It’s been a month since Russia made a military operation decision and attempted to invade Ukraine. A series of sanctions bombardments began to be applied to Russia, which became the focal point of the reactions due to this decision. It should be noted that the crisis between the two countries affected almost every sector negatively.
Automotive is one of the sectors that was deeply affected by the crisis between Russia and Ukraine. In this process, while automobile prices increased, manufacturers began to reduce their sales targets. Automobile prices, which have already peaked due to the chip crisis, pandemic and the increasing exchange rate in our country, may increase even more depending on the course of the war, according to industry representatives.
Automobile prices increased due to the Russia-Ukraine war
Automotive Distributors Association (ODD) General Coordinator Hayri Erce, who made a statement to Dünya Newspaper, said that all equations in the industry have changed due to the war between Ukraine and Russia. Erce stated that before this crisis, they predicted that the pandemic will end in early 2022 and that the problems caused by the chip crisis will decrease a little more every quarter and will be completely resolved by the end of the year.
Automobile prices
According to Erce, supply crisis began to be experienced in many raw materials due to the outbreak of the crisis between Russia and Ukraine in late February. For this reason, economic growth was pulled down and supply problems began to be experienced. As a result, there was a noticeable increase in prices.
According to automotive data analysis company Cardata, prices for A, B and C segment cars increased by an average of 5 percent between February 25 and March 25. According to industry representatives, gradual increases in prices may continue depending on the course of the war.
Automobile prices
Apart from this, there are serious problems in the second hand market. Because Otoshops General Manager Melih Mutlu said that the second hand demand has increased compared to January and February. At the same time, expressing that second-hand vehicles are more attractive due to the low availability of new vehicles, Mutlu stated that prices increased by 8 percent in the January-March period. According to Mutlu, who has stated that prices may increase further in April, second-hand prices will increase in direct proportion to new vehicle prices.
So what do you think about this issue? How do you think the crisis between Russia and Ukraine will affect the automotive industry? Do not forget to share your views with us in the comments section or on the SDN Forum.
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