The balance in the automotive sector continues to shift. The assessments of Cengiz Eroldu, President of the Automotive Manufacturers Association (OSD), regarding the first quarter of 2026 offer important insights for those wishing to own a car. Global tensions and unpredictable increases in energy costs are putting direct pressure on car price tags. The market volatility in April was driven by consumer concerns about expected price increases.
Targets Revised Downwards The wave of uncertainty in the automotive sector, which began 2026 with growth expectations, is pushing companies to make new plans. Eroldu shared that total production in the first three months of the year fell by 7% compared to the same period of the previous year, dropping to 321,856 units. In light of this situation, OSD (Automotive Manufacturers Association) also updated its year-end targets: the export target was revised downwards by 4%, and the production target by 2%. Eroldu also pointed out the contraction in the domestic market, stating that the industry is experiencing a loss of competitiveness; that some operations are being shifted to countries like Egypt and Tunisia due to cost advantages; and that critical areas such as cable production in Türkiye are at risk.
Main Source of Price Increase: Oil and Plastics The main driver of rising car prices is fluctuations in oil prices. Significant cost increases in petrochemical and plastic raw materials are driving up production costs. Eroldu summarizes the situation using this analogy: "Just as pump prices are rising, a similar trend will be followed in petroleum derivatives, and this will be reflected in car prices."
Showroom Activity in April The increased activity observed in showrooms at the beginning of April, following the slowdown in March, is not considered an indicator of healthy growth. Consumers are bringing forward their purchasing decisions anticipating price increases in May and June. Eroldu stated that customers are flocking to dealerships because they expect prices to rise, but noted that raw material prices have not yet stabilized and this uncertainty continues.
Inflationary pressure is intensifying. The impact of the global war environment on costs is most evident in inflationary pressure. Cost-driven price increases are expected to be reflected in price lists starting in May, both for domestically produced and imported vehicles. The sector remains cautious and prepared for this rise.
