. It was observed that this situation was the result of an established collection policy in the sector.

Employment has increased compared to the same period last year!

The issue of employment in the sector was also addressed in the survey. While half of the participants said their employment had increased, the rate of those who said “no change” was around 44%, and the rate of those who said “decreased” was 6%. More than half of the members, whose employment increased, were producer members. Compared to the same period of the previous year, it was revealed that employment in the sector has increased. In the first quarter of 2021, almost 44% of participants announced an increase in their employment.

Supply issues again took first place!

Supply problems and exchange rate fluctuations were the main problems faced by the sector during the first quarter of this year. The issue of rising costs was also among the topics that received attention. In this context, almost 86% of participants defined the main problem they encountered as “supply problems” and 70% as “exchange rate/exchange rate increase”. Nearly 69% of members answered this question with “shipping costs and delivery problems”, 48% with “problems at customs”, 36% with “cash flow problems”, 23% with “loss of business and turnover”. 9% answered “loss of employees”. motivation due to the pandemic” and 6% answered “other”.

Builders’ investment plans are on the rise!

The sector’s investment plans were also examined in the survey. In the second quarter of this year, the rate of members planning investments reached 45%. It was observed that there was an increase in the investment plans of producer members compared to the previous period. During the previous survey, almost 45% of producer members planned investments, while this rate rose to 60% during the last survey. This rate, which was 34% for distributor members, rose to 36% during the last survey.

The three positions that increased the most in operating expenses…

For the first time, respondents were asked to rank the three items that had increased the most in operating expenses over the past year. In this context, it was determined that members experienced an increase in their “fuel – transport”, “staff”, “packaging” and “energy (electricity-natural gas)” expenses. 81% of participants were “fuel – transport”, 64% “personnel”, 62% “packaging”, 62% energy “(electricity-natural gas)”, about 44% “cargo”, and about 44% “cargo” 23 % answered “rent” and almost 19% “financing”. Members were also asked about the rate of change in operating expenses of member companies across all expenses over the past year. A large majority, such as 72%, said there had been a 5% increase.

The average capacity utilization rate for manufacturers in the first quarter of the year was 81%. Last year, this rate was 85%. In the first quarter of the year, member production increased by 13% compared to the last quarter of last year, and by 19% compared to the first quarter of last year. In addition, in the first quarter of the year, members’ exports increased by 11% compared to the last quarter of last year, and by 18% compared to the first quarter of last year.

“There is a huge export-oriented expansion on the production side”

Assessing the survey results, OSS Association Board Member and Secretary General Ali Özçete said, “There is a huge expansion on the production side, especially export-oriented. . But there is a sharp drop in consumption on the domestic market, in particular due to the increase in fuel prices. Unfortunately, Istanbul’s traffic density decrease to 60% negatively affects the automotive distribution sector,” he said.

“Sector players continue to invest despite all the difficulties”

Highlighting that there has been an increase in employment in the sector, Özçete said: “The most important reason for this is that the distributors, which have been concentrated in Istanbul for years, have started to spread throughout the country over the past three years. Rising fuel prices, rising freight costs and problems caused by the inability to deliver cargo during the pandemic triggered the process and a seamless branching structure was established throughout Turkey. Industry players continue to invest across Turkey despite all the difficulties.

Problems finding products in the domestic market…

“Export-oriented growth, the occupation of production capacities directs producers towards exports, which creates problems of product availability despite the reduction in commercial potential. It looks like such problems will continue,” Özçete said, “Therefore, there is a positive vibe on the production side. Especially the container crisis in China, the production crisis had a positive impact on Turkey. However, it is observed that the concentration of manufacturers on exports poses problems in finding products on the domestic market. Companies in the sector are expecting an increase in their turnover in the second quarter. This is an expectation of an increase above inflation…The sector is more optimistic than in the second quarter due to seasonal normals,” he said.

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